that is one of the main reasons that the ratings agency moody ‘s has downgraded its long—term ratings the country, including the biggest fall. currently the banks down in syd ney fall. currently the banks down in sydney trading. to tell us more about this downgrade and the outlook for the banking sector, i'm joined 110w for the banking sector, i'm joined now from moody ‘s. frank, great to have us. so, 12 banks have been downgraded. what will it take to improve ratings again? we need to see a period of relative stability. we need to see a period where income sta rts we need to see a period where income starts to write in household debt does not increase of march. that gives households a chance to reduce their leveraged and if those mortgages start to perform in line with expectations, then that is of benefit to the banks. if that trend continues for a while then there could be upward pressure on bank ratings. how long will these banks ta ke to ratings. how long will these banks take to get back to that level? i think it will take some time. if you look at at forward projects and is and

chinese markets have been reacting very negatively to this, you had seen the equity markets down, moody ‘says, something curious has happened, there has been talked about some of the big state banks in china, some talk about the national tea m china, some talk about the national team stepping in to support the equity markets, equities are up, and it feels as though what we are seeing is an attempt to support markets, an attempt to reconfirm that they are there to provide stability. whether that is possible in the long—term, given the fact that we have this underlying wea kness that we have this underlying weakness and underlying concerns in the chinese market, tough to say, but clear that the authorities want to try and provide support. let's talk about the fed briefly as well because we also talked about what happens next and it is interesting if you look at what trump has been doing, there was all of that excitement which has faded away and it is whether they can put a floor under this. yes, fairly anodyne reports on the us economy did not sound full throated. the question is now, are we

both moody's and s&p downgrading its bond to one step above junk with standard & poor's warning illinoisse its investment grade status if no budget is reached by july 1st. jeff flock in chicago what it means to the state's already ballooning money problems as he strolls down michigan avenue. reporter: it is terrible for the state. come to chicago, and michigan avenue, it is beautiful. people are shopping. the state is worse than broke. here is what s&p said as they issued the downgrade down to bbb minus. illinois now at risk of entering a negative credit spiral. we view the payment obligations having speculative grade characteristics. translate, if you invest in illinois stale bonds you might not get your money back. the state is $14 billion with overdue billions right now. that is costing taxpayers an additionalhundred -- $800 million in fees and interests because they haven't passed a budget in two years. s&p in issuing the downgrade issued following factors as reasons. $700 billion deficit in the current fiscal year of the variable rate debt, if interest payments go up, debt could go

ratings agency s&p has warned on the outlook for the uk following the election, echoing similar comments by its rival moody'sope, the middle east and africa, said the inconclusive result meant that "for the time being, the outlook remains negative". moody's has said that the election result has heightened uncertainty and increased fiscal risks. a survey of employers said that the expected freedom of movement to continue after brexit. i7% expected no change to the current rules. we can speak to lindsey from the resolution foundation. were you surprised? i resolution foundation. were you surprised ? i expected resolution foundation. were you surprised? i expected business to be slightly more circumspect. 0ne surprised? i expected business to be slightly more circumspect. one way of explaining away the findings is the assembly has no been details of what the new immigration situation may be. they may be projecting the best case scenario. do you feel there is more certainty around and they should be preparing?” there is more certainty around and they should be preparing? i think it is unrealistic to think that m

ratings agency s&p has warned on the outlook for the uk following the election, echoing similar comments by its rival moody'sesult meant that "for the time being, the outlook remains negative". moody's has said that the election result has heightened uncertainty and increased fiscal risks. for the economy the question is what happens next. but it seems that there are few answers right now. one of the most pressing issues is brexit economically. negotiations are due to begin in a couple of days. the resolution foundation is holding a brexit conference to find out what business needs next. tost and dell is director of the resolution foundation. —— tost and bell. what do you and your members wa nt to bell. what do you and your members want to see? in seven days the government is meant to start brexit negotiations and amongst all the meetings of the 1922 committee the government will be getting on with preparing for those negotiations. but british business also needs to prepare. and today on the issue of migration and how that affects british business, those businesses are not prepared. only half think the migra

five, next to him the man who walks him in every day , andrew wyat, the comedian 's friend and spokesmen. >> his moodies great. it is as good as can be expected. >> reporter: wyat dropped surprising news on the montgomery county courthouse steps by announcing possibility of cosby himself taking the stand. >> nothing is ever off the table in a trial of this magnitude. you have to look at and weigh your options. in a ballgame things changed and players are taken out and sometimes a star player plays and sometimes they don't. >> reporter: inside more from a 2005 deposition, including an admission from cosby, he says he gave multiple woman quaalude but it is not clear if they were aware. seven prescriptions, many from the mid 1907's were in cosby's names but cosby never took drugs because they made him tired. earlier this week andrea constand, insisted that cosby drugged and then sexually assaulted her at his montgomery county home in 2004 according to the deposition, cosby gave constand benadryl. cosby admitted when he was on the phone with constand's mother he worries that she thought he was a quote dirty

this follows a similar moody's move that came before the escalation. s has put concerns on this.watching the credit default swaps. interesting what is happening on the qatari equity. what a rebound. opportunistic buyers in this market. up over 2% as we speak. some of those valuations, arguably attractive. it is still to be seen. guy: yousef, great work. yousef gamal el-din joining us out of delhomme. bloomberg -- out of doha. bloomberg goes the extra mile and the extra mile after that when it comes to getting into doha. still with us, steen jakobsen. mideast think the situation is escalating. im concerned to see that turkey amdeploying troops -- i concerned to see that turkey is deploying troops into qatar. they are trying to defuse it, but there is movement going on, and turkey has committed fully to qataris. it is an interesting thing. as the market place it out so it out, so far, it is nervousness, but not in geopolitical scale as to what can happen. matt: the biggest concern is after the saudis cut off qatar, they are trying to get back at their arrival, iran. you have a terr

. >> s&p and moodies downgrading illinois one step away from junk. state government. the state could get hit to junk status. john miller joins us. welcome. let me start with you, gabe. as i've read, the illinois could be on the hook of tens to 100 million dollars in payouts if they are reduced to junk status. how far away are they from that point? >> right now, the credit rating on the state is triple b minus, which is one notch away from what is considered below investment grade, the next level below is double b plus. when you guys issued the latest change, how close are we from getting to the next level? what is it contingent upon? >> we downgraded the rating and put it on credit watch. there's a 50% probable the rating could go down again. as much as this has to do iffed state's fiscal deterioration in terms of a growing budget deficit and backlog of unpaid bills that is approaching 15 billion by the end of the current fisz cal year. it actually has to do with some broader issues as well. like the duration of the impasse, the fact that this is hap

for those reasons, moody's downgrading south africa's credit rating to baa 3. julia: fitch downgraded them to , and the se finance minister was fired this year. joe: a good perspective on where they stand. the fda isng up, asking a pharmaceutical firm to pull a product because of abuse. we will look at the move and what it means for the wider context of the u.s. opioid epidemic. from new york, this is bloomberg. ♪ scarlet: it is time for the bloomberg business flash, a look at some of the biggest stories in the news right now. tesla has put another big carmaker in its rearview. it now ranks as the fourth most valuable automatic -- automobile manufacturer. cap beat out u.s. rivals gm and ford in april. itses spiking today boosted market cap to $61.6 billion after elon musk confirm production of the model 3 was on time. today, musk tweeted he created tesla because big auto companies tried to kill the electric car. deutsche bank will not comply with the request by democratic lawmakers to hand over information on its relationship with president trump or trades bank's moscow operations. lawyers say the lender

moody in the last half hour. that is cold again. we started the week with 56 to 69. we have come way down. it's a push here. 60's's or very low 90s. 6:34 sal and you think that it'll be lighter until you get that sense. >>> yeah. i'm looking at -- what i always judge by steve is the toll plaza. i can see traffic is moving along slowly. there is a back up and it looks kind of like a lot of people are going had to the office. i still think that later today. we are going to hava lighter day this commute is not lighter. if you are going to the bay bridge it looks the same to san francisco. there have been no major problems but there have been a couple of minor things that have caused slow downs. some commutes lighter. this is 580 westbound. you can see how slow it is kiming township the 205 interchange. 205 is slight lighter 880 between haywood and union city looks better than normal. like wise san mateo and dunbar ton and the south bay commute. let's go back to the desk. >>> happening today three planned parents hood clinics in the bay area will be closing their doors for good. alex savagn pittsburgh this morning w

moody's, invesco, franklin resources, and xl group. now back to the "halftime report". >> well, the brothers have made their way over to the telestrator for a double dose of unusual options activity dr. j.'sfirst. >> it turns out the former cto over at trade monster moved over though this company about a year ago. it's up 165% way to go, san jooeb take a look at this one. xpo logistics, up big again today. and people are betting on more coming out of it, mel. it's up 9% year-to-date. they scrambled in today, bought two-money out of the day calls they sold the calls against it they're setting themselves up in a $5 bull card spread or vertical call spread evening that's a great way to play it. i scrambled in and bought these calls, as well loved the upside, here i never wanted to get out of this one since sanjeeb's been there and the stock continues to perform today. >> pete, you're up >> take a look at the steels last night we had an opportunity to talk about the performance recently and how much activity we've seen across the entire space, whether it's aks, ak steel, or mattel first up, u.s. steel we've had activity in here this is number eight for the month of june where we've seen unusu