The Netherlands has become the latest eurozone member to be stripped of its AAA credit rating by Standard & Poor’s, citing weakening growth prospects as it cut the country’s rating to AA+. Earlier this month France also suffered a downgrade by S&P, when it was cut from AA+ to AA – two years after losing its AAA rating. Of the 17 members of the single currency bloc, only Germany, Finland and Luxembourg still hold an AAA rating from S&P – Financial Times

Japan is on track to win its war on deflation with the latest consumer price inflation figures showing the highest reading since the country slipped into deflation 15 years ago. Core consumer price index inflation, which excludes fresh food but includes energy, hit 0.9% in October, in line with economists’ expectations. Excluding both fresh food and energy, it reached 0.3%, the highest reading since 1998, indicating that rising energy costs alone were not the sole factor in inflationary pressure. – The Financial Times

Goldman Sachs has risked a further escalation of the Royal Mail privatisation row by putting a price target on the shares of 610p despite telling the government that the business should be floated at 330p last month. Analysts at Goldman said the postal group’s valuation should benefit from an increase in parcel deliveries, despite falling letter volumes. The investment bank’s 12-month price target of 610p represents an 85% premium on the flotation price, and gave further ammunition to those critics of the privatisation who argue the government sold off Royal Mail too cheaply. – The Guardian

Banks and investors have slipped back into their bad old ways, with appetite for junk bonds and high-risk debt at pre-crisis levels once again, according to the Bank of England. Junk bond issuance in the US has soared to a record high this year, double last year’s levels and surpassing the previous 2007 peak by nearly 50%, the Bank’s Financial Stability Report revealed. Cov-lite junk bond issuance is now three times as high as in 2007. – The Times

Lloyds Banking Group is planning to name Lord Blackwell, a former adviser to Margaret Thatcher and John Major, as its next chairman. The appointment is yet to be formally approved by regulators but may be announced today or early next week. Lord Blackwell, 61, is currently chairman of Lloyds’ Scottish Widows subsidiary, having joined the bank in June last year. He will replace Sir Win Bischoff who, as Lloyds’ chairman for the past four years, has steered the bank through the aftermath of the financial crisis. – The Times

Shares in Edinburgh-based property developer Sigma Capital surged by more than 40% yesterday as it unveiled a £700m joint venture deal with an investment bank to build thousands of homes for rent. The scale of the deal with Gatehouse, a Kuwaiti-backed investment bank, prompted comments of support from both Prime Minister David Cameron and Business Secretary Vince Cable. The agreement will initially see around 2,000 rental properties built in Liverpool and Greater Manchester. Once full bank finance is in place, construction is expected to take place over 24 months.- The Guardian