that's how fitch, standard & poor's, and moody 's classifies puerto rico $70 million debt. per capita income is just over $15,000. half of the poorest american state. and unemployment stands around 15%, double that of the u.s. mainland. >> the more inequality, the less healthy as a country. that's where we're heading right now. we don't stop this vicious circle, we're going to race to the bottom. >> puerto rico's government is testing a list of austerity measures to climb out of this hardship. tax increases, requesting billions of dollars in new obligation bonds to continue paying the bills. >> we cannot continue financing and operating in a deficit as we have in the last ten years or more. >> reporter: and in washington, puerto rico's representative is pushing for initiatives. >> i wrote the initiatives for the white house task force for puerto rico encouraging the president to include full inclusion of puerto rico in the child tax credit program when the president submits his next budget to congress. >> reporter: as shops board up and schools crumble crime is escalating.

they did not, puerto rico, whatever they told s&p and moody's did not live up to what s&p and moody'st did they want? guaranties on fairly big cuts to budgets and pensions. a big dollar, billion dollars worth of bonds issued, guaranteed that. puerto rico did not want to do that, based on all the stuff going on they would have to pay a huge coupon on the debt. i heard the coupon could be as much as 9%. adam: they have the ability to issue anywhere from 500 million to two billion. they haven't done it yet. they're coming to market. >> i heard they're not going -- adam: not going for the full 2 billion. >> not going for the full 2 billion. that is what s&p and moody's would like hem to do. what is going on behind the scenes inside the ratings agencies office. they are worried clearly puerto rico will back off budget cuts. they are worried about liquidity because they don't have good access to the amount that they want. they are worried, coming from someone deals with ratings agencies, a greek-like situation. say all the right things, cut, do this, there was a protest. adam: already havin

but with less ergy, moodiness, i had to do something. i s mdoctor.lood test showed it was low testosterone, not age. we talked about axiron the onlynderarm low t treaent that can restore t vels to normal in about two weeks in most men. axiron is not for use in women anyone younger than 18 or men with prostate or breast cancer. women, especlly ose who are or who may become pregnt, and children should avoidt where axons applied as unexpected signs of puberty in children or changes in body ha or incased acne in women may occur. report these symptoms to your doctor. te your doctorbout all medil conditio and meditions. rious side effects could include increased sk of prostate cancer, worsening prostate symptoms, decreased sperm count, ankle, feet or body swelling, enlarged or painful breasts, problems breathing while sleeping and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, common side effects include skin redness headache, diarrhea, vomiting, and increase in psa. ask your d

we now have two out of three, s&p and moody's that have put puerto rico in the junk status.ay force some of these fund managers to do or have they done it with regard to liquidation? >> well, you know, in theory some funds could be forced to sell. and, you know, passive etfs probably will be forced to sell. for the most part that's not the case. most funds have the ability to not sell, you know, because when something gets downgraded while they already hold it. more importantly for the credit is that going forward they can't buy it, right? investment grade oriented funds can't buy things with two or three noninvestment grade ratin ratings. so that dramatically reduces the potential liquidity and the lender base for puerto rico going forward. it makes them rely more heavily on hedge funds, high yield funds and sort of other opportunistic investors, which is a much thinner source of capital than the general muni market. it does make their challenges, you know, a lot more difficult. >> excellent. excellent. thanks for your insights, matt. it's what they own, probably can't buy

and, moody's downgrades puerto rico debt to junk status.. following a similar move by s&p. the ratings service cites ongoing economic weakness. phillip streible of rjo futures joins us on this monday to talk about the stock market and more. good to have you on the show this morning. >>thanks for having me. let's start with the big chillfrom oil to job growthwe're hearing the weather is really having an effect on the market. >>if you look at the stock marketwe saw an initial sell off that was pretty hard. but as the day went on we came right back up and finished up near the highs. it was a pretty amazing move. i think the market at least is focused on the economy and is still showing some signs of job growth. we are seeing economic data tick up. we did see the unemployment rate tick down while the participation rate also increased. so that's really great. if you look at the oil market on the other handwe've seen a big move up through $100. the issue with that is we're seeing refineries shutting in for maintenance. so that means no new heating oil is being put out on the mark

s&p. joining us now. chief enomist from moody's capital, john lonski, janet yellen seems to have slid into her well rarefiedhair is doing brilliantly iteems. >> i think she is doing very well. market likes her, up 1% for year-to-date, new record highs. so they are pleased wither performance thus far, it also helps that because of a slower economy, instead of rising as had been expected, that 10-year treasury yield, is down under wh 2.65%. lou: and holding in a range, does not seem overly impressed with news in either direct tt might drive the yield, you know either up or down. that is a little bit o a bonus, i don't know that yellen could ve expected? >> i think it comes again as a rprise to most of us, good news heres that housing market needs lower mortgage yields, in a it might be that if thousands does not get on to a -- if housing does not get on to a solid start we could find that 10-year treasury yield moving under 2.5% to get motorrag fort gang yields to a level that are fitting for an american consume that is still hobbled by a sluggish income growth. lou: reality is, without low interest rates, it

ys s be thman with the plan but with lesergy, moodiness, i had to do mething. i saw mdoctor. a blood test showed it was low testosterone, not age. we talked about axiron the onlynderarm low t treaent that can restore t velso normal in aut t weeks in most men. axiron is not for use inomen anyone younger than 18 or m with prostate or breast cancer. women, especlly those who are or who may become pregnant, and children should avoidt where axirons applied as unexpected signs of puberty in children or changes in body hair or incased acne wom may occur. repo these symptoms toour doctor. tell your doctorbout all medical conditions and medications. serious side effects could include increased of prostate cancer, worsening prostate symptoms, decreased sperm count, ankle, feet or body swelling, enlarged or painful breasts, problems breathing while sleeping and blood clots in the legs. common side effects include skin redness orrritation wherapplied, increased red blood cell count, ask your doctor about axiron. include skin redness adache, diarrhea, vomiting, anincrease in psa. cheryl:

adam: the s&p and moody's downgrading pr to junk status among economic problems.ugh $3.5 billion debt shell to test interest in its funds. we have senior credit officer and lead analyst emily rains. thank you for joining us. a lot of attention to this potential 3-$.5 billion offering but we don't have a date yet. any reason the puerto ricans wouldn't commit to that? >> they have been working with bankers to settle on the structure they want to have, they want to do it and the amount. we will have more information soon. >> let me quote from the report on february 7th, you said we do not see evidence of economic growth sufficient to reverse the commonwealth negative financial trends. it would seem you have the month negative outlook, they won't be turning around anytime soon. >> the negative outlook speaks to pressure we see on the ratings. that pressure comes from the economy which has been in recession since 2006 and also comes from the weak liquidity we see at the commonwealth and the constrained market access. >> at puerto rico come to market with this offering

professionalism and now only off rates with moody's and standard and poor's move it on crushing the retail outlet into has announced it will hold two i.p.o.'s one of most of what a london stock available is believed to be up to eight billion dollars while this is in response to last year's profits soaring by two hundred million dollars. russian fast food chain to be more open to restaurants in new york the shit the company specializes in russian pancakes both sweets ones and savory that surely pop but i hate a lot of people happen for a male and i thirty recommend the sour cream. ok so i've got a bit of an appetite for your height that's quite stu opposite sides for venture capital this week if it doesn't get on twitter i'll be involved all this way going to be talking about such a core principle running around wellness like a by so i take care of yourselves have a great weight for. wealthy british designer. finance scandals find out what's really happening to the global economy. look at the global financial headlines tune in to cause a report. you know. everyone in my life that i cared about their gold and then it became a skin. i was a na

professionalism and now only offer rates with moody's and standard and poor's i move it on russian the retail outlet into has announced it will hold two i.p.o.'s one of moscow a while the london stock available is believed to be up to a billion dollars while this is in response to last year's profit soaring by two hundred million dollars. russian fast food chain to be more open to restaurants in new york the company specializes in russian pancakes both sweets ones unsavory that surely pop but i hate a lot of people happen for a male and i thirty recommends the sour cream. ok so i've got a bit of an appetite for your height that's quite stu opposite sides for venture capital this week if it hasn't get on twitter i'll be involved all this way going to be talking about sochi of course it's often running around well decide to buy so i take care of yourselves have a great weight and so you. would really be sustainable opera. focused on making him like you are advocating night to self interest since that is what your government says has always been the case and had. businesses for hundreds of years without using them a bill. that i think was what go

professionalism and now only off rates with moody's and standard and poor's not move it on crushing the retail outlet into has announced it will hold two i.p.o.'s one of most of what a london stock available is believed to be up to eight billion dollars while this is in response she launches profit soaring by two hundred million dollars i. russian fast food chain i've been to restaurants in new york the shit the company specializes in russian pancakes both sweets ones unsavory that surely pop but i hate a lot of people happen for a male and i thirty recommend the sour cream. ok so i've got a bit of an appetite for you hey that's quite a few opportunities for venture capital this week if it house and get on twitter i'll be involved all this way going to be talking about such a core software running on wellness i could buy so i take care of yourselves have a great way to see your critter. live. live. live leak live live . it is possible. we we will know the i.o.c. will know the whereabouts of the ass each. they are almost entirely in the olympic village if they are not to the. committees who will tell the i.o.c. where they are. there's a city her

professionalism and now only offer rates with moody's and standard and poor's not move it on crushing the retail led to has announced it will hold two i.p.o.'s one of most of what the london stock available is believed to be up to eight billion dollars was this is it responds to last year's profit soaring by two hundred million dollars. russian foster food chain to be more what i've been to restaurants in new york the shit the company specializes in russian pancakes both sweets ones and savory that surely pop but i hear a lot of people happen for a male and i thirty recommend the sour cream was. ok so i've got a bit of an appetite for your height that's quite stu opportunities for venture capital with the base wait if it doesn't get on twitter i'll be involved all this way going to be talking about such a core group so from running around well that's like a by so i take care of yourselves have a great week see your critter. new york london. the whole world is. on the end. of the point that the link at the end of the street another one a more transparent society gets the money or the proper tears become we see military and police forces to mo

professionalism and now only off rates with moody's and standard and poor's i'm a bit on russian the retailer lent to has announced it will hold two i.p.o.'s one of most of what the london stock available is believed to be up to eight billion dollars while this is in response to launches profits soaring by two hundred million dollars. russian fast food chain to be more open to restaurants in new york the shit the company specializes in russian pancakes both sweets ones unsavory that surely pop but i hate a lot of people happen for a male and i started recommend the sour cream was. ok so i've got a bit of an appetite for you hate that that's quite stew opposite site for venture capital this week if it hasn't get all twits i'll be involved all this way going to be talking about such a cold it's often running around well decide to buy take care of yourselves have a great wait and see your critter. maybe you don't know if you don't panic or. responds to roos. most everyone in my life that i cared about their goal but when that happened i came askin well. i was a national champion in track and field and also i was able to go and qualify for the

professionalism and now only off rates with moody's and standard and poor's i made it on russian the retired up to lend to has announced it will hold two i.p.o.'s one of most of what the london stock available is believed to be up to eight billion dollars while this is in response she launches profits soaring by two hundred million dollars i. rushed in a fast food chain to the mall i've been to restaurants in new york the shit the company specializes in russian pancakes both sweets ones unsavory that surely pop but i hate in russia people happen for a male and i thirty recommends the sour cream was. ok so i've got a bit of an appetite for your height that's quite spew out the tights for venture capital this week if it doesn't get on to it's i'll be involved all this way going to be talking about such a core principle running around wellness like a by so i take care of yourselves have a great week were tough. live . live. live. live please liz liz . we we will. see. about. they are almost entirely. if they are not. committees who will tell the i.o.c. where they are. there's a scene when you're in the arctic you have the entire world at your feet

anything to do with it but it's important, if we look what happened to moody's today, two notches lower on puerto rico. following s&p on the 4th, one notch, both in junk territory. if you look at the etf for munis, it hardly noticed. if you look at a one-year chart, it's hardly noticed, but i think this is going to be an issue to pay attention to, and especially for the distressed security guys that are going to be jumping into this to see if they can find some straw to turn into gold. >> crazy. >> they might be, packtti, but what should investors do about the puerto rico issue? >> i think if you've been in puerto rico you have not been paying attention to the headlines. puerto rico is unto itself. there are still some we think fantastic bargains in moounicip bonds but know the municipalities had you're buying. don't just buy the etf. you want to own the individual bonds. >> every following indicator is like the january barometer, the super bowl indicator, the afc team won. i'm going to go with the groundhog. he didn't see its shadow, six more weeks of a correction. >> groundhog didn't see his shadow -- >> because

remember, moodies and fitch, the other two ratings agencies also gave mortgage securities good ratings and it is still very unclear why only shite house is retaliating against it for downgrading the us credit rating back in 2011. if you don't remember here is a timeline. august 5th, 2011, s&p downgrades retary . credit rating, three tim geithner meeting with the president in the oval office. later, the president calls terry mcgraw, who owns s&p. he claims tim geithner said this that s&p had done an enormous disservice to yourself and your country. that s&p's conduct would be looked at very carefully and such behavior could not occur without a response. in response, a tim geithner spokesperson said, quoting, the allegation that secretary tim geithner took any retaliation against s&p is false. the department of justice says the investigation into s&p began long before the u.s. credit rating was downgraded. s&p is now asking the courts to force the obama administration to turn over all documents and recordings associated with the obam obama/tim geithner meeting as well as the tim geithner phone call. it is not clear when the ju

s, is still publishing school yearbooks. hereve the ceo of josten's with us, chuck moody who is two months on the job but this is a company thatgoes deep into people's lives. thanks for joining us. what is your take away from your first couple of months on the job? >> man, i would say the great joy for me is to come and join a company with roots and heritage dating back to 1897. it's a company that celebrates the moments that matter whether it's in high school or college or in pro sports or collegiate sports or other types of moments in our lives to be able to be a part of a company that truly celebrates those moments is just a real joy. >> how do you combat the other companies that truly celebrate the moments that matter in real time like facebook and instagram when you can cherish those moments rather than wait for your book to come out at the end of the school year? >> that's a great question -- i think we are all in an era where technology is becoming much more important. the relevancy of how we communicate or create those moments or store those moments that matter are different than they were in yesteryear. i think there

believe the downgrade will create a sustained risk in the coming market, but s&p's move may be followed by action from fitch and moody'sting is unlikely to cause a wave of forced selling by investors, but now 70% of the bonds to have exposure to puerto rico. many have limits to how much junk debt they can hold. the power shares insured new york's muni bond fund with 18%. that's a lot. puerto rico's governor is reassuring island residents that the government will operate normally and he's pressing ahead with economic development eft efforts. ross and julia, banks have been flooding into puerto rico and offering to underwrite bonds at extremely high interest rates. so it's not for lack of capacity. it's just can they afford what some of these bonds will end up costing. >> thanks for that. have a great day over there. >>> european markets stay in the green, quite lower than expected services pmi numbers out of the uk. puerto rico gets its debt downgraded to junk status by ratings agency s&p. and we'll get the first look at the u.s. jobs market this week with the adp report set to come out later today. >>> plus, after a fi

s&p posting the worst monthly decline since may of 2012. and not so glad. here with his outlook on these markets and the economy, chief economist for moody's capital markets. who do you like in the super bowl? was hit to the big question first. >> family ties demand the root for denver. my sisters brother-in-law is a democrat who is in lieutenant governor of colorado. lou: and going to have to be and not less certainty of a lot less to for you, especially since you're pulling for denver which happens to remind. a love it. these markets are crumbling around us. people are talking about a correction. and they say it is upon us. it is nothing to worry about. it is just a little bit of applause. maybe a big correction, but overall bull market. that does not make a lick of sense to me. >> when the market is overvalued it is more vulnerable to a correction whenever you have some source of worry. right now people are concerned about emergg markets. in all likelihood these concerns will probably prove to have been overdone. but for the time being i would look for a correction. equities drifted lower for a while. at some point eventually that 10-year treasury yield

. >> when s&p downgraded rotary goes dead, we saw a bit of a rally. here is what moody's said.fficient to reverse the common wealth trend. if that is the case, we have had peter hayes on the program before, do you think we will see a reposition? >> i hope not. my firm does not invest in puerto rico. generally, we are independent. i think the restructuring would only come if puerto rico fails to attract enough investors in a large bond deal. they passed a bill or has put in front of the legislature a bill to bring a two plus billion dollar bond deal. if it is successfully place, puerto rico will have some more breathing room. some of that has to do with alternative investors who are now showing a great deal of interest. >> what would happen if puerto rico would restructure? what happens if they said help. >> there is a lot of discussion about what puerto rico as a territory of the united states can do. there is a general obligation bond. there are bonds issued by the power authority that water authority, highway 30. they would need to decide which bonds would be -- which was was

s board lamar's killed it. bruno mars and russell garrett bruno mars and russell wilson >> will send you do high i.q. products or shampoos here products sell products. : moody'sod is squeaky clean was >> to have a good rivalry against kapernick who is a little bit as year. a little bit edgier >> you know, toothpaste or albee crest... of course because he has blanket coverage when he's placed insurance. >> telecom because he has a communications degree from stanford. >> gary: do you think he will stay? is anyone use him in a bounceback situation? that >> is this kind of think that gatorade can do. he lost the game but not any endorsements. >> gary: the house budweiser puppy love? >> 6000 people are responding. >> a little tired of the cute animal spirit everything was very warm and fuzzy not a lot of chances were taken but every year is seems like people love the clydesdales and the poppy's they were the no. 1 spot last year. you have a lot of family and women watching the game. it is almost safe and successful way to go. >> gary: how about t mobil? >> i have done so much this year. >> gary: does not any play anymore no team would have him on their roster. >>

s&p, sort of steady as she goes. we were not far from the highs of the day. we sort of came off of that as lockhart made his comments. rick mentioned moody's of mexico. i think that's important and it definitely moved the etf for mexico. there's the eww, that move up as moody's upgraded mexico by a notch. and a lot of the questions here are whether or not you can successfully differentiate emerging markets now. so mexico's up today, turkey is sort of not, indonesia is. a lot of people trying to argue mexico, poland, nigeria, other countries that are doing better than other parts of the world, their prices should be up and not completely sold off. maybe this will be a catalyst to start a conversation about that. back to you. >> you're probably right on that. thank you very much. >>> a key read on jobs ahead of friday's employment report. adp data showing 175,000 private sector positions were created in january. but there's another report out today that's getting more and more attention when it comes to the reading of the health of the job market. we can certainly use some clarity on that. steve liesman's got it for us. >> going to get to th

s&p up about ten points. pulled back just a little bit here right now. relatively quiet as far as the big, big concerns that we've had of recent. emerging markets relatively quiet. moody'sand providing a little bit of comfort, we got the better-than-expected jobless claims this morning but we've had a lot of economic data that hasn't been so good either. saw some strength this morning, draghi biving hints the ecb is not doing any imminent easing. we know the rates were left unchanged you can see the euro took a nice little pop up this morning. and we've got to talk about retailers and the same-store sales. we know it was a shell of what it once was. we don't get as many retailers that report the numbers, but the ones that do remain interesting. take a look at costco, outperforming here. very interesting numbers out of costco. really sort of shrugging off the effects of the foreign exchange rates in the lower fuel costs, something that's very important to them. their international segment much more profitable than the domestic segment here. but expectations beating them, blowing them out of the park. limited brands, too. up 9% for january same-store sales. the analysts o