coming up, we take a look at what moody's ratings cut means for japan and for prime minister s electionampaign. ♪ >> welcome back to "the pulse." back to the news this morning that moody's has cut japan's credit rating. they cut it by one level to a 1. this comes a day before shinzo abe begins campaigning for election. joining us from tokyo is andy sharp. what were the reasons moody's gave for the downgrade? >> basically, looking at the , they are citing the heightened uncertainty of the capability of japan's fiscal reduction goals. japan has the world's biggest debt to gdp ratio. the trigger for this may well have been mr. abe delaying a sales tax increase. again, heightening concerns among people at the ratings company about japan's commitment to achieving its fiscal goal. >> just give us a sense of the reaction in japan. ratingsat an election, agencies always get lambasted as too late to the game. it seems like this may be a little bit of unfair timing. >> obviously i can't really comment on the timing of this. but it is unfortunate. indeed. just starting the election campaign. he ju

moody's revising its outlook on amazon too negative, so the nasdaq is down about 1.25 percent, the s&wo thirds, and the dow is down. commodities about today. we are seeing a little bit of a rebound in some of the commodities. gold, for example, is rallying by 3% here as we see a bit of a snap back. same thing with oil. we are seeing a comeback from all of the declines that we have been seeing and showing stronger gains, and a lot of volatility, i'm unprecedented in the price of those various commodities. and let's talk about the recent decline in oil prices. theas pushed down shares of oil and gas exploration companies. one etf is trading at a new 52-week low. and joining me for today's report is a guest, which provides real-time research on companies and industries and focus is on oil and gas. so you have been pretty busy. given what has been going on. even though oil has been rebounding, these companies are not rebounding. much, but theyas are still going negative. >> it is really a demand and supply imbalance. it is about demand growth. what we are seeing is demand pressures in eur

the dow and s&p posting the biggest weekly declines in more than three years, down more than 3.5% this week. moody'sist john lunski. what is driving oil so low? >> to push the price of oil down to a level that slows the expansion of drilling activity in places like the united states. lou: and saudi arabia? >> well, okay. and beyond that, i think what we're overlooking is the possibility that unexpectedly slow growth outside the united states is also putting downward pressure on crude oil prices. lou: you're talking principally about europe, china, emerging countries. >> call it a global slack attack. i think it's under way right now. lou: a global slack attack, i like that. this would be a lot funnier if there weren't so many people getting hurt her. i don't bemoan the lower prices. i love the implications for are oil prices whether it's heating oil or gasoline. >> you are correct. a drop in energy prices is a positive for the world economy and the u.s. economy. however, to the degree that slowdown globally is helping to push oil priceser, that's troublesome. keep your eye on base metals, the indust

moody's cuts its rating on the island nation. more on the japan downgrade after the break. >>> and a look at futures as we head into the break. s&p 500, dow nasdaq, all arrows pointing to the down side. it could potentially be a negative start to the month of december. >>> it's the last month of the year. can you believe it, wilfred? >> it's nearly christmas. >> i'm seema mody. >> and i'm wilfred frost. >>> sending u.s. futures into the red. >>> also getting crushed is the price of gold as swiss voters reject a proposal to boost the country's central bank reserves. >>> moody's downgrade's japan's credit rating, warning it might not be able to meet its fiscal targets, sending theien on a downward spiral. >>> computer network last week. investigators are looking into whether north korea was responsibl responsible. >> you're watching worldwide exchange, bringing you business news from around the globe. >> and if you're just joining in, thanks so much for joining us. hope you had a wonderful thanksgiving. it is the first trading day of december. let's take a look at premarket trade on what we can expect in wall street trade. dow jo