We are counting down to asias major market open. Haidi treasury features are higher as fitch cuts u. S. Credit rating citing worsening debt and deficit and an erosion of governance. Janet yellen blasts the decision saying it is based on outdated data. The white house is blaming republican extremism. A grand jury and date donald trump on the attempt to overturn the 2020 president ial election. Shery Inflation Numbers from south korea for the month of july, the headline numbers is a gain of 2. 3 year on year. Coming in low expectations by economists not to mention it is easing from the previous month. The slowdown in inflation was pretty much expected due to the comparison with elevated figures during the month last year. Month to month numbers a gain of. 1 which is again below economist expectations. We are expecting this number two perhaps push higher in the month ahead. This is after julys heavy rains could apply pressure on this number. The core cpi number which is what the back of k
Morning. This bloomberg surveillance. More than a decade since the last one, s p Global Rating the gene the top rating for u. S. Of america. Fitch follows up after the close yesterday with this quote, the written downgrade of u. S. Reflects the expected physical deterioration over the next three years. The erosion of governance relative to aa and aaa rated peers. Whether it is justified, and if it matters, are two different questions. Lisa i would agree as this is the second Major Company to downgrade u. S. From aaa rating. The response arbitrary and based on outdated data. That is janet yellen. Larry summers the idea that it is a decreased default risk is absurd. Here is the question, is there Something Real behind this in terms of how much Interest Rate expenses are going up and like a convention there is on capitol hill . Jonathan theres governance issues u. S. Has that is inconsistent with other aaa rated peers like germany. Lisa i would agree because we were talking about u. S. Po
European banking and their struggles but a lot going on across the commodity space as well. I am stunned by the gloom among the pundits in the last few days. I honestly can say i have never seen it. Each of them has an interesting shade and color. We will have some optimistic push optimism to push against the gloom. Francine when you talk about gloom, i know in davos, any ceos were optimistic and there is a reshift. Lets get straight to the bloomberg first word news with vonnie quinn. Consumer prices in china keep rising although they are still below the governments target price. It is the Third Straight monthly increase. Food prices with a big reason. Investors want to know exactly what the and come and president does incoming president of the philippines will do. He was elected with 39 of the vote and campaigned on a platform of fighting crime. He has sustained Investor Confidence on an economy that grew an average of 6 a year in the last decade. North korea staged a massive parade.