New York | Billionaire Elon Musk’s efforts to cut wasteful spending by $US1 trillion ($1.6 trillion) will not be enough to rein in the US deficit and prevent a sovereign debt crisis, says one of the most high-profile Australians on Wall Street

Matthew McLennan, co-head of the global value team and portfolio manager at the $US149 billion First Eagle Investments, told The Australian Financial Review he would continue to increase investments in gold – among them Australian gold miners – to hedge for the risks in sovereign debt markets.