You’ll find better coverage of this on FT Alphaville.
But today’s warning about the US economy from Standard & Poor’s will be closely watched in Britain today and beyond. (Bear in mind the old expression that when the US economy sneezes, the rest of the world catches a cold).
You can read our main story at ft.com through this link. Shares have fallen sharply, Treasury yields are up and gold has hit a new record price.
Here is one of the key passages from the ratings agency:
Because the U.S. has, relative to its ‘AAA’ peers, what we consider to be very large budget deficits and rising government indebtedness and the path to addressing these is not clear to us, we have revised our outlook on the long-term rating to negative from stable.
No doubt the coalition will argue that Britain is a different case because the UK deficit reduction path is relatively clear.