eurozone debt crisis

Simone Baribeau

The FT reported last week that China was reviewing its holdings of eurozone debt in the wake of the crisis that has swept through the region’s bond markets.

China subsequently denied that it was set to change its diversification policy.

In a follow up piece, Reuters spoke with officials in Brazil, India, Japan and South Korea, who told the news agency that their central banks will also continue to invest in the euro.

Via Reuters: Read more

Ralph Atkins

Rage against rating agencies is rising. The latest to accuse the likes of Moody’s and Standard & Poor’s of simply making the crisis worse is Christian Noyer, France’s central bank governor, who usually avoids creating headlines.

Untimely downgrades – for instance of Spain by Fitch last week- were an “enormous problem,” Mr Noyer told a conference in Seoul, according to Bloomberg. Rating agencies were not just striking at the wrong moment. They were also failing to provide added value, Mr Noyer argued. “The fact that these decisions were taken at a certain point of time under the stress of markets seems to show that credit rating agencies are simply not giving information to markets but taking information from markets.” Read more