US credit downgraded; impact on the USD
A rating agency called Fitch has downgraded the US credit rating from AAA to AA plus. They say this is because the country's finances are getting worse. This news has caused some changes in the financial markets.
US credit downgrade
One of the big highlights is that a rating agency called Fitch has downgraded the US credit rating from AAA to AA plus. They say this is because the country's finances are getting worse. This news has caused some changes in the financial markets. The USD and Treasury yields initially went down.
The FTSE, DAX, and CAC
The FTSE, DAX, and CAC, which are stock market indices, are also expected to open lower because of the downgrade. When the Asian markets were trading, stocks in Asia went down too. The US Treasury yields also fell after the downgrade.
The Bank of Japan
The Bank of Japan's recent meeting. Their minutes show that they raised some interest rates because prices were going up. One idea that came up was if they should review their policy on controlling bond yields, but ultimately they decided that it wasn't necessary right now.
Taylor Wimpey
Taylor Wimpey, a house builder, made less profit because people were worried about higher mortgage rates. But they still think they can reach their annual UK home building goals.
Hullion
Hullion, predicts that their revenue from organic products will grow more than expected. They make oil and respiratory health products. Ryanair, a low-cost airline, had a record number of passengers in July. People are calling this "revenge travel" because they're making up for lost trips due to the pandemic.
Starbucks
Starbucks didn't do as well as expected in terms of sales, but they saw a big increase in China. In fact, sales there went up by 46% in the last quarter.
Advanced Micro Devices
Advanced Micro Devices, a tech company, is expecting a good end to the year. They're releasing new AI chips that are seen as competition to NVIDIA. After this news, their shares went up in after-hours trading.
US crude stocks
The price of oil has been up and down lately. The US crude stocks fell, which means there was less oil in storage. People are worried about demand for oil because of China.
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