Asia, Europe to ‘Stick It Out’ With U.S. Debt After S&P Cut
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Asian states are likely to retain their U.S. Treasury holdings for now and European governments expressed confidence in the world’s largest economy after Standard & Poor’s cut the U.S.’s sovereign credit rating to AA+.
Russia said the one-step cut “can be ignored” and France joined the U.S. in questioning S&P’s reasoning. South Korea affirmed its “faith” in Treasuries after an emergency meeting of officials today in Gwacheon, south of Seoul. China’s official Xinhua news service said in a commentary that the U.S. must cure its “addiction” to borrowing.