it encapsulates moody's reasoning for this downgrade.t to gdp soaring. 280% in terms at of the debt to gdp ratio, an increase from 240% from 2016 alone. you can see the diversions when it comes to gdp growth stabilizing, easing, but debt continuing to grow. it expects the financial strength of china will be eroded in the coming years as a result of the economy-white debt and built up. slowing, andially even though you have financial reforms, deleveraging, particularly the financial sector, moody's saying that will not make a difference when it comes to this constant increase in contingent liabilities held by beijing. we will continue to watch that story. singapore, taiwan, malaysia coming on line. we are really watching the aussie dollar falling over on that news. take a look at what we are seeing across markets in asia. have the aussie dollar falling .2%. this after barely budging in the last couple of sessions. when we are seeing equity markets broadly in the green, the nikkei leading gains, not surprising given to sessions of , althou

this is what moodies is highlighted again. moody's has not pressed that panic button. chinese paper is still investment grade. but it does send a signal. what it suggests is that it may be less of a good thing, of course, for international investors to invest money in china. now, those signals are very much there. what we've had in china in recent months is an effort for them to try to protect the value of their currency. not let it push down. by doing that, they have stopped people from being able to take money out of china. that, too, has been a bad signal for many investors. of course without investing -- investors coming into china, there is the problem that more own news will onus will be on domestics to keep up the pace of growth which may be unsustainable. if you look back at some of the japanese newspaper stories over the last few months, there are stories that many japanese companies, this will also relate to u.s. companies and other foreign companies, are having difficulties because they cannot take money out of china and back to the parent, this is creating

anna: china downgrades, moody's cuts its rating for the first time since 1989. stocks slipped to a seven-month low. and when in rome. trump heads to vatican city for an audience with the pope, but back home, the budget fights drawing criticism from both sides of the aisle. ♪ a warm welcome to "bloomberg daybreak: europe." from here in the city of london, i'm anna edwards. welcome to vienna. the sun was shining as they began to arrive yesterday afternoon. duration of the november agreement, 6, 9, 12 month at $54.n, and crude the scale of the cuts, 1.8 million barrels is what they had agreed the last time. could they go for something much more significant? all take you back in time. 5 million barrels back in the late 1990's, and the grand coalition which is ok and non-opec. do the heavy lifting and get on with your job. that is the message, but could they bring more non-opec members on board? they get together today to study the prospect of what a 12 month extension might mean. we will be chasing around vienna all day. anna: some critical things to talk about with

moody's estimates

what is your take on this downgrade from moody?ally, the chinese are very important in japan in the context of trade and politics and especially risk in northeast asia. hope, that china's economy will remain stable. ofthis sense, the downgrade china is a bit of a concern, but at the moment, i think the chinese economy will be stabilized in terms of gdp growth rates, somewhere in , and if thend 7% chinese economy stabilizes, then actually we don't have to worry too much. recently, china's trade is slowing down and japan's export to china is slowing down after being boosted in the first quarter. , the growthconomy rate of the gdp was 2.2% in the first quarter, but there is some downside risk in the second quarter. as exports will not be able to be the driver of the economy. in this sense, the chinese economy is key for japan. >> hang on one second, because i want to return to these headlines. this is a big surprise, china aa3 byut to ai from moody's. as yvonne was saying, china's financial strength will be eroded somewhat over the co

the credit ratings agency moody's has downgraded china's credit score.onomic growth slows down in the coming years. what are they worried about, rico hizon? they are worried about a lot of things, sally. the chinese economy is facing some difficult challenges, and this is another wake—up call for beijing to institute more economic reforms. it is like we are seeing the ratings agency downgrading the local currency by one notch, and also changing its outlook to stable from negative. but this could really make things more expensive for the chinese economy, because it will meana chinese economy, because it will mean a rise in the cost of borrowing for the government, and for state owned enterprises. moody ‘s said this reflected expectations that outcomes would erode over the next two years, with debt levels rising as growth slows. the trainees economy expanded by 6.7% in 2016, compared to 6.9% of the year before. —— the chinese. this is because beijing is trying to rebalance the economy towards the domestic consumption, which has led to challenges for large

china's finance ministry said moody ‘s was exaggerating the economic difficulties. work? you might expect them to say that the china is on holiday along with the us and the uk and with the debt to gdp and china of 300%, i think it is not particularly surprising, but maybe in the sense that it's taken so long for this downgrade to come and it was all so interesting that hong kong was caught up in the mix with its rating downgraded but will it outlook raised to neutral from downgraded but will it outlook raised to neutralfrom negative, much to the chagrin of politicians in hong kong, so not unexpected and driven clearly by the debt levels across the economy particularly with state—owned enterprises. the reading will be the slowest growth seen in eight months if that is what we see. in other business news, the head of vietnam's‘s low—cost carrier, they are meeting stock exchange officials in new york about a possible share listing in the united states. the company listing in the united states. the com pa ny wa nts to listing in the united states. the company wants to b

moody's is aligning with the performer. it goes faster in terms of dealing with leverage and lamenting market based reforms. , back tong we remember 2011, the s&p downgraded the u.s. from aaa. remember all of the squealing out of the treasury department at that time? not at all sizing that a sovereign debt surprising that a sovereign government would push back. nobody likes to get criticized. jonathan: we sit here time and time again. wondering how far behind the curve the likes of moody's are the at this point. looking at the disruptor in china, it is not like we learn anything new from this report, is it? again, you see, in academic research, that sovereign credit decisions basically lead market defense. there is a whole lot of people with sharp pencils, actually betting with their clients assets on different sovereigns and they've got a lot more moody's or s&p so it is not surprising they are behind. alix: moody's has the same downgrade in china and japan. what should china's credit rating actually be? >> isn't it remark

yousef: moody's affirmative the rating on kuwait.t is a very strong balance sheet and hydrocarbon reserves continue to support a aa to rating -- aa2 rating. , look at theuwait favorable rating. if you take a look at some of bookalues, on the price to and the dividend yield, given this is the best performing index, what legroom does the rally have? >> it was one of the markets overweight in addition to egypt. you have market reforms that kuwait has already taken by changing the daily limits for stocks to move so we think over time that will increase liquidity. you also have pakistan getting upgraded in the front here market -- frontier market index. the money will be allocated somewhere else and kuwait is a prime target for that. it seems like weight will have frontier of its on and there are a lot of things happening domestically. from an old price perspective, -- oil price perspective, it is a balance sheet of the gdp. a be the simple journalists because we do have these upgrades for kuwait but also for the uae. i've seen research s

and director of moody's around the desk.et's talk about the first quarter. i spent a lot of time talking ubs and the numbers and being very bullish. we see this, given seasonality, how much of the strength was se seasonality and how much is strength? >> well, we do expect that the markets will remain volatile. so we're not saying that one quarter necessarily makes a trend. but it was a good quarter for the european investment of funds and the market revenues with the exception of barclays. but really, what we saw was that capital markets revenues pulled the revenues for the quarter. because as revenues overall were relatively flat. and that's really reflecting, you know, weaker results in some of the noncapital markets where low interest rates continue. >> much of 2016, i feel like we talked about the fact that u.s. banks were gaining markets here at the expense of the european rivals. do you feel with that strong first quarter, european investors are able to claim back the risk markets here or is it too early? >> i think it

by dropping the rating, moody's show that eveven though grgrowth remains around 6% in china, , it doesn'tnk the country's government will manage to rein in its debt burden. the chinese finance ministry is unhappy about the downgrade or responded to the move by saying that modi's was exaggerating difficulties facing china'ss economy and underestimating efforts to reform. brent: terrorist attacks and political turmoil have severely damaged turkey's tourism sector. so, it's getting new attractions. how about a beautiful coral reef? governor of the e providence of antalya just sunk a military tank for corals to grow on. that is supposed t to attracacth and in tururn, tourists are the tank n now sits on the ocean floor, 14 meters below the surface of the village. that's all for the business news. how is that for a dive? >> difficult taking a tank. -- tanking a tank. almost 100,000 christians have flocked to berlin for a celebration of the protestant faith. the event that happens every two years is also marking the 500th anniversary of the protestant reformation and the memory of martin luther,

we are also taking another look at this moody's downgraded china yesterday.a's homegrown ratings agency. it is interesting the cousin, they have taken very contrary views compared to the other big three ratings agencies. speaking to the global credit rating head of the ratings team at 40 minutes past 10:00 in hong kong. that will be interesting, because i am sure he has a different view than moody's and the rest of the ratings agencies. of course, all the action on markets as well over the next couple of hours. plenty more to come. this is bloomberg. ♪ ♪ it took me a while to learn how to pronounce it. >> you had a losing record, then you won the national championship. >> we ended up winning one of the greatest games of college basketball. >> you won your third gold medal. >> the international anthem being played, nothing better than that. >> will would you say is the most important lessons of leadership?

they hit back at moody's earlier today saying moody's used an inappropriate methodology which causede of the challenges facing the chinese economy and underestimate how much the chinese government will be able to do to boost overall demand and also to affect supply side reform. what's interesting is usually markets don't react that much to what foreign rating agencies say when it comes to chinese equities and/or debt. in this case they actually did. we saw a big initial sell-off this morning which largely corrected by the end of the session. by the end of the session we saw the shanghai composite close virtually flat. still trading pretty much flat to the u.s. dollar right now. what is still suffering a little bit, though, is the uk miners which is propping up the bottom of the european indices, thought to be on the back of the news from china. the new york stock exchange, stock closed about 4% lower after the u.s. government filed a civil lawsuit accusing it of illegally using software to by pass emissions controls on over 100,000 diesel vehicles sold since 2014. louis, back to you.

this puts them solidly below the top tier in terms of moody's anyway.t a market moving call, but an acknowledgment of, you know, potential risks there. >> and none of us expect that moody's is going to come up with the smoking gun when it comes to debt. >> watch iron ore prices. not rating agencies. >> there are things to be f focused on when its comes to china. and china, a possible tax war could be on the horizon as the tax plan may have an impact on china, specifically on its manufacturing sector. our eunice yoon has more on that story. eunice? >> hey, guys, i'm at an apparel company in china. just like where you are, everybody here has been talking about whether or not president trump is going to be able to get tax reform done. the reason for that is because if president trump is able to make good and follow through with a large corporate tax reduction, that could have a big impact on manufacturers like this one. now, i have been in and out of factories all week. i was speaking to one owner of a textile manufacturer who is investing $220 million int

moody monday.dy monday. >> and it's cool. 59 washington and winds out of the east there you see the arrows showing you winds off the ocean and that will lock in the cool for the day today. and rain showers take a look at rain showers and i'm getting reports for light rain showers. and tucker "fox5". and heaviest of rain norm west d.c. and montgomery county and frederick and getting good reigns now and southwest in this is warming front and mild and later this afternoon highs in low 70s clouds in the forecast and late this afternoon a cold front moved in and few hours midday and rain returns this aternoon and look at tomorrow. showers. wednesday showers. thursday showers maybe a thunderstorm and then friday we clear it out just in time tore zip triple i cot city coming back on friday. >> you have stories tucker from the past. >> maybe can show us around when wrapped from the show. >> or during he should be the stour guide. >> hi, erin. >> good morning. >> 7:1 sweater maybe throw hair me upon ye y sg

guy: moody's view. mark cudmore joins us out of singapore. china has been downgraded, the market has gone so what, why? about woody'smore catching up with the market. we have been trading this china story, this deleveraging story, reform story for a long while and the pressure is putting on the bond market. this is moody's reacting. it is hard to see what the market reaction has been. the yuan is strictly -- slightly stronger and bond futures are trading slightly better bid. iron ore has slumped harshly but it is hard to know if that is related to the downgrade. the move did start to hours after the downgrade. werer metals traders asleep or this is a separate issue. not enoughote that foreign investors hold chinese debt, that is one of the issues they had. that prompted me to wonder why this matters in that case. it is mostly domestic, isn't it as far as the holders. crack sexily. that is one of the things why there has not been much of a reaction. they're not -- there are not a lot of foreign investors that this will affect their investment.

moody 's still has an a—i credit rating on china, that its fifth highest.nt grade. —— hasn't downgraded it. moody's is putting an ample warning light over things we know for a long time. it has a huge amount of date on its state owned enterprises, it's nationalised industry. it has a lot of debt on its authority. but it is a country with huge reserves, $3 trillion of reserves. its current surplus is $200 billion a year. this is not a country running out of money. but economic reform, how quick will that be? how worried is the president about closing down inefficient industries but creating an employer and? does it create political tension? there are some trends that are in conflict in china. of course, china, the world was biggest population, if it suddenly sees that economic growth tightening, that affects the whole global economy. thanks for that update. we have spent although it's been a sixth arrest in relation to manchester. more on that at the moment. —— in a moment. good evening. tampa are nightly round—up of the world weather conditions. in the last

because moody's have concerns, they are more likely to put the burden of any stimulus on fiscal policyst some of the state—owned enterprises and local government which makes them think the debt situation combined with slower economic growth means it is not as strong as it was. is it a real problem, debt? not an immediate problem but across the economy as a whole. we are talking about 30—50% of gdp, which compared to greece is very small! but there is household debt, local government and state owned enterprises, all of these add up owned enterprises, all of these add up to the burden which is quite large for a country at that stage of economic development, but not an immediate catastrophe. andrew, thank you very much. a quick reminder of how to get in touch with us. the business live page is where you can stay ahead with all the day's breaking business news. we will keep you up—to—date with all the details with analysis from the bbc‘s editors right around write around the world. we wa nt right around write around the world. we want to hear from you as well. get involved on the bbc busin

moody's learned -- warned last year and the imf warned. moody's took a step of putting the china sovereign they madethe first since november of 1989. it is a significant reminder about the challenges china has faced. authorities are preaching the need to rein in. the steps have been quite modest. when you see a judgment like we saw today from an next journal watcher like moody's, it is a sharp reminder of the challenges still ahead in china. moments, thefew federal reserve will release minutes from the main meeting. this is the meeting where officials left rates unchanged and signaled they were not alarmed by the weakness and first quarter gdp. >> we learned two things today. number one, at the may meeting, they were on course. not committed, but on course for a june rate hike. number two, there was wide agreement they should not cease from one month to the next the reinvestment of assets on the balance sheet when they begin to reduce the balance sheet. the existing eight -- the end -- the interesting thing is we are balancerogress on the

china moody this morning.ance. " in new york and guy johnson is aligned it with the news out of manchester shows us the broader and bigger investigation right now. guy: this was always the concern, security forces in the united kingdom, the individual was not acting alone and as a result, the news we have seen ,urther arrests is interesting given the fact the prime minister has raised the security threat level in the united kingdom to its highest level. you are looking at pictures from manchester. tom: there we are with further mourning and a number of people and identified and missing. we need a full update on manchester, here is taylor riggs. >> and the u.k., three men arrested in connection with the suicide bombing in manchester that killed 22 people, police not releasing any other details. the british government has raised the terror threat level from severe to critical for the first time in one decade. that means another attack may be imminent and prime minister theresa may taking unprecedented security s

he was always moody, he was always melancholy, but lincoln's moodiness and melancholy was the source of his profundity. one can't reach those levels of profundity. one can deal as he did with the widescale death and destruction without being able to touch those levels of sadness in the cell. however, he was never again clinically depressed after he married and after his experience of being freed from the issues of intimacy and love through his vicarious experience of speed's courtship and marriage to fanny. that is the end of his clinical depression. on the other hand and relatedly, the relationship with speed lost its emotional significance. almost immediately speed no longer mattered. lincoln handled some of his remaining business and legal issues in springfield, they even got into a spat in 1846. he wrote a letter you assign the suspension of our correspondence to a true philosophical cause, it must be confessed that we allowed a friendship such as ours to die by degrees. let me conclude by reading you a couple of paragraphs. just two paragraphs. the friendship of lincoln and spee

i want to go back to the moody's down grade.k about the efforts to open up the bond markets. does this cast a bearish shadow over how foreign investors perceive the chinese bond market , and also what does it mean for chinese firms under pressure from a fund-raising point of view? with some of my friends who are bond investors. feeling is this ratings change will not be that big of a deal. perhaps the supply side of the was looking for the downgrade, so the timing was more of a surprise than the actual move. liquidity, the onshore markets, how quickly they can move their money in and out, the credibility of domestic ratings and things like that, and what ,hose means for chinese bonds that is more or less included in the global indices. all of them are far more important factors for investors than the particular ratings change itself. you talk about some of those reforms that were suggested or required by the msci. do you think progress is made to get a share inclusion in the next few weeks? have tried toy make some progress, but

so it's typical for teens to get a little bit moody at what point do you say this is no longer moodiness but maybe an indication of something much more significant like a mood disorder whether it's depression or by polar disorder so what you're really looking for is is there a dramatic shift in how your child is behaving now versus how they have been in the past. what i'll tell people is you just have to trust your gut. you know your child and if you have any concerns what's the harm in going and seeking out a little bit of experience in dealing with issues, mental health issues in kids. talk to them and let them help you figure out whether there's something else that needs to be done. >> what are some of the more common issues in children and adolescen adolescents? >> certainly depression is often a common sign, anxiety disorders and it can expand from there and young people have had bipolar disorder and where a youngster may be budding into a schitzophrenia. and parents know best. they can develop an understanding of how their youngster is typically developing and if there's major chan

copper is on the move after moody's downgraded china.ure pits next. ♪ predictable. the comfort in knowing where things are headed. because as we live longer... and markets continue to rise and fall... predictable is one thing you need in retirement to help protect what you've earned and ensure it lasts. introducing brighthouse financial. a new company established by metlife to specialize in annuities & life insurance. talk to your advisor about a brighter financial future. >>> welcome back to "the halftime report." i'm jackie deangelis. we are watching copper today falling after moody's downgraded china's credit rating for the first time in nearly 30 years. china the world's largest consumer of copper. did you short copper on the down grade? >> i did not. that was a mixed down grade. think of how moody's hedged themselves. that was actually an upgrade. the modern day silk road from 2,000 years ago in china, that silk road we're calling one belt one road will touch 50% of global gdp, and that infrastructure should buoy copper and the one-

moody's saying it will be crucial in terming whether the new president is able to achieve his policy plans. macron's policy plans are positive. and dead consolidation and one last nine, france's general governing debt of 1.5% of gdp. unlikely to decline materially before the end of the decade. so i guess there's a dose of a bit of a reality check in there, coming from the statement from moody's. but many are hoping that this will be the major turning point for france. the lack of competitiveness when if comes to its standing within europe and in the world as, you know, a great industrial nation. do you think this is it? >> i think it's definitely the best hope we've had in decades, that we can finally overcome these issues that have been plaguing the french economies for some time. but, look, remember in the '90s, the french actually outperformed germany. so this is labor market competitiveness. it's really a role of one in 2000 and the last decade that needs to be addressed. emmanuel macron has courageous ideas to do. as far as the public debt goes, i think the real issue is public

news, kate moody is back with us. we are looking at what investors call the fear index.e: that's right. it has been reacting to a manual macron's victory. it is also known as the volatility or vix index. this index has tumbled to its lowest level in more than two decades, the lowest since december of 1993. you can see that measure here, and you can see fear peeking around the time of the brexit oferenda and around the time the u.s. elections later on that year. it does serve as a reminder that even though stocks it didn't soar as some might have expected after the french election result, investors were not worried about a possible marine le pen presidency and the risks she would have posed to the stability of the eurozone. stock markets have been rising this tuesday at volatility drop after a soft start to the week. -- as volatility dropped after a soft start to the week. markets have pared back slightly this hour. is beingthe nasdaq powered by apple, which broke through the $800 billion mark for the first time. the cac is up one third of 1% in europe. commerzbanking as

it continues a borrowing slow down in the moody market.here has been no slowdown was in the u.s. high-yield, the biggest week for issuance since march. the year to date total more than $120 billion. here with me in new york is greg peters and bonnie wongtrakool from western asset management, plus in st. louis is brian rehling. for the first time in about a year, i heard somebody saying, there is no alternative. it has been 12 months since i heard that kind of language, there is no alternative and that is why i am buying this stuff. does that concern you? to any extent? brian: there is a lot of complacency in the market, no doubt. volatility is very low so there is not a lot of focus on risk. asset prices where they are, you have to buy something. jonathan: there is no alternative, is that what is really driving spreads tighter even though issuance has picked up? gregory: i do not think it is a new phenomenon personally. i think that has been the qe trade, crash interest rates to force investors off the risk curve. you are seeing it. the cu

moody's cut them for the first time since 1989, going with hong kong hours later. gameplaying artificial intelligence program created a three match sweep of it human opponent. this chinese player has been playing since he was 10 and said not a machine could be him. -- alphago is is perfect. veterans say it will be years before computers could master the game. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. ♪ thank you. we are counting down to the major market open in the asian fake. let's go to markets reporter adam haigh joining us from sydney. good story -- good morning to you. starting flat, seems like markets in asia are pointing to an uninspiring start. good morning. fairly mixed start in 20 minutes or so with the japanese and australian and south korea sessions get underway. we have some news in currency with theith the rand development around zuma, looking at the rand as negative. going later on into the trading, we have china closed, the u.s. and u.k. close, but we are looking out

. >> china has had its credit rating downgraded by moody's, which says rising debt and slowing growth casting clouds over the financial outlook. talk this through the consequences of the announcement. slap on the wrist. for china really. it is another warning. authorities do need to get a grip on the rising debt that has been a key driver of economic growth in china over the last decade. we have had a rating terms warning before. movie's warned last year and the imf warned. and moody's took a step of putting the china sovereign rating -- the first they made since november of 1989. it is a significant reminder about the challenges china has faced. we know the authorities are preaching the need to rein in leverage and rein in credit assistance, but the steps have been quite modest during the easy a judgment like we saw today from an next journal watcher like moody's, it is a sharp reminder of the challenges still ahead in china. >> in just a few moments, the federal reserve will release minutes from it may meeting. this is the meeting where officials left rates unchanged and signaled th

i think moody's is right, but kind of late, right?stock market has not been doing well in two years. chinese imports of u.s. go has fallen for 2 1/2 years. we've seen the slowdowns in the stock market and in terms of their imports of u.s. goods. so i think it is a real slowdown, neil. neil: let's say that, you don't buy these levels or seem a little grand. now moody's is saying, china is acknowledging we can't continue to grow at this clip, real or not. if they start slowing the fear seems to be, if moody's is right, the fear is real, that this economic catalyst for much of the world be is going to affect much of the world, what do you you think? >> i think that's true. not only in terms of imports and exports, neil, but we have businesses over there. they have businesses over here. china's main problem, as i see it, neil, they printed a lot of money for a long time, kind of inflated their economy. then all of a sudden the real estate bubble happened over there and they pulled back sharply. neil: right. >> i think that is at the root

, the wife of brad moody who died in the line of duty in 2008.ne and lieutenant, thank you for coming in. >> thank you for having us. >> it wasn't long after your husband's death that you made it back east. six or seven months and you were there. why did you go so soon, do you think. >> to honor the officers from the previous year. the following year in washington, d.c. and my daughters who were two and three at the time and i made it back there. >> you wanted to be there. >> absolutely. you know, i just wanted to see him and his name be honored. and it was something important for me and my daughters at that age to know that yes their dad was gone and their dad was not coming back but they need to noel always be remembered. >> had you heard of it before. >> you know, i hadn't. i had never heard of it. he in july of 2008 had mentioned wanting to go back to d.c. to see these names on a wall. and i had no idea what it was. little did i know three months later my husband's name would be added. >> all of the money goes to the fund to honor the officer

after the chinese news came out from moody's, we saw the renminbi weaken for couple of days in a row. so that is starting to stabilize now as well. are going to look at all these assets this morning as stocks, we are still a few hours from the opening up but look for more moves in the debt markets. we're going to get to all of those for you today but first i want to get the first word news and will go to juliette saly. u.k. police calling it underminingtrust their investigation. in yours time -- new york times published photos from the scene that british police were yet to release. seven arrests have been made so far in the u.k. in connection with the attack. meanwhile, promised or theresa may will lead a group of seven gathering in sicily a day early to return to britain as the country races to prevent further terror attacks from the network behind this manchester suicide bombing. she travels to brussels day for a nato summit urging the alliance to fully join in the fight against islamic state. u.s. buys collected information revealing senior russian intelligence and political offici

-moody's downgrade luke: the real reason has to do with a home capital issue.ng we didn't know what we could go, month ago, a year ago. that is the rationale for the downgrade. it could happen at any time. the connection is that, to my mind, this is a time when lending standards are training -- tightening, borrowing is at the lower end of the spectrum, there is a squeeze on home margins and lending standards. at the upper end, the government putting in macro credential policies, a lot of charges about the foreign buyers driving up home prices, pricing canadians out of the market. all about home prices in toronto and vancouver. theou want to call on canadian cycle come when you get the squeeze on the lower end, why not? and what we got from that moody's report, the senior vice president of the agency said, "expanding levels of private sector debt could weaken asset quality in the future, continued growth in canadian consumer debt, and elevated housing prices leads consumers and canadian banks more vulnerable to downside risks facing the canadian economy than in

moody's has come out and confirmed our aaa credit rating.re matters for the credit ratings agencies to decide. as a result of the decisions of this government, spending is back down close to the long-term average. we are bringing it down to 25% of gdp. theave reversed deteriorating trajectory we were on when we were coming into government. remain on a pathway to surplus by 2021, a seven .4 billion dollars surplus, quite a bit higher than anticipated only a few months ago in our pre-christmas budget update. sophie: moody's pointed out they do see the debt growing to 45% and the coming years. they also pointed out that australia has been coming from a low base compared to its top rated tears. you see this can be maintained given the desires of this budget? our projections show we go back to surplus in 2021 and 2027-2028.urplus to if you exclude new net capital investments and look at our operating balance, we are rejected to return to surplus by 2020. our cash flows are positive and we are not adding on from 2019 will be so net debt peaking as

i am not going to say that we are lazy, overweight society, a fat, moody, suv writing, soda and beer guzzling, tv watching, size xl wearing, walk-don't-run generation. [laughter] but i guess i just did. [laughter] don't forget that you are a mental being with a humongous trillion gigawatt hard drive at your disposal. most of you have been running it like crazy for the last four years, moaning about the books you had to read, papers you had to write, and tests you had to take. yet thanks to that hard drive and about 1000 billion cups of coffee, you made it. let me put it this way -- i can find out where you live. [laughter] i have my resources. and if i show up at your house 10 years from now and find nothing in your living room but readers digest, nothing in your bedroom but the newest dan brown novel, and nothing in your bathroom but jokes for the john, i will chase you down to the end of your driveway and back, shouting, where are the damn books? you graduated college 10 years ago, how come there are no books in your house? why are you living the mental equivalent of a kraft macaro

this came after moodys downgraded their credit rating for the first time since 1989. ican go 1989. but i can go into that —— but i can go onto that investor. he still believes in his investments there. china is a planned economy. what the government plans is what happens. because the government controls the major banks, controls the major features of the economy, the major features of the economy, the biggest companies, so if they wa nt the biggest companies, so if they want 6% growth, they will get it. they are not fixing the numbers. they are not fixing the numbers. they do is poor more money on. however, there is a problem in the private sector. many of these companies have borrowed too much and we re companies have borrowed too much and were dealt a payback. —— pour. and there will be in trouble. and to govern it is well aware of the dangers, which is why it they will need to tighten up. sharon —— sharanjit leyl, thank you very much. in other news, shares in online retail giant amazon have risen above the $1,000 mark for the first time. it originally listed its sh

moody's rates the nation process goals and that's very high.t to bring in william foster, vice president and senior credit officer, so, bill, you just heard ed up about, you know, that there is perhaps some optimistic projections here, particularly on wages in the budget. what do you say on the aaa rating? >> it does not change much in terms of our perspective on the credit and outlook. much consistent with the aaa rating and stable outlook that we have. the fiscal position in australia's relative when you look at ratings. there are 12 credits and australia's debt burden is one of the most important aspects of the profile that we look at. it is just under 40% of gdp, in in theth the median aaa space. this budget works toward fiscal consolidation and is indeed a deficit. the things we are looking at is to what extent that will contribute to the debt burden overtime and medium framework. betty: before i ask you this question, let me show a few bloomberg terminal charts that illustrate this debt burden australia has. what is interesting here, if y

we saw credit ratings downgraded by moody ‘s. will it filtered through to the rest of asia? to the rest of asia? in the last few years , we to the rest of asia? in the last few yea rs, we have to the rest of asia? in the last few years, we have seen to the rest of asia? in the last few years, we have seen correction in the first half of 2015 and 2016 was driven by chinese concern. afterwards, we haven't really heard anything from china. from a market perspective i would say it is a positive sign but if you look at the depth of gdp numbers in china at 260%, relatively high, we should not forget that most of those debts are held by domestic investors, hence the volatility we see in other markets and not so evident, like in china. the downgrade may be the first signal that the government is supposed to work against this. actually, they have done so over the last few months already. growth has come down substantially so they have tightened up a lot in terms of leveraged. going in the right direction, we need to see more of this over the next few quarters. direction, we need to s

but that's the case as moody's ratings service is downgrading them on the basis that the economy will down and debts will rise. they think china's economy will slow down to 5% growth by the end of the decade from currently at 7%. that beijing will increase spending to support growth. china's finance ministry takes issue saying that moody's methodology was flawed in the process. >>> amazon opening its 6th bookstore in new york city tomorrow. amazon has devastated the brick and mortar bookstore industry but opening its own stores and after new york, it's got some more stores planned for this year looking to open stores in walnut creek's broadway plaza and san jose's santana row. >>> stock market working with a four session winning streak. today a flat start. the fed releases the minutes of its main meeting. it will give further clues as to its rate hike plans for the future. let's go to the big board and see how we're doing at the moment. the dow up 26. starting to pick up some speed. nasdaq up 5. s&p up 1. good day for mountain view's intuit, topped earnings and its shares run by 7% ar