Latest news with #Moody's
Sky News AU
an hour ago
- Business
- Sky News AU
Victorian Treasurer Jaclyn Symes slammed as state set to remain at the lowest credit rating in Australia
The Victorian opposition has delivered a brutal rebuke of Treasurer Jaclyn Symes as the state's credit rating remains the lowest in the country, despite her meeting with credit rating agencies. Ms Symes made the trip to New York during the week to meet with S & P Global and Moody's as she attempted to plead her case for why Victoria's credit rating shouldn't be downgraded again. As it stands, Victoria has the worst credit rating out of all of the Australian states, after being dropped twice, initially from AAA to AA+ and then again to AA. The visit to the United States came after warnings the rating could be downgraded once more, with the state's debt set to reach $194bn by 2028. After the meetings, the Treasurer described Victoria as a city offering "stability and opportunity" in comparison to a "sense of doom for America" from a geopolitical perspective, comments shadow treasurer James Newbury says were contradicted by the credit agencies' assessment of the state's budget management. "The credit rating agencies contradicted everything she said. They said there are fundamental issues which we know with the government's mismanagement... so completely contradicted, everything she's said. "I mean, frankly, the Treasurer can't help but fall over her own feet. She went overseas to beg for our credit rating not to be downgraded. And of course, we don't want it to be downgraded, we want it to be fixed. "I just think that the entire state and probably the whole country knows this government hasn't got a good track record of making sure that happens. I think we all know with a nearly two hundred billion dollar debt, that's 1.2 million dollars an hour in interest, they're not going to fix it." Mr Newbury also recalled the Treasurer's awkward moment last month where she asked a room of property developers and investors what their "favourite tax" was. "I think the fact that they've put us on a credit rating watch tells us why we have the worst credit rating in the this is the same treasurer who only a couple of weeks ago went into a really big event and said, to industry, what's your favourite tax? "I mean, is this treasurer serious? We have the worst taxes in the country, the most taxes in country, and the Treasurer thinks that the room is sitting there gagging to pick the best one. Well, they all know which, they've all got a favourite that they don't like. In fact, they've probably got a list of what they don t like." The shadow treasurer said the budget's blowouts under the Victorian Labor government have been "astonishing". "This government multiple times over multiple years has said before a budget and around budget time, 'we're gonna reduce the size of the public service'. And guess what happens come the next budget? They've spent more money on the public service, not less, more money," he said. "I mean, to give you a view of some context, the amount between what they promise at budget time to spend and the amount they actually spend, is $14 billion in blowouts on average every year they've been in government "Just think about that. I mean, it's nearly 15 per cent more than the entire budget they have every year in blowouts. The blowouts are astonishing. So what they put in writing at the start of the year and what they spend 15 per cent above, $14 billion on average in blowouts. You can't believe anything they say."
Business Upturn
11 hours ago
- Business
- Business Upturn
Extension of the term of office of a Member of the Management Board of Bigbank AS
By GlobeNewswire Published on June 20, 2025, 12:00 IST The supervisory board of Bigbank AS has decided on 18 June 2025 to extend the term of office of Argo Kiltsmann as the member of the management board of Bigbank AS for another 3 years, beginning from the end of the previous term until 30 June 2028. The management board of Bigbank AS will continue with five members: Martin Länts (Chairman of the management board), Ken Kanarik, Argo Kiltsmann Ingo Põder and Mart Veskimägi. Bigbank AS ( with over 30 years of operating history, is a commercial bank owned by Estonian capital. As of 31 May 2025, the bank's total assets amounted to 3.0 billion euros, with equity of 278 million euros. Operating in nine countries, the bank serves more than 172,000 active customers and employs 600 people. The credit rating agency Moody's has assigned Bigbank a long-term bank deposit rating of Ba1, along with a baseline credit assessment (BCA) and an adjusted BCA of Ba2. Martin Länts Chairman of the Management Board Telephone: +372 5561 7616 E-mail: [email protected] Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. Business Upturn takes no editorial responsibility for the same. Ahmedabad Plane Crash GlobeNewswire provides press release distribution services globally, with substantial operations in North America and Europe.
Yahoo
16 hours ago
- Business
- Yahoo
Bitcoin and gold gain as stagflation fears drive investors from bonds
On this week's episode of Yahoo Finance Future Focus, our host Brian McGleenon spoke with Gary Murphy, director of liquidity management at Hidden Road, about how surging sovereign bond yields are shifting investor sentiment. As US, Japanese, and European government debt hits multi-decade highs, Murphy noted that confidence in fixed income is faltering, pushing capital toward alternative assets like bitcoin and gold. He pointed to rising inflation fears, Moody's US debt downgrade, and global fiscal deterioration as key drivers behind this flight to perceived safety. In particular, bitcoin is no longer seen as a speculative fringe asset, but increasingly as a mainstream hedge, a shift underscored by major institutional adoption. The conversation also touched on broader market dynamics, including the transformative role of AI and robotics in potentially alleviating inflation pressures through productivity gains. Murphy highlighted how younger investors are embracing higher-risk assets, such as AI-themed ETFs and crypto, while Baby Boomers continue to favour bonds and dividend-paying stocks. He described this as a generational shift, not just a cyclical trend. Murphy also provided a glimpse into Hidden Road's expanding product suite, including digital asset prime brokerage, OTC clearing, and the soon-to-launch Route 28 swaps platform, which integrates digital and traditional markets, signalling where institutional finance is heading. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
a day ago
- Business
- Yahoo
War, tariffs, and Trump: What members of the FOMC will be thinking as they finalize their base rate decision today
ANALYSIS: The Federal Reserve is widely expected to keep interest rates steady at 4.25% to 4.5% amid heightened uncertainty from Middle East tensions, volatile oil prices, tariff disputes, and a recent U.S. debt downgrade by Moody's, all of which complicate the economic outlook and policy decisions. Despite political pressure from President Trump to cut rates, analysts anticipate the Fed will maintain its cautious, data-driven approach, holding off on cuts until there is clearer evidence of economic weakness or easing inflation. If members of the Federal Open Market Committee (FOMC) were hoping to meet with some greater clarity this month, they will be sorely disappointed. Instead of a clearer path laid out ahead, Jerome Powell and his peers sat down to news of increased geopolitical conflict in the Middle East—potentially pushing up oil prices—as well as ongoing uncertainty over tariff agreements with key partners, and a downgrade of U.S. credit by Moody's. Of course, the elephant in the room will be President Donald Trump's reaction if the FOMC once again refuses to heed his wishes in cutting the base rate. The melting pot of issues leads most analysts to suspect the base rate will once again be held steady at 4.25 to 4.5%—a relatively tight stance according to dovish economists who argue the economy is coping relatively well according to data. As David Doyle, head of economics at Macquarie Group, wrote in a note shared with Fortune this week, the Fed is walking a 'tightrope.' 'The FOMC is likely to hold rates steady again this week,' Doyle continued. 'The market reaction is likely to be driven by the communication and the potential guidance of further cuts. The dot plot may push out the suggested timing of rate cuts. We suspect this may tilt somewhat and suggest 25 bps [basis points] of cuts in 2025 and 75 bps in 2026 (from 50 bps in each year in March).' Doyle added that Chair Powell 'may describe recent inflation developments as encouraging, but also downplay their relevance given uncertainty ahead due to tariffs, fiscal policy, and the recent spike in the oil price due to geopolitical developments.' The overall expectation from Wall Street is that there will be no change in the base rate, but here are some of the headline factors which may be influencing Chair Powell's final decision to be announced later today. Tensions in the Middle East are escalating by the day after Israel and Iran launched attacks on each other, with both sides targeting senior military officials. Despite saying the U.S. wouldn't wade into the conflict, President Trump posted on his social media site, Truth Social, yesterday that 'we now have complete and total control of the skies over Iran,' and suggested Iran's leader, Ayatollah Ali Khamenei, is an easy target despite being in hiding. Khamenei wouldn't be 'taken out … for now,' Trump added. The escalating tensions in the Middle East pose a question over oil supply, with Iran threatening to close the Strait of Hormuz. The oil flow through the strait accounts for about 20% of global petroleum liquids consumption, writes the U.S. Energy Information Administration. Vikas Dwivedi, global energy strategist at Macquarie, wrote in a note seen by Fortune: 'We expect oil prices to remain volatile with an upward trend for the next few weeks as both Iran and Israel maintain their military intensity. Regardless of military or diplomatic progress, we expect Brent to rally towards the low $80 level before hitting a plateau as the perceived risk of actual oil supply disruption becomes largely discounted. 'From the low $80 plateau, the next price move will, in our view, be driven by what happens to Iranian oil export infrastructure. If it is damaged or destroyed, we believe oil will trend towards $100 due to the direct loss of Iranian exports and the risk premium associated with Iran's response, including the blockage of the Strait of Hormuz. 'There will likely be selloffs on hopes for diplomatic solutions, profit-taking, and new shorts, but we expect those to be bought until the market ascertains the risk to oil supply.' None of this makes Powell's life any easier, as oil is a key factor determining the rate of inflation in the U.S. Policy out of the White House is also adding further uncertainty to the already blurry picture. Trump's 'Big, Beautiful Bill' has raised eyebrows about the amount it could contribute to U.S. national debt, despite some deficits being offset by inflationary but moneymaking tariff policies. The lack of action from the Oval Office isn't impressing Moody's, which downgraded U.S. debt a month ago to Aa1 from Aaa. That's an issue for Powell, with the move pushing Treasury yields up, creating higher borrowing costs for the government that potentially have trickle-down inflationary impacts on consumers. But as Deutsche Bank's Jim Reid wrote in a note shared with Fortune this morning: 'Ahead of the Fed's decision, U.S. Treasuries rallied yesterday, on flight to quality, and as the weak data cemented the view that rate cuts were still likely in the months ahead. 'That meant yields fell across the curve, with the two-year yield (–1.5 bps) down to 3.95%, whilst the 10-year yield (–5.7 bps) fell to 4.39%. The outperformance of long-end bonds came after news that the Fed will be holding a meeting on June 25 to discuss changes to the supplementary leverage ratio, which may allow banks to hold more Treasuries.' Another question is, of course, tariffs, with Powell already signaling he is waiting to see if businesses pass on increased costs to consumers. Thierry Wizman, global FX and rates strategist at Macquarie, pointed out that level inflation data after the 'Liberation Day' tariff announcements wasn't a signal to bank on, writing the 'low May CPI [consumer price index] print isn't because tariffs don't matter for measured inflation. Tariffs do matter, or will matter. 'Rather, inflation retreated because underlying notional demand has weakened … We still lean toward the view that Jay Powell will sound more 'dovish' next week than he did in May. We believe that were it not for the uncertainty caused by the tariffs, the combined information coming from the inflation and labor-market data would have compelled the Fed to have resumed cutting its policy rate by now.' Powell also has to weather the storm that may come in the form of President Trump, who has made it clear that he wants the Fed to cut rates. While Trump has stepped back from threats that made the market worry that the Fed's independence might be under threat, he has made no secret of the fact he wants 'too-late Powell' to cut the base rate. Powell, on the other hand, has maintained that politics have absolutely no impact on the Fed's decision-making. Despite threats from Trump that he may threaten Powell over the lack of action, Richard Clarida, the former Federal Reserve vice chair from 2018 to 2022, said the White House will stop short of materially altering the central bank's independence. 'We may be going to a world where the Fed loses some power in the regulatory sense,' Clarida told MarketWatch in an interview published yesterday. 'But it looks like the Fed retains independence to raise or lower interest rates.' On the chairman to follow Powell, Clarida added, Trump's nomination will not be the only factor: 'I think markets can have a say,' he explained, highlighting stocks and bonds would be in for a shaky ride if the candidate for Fed chairman wasn't viewed as truly independent or committed to bringing inflation down. This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Montreal Gazette
2 days ago
- Business
- Montreal Gazette
Legault says he's energized by public's disapproval of CAQ government
Quebec Politics QUEBEC — Premier François Legault acknowledged Wednesday that the people are disappointed in his government, but insisted poor polling numbers inspire him to keep trying. There was also a slice of good news for the Coalition Avenir Québec government on Wednesday: the Moody's credit rating agency opted not to downgrade Quebec's rating despite the province's projected historic deficit of $13.6 billion for 2025-26. 'I am well aware that many Quebecers are disappointed in our government,' Legault said Wednesday as he arrived for his last in-person cabinet meeting before the summer. 'But for me, it gives me energy. It makes me want to fight during the year and a few months that remain (before the next election) to deliver still more results to Quebecers. 'In October 2026, it will be up to Quebecers to decide if they want to keep me or not.' Legault was reacting to a new Pallas Data/L'actualité/Qc125 poll showing the CAQ has placed third in voter support for the second time in two months. In the previous poll, done by Léger for Le Journal de Montréal in May, the CAQ was bleeding support to the benefit of the Parti Québécois. The Pallas Data poll is different because it shows the CAQ losing support to the Quebec Liberals and the party's new leader, Pablo Rodriguez, who was elected to the top job Saturday. The poll was conducted just after Rodriguez won the leadership over second-place Charles Milliard. According to the poll, the PQ still leads in voter intentions with 31 per cent, but the Liberals under Rodriguez are not far behind with 26 per cent, up four points from the previous Pallas poll in March. The CAQ has fallen to third place with 15 per cent, 11 points less than the Liberals. For the Liberals, this is the best poll they have had since 2022. The Quebec Conservatives are fourth with 14 per cent and Québec solidaire is at 12 per cent. The Pallas poll was conducted from June 14 to 16 and is based on a sample of 1,085 Quebecers. The poll comes as Rodriguez is to meet Thursday with the entire 19-member Liberal caucus for the first time as leader. He will hold an afternoon news conference after the meeting. Legault also got more bad news Wednesday: Quebec's anticorruption squad UPAC announced it conducted searches Wednesday of the Société de l'assurance automobile du Québec's headquarters in connection with the SAAQclic fiasco, which the Gallant inquiry is investigating. The CAQ government did, however, get one tidbit of good news as Quebec enters the summer holiday season: A second credit rating agency, Moody's, which is based in New York, has decided not to downgrade Quebec's credit rating. In a statement issued Wednesday, Moody's maintained the rating at Aa2 with a 'stable' perspective. 'The stable outlook reflects our forecast that risks to the province's budget and fiscal plan are broadly balanced,' Moody's says. 'Despite the widening deficits in the near term, driven by the economic uncertainty of U.S. trade tensions, we expect the province's strong fiscal management will mitigate risks where possible. 'While the debt and interest burdens will rise, we expect they will remain with levels recorded by the province of the past decade.' The Moody's decision to maintain Quebec's credit rating follows that of DBRS on June 9. DBRS decided to maintain Quebec's rating at AA (low) with a 'stable' perspective. The two contrast with a decision in April by S&P, which lowered Quebec's credit rating from AA- to A+. It was the first time in 30 years that Quebec's credit rating was lowered. The latest decision is 'a positive sign,' Finance Minister Eric Girard said Wednesday on his way into the cabinet meeting. 'If you look at Moody's, they took a long-term perspective. They recognized that the current situation is difficult, but they are more positive in the long term.' This story was originally published June 18, 2025 at 3:42 PM.
