US Hit Legal Limit of Borrowing Authority, Risks Default

This is a transcript of top stories presented by China's CCTV Business Channel as produced by CNBC Asia Pacific.

A big hello to our viewers across China. I'm Saijal Patel and you're watching "Asia Market Daily". It's official. The U.S. has hit the legal limit of its borrowing authority.

The Treasury department says it can stave off default until early August, in part by tapping federal pension funds to pay off its bills.

In a letter to Congress, U.S. Treasury Secretary Timothy Geithner repeated his warning to lawmakers - that they must increase the debt ceiling, or face the risk of default.

Separately, U.S. Republican Representative Paul Ryan, the top budget-writer in the House of Representatives, said spending-cuts need to be larger than the debt-hike... further highlighting the division between the Republicans and Democrats over the issue.

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Dodge Dorland, CIO of Landor Capital Management:
There are plenty of things short-term that our Government can do to buy itself time. The real issue now is can we politically come up with a resolution to the economic and the financial challenge that we're facing. And it's going to be a compromise between both sides. We're going to look at the value, the perceived value of this compromise as to whether it makes sense longer term.

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Let's hope they come to an agreement soon. Well that wraps up the latest "Asia Market Daily". I'm Saijal Patel from CNBC.

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