FTSE falls on French growth and Spanish rating cuts

Fitch cut Spain's sovereign debt rating from ‘A' to ‘BBB,' the lowest investment grade rating, citing the cost of recapitalizing the country's banking industry and a lengthening recession. The FTSE was down 1% at 5,392, led by miners as metal prices retreated on the news, before recovering to stand down 0.5% at 5,421 by mid-morning. The French central bank also hit sentiment as it cut its second-quarter growth estimate. The Bank of France now expects the economy to contract by 0.1% in Q2, having previously expected growth to be unchanged. If the figures are confirmed it would be th...