�* ratings markets. this after ratings agency, fitch stripped america of it. and an erosion of governance that multiplied many times in debt limit stand—offs. from new york, our correspondent reports. just like everybody has a credit report to determine how much they can borrow, the us government has its own credit report, and for the first time since 2011, that rating has been downgraded from aaa to aa plus. fitch said that the assault on the capitol on january 6 was a factor in the decision, contributing to what they perceive as a steady deterioration of standards of governance over the last 20 years. from wall street to washington, reaction was swift. us markets tumbled with tech stocks leading the nasdaq lower, while bond investments pushed up treasury yields higher. in washington, treasurer secretary janet yellen reacted with anger. i

strongly disagree with fitch's decision, and i believe it is entirely unwarranted. its flawed assessment is based on outdated data, and fails to reflect improvements across a range of indicators, including those related to governance that we've seen over the past 2.5 years. that we've seen over the past 2-5 yeas-— that we've seen over the past 2.5 ears. , ., , , 2.5 years. other democrats used the downgrade — 2.5 years. other democrats used the downgrade as _ 2.5 years. other democrats used the downgrade as an _ 2.5 years. other democrats used the downgrade as an opportunityi the downgrade as an opportunity to point the finger at republicans. while republicans blamejoe biden and democrats for trillions of dollars in new spending. many economists dismiss the downgrade, includingjp morgan dismiss the downgrade, including jp morgan chase ceo who called it ridiculous and said that the decision ultimately didn't really matter. and he may not be wrong. us treasurers, that is government ious, remain the bed rock of the global financial system, despite this latest knock to the reputation. well, us stocks weren't the only ones affected by the

fitch's announcement. japan's nikkei opened lower. asia, along with the other global stock markets closed in the red. analysts expect that fitch's move could mean lower equities in this region, but said that those should be short—term moves. said that those should be short-term moves. investors tend to be — short-term moves. investors tend to be a _ short-term moves. investors tend to be a bit _ short-term moves. investors tend to be a bit reactive - short-term moves. investors tend to be a bit reactive by l tend to be a bit reactive by nature. so it's not surprising if there is a short—term reaction. any time the foundation is shaken, which in a way, something we're very used to as having the top rating. so seeing this, any disruption like that, is going to cause a reaction. that being said, the real underlying drivers of what determines the valuation of company stocks and how they do over time are not so much related to the rating of the us government. so what's really going to matter is business performance over time, economic growth over time, consumer spending over time.

thatin consumer spending over time. that in the en, the fundamental drivers are really what's going to matter for stock valuations. later, the bank of england will announce the its latest monetary policy. and expectations are high that it will raise rates again f so, it could take the cost of borrowing in the country up to a 15—year high. consumer inflation has come down more than exexpected injune, but it still remains the highest amongst the g7 economies. still staying on the topic of the rising cost of living. and power prices for many australian households have surged in recent weeks. experts say the transition to renewable energy sources will eventually result in lower electricity bills, but, as phil mercer found out, that's cold comfort for many. home should be a cozy sanctuary in sydney for diana. but rising costs have made electricity almost unaffordable. so she does what she can to beat the

winter chill. but worries about the future. winter chill. but worries about the future-— the future. power prices will increase by _ the future. power prices will increase by 2096 _ the future. power prices will increase by 2096 to - the future. power prices will increase by 2096 to 2596. - the future. power prices will increase by 2096 to 2596. i i increase by 20% to 25%. i cannot afford that. i don't know how we're going to survive this time with a huge cost of living rising. the rise of energy bills and you know, really extreme weather. western 5 dne 's really extreme weather. western sydney's first _ really extreme weather. western sydney's first community - sydney's first community battery stores excess solar energy from nearby houses. residents without roof top panels can join the scheme that aims to reduce soaring bills. people need protection from the heat, from the cold, and at the end of the day, they're finding they cannot afor them. so i believe that these batteries across—the—board will play a dynamic role in reducing costs for the communities. that's what it is all about.- what it is all about. and australia's _ what it is all about. and australia's politicians i what it is all about. and | australia's politicians are feeling a sense of urgency. look, wejust feeling a sense of urgency. look, we just have to do

everything to try to get as much _ everything to try to get as much renewable energy into the ground — much renewable energy into the ground as — much renewable energy into the ground as soon as possible. we know_ ground as soon as possible. we know that's the cheapest way to replace — know that's the cheapest way to replace the aging and retiring coal—fired power. it's a complicated process. we're doing — complicated process. we're doing the industrial revolution in about— doing the industrial revolution in about 15 years. our priority in about 15 years. our priority in new— in about 15 years. our priority in new south wales and mine as the minister for climate change is to— the minister for climate change is to make sure that we do our bit is to make sure that we do our hit to— is to make sure that we do our bit to reduce our emissions as quickly— bit to reduce our emissions as quickly as_ bit to reduce our emissions as quickly as possible.— quickly as possible. energy rices quickly as possible. energy prices in — quickly as possible. energy prices in australia - quickly as possible. energy prices in australia are - quickly as possible. energy i prices in australia are fueled by various factors. high inflation has had a major impact. there have been expensive upgrades to aging transmission lines and distribution network and then volatility in global markets caused by the war in ukraine. it's a real pressure for families and businesses as well to accommodate those rising costs. a fifth or a quarter is a largejump. in the longer term, what we're hoping is that renewable electricity will also drive down the costs as we become more self sufficient in australia. ., ., ~ ., australia. the artwork for the community — australia. the artwork for the community battery _

australia. the artwork for the community battery explores i australia. the artwork for the i community battery explores the indigenous concept that it's everyone's responsibility to care for the land. turning to earnings season now and singapore's largest bank, dbs group, has posted an almost 50% surge in the second quarter profits. that came in at a quarterly record high of almost $2 opinion 7 billion, beating expectations. the surge was driven by a stronger net interest income. now, qualcomm has reported the third quarter earnings with revenue at $8.4 billion, just missing estimates. the company forecasts that fourth quarter sales will come in below market expectations as well. qualcomm said that it could cutjobs as consumer spending on things like smartphones continue to be weak as global growth slows. well, other chip making giants

like intel reported their quarterly earnings and they suggest that the slowdown for demand in personal computers and tablets may be easing, but and tablets may be easing, but a recovery could be some way off. market intelligence company, idc, estimates that shipments will fall by 15% globaly this year before rebounding in 2024. earlier, i spoke with the firm's mario morales, on how close we are to the bottom of the slump of the pc market. we the bottom of the slump of the pc market-— pc market. we think probably some time — pc market. we think probably some time in _ pc market. we think probably some time in the _ pc market. we think probably some time in the septemberl pc market. we think probably - some time in the september time frame, maybe into 0ctober. some time in the september time frame, maybe into october. i think that there are some areas like the cloud service provider space where you're still seeing some rationalization of inventory. the automotive industry is resilient. but the pc and phone industry have been suffering for over a year now. so i think that those are the markets that we're hoping to see a lot more improvement, especially because there's a lot of new products coming out by the end of the year. and

microsoft with windows 11 should have a good migration in 2024, especially if it is infused with al. there's so much interest _ infused with al. there's so much interest right - infused with al. there's so much interest right now. infused with al. there's so much interest right now in| infused with al. there's so i much interest right now in al chips. which companies do you think will be the likely winners in this race? i think at this point, _ winners in this race? i think at this point, you _ winners in this race? i think at this point, you look - winners in this race? i think at this point, you look at i winners in this race? i think at this point, you look at a l at this point, you look at a tremendous amount of success in the data center area. but ai is have you enuke in the sense that we look at it more like a workload, but it's going to continue to proliferate, especially across end point devices. so you'll see it in your vehicle. you'll see it in your vehicle. you'll see it in your smartphone. and what we're going to start seeing is refining these very large language models to make them and integrate them directly into the devices at the edge. 0nce into the devices at the edge. once we start doing that, you'll see a proliferation of more ai and i think that it opens up the opportunity for other players to participate, whether it is a qualcomm or media tech or some of the companies that you don't hear about, but have already been investing years of development and technology around ai. i want to talk to you about the

us—china trade war. this is a massive cloud over this industry. so how is that playing into the development of the chips? i playing into the development of the chi s? ~ the chips? i think it definitely _ the chips? i think it definitely is. - the chips? i think it definitely is. rightl the chips? i think it - definitely is. right now, a lot of it isjust definitely is. right now, a lot of it is just movement that we're seeing. suppliers trying to understand what they can leverage still within the region. but you know, when you look at the space, it's a very integrated environment. and so, you cannotjust get out of china when you look at companies like intel. they put 25% of their business coming from china. someone like qualcomm is 60% of their business. so they're going to continue, these us based companies and european based companies and european based companies are going to continue to lobby their governments to ensure that they can continue to provide the products and technologies that their customers need within that region. but you will see supply chains still evolve, and i think that we're seeing some of that now. where certain customers are forcing their suppliers to migrate some of their production of their products to other regions just to mitigate some of the risks that we're seeing today.

and that's it for this edition of asia business report. keep up of asia business report. keep up with the latest headlines by visiting our news website. i'm monica miller, thank you for watching. bbc news, bringing you different stories from across the uk. �* , different stories from across the uk. m ':: :: different stories from across theuk. �*,'::::y ., different stories from across theuk. �*fiiiiy ., ,_ the uk. it's 100 years since the uk. it's100 years since the first — the uk. it's100 years since the first mg _ the uk. it's100 years since the first mg rolled - the uk. it's100 years since the first mg rolled out - the uk. it's100 years since the first mg rolled out of i the first mg rolled out of morris garages in oxford. aha, morris garages in oxford. a century on, they're still drawing a crowd.- century on, they're still drawing a crowd. the appeal, certainly when _ drawing a crowd. the appeal, certainly when i _ drawing a crowd. the appeal, certainly when i was - drawing a crowd. the appeal, certainly when i was young, l drawing a crowd. the appeal, | certainly when i was young, it was _ certainly when i was young, it was a — certainly when i was young, it was a sports car. it was a 2-seater. _ was a sports car. it was a 2—seater. and you could have fun with — 2—seater. and you could have fun with it _ 2-seater. and you could have fun with it— fun with it. but a wet day could dampen _ fun with it. but a wet day could dampen all- fun with it. but a wet day could dampen all of- fun with it. but a wet day could dampen all of that. fun with it. but a wet day - could dampen all of that. it's not a car _ could dampen all of that. it's not a car at _ could dampen all of that. it's not a car at all _ could dampen all of that. it's not a car at all for _ could dampen all of that. it�*s not a car at all for the rain, no. no, most definitely not. this is the first outing in the rain since completing its four—year restoration. yeah, as i say, it's totally original. and i've done all of the work myself. and i've done all of the work m self. ~ , ., g; myself. voiceover: mg - for 35 ears, a

myself. voiceover: mg - for 35 years. a magic— myself. voiceover: mg - for 35 years, a magic name _ myself. voiceover: mg - for 35 years, a magic name to - myself. voiceover: mg - for 35 years, a magic name to all - myself. voiceover: mg - for 35 years, a magic name to all who i years, a magic name to all who love _ years, a magic name to all who love it — years, a magic name to all who love it. ., , . , . , love it. for years, it was the ultimate _ love it. for years, it was the ultimate boy's _ love it. for years, it was the ultimate boy's toy, - love it. for years, it was the ultimate boy's toy, and - love it. for years, it was the ultimate boy's toy, and so i love it. for years, it was the ultimate boy's toy, and so itj ultimate boy's toy, and so it remains today. i ultimate boy's toy, and so it remains today.— ultimate boy's toy, and so it remains today. i can understand the fascination, _ remains today. i can understand the fascination, but _ remains today. i can understand the fascination, but i _ remains today. i can understand the fascination, but i am - remains today. i can understand the fascination, but i am a - the fascination, but i am a person who as long as it gets me from a to b, i don't really care. ., , ., , care. the factory finally closed in _ care. the factory finally closed in 1980. - care. the factory finally closed in 1980. it - care. the factory finally closed in 1980. it was i closed in 1980. it was devastating, - closed in 1980. it was devastating, wasn't i closed in 1980. it was| devastating, wasn't it. absolutely devastating. but then, look how many manufacturers have gone. find manufacturers have gone. and what's this? _ manufacturers have gone. and what's this? built _ manufacturers have gone. and what's this? built in _ manufacturers have gone. and what's this? built in china, some purists will argue this isn't a true mg. but... that isn't a true mg. but... at least it's _ isn't a true mg. but... git least it's keeping the mark alive and bringing new people into the mg car club. for more stories from _ into the mg car club. for more stories from across _ into the mg car club. for more stories from across the - into the mg car club. for more stories from across the uk, i stories from across the uk, head to the bbc news website. tonight — wet weather, big wins forjamaica and a cash—sniffing dog.

but first, lizzo, her production company and her dance captain are being sued by three former dancers. some of the claims include sexual harassment and creating a hostile work environment — and the singer is also accused of fat—shaming. lizzo's team hasn't responded to the claims yet. one of the dancers involved — ariana — said this i'm so new to this industry. and for this to be my first experience is really crazy. nobody speaks up because they're so scared for their jobs. i was terrified for my job. some other stories now. donald trump has been charged with trying to change the 2020 election result. the former us president has now been charged in three criminal cases, but experts say this could be the most serious. donald trump — who's trying to get his old job back at next year's election — says it's not true — and described it as a �*witch hunt�*. more bad weather's

due this summer. warnings have been issued over strong winds and thunderstorms, but in true british style, these huns didn't let the wet weather stop them dressing up for the races! jamaica have qualified for the first time to the knockout stages of the world cup, a goalless draw was enough for them to progress, and for brazil to go out in the group stage for the first time in 28 years. now ten seconds of a very clever dog! italian police dog elio sniffed out over1 million euros worth of cash in two suitcases at a bus station in florence. you're all caught up now — seeya!

hello and welcome to sports day. i am mark edwards. the reggae girls find their rhythm. to make a qualifierfor the of the women's world cup, and knockis the women's world cup, and knock is ill out. that is not the only shock as south africa lead it late to defeat italy and book their place in the last 16. and maisie summers newton produces an amazing

performance in manchester. hello and thanks forjoining us. there is a lot to get through. starting at the women's world cup and australia and new zealand where the lineup for the knockout stages is almost complete. the last 16 will be missing two major footballing nations, brazil and italy are both out after failing to leave their group on a day to rememberforjamaica and south africa. not many observers gave jamaica a chance of making the knockout stages but they knew a draw against brazil would see them qualify and soon the legendary martyr went close. it was a game of few chances but the jamaicans

were hoping they would not pay