Us treasury secretary janet yellen called the downgrade arbitrary and said Economic Conditions had improved under the biden administration. The news of the downgrade came after the close of trade on wall street but in asia investors have been pulling out of equities in reaction. Lets look at markets now in asia. Japan is currently down by over 2 . Hong kong not that far behind. This was off the back of yesterday, and most of this week we have seen the sharemarket, certainly wall street and asia having a strong session but this is certainly spooked sentiment. Lets discuss this with tom stevenson, whos an Investment Director at fidelity. Good morning. Janet woody allen saying this is arbitrary. I have her statement janet yellen and she said she strongly disagrees and says it is based on outdated data. That is based on outdated data. That is riuht. Is based on outdated data. That is right it is based on outdated data. That is right. It seems is based on outdated data. That is right. It s
Picture in germany and france. Claim of their implications. Francis of their implications. Francis female coppola joins us. Janet yellen says this is arbitrary, is it . I yellen says this is arbitrary, is it . 4 yellen says this is arbitrary, is it . ~. , yellen says this is arbitrary, is it . 4. , yellen says this is arbitrary, is it . ~. , , yellen says this is arbitrary, is it . 4. , ,. , it . I think what she is oining us is showing it . I think what she is oining us is showing a h it . I think what she is joining us is showing a deterioration it . I think what she is joining us is showing a deterioration in it . I think what she is joining us l is showing a deterioration in fiscal governance and asked two decades, so this isnt about what has happened on her watch, its work were also about repeated stand offs on the debt ceiling and short termism in fiscal Spending Plans going back a long time. find fiscal Spending Plans going back a loni time. , fiscal Spending Plans going back
Remember thatjust like most americans who have credit records when they want to borrow money and find out how much debt they can take on, the Us Government also gets a credit rating. When it gets downgraded like this, the potential long term effect as it could push up the cost for the Us Government of borrowing money, and in turn that might long run push up taxes, it could mean less spending by the government and could mean fewer government and could mean fewer government programmes in the future. We are not there yet, but that is the underlying fear. If you look at what they are trying to address here in this downgrade, or one of the concerns they cite, it is a problem that exists both in the past but also in the future, and that is rising Us Government debt. At the moment Us Government debt stands at in excess of 30 trillion and it is expected to exceed the total size of the us economy at some point. With that in mind, with this problem in sight, and with the political disunity we ha
hello and welcome to audiences in the uk and around the world. we begin in the us where the central bank is expected to increase interest rates by another 75 basis points today which would be the fourth consecutive increase of this size. many are hoping for signs the federal reserve may soften its approach in the months ahead with markets anticipating a 0.5% rate rise in december. so what s different within the us economy that would lead the fed to change its current course? here s michelle fleury. since march the federal chair hiked the rate by three percentage points, in so doing caused more expensive loans on everything, from houses to cars and credit cards, so far they have done so without any damaging slowdown in job have done so without any damaging slowdown injob or growth wealth creation. the trouble is there is no sign of a living rolling off with consumer prices, inflation still high at over 8% and still the fed has focused on. and until it sees inflation coming
let s get down to business. as promised, we have more for you on the nato summit that will be getting under way in a few hours time. where, as you ve been hearing, finland and sweden have joined the alliance after turkey dropped its opposition against their membership. so, two of the hot topics at the summit are deciding whether russia or china is the biggest threat to world stability currently, and how to share the combined costs of defence security. members are expected to meet the nato target of spending 2% of gross domestic product on defence. the uk presently spends 2.1% of its gdp on security, but there have been calls for an increase after russia s invasion of ukraine. michael rowe is vice president of aerospace and defence at frost & sullivan. good morning to you, michael. first of all, finland, sweden joining nato. what does that mean in money terms? good morning- mean in money terms? good morning. when mean in money terms? good morning. when you - mean in money