July 25 - New Yorkers heading into work in the financial district expressed concern about Washington's debt negotiation impasse, but some remained confident a deal will ultimately get done without much damage to Wall Street sentiment. Conway G. Gittens reports.
The Wall Street trading week begins with a big cloud hanging over the heads of investors as lawmakers fail to reach an agreement over lifting the debt ceiling, bringing the U.S. one step closer to losing its stellar triple-A credit rating. New Yorkers heading into work in the financial district were noticeably concerned. SOUNDBITE: DONALD O'KEEFE, WORKS IN WALL STREET AREA (ENGLISH) SAYING: "I think it is outrageous. I think both parties should come together and should put the politics aside and move forward." SOUNDBITE: JASON, WORKS IN WALL STREET AREA (ENGLISH) SAYING: "I think there will be major disruptions in the market." But Wall Street veteran James Maguire Jr of Native One Institutional Trading believes a crisis will be averted. SOUNDBITE: JAMES MAGUIRE JR, MANAGING MEMBER, NATIVE ONE INSTITUTIONAL TRADING (ENGLISH) SAYING: "Well, I think ultimately we are going to get resolution on this and I think Wall Street is confident that that's going to happen. I think that this is not unusual. We've seen these types of things in the past. We are seeing some partisan positioning right now. However, I think we will have an ultimate resolution." Investors, however, are growing more concerned. The dollar is down, U.S. Treasury yields are up, and stock markets from Wall Street to Europe to Asia are trading modestly lower as the August 2 deadline looms closer and closer. Conway Gittens, Reuters