S&P

BONDS

Leading fund managers are favouring US equities over markets including China and Europe as the appeal of owning dollar assets helps spark a shift into the world's largest economy.

FUND MANAGER FOCUS

MOVING INTO 2012

Asia fund managers have mixed views on the timing of buying opportunities in China despite a consensus view inflation has peaked, according to Standard & Poor's.

Standard & Poor's has cut the counterparty credit ratings on three French banks, following its removal of France's AAA rating earlier this month.

S&P's latest raft of downgrades were largely priced into markets, but more worrying is its forecast of a high chance of a deep recession in the region, said Schroders' European economist Azad Zangana.

Bank of England governor Mervyn King has urged investors and public authorities to pay less attention to ratings agencies, which he said have often "rushed" to downgrade.

Ratings agency Standard & Poor's has downgraded the EU bailout fund to AA+ from AAA.

The financial crisis engulfing the eurozone took a fresh twist on Friday after Standard & Poor's cut the credit rating on nine eurozone countries, including France's prized AAA, and Greece's debt talks collapsed without agreement.