S&P

ON S&P'S DOWNGRADE OF JAPAN

Standard & Poor's has cut Japan's sovereign rating outlook to negative following the devastation caused by last month's earthquake and tsunami.

The US investment banking firm Jefferies & Co last week initiated its first quarterly publication for its clients, highlighting just how financial markets have changed in a little over two years.

Tim Geithner, the US Treasury secretary, shrugged off warnings from a leading ratings agency about the US public finances as he sought to reassure Wall Street he world's largest economy would be able to maintain its highly-prized AAA rating.

Investors have said it is unlikely a full-blown downgrade of the US will take place in the next few years following yesterday's move by S&P.

Standard & Poor's has cut its outlook for the US from stable to negative, causing the dollar and shares to tumble.

ON NORTH AMERICA

Credit rating agency Standard & Poor's has downgraded Portugal for the second time, on the basis it may be unable to repay its debt, the Financial Times reports.

Moody's has downgraded Portugal's government debt two more notches because of 'subdued' growth prospects.

The second half of 2010 saw continued strong returns from global emerging markets.