moody's will announce later this week whether it will keep or cut its rating for italy. the kospi rose 1 -point-4 percent to close at 17-74. the it industry saw gains,... with hynix semiconductor jumping more than 6 percent... and samsung electronics and lg display both rising about about 2 percent. the tech-heavy kosdaq, meanwhile, added 6-tenths-of a percent. on the fx counter,... the korean currency weakened by 8 won... to close at 11- 16 against the us dollar. the south korean national basketball team crushes malaysia 89-42 in the first round at the fiba asia championship in china. nine teams will fight for a single spot at next summer's olympics in london. and with other sports news, here's jimmy yu. hello, i'm jimmy yu and welcome to world sports. starting off with the champions league...manchester united showed its resolve by rallying for a 1-1 tie at benfica in group c on wednesday. benfica pretty much controlled the pace in the first half as oscar cardozo put the side ahead in the 24th minute. however, ryan giggs equalized in the 42nd minute with an unexpected l

moody's previously had as one notch higher than s&p, so now, with the movies in adjustment -- the moody's adjustment, what that means is we are still very much on a roll with the debt. a strong aa. we noticed in the electronic markets, as we're required to do with our material disclosure, and all of our bond documents, for our build america bond revenues. president vietor: commissioner moran. vice president moran: did they state a reason for the downgrade? >> this is on a current basis as well as a projected basis. what movies does is just take them all and line them up in a row, and based on our current level of water sailors and the cumulative fund balance reserves, that made us go into the third notch of aa. vice president moran: and was the size of the balancing accounts an issue there? >> they factor in all of the cash we have available. and also noticed a long term strength of the economics. we cannot fall out of sync. the willingness of the commission to adopt the rate increases that were needed and the cost management, the efficiencies. they did give us a lot of credit strength, w

the move is expected to be viewed positively by moody's when it reconsiders the country's credit rating later this week. park ji-won reports. in the midst of continuing uncertainty over greece's debt woes,... the italian parliament finally approved a 54 billion euro package of austerity measures on wednesday. the lower house passed the center-right government's austerity budget plans... that aim to balance the country's budget deficit by 2013. the package of tax

i point out that moody's, your company did not. you're not one of the raters.'re the economist there. but do you see this new gridlock because now we have congress in yet another gridlock. the government is on a precipice again of having to be shut down because they can't agree on a financial plan. the worst part of all is that unless they reach some agreement this week it's my understanding that the aid to disaster victims from the recent weather disasters could find themselves cut off from disaster relief. do you think that increases the risk that we may see another downgrade? >> yeah, sure. absolutely. i mean, i think the political vitriol, the spectacle that occurred here in washington this spring and summer did tremendous damage. i mean, i think the economy at the beginning of the year had a lot of potential. we are creating a couple hundred thousand jobs per month. unemployment was coming down. then we went through this mess. it just eviscerated confidence. people were already nervous because of what we've all been through. it's been very difficult. but t

the moody's rating agency has downgraded two top french banks by one notch.e of them has been downgraded to double-a-3, the other to double a-1. they are keeping another under review. shares of all three have plummeted in recent weeks but they remained relatively stable after the downgrade. >> moody's had put the french banks on review for a downgrade in mid june among concern over the exposure to greek debt. the greek sovereign debt is not the main threat, the french bank's only hold about 9.8 billion euros in their portfolio now. the danger lies in the corporate and private sectors where outstanding loans come to 30 billion euros. the greek subsidiaries have been leading lenders in the debt stricken nation. if there was a widespread defaults, they would have to book a huge losses which would hit the parent bank's parent of the french central bank is downplaying the move. >> french banks don't need any outside capital to face turned risks. like all banks, they have to continue accumulating capital to mount their own defense. >> that might be easier said than

moody has cut the rating on wells fargo.complicated but moody's is seeing stresses in both those balance sheets. back to you. >> breaking news for us. thank you very much. regarding the fed's decision. >>> coming up, a new report reveals the u.s. is building secret new drone bases in africa. plus, a powerful typhoon slams into japan, killing several people and bringing tokyo to a standstill. >>> and just as the 2012 campaign cycle kicks into gear, twitter does something to get political message out that it has never done before. we've got the details ahead. even ragu users chose prego. prego?! but i've been buying ragu for years. [ thinking ] i wonder what other questionable choices i've made? [ '80s dance music plays ] [ sighs ] [ male announcer ] choose taste. choose prego. today i own 165 wendy's restaurants. and i get my financing from ge capital. but i also get stuff that goes way beyond banking. we not only lend people money, we help them save it. [ junior ] ge engineers found ways to cut my energy use. [ cheryl ] more

downgrading the long term debt of wells fargo and short term rating of citigroup, so moody's, today, really taking a close look at these banks. doesn't mean they're in huge trouble but it does send out a message that the condition and the state of the financial institutions in this country are under close review. alisyn: got t ashley webster, thank you very much. >>> the breaking news on bank of america comes just one day after the world's top bankers issued new warnings about the global economy. international monetary fund, laying out some major concerns, saying the global financial system is more vulnerable than at any point since the 2008 crisis. they say european and u.s. markets are both in serious trouble, adding that if solutions are not reached soon, banks worldwide could be forced to take drastic measures. >>> president obama talked about the global economic threat in lengthy remarks a the u.n. this morning but the big story there was what the president said about the palestinians' push for statehood, he urged them to drop a requested u.n. vote and instead, seek private nego

now after the moodies news, the euro fell back a touch, a little bit weaker. but gained again with currencies afterwards from french president sarkozy and merck el say be they were basically reassuring markets about further help for greece. we saw the euro gaining a touch. trading around the mid 105 yen level. so still the yen remain willing quite strong, which ever way you look at it. the issues on top, general negative economic data out of u.s. retail sales as well as price index numbers. which came out pretty flat yesterday in the u.s. that follows flat or zero growth jobs numbers we saw at the beginning of september. coming up, we have manufacturing data for new york and philadelphia. but for now, the topics are in the positive. back to you. >> ramin, thanks for that. that was our market reporter at the tokyo stock exchange. let's also get a recap of other market figures. >>> that is all for now in business news. back it catherine. >> thanks we much, ai. >>> japan's prime minister noda and u.s. president barack obama will hold their first talks next wednes

moody's also cut the long-term debt on wells fargo and citi's short-term rating. as you can see, both stocks plunged. after financials, materials were the weakest group. among the hardest hit? freeport mcmoran. analysts say a week-old labor strike in indonesia could cost the company up to $19 million a day and hurt its quarterly results. the stock sank to a 52-week low of $35.59 a share. another hotbed for selling? coal stocks! they got burned on weaker outlooks. shares of alpha natural resources lost more than 17%. the company said its shipments to asia are down because of weak demand. also down? walter energy. shares fell almost 12% after the company trimmed its production targets for the second half of the year. those worries about coal producers took the steam out of rail stocks. coal transport is key for the railroads. norfolk southern, c.s.x. and union pacific all backtracked over 6%. takeover talk helped natgas producer range resources buck the trend today. the stock ended the day up almost 5%. it went as high as $69 a share in intraday trading on rumors it

credit rating agency, moody's, has already downgraded its assessment on two french financial groups. moody's said it cut the long-term debt and deposit rating from credit agricole and another was lowered to aa-3. amid growing concerns about the health of euro zone's banks heavily exposed to the region's debt. u.s. lenders have been with holding funds, causing an acute shortage of dollars. to forestall a new liquidity cris crisis, the european central bank announced a new dollar funding operation. the ecb said it will provide three-month loans to commercial banks, in coordination with major central banks, including the u.s. federal reserve, the bank of england and the bank of japan. this new measure comes on top of one-week loans the ecb has been providing since may last year. the ecb is believed to have decided on the new measure, to insure the financial firms have the larger amount of dollars they need through the end of this year. >> and the heart of europe's financial mess is of course, greece. and the big question is, will the country default. on friday, the 17 euro zone finance

he's a very smart guy and trust him ahead of moody's any day of the week. >> but, ben. >> well capitalized and great shape. >> and the fact they had to give him a deal. and at these levels, why are they doing that? >> they want to be better capitalized. they're well had-capitalized and they want to get more capitalized. >> neil: adam, get into that. >> well, in a way things are far better than 2008 for the american banks in particular and this is key, the capital levels are higher. that means they're in a safer position. they're not in threat of going down, as charlie correctly said. going down by which i mean dying. on the other hand what we're seeing to answer your questions, charles, these banks are trying to shore themselves up, shore up the balance sheets, but the businesses are bad. >> why are they bad? >> and they're laying off workers, and this economy and-- >> you've been reporting on this. >> and dodd-frank is squeezing them to death. yes, that is. and you don't exit proprietary trading and say that goldman sachs is going to make the same money. and banks and geldman sacks and mo

on top of that, concerns about a possible moody's downgrade of french banks added to the day's uncertainty. don't forget french banks are big holders of greek bonds. and, many experts say the u.s. is not insulated from the eurozone's financial problems. economists say europe's crisis could push the already fragile american economy into recession. joining us now with his take on today's market action is nick colas, chief market strategist at convergex group. nick, you have to apologise or i have to apologise, there is a lot of noise behind me, i'm at the new york stock exchange and there is a party tonight. maybe there should have been a party because of the turn around in the last half hour of trading. let me start with that. is there reason to believe that china would step in and buy italian bonds? >> it's hard to know if they would or wouldn't but i think it's a really important example of how nervous the market is overall. agency about the greek problem and other sovereign debt worries. and what kind of really low quality information can rally the markets. because really it was nothing

a couple of those downgraded by moody's investor services.se are the things to look out for later today. markets very volatile even at this very hour, they've swung between gains and losses and back up in the green again. andrew. >>> of course, we'll continue to monday tar the markets. but for the moment, you've been watching "world business today." thanks so much for joining us. i'm andrew stevens at the world economic forum in dallan in northeastern china. >> and i'm nina del santos in london. in the meantime, it's good-bye for now.

and moody's down grading the greek banks.ois appeals court has ruled american airlines must keep providing information on its flights and fares to or bits. american airlines reported that it wanted to leave orbitz but that lead to a legal action. >>> some of the laws of physics are getting turned upside down. what experts say is faster than the speed of light. it feels like a short cut, even through customs. it feels like everything's gonna to be just fine. it feels like the experience of a lifetime. that's what it feels like to be a member. >>> welcome back to the morning news. there are questions about who is at fault in a recent accident that injured a bicyclist. she was trying to go around a double parked car when she fell and a muni bus ran over her arm. the incident was captured on a surveillance camera. police say it appears the bicyclist was at fault for making an illegal lane change. >>> high school physics books may have to be rewritten now. scientists in switzerland say they found something that is faster than the

ok so today moody's ratings agency cut the ratings for two large french banks that are saddled with greek debt this as greece nears default and the country's prime minister had emergency talks with germany and france today about rescue in germany and france called. to stave off default meanwhile china says it's willing to help to support europe and bygones from nations facing a debt crisis this of course includes italy too and it's not just china together the brics nations of developing economies are coming up with their own rescue plan for europe the developing nations be the saviors of the developed world in fact and what does all of this mean for the u.s. china of course is the country's largest creditor also the u.s. economy could pay the price of recession for a greek default some analysts say if this is a tipping point for a double dip for more i spoke earlier to michael cunto he's president of pentode portfolio strategies to start things off we talked a little bit about greece and i asked him with france and germany backing greece are sounding like they are going to and china sayin

sheila moody was heading to the pentagon.in jay jonas was at the new york fire department. >> what a beautiful day it started off to be and it descended into hell on earth. >> reporter: florence was on the 78th floor of the south tower, a manager, when the north tower was hit. this is what she told us on the first anniversary. >> see the young people doing the sign of the cross and jumping, you were like, oh, my god. it's got to be awful up there for people to make that choice. >> reporter: florence left the 78th floor and gone down to 77. >> i could see straight across the floor, which was all glass and i could not figure out, on a bright, sunny, cloudless day what this black thing was that was approaching the building. >> reporter: moments later, the second plane hit the floor she had just been on. of the last 25 people out of the south tower, she was number 18. ten years later, she had not been back to ground zero until she went with us. >> wow. >> reporter: for sheila moody, it was just her second day on the job at the pe

moody's has downgraded the credit ratings of three major us banks... bank of america, wells fargo and citigroup... saying that the us government is less willing now than before... to rescue them if they become unstable. boa's long-term debt was chopped two notches to baa1 from a2, wells fargo to a2 from a1,... while citigroup's short-term rating was downgraded to prime-2 from prime -1. another rating agency, standard & poor's cut its credit ratings on seven italian banks wednesday... a day after it downgraded the country's sovereign rating. the cut targeted leading banks such as mediobanca and intesa sanpaolo,... as well as five others including findomestic and banca imi. in a statement, the agency said it was assigning negative outlooks to the long- term ratings on those banks... and was also revising its outlooks from stable to negative on eight other italian banks. meanwhile, the imf gave out a second warning wednesday,... saying that the global financial system is at its most vulnerable state since the 2008 financial crisis. highlighting that the r

analytics according to mark zandi the chief economist of moody's analytics to produce one nine one point nine million that's one of the lower numbers and you know it was one of the guys at s. and p's that was going to two point four million so the republicans are saying wait a minute you you've created three million you created really two million you're going to get you below eight percent you get reelected we can't have that doug elmendorf the head of the c.b.o.t. specifically said that he's not dorsey any policy this is these are decisions that lawmakers will have to make and of course lawmakers are have to answer to their constituents what not true again and why here's alex couple the. book again with twelve is just making a recommendation that will be voted up or down by its side of god just a recommendation it they're going to they're going to lay out a committee they're going to lay out a piece of legislation of the as you say resolution a relegation zone spill agusta rubel. that's very different than any any but it's any disease or harmful than anything that in any piece along to

joining me live from minnesota is chuck moody, ceo and president of wool and former ceo and president of dairy queen. let's talk about the wool mill, a small company, but clearly it had to be a huge labor of love to bring it back like this, equipment from the mill already tagged, ready to be shipped abroad. explain to all of us why you decided to save it. >> well, i think my partner paul moody and i, my cousin, visited the mill fist tirst time in apr this year. actually at the end of april, that machinery and equipment was supposed to be shipped over to pakistan. we literally had or three weeks to make the call whether we wanted to reopen the mill. it had been shut down for two years and had been stagnant sitting there with product in the equipment and pretty much everything left as is. had it not been for the wonderful talent of former employees, there's no way that we would have been able to open it and/or be interested in opening it. but, given the talent that was there, we felt it was worthy. it's an iconic and legendary brand here in minnesota. it is the oldest manufacturing enti

republican strategist i would be doing everything i possibly could to defeat this bill because as moody's has pointed out it will actually create one point nine million new jobs and it will boost g.d.p. by two percent it will lower the job the unemployment rate and any positive movement will benefit president obama in the next election but they're only one thing republicans have not changed their mind on the entire time obama has been in office is raising taxes they say they will not sign on to anything in any form that doesn't that seems to be what's going on here they've seen some of the provisions of the bill and they don't like get your take on that. yeah i think that's a good assessment there are two provisions the way and which it will be paid for is to get rid of the bush tax breaks for the wealthy so the top two percent as president obama specified will be taxed and he'll also get rid of some of these corporate loopholes which have prevented major corporations and even mid-sized corporations from paying any taxes republicans are using the economic downturn as an opportunity to say

well moody's the ratings agency cut the ratings for two large french banks that are saddled with greek debt says greece nears default and its leaders talk with germany and france about rescue meanwhile china says it's willing to help to support europe and buy ballance from nations facing a debt. crisis and it's actually not just china together the brics the developing nations of brazil russia india and china are coming up with their own plan so could developing nations be the saviors of the developed world and what does this all mean for the u.s. china is the country's largest creditor and also the u.s. economy could pay the price of recession for a greek default scenario some analysts say if this truly is a tipping point for a double dip recession joining me to talk about how this could all play out is michael canto he is president for penn tofor folio strategies michael it's nice to see you always great to see you ok well first let's talk about greece because france and germany are meeting with greece's leader today to talk about rescue we have china saying it's willing to help at th

welcome thanks for having me great to have you here with us today as you point out your articles moody's says this is going to create jobs give us the details and and your thoughts or you know that you're reporting you know what your observation is and how this might play in florida first at the movies right now. you know economists of every stripe have really been weighing in with positive reviews of president obama's jobs plan and you know as you mentioned moody's analyst said it could create two million jobs other economists have said it could create them for four point three million jobs so you know there are there's really no dissenting views that you know this is not going to help stimulate the economy and who's employment and it would especially help in the state of florida which as you said has a ten point seven percent unemployment rate that's much higher than the national average and under this plan seven point five billion dollars would go to help florida at grade schools build roads to all these things to many of their stimulate their economy but governor rick scott has indic

with moody's announcement increasing that.ot of concern in financial circles doing business with some of the banks. the cost of financial products that ensure the bank's debt is rising. that means the risk for bank is increasing. the unemployment picture remains a concern. new data on weekly jobless claim show they are still historically high. and lingering concern about the fed move yesterday to lower long-term interest rate. may not be enough to keep us out of a recession. there are significant downward risk to economy. we don't hear the word "significant" very much so it is spooking the market. we have a 335-point drop on the dow. of course after almost 300-point drop yesterday. we're 15 minutes in the trading day. 3% loss there across the board. the dow suffering the most damage. a little better than europe. the french stock market down 5%. the nasdaq and s&p is sharply lower as well. among shares, pressure on the silicon valley index. we are watching the shares of hewlett-packard closely. a lot going on there today. they

>>atgsgey moody's has already downgraded eight of the country's banks, citing their exposure t gek government bonds. the eu and the imf are set to decide by next week at the latest whether or not athens should get the money in the form ofaiutoa. this week, a greek citizens have kept up their campaign of ott ait stit measures. on friday, public transport was brought to a halt and unions have called for a two-day ri o a tnsrtation workers. >> there was a late rally on friday. we have this summary of the d's adg the stock exchange. >> the discussion of greek bonds led to a roller-coaster ride here on the floor. rumors have en ni. recession fears sent the market down. this has been a strong signal for some buyers. a mper pgr started buying shares again so that the dax could end up, but nevertheless, fears remain that the world economy may cool down. >> a quick look now at how the week has wound up. the eurozone saw the euro shoot up 1.5%. n york, the dow also closed in positive territory. spehe economic pressures, consumers still seem willing to spend on some of their favorite brands, like nike.

some of the big day's losers as moody's downgraded a raft of u.s. banks, some of the biggest across the country, names like bank of america, citigroup, wells fargo. bank of america stock, if we start with that one, those shares falling by 7.5% on the day. citigroup on the other hand losing 5% and wells fargo ending the day about 4% lower. it looks as though u.s. markets are likely to extend wednesday's slide. this is where the u.s. futures stand. if we take a look at that, also in the red, the picture in europe the losses not quite as pronounced. we had the likes of the s&p 500 down by about .7%. i was showing you about 2% when they ended. seems we're bound to extend that. a number of hours to go before trading gets under way. we could see the losses being even more pronounced for united states when we get the opening bell on wall street given the stock market action in europe, manisha. >> bearing this in mind, we need to tell you more about the federal reserve's plan dubbed operation twist. it's not a new concept. the u.s. central bank implemented

that the top banks in france could be facing a possible credit downgrade from the ratings agency moody's. right now the dow is down 89 points. >>> the battle is far from over for firefighters in texas. the forest service says 19 new wildfires erupted in the central part of the state yesterday. some 180 wildfires in hard-hit bastrop county and other counties have destroyed more than 1,500 homes and burned more than 170,000 acres since last week. there is a flicker of good news. the bastrop county fire is 60% contained and residents will be allowed to return to four subdivisions that. six people remain unaccounted for near austin where the worst of the blaze has been you are burning. >>> it is official -- iran now possessed the middle east's first civilian nuclear power plant. i don't want you going out on those yet. and leave your phone in your purse, i don't want you texting. >> daddy... ok! ok, here you go. be careful. >> thanks dad. >> and call me--but not while you're driving. we knew this day was coming. that's why we bought a subaru. exclusive to the military. and commitment is not

when i'm in the dark country of new ideas i get very moody and i so i want to be productive and i don't feel productive when i'm just sitting around sucking my time thinking about what i feel i'm going to do next so i was in the country of new ideas about five or six years ago wondering what i was going to do next when i thought i'm going to go to the bookstore, browse the history section to kind of get a sense for myself what books look interesting, what resonates with me, but covers turn me off and on and so forth and to start my mind thinking about stuff. i saw a book that had always been out in my must reading list but i never read it because it was just too intimidating a prospect. 1200 pages typed no photographs. some of your thinking it's the bible. but in fact it was the rise and fall of the third reich. terrific book. i bought it, brought it home, start reading and fell in love with this book. it was wonderful. it really was a terrific book. i must be a little bit slow about things because it was only when i was about a third of the way through the book i realized we the net ef

. >> the moody atcdu headquarters is subdued. this is the latest loss in a string over the past year. some say the euro crisis overshadowed the vote. >> fighting won't get anywhere. the most important in difficult time is to resolve difficult problems. we are in the middle of a discussion about the euro, its future, and what we are going to do. the people are waiting, quite rightly, for solutions. so we have our hands full. >> the pro-business party seems to have not made into the party at all. >> if we have chosen the right path, and that is by and large the sentiment, and win back the trust, it is worth it to stay the course. to avoid mistakes and win people back through our hard work. now, attention will turn to the next state elections in germany. in two weeks, berlin goes to the polls. >> germany's national basketball squad has edged up latvia out in with alenia. germany qualified for the second round. germany faces the defending european champion, spain, on wednesday. italy's top footballers and their strike forcing the can

tumbling as concerns grow the exposure to get in spain, greece, and italy, and threats of a downgrade by moody's. some say it suddenly smells of 2008, the market's pricing in the need for government intervention. it is premature speculation, said the finance minister. >> there is no emergency for bakes. they have plenty of means for response, and the central bank said they will provide liquidity, and the european central bank said there is 5 million euros available for breaks. >> the french banks holding billions of euros worth of french bonds, and investors fear even a partial default would sharply received the value of those assets. american banks lent heavily to french counterparts, and they have begun pulling back on loans. the second-biggest bank was forced to respond today, announcing a new round of cuts worth 4 billion euros, and not to call -- enough to counter. thus we have to recognize how much money we spent and how much more we may still have to put into the banking system. the key question is how much this will cost european banks in the end. >> today and jean-claude trichet gave as

way, along the campaign trail just a few days after norris killed chips in the church office, dan moody -- because first baptist was the biggest auditorium in town, they had all sorts of events there -- spoke from norris' pulpit as part of his political campaign. so you have the inauguration. at that time austin, texas, has about 50,000 residents. it's sort of a sleepy, quiet university town, state capital. it hasn't seen the boom that, of course, has been seen these years later. and the trial is moved to austin, texas. it draws every media outlet you can possibly imagine. to the trial. and as a result of this trial, um, norris is, his case is brought before the jury. it becomes sort of a duel between lawyers, some of the greatest, most celebrated lawyers, names that are forgotten today. for the prosecution a lawyer by the name of bill mcclain, wild bill they called him, sort of like an f. lee bailey of the day. and ironically and interestingly, norris' chief lawyer was a man by the name of moses, dayton moses. so he was being led through the wilderness of this trial by dayton moses. an

so says mark alexandery, chief economist of moody.uestion, on friday, president obama announced he will cut his vacation sht d return to washington, should -- question, should congress also do the same? not a week from tuesday, but th cing tuesday. >> no, there's no reason for congress to be -- congress just got out of town and all of a sudden everyone talked about getting it back! for wh en? eye t gog pass anything. what can they do? you want to put them in the -- maybe there's a populous case for putting them in the path of thhurricane! no sense to have. >> when you have all of this -- >> points every agreed again. >> it's in a sitting we do not enncthappearance of vulnerability, if the congress is not here [everyone talking at once] and if the president he, somehow that establishes that -- >> congress needs to -- you ask people on the streets of america, they'll tell you republicans and democrats need tostop their partisan bickering and work together for the good of the country. >> i think in an emergency -- >> if they can't do tha

the reason is that french banks hold nearly 42 billion euros of great bonds, and exposures so large moody's has threatened to downgrade them. in comparison, german banks only hold about 70.5 billion euros of greek bonds. society generale has already said it plans to cut 4 billion euros in costs by 2014. >> for a view from wall street, i spoke to someone at the new york stock exchange and ask what traders are saying about the possibility that greece could default or exit the eurozone. >> the rumors on that have already gotten out here on wall street in the friday afternoon session. the european markets were already closed. the blue chips on friday lost more than 300 points. we do see losses in the monday session. they are by far not as high as what we see in europe.h% blueshift roughly losing at 100 points during trading -- blue chips roughly losing 100 points during trading this monday. >> our european banks the only ones affected? >> if you look in total, if you look at just the loans and the debt european banks are holding, we might be talking about the single digit billion dollar figure.