Backstory: European Reaction to the US Credit Downgrade

Markets around the world have been reacting this week to Standard & Poor’s decision to downgrade their rating of U.S. credit. On today’s first Backstory, Richard Milne, Capital Markets Editor at the Financial Times, explains what the downgrade means for European nations, and we’ll look at the steps that the European Central Bank took early this week to assuage investors’ fears about Spain and Italy’s ongoing debt problems.