there are a variety of issues weighing on kingfisher numbers in the u.k.op line number in terms of sales comes in pretty much in line with what the market had anticipated. the headline on marks & spencer's, let's get your first word news with juliette saly. juliette: china's debt rating has been cut i'm ladies for the first time since 1989. chinese stocks headed to the lowest levels in eight months. the yuan retreated. increased after the rating was reduced. the idea thatging the leadership will be able to rate and debt. >> we recognize the risk that come and have a broad jen -- agenda of structural reforms. we think of leverage will increase more slowly. these measures will not be enough to reverse the increasing leverage. trump's: president first budget has been dismissed by critics as a fantasy. it would reduce the government's role cutting social safety nets and negatively impacting many of the world poor that propelled him to the white house. the plot -- plan proposes spending cuts over the next game -- decade including cuts to low income housing and

france still provides a headache for kingfisher, with sales down over 5% while clothing weighs on m&s. >>> good morning. you're watching "street signs" as always at this time of the day. glad you're with us once again. we have another busy show for you. let's get straight to the european market action. the ftse 100 a bit higher to the tune of 0.2% across the board we're seeing a fairly uneven picture. the dax is down a notch. the cac 40 is up by two points. a fairly uninspiring trade at this point in time. let's show you the sectors one by one. you heard it in the headlines. basic resources the biggest underperformer off 0.6%. this may be down to the cuts in china's credit rating and maybe oversupply in the iron ore space. travel and leisure doing better, along with healthcare and media moodys has downgraded china's credit grading to a 1 citing an economy-wide rise in debt levels. beijing's final strength is waning and recent reform efforts will increase its liabilities rather than spurring growth as the economy becomes increasingly reliant on policy stimulus. speaking earlier on cnbc

stephen: shares in the retailer kingfisher have plunged by more than 6% in london after it reported poor in france. down byns have sales more than 5% in the last year compared to a rise of 5% across the total group. -- the companyrs hit by a cost of restructuring program. the british retailer says its market share has stabilized with growth continuing to be driven by its food business. has admitted underpaying its drivers in new york city for over two years. the right hailing service as it was calculating commission on each fare based on the overall total rather than on the amount after taxes and fees. uber says it is committed to fixing the mistake. could cost the company over $45 million, though, as it attempts to square accounts with tens of thousands of new york city drivers. rochelle: all right, stephen, thank you very much for our business roundup. time to get a look at what is making headlines in the papers. ♪ it is time to look through the papers. the big story is the manchester arena explosion that killed 22 people and injured dozens. that is right. among those killed and injure

downside, kingfisher, the market does not like that. rash dad is off.t is michelin's ex dividend today. as is euro tunnel and nokia. glencore is down 1.9% on the m&a story is running. there is a bit in the market as well. mine stocks have gone ex-dividend. matt. have the big story today about moody's cutting debt for the first time since 1989. chinese stocks headed for their lowest level in eight months. the yuan traded down onshore and offshore. and default risks increase after the rating was reduced to a1 from aaa3. the move challenges the view that the nation's leadership will be able to rain and that while maintaining the -- rein in debt. >> the authority has recognized the risks that come with it. theake that into account to point that we think that leverage will increase more slowly than it has in the past. would not beasures enough to reverse the increasing leverage. us bring in the chief investment officer at latitude investment. freddie, what do you think about this chinese move? it is an interesting headline and great superlatives. ieat cuts s

on ianou were firmer cheshire, the former king sister -- kingfisher ceo.ou voted against his reelection. i have not seen anything yet, but why is that? we recommended voting against him initially as a result of his significant external commitments. he served on five boards, including three of those as chairman, which is a very substantial time commitment. we are talking about a director who is tasked with being the chairman of the new u.k. barclays bank while also serving on the global board. it is a very substantial time commitment and a huge risk to shareholders if a director cannot respond to things like we are seeing right now with the investigation into the whistleblowing of event. or brexit. there is a number of things coming up that may demand substantial attention from the board. we think shareholders deserve better than having someone who may not be able to devote the time. i would also say that -- barclays has said he will scale back his workflow by september of this year. are you satisfied with that answer? andrew: we are somewhat santos -- sati

kingfisher is a big recliner across europe, down 7%.urope's biggest home-improvement retailer reporting a slump in french sales as rivals gain market shares sales in france, it 5.5%tes two james and fell in three months through april, worse than the 1% drop in that country's total home-improvement market. shares down by 7.1% today. let's talk about political risk because the difference in yields between the u.s. 10 year and the german 10 year bond is drinking -- shrinking. investors are fretting over the potential noise stemming from washington, the u.s. 10-year note about 185 basis points more than comparable bonds. the least sense donald trump was elected president in november. european political risk as being washed away and replaced by u.s. anxiety, the words of toronto dominion bank which expects the spread to tighten to at least 150 basis points by the end of the year. a big couple of days for opec, technical indicator are turning bullish for oil and brent crude futures in london rising above their 50 day 100 day, 200 day moving a