Is the Entire Western World Servants to China and Japan?
After euro-zone leaders came to an agreement for its bailout plan on Wednesday, the next step toward putting the plan in action included an appeal for China’s (NYSE:FXI) help by European Financial Stability Facility (EFSF) CEO Klaus Regling.
Speaking with Chinese leaders in Beijing on Friday in an effort to receive an investment, Regling said he did not expect “any precise outcome” from the visit and that he wanted to manage expectations for it. He noted that the Chinese are “regular buyers” of EFSF bonds and contrary to rumors, they will not get any concessions from a fund investment.
Meanwhile, Japan’s (NYSE:EWJ) new prime minister Yoshihiko Noda said in a Friday Financial Times interview his country will contribute to the bail out fund, but he said EU leaders need “to make ‘even greater efforts’ to resolve their sovereign debt turmoil.”
“Now we would like even greater efforts from within the EU and eurozone to ease crisis worries by creating a stronger and more detailed approach,” Mr Noda said, adding that Japan and other nations needed to set out policies for economic growth and fiscal reconstruction.
“This fire is not on the other side of the river,” he said. “Currently, the most important thing is to ensure it does not spread to Asia or the global economy.”
Also on Friday, the ratings service Standard & Poor’s (NYSE:MHP) affirmed its triple-A rating for the EFSF.