Markets have doubts about US debt compromise

In the US debt dispute, the Democrats and Republicans reached a last-minute agreement for raising the debt ceiling and cutting spending on Sunday night. However the compromise announced by President Barack Obama has yet to be approved by both chambers of the US Congress on Monday. The business paper Hospodářské noviny doubts that the markets will react positively: "The likelihood that the Republicans and Democrats would reach an agreement on raising the debt ceiling in the end was great. However the doubts about whether the agreement will appease the most powerful players on the financial markets - the rating agencies - remain great too. The agreement to raise US debt will no doubt reassure those who are directly dependent on money from the state budget. But for everyone else it's more important that the US doesn't lose its excellent rating. After all, a downgrading would shake the entire global economy."

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