of the global markets. this after ratings agency, fitch stripped america of its highest credit rating. the firm cited a growing debt burdon and an erosion of governance that has manifested multiplied many times in debt limit stand—offs. michelle fleury 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+. fitch said that the assault on the capitol onjanuary 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, treasury 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 its flawed assessment is based on outdated data, and fails to reflect improvements across a range of indicators, including those related to governance that we've seen over the past 2.5 years. other democrats used the downgrade as an opportunity to point the finger at republicans for their role in the recent debt limit fight. while republicans blame joe biden and democrats for trillions of dollars in new spending. many economists dismiss the downgrade, including jp morgan chase ceo jamie diamond, who called it ridiculous and said that the decision ultimately didn't really matter. and he may not be wrong. us treasuries, that is government ious, remain the bedrock of the global financial system, despite this latest knock to the reputation.

expectations are high that it will raise rates again. if so, it could take the cost of borrowing up to a 15—year high. consumer inflation has come down more than expected injune but it still remains the highest among the g7 economies. we have seen rise, that will help temper the price pressures from imports. we've also seen other pressures in the markets, where they have been raising some questions about the bank of england's credibilities, somejitters and of england's credibilities, some jitters and mortgage of england's credibilities, somejitters and mortgage rates going up without any decisions being made. that has all calmed down too. and the public�*s expectations of where inflation is going, which were really very high, have now begun to temper. that's all going in the bank's favour. but a crucial

issueis bank's favour. but a crucial issue is they have raised rates by 5%. the impact of that has kind of taken some time to filter into the economy, sort of turning the tap of rate rises on. we are beginning to see the impact of that now. we've seen it in the housing market, we've seen it in some corporate insolvencies too. that all leads to this balancing act between crushing inflation but avoiding a downturn. it's a tightrope and we're probably approaching the kind of most narrow, trickiest part of that tightrope. now, 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 to lower electricity bills. but as phil mercerfound out, that is cold comfort for many. home should be a cosy sanctuary in sydney for d 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. ., , . , future. power prices will increase _ future. power prices will increase by _ future. power prices will increase by 20-25%. - future. power prices will increase by 20-25%. i. future. power prices will - increase by 20-25%. i cannot increase by 20—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 sydney's — extreme weather. western sydney's first _ extreme weather. western sydney's first community l sydney's first community battery stores excess solar energy from nearby houses. residents without rooftop panels can join the scheme that aims to reduce soaring bills. protection from the heat, from the cold, and at the end of the day, they find they cannot afford it. day, they find they cannot afford it— day, they find they cannot afford it. , , afford it. so, i believe these batteries— afford it. so, i believe these batteries right _ afford it. so, i believe these batteries right across - afford it. so, i believe these batteries right across the . batteries right across the board _ batteries right across the board will play a dynamic role in reducing cost for our communities. that's what it's all about _ communities. that's what it's all about-— all about. and australia's politicians _ all about. and australia's politicians are _ all about. and australia's politicians are feeling - all about. and australia's politicians are feeling a l all about. and australia's - politicians are feeling a sense of urgency. politicians are feeling a sense of urgency-—

politicians are feeling a sense of urgency. look, we 'ust have to do everything _ of urgency. look, we 'ust have to do everything to _ of urgency. look, we just have to do everything to try - of urgency. look, we just have to do everything to try and - of urgency. look, we just have to do everything to try and getj to do everything to try and get as much renewable energy into the ground as soon as possible. we know that's the cheapest way to replace the ageing and retiring coal—fired power. it's a complicated process. we're doing the industrial revolution in about 15 years. our priority in about 15 years. our priority in new south wales, and mine as the ministerfor climate the minister for climate change, is to make sure that we do our bit to reduce our emissions as quickly as possible. emissions as quickly as possible-— emissions as quickly as ossible. , , . , possible. energy prices in australia _ possible. energy prices in australia are _ possible. energy prices in australia are fuelled - possible. energy prices in australia are fuelled by l australia are fuelled by various factors — high inflation has had a major impact. there have been expensive upgrades to ageing transmission lines and distribution networks. then there's volatility in global energy markets, caused by the war in ukraine. it'sa war in ukraine. it's a real pressure for families and businesses as well to accommodate those rising costs — you know, a fifth or a quarter is a largejump. in the longer term, what we're hoping is new renewable electricity will also drive down the costs as we become more self—sufficient in australia.

the artwork for the community battery explores the indigenous concept, that it's everyone's responsibility to care for the land. it's finalising a set of incentives for companies while holding discussions with major firms like tesla. earlier, i spoke to a representative who explained the benefits. three reasons — one, indonesia has the largest reserves. second, it's the biggest market in south—east asia. and, third, government policies that are getting more and more conducive towards attracting investments. and also to stimulate user demand. and also to stimulate user demand-— and also to stimulate user demand. , ,, ., ., , demand. despite all of this, ou demand. despite all of this, you know. _ demand. despite all of this, you know, the _ demand. despite all of this, you know, the efforts - demand. despite all of this, you know, the efforts and i demand. despite all of this, | you know, the efforts and the government in indonesia has made, is it too little, too

late? because tesla recently named malaysia as the site of its regional headquarters? it’s its regional headquarters? it's not too late. _ its regional headquarters? it�*s not too late. the government is actively in discussions with key players notjust from the us but also from china. and then we already have key players in from china and in south korea here already. and remember there are a lot of auto makers out there. so, i think with the roll—out of more government incentives for the additional imports for the battery, electric vehicles, and also the more customer demand, i think indonesia could still be an attractive bargain for additional players to enter. qualcomhas reported its earnings with revenue coming in at $8.4 billion, just missing estimates. the company forecast that fourth—quarter sales will come in below market expectations as well. it said it could cutjobs as consumer spending on gadgets like smartphones continues to remain weak as global growth slows.

well, other chip—making giants, like intel and well, other chip—making giants, like inteland amd, well, other chip—making giants, like intel and amd, reported their latest quarterly earnings last week. and they suggest the slowdown in the demand for personal computers and tablets may finally be easing, but a recovery could be a way off. market intelligence company idc estimates that the shipments will fall by 15% globally this year before rebounding in 2024. earlier, i spoke with the firm's mario morales on how close we are to the bottom for the slump of the pc market. we think the slump of the pc market. - think probably some time in the september time frame, think probably some time in the septembertime frame, maybe september time frame, maybe until october. septembertime frame, maybe until october. i think there are some areas like the cloud service provider space where you're still seeing some rationalisation of some inventory. the automotive industry remains resilient, but the pc and phone industry have been suffering for over a year now. so, ithink been suffering for over a year now. so, i think 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 drive a good migration in 2024, especially if it's infused with al. i in 2024, especially if it's infused with al.- in 2024, especially if it's infused with al. i want to talk to ou, infused with al. i want to talk to you. though. _ infused with al. i want to talk to you, though, about - infused with al. i want to talk to you, though, about the - to you, though, about the us—china trade war. this is a massive cloud over this industry. so, how is that playing into the development of these chips? i playing into the development of these chips?— these chips? i think it definitely _ these chips? i think it definitely is. - these chips? i think it definitely is. right - these chips? i think it i definitely is. right now, these 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 it's, you know, when you look at the space, it's a very integrated environment. and so you cannot just get out of china when you look at companies like intel — you know, 25% of their business is coming from china, oualcomm is coming from china, oualcomm is 60% of their business. they're gonna 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 it 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 some of their production of their products to other regions to mitigate some of the risks that we're seeing today. of the risks that we're seeing toda . �* . �* , of the risks that we're seeing toda . �* ., �* , ., , today. and that's it for this edition of _ today. and that's it for this edition of asia _ today. and that's it for this edition of asia business . edition of asia business report. i'm monica miller. thanks for watching. voice-over: bbc news, bringing you different stories from across the uk. safe and sound asleep. these puppies are lucky to be here. their mum was a stray, rescued from the streets, heavily pregnant, clearly traumatised. when she arrived with us, she was so nervous to the point where she did not walk for the first week. she wouldn't stand. she was so nervous, she wouldn't go anywhere, particularly with men but with everyone, basically. staff at the rescue centre named the nervous collie roo

and a foster family was found at this farm near helston where she could have her litter of seven pups in peace and quiet. things aren't perfect for her. she definitely still has a long way to go, but coming to a nice, quieter environment than being in kennels has been fantastic for her. she has come along really well and the next stage will be keep feeding and growing the puppies and when they are old enough we will find them all homes. and roo as well. but for now, she is really happy here, she has settled well. with tens of thousands of dogs in uk rescue centres, the national animal welfare trust says roo's story is an important reminder to think before getting a pet. voice—over: for more stories from across the uk, head to the bbc news website. hey, i'm zof with the catch up! 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 myjob. 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 overi million euros worth of cash in two suitcases at a bus station in florence. amazing. that is taking pets with jobs to an iconic new level.our all caught up now.

hello and welcome to sports day. i am mark edwards. the reggae girls find their rhythm. they make the qualifiers for the first time in the women's world cup, and knock brazil out. that is not the only shock as south africa leave 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 in australia and new zealand where the lineup for the knockout stages is almost complete. the last 16 will be missing two majorfootballing 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 marta went close. it was a game of few chances but the jamaicans were hoping