NEW YORK— Fitch Ratings Service downgraded Alcoa's credit rating to "junk" status on Friday, saying it thinks the company's leverage will stay high and aluminum prices and profitability will remain low. High levels of aluminum supplies have hurt Alcoa's prices, and the company has repeatedly cut its smelting capacity in response.» Read More
So markets finally have a deal on the US debt ceiling, and it has been passed by the House of Representatives, but was all the fighting over how to cut spending really worth it?
Don Luskin, Chief Investment Officer at Trend Macrolytics, says the soft spot in the economy will last for several quarters, whereas Larry Kantor, Managing Director and Head of Research at Barclays Capital, expects to see a lift in September now with the debt ceiling raised.
The Fast Money traders weigh in on economic growth, and the impact the debt deal will have on defense and health care stocks.
The U.S. should choose to default instead of delaying the inevitable by raising the debt ceiling without dealing with the crux of the financial problems, David Murrin, chief investment officer at Emergent Asset Management told CNBC Monday.
Following the last-minute debt deal agreed by President Barack Obama and congressional leaders, one strategist is predicting the rating agencies should downgrade US debt by two notches.
On a weekend of high drama, President Barack Obama finally managed to get congressional leaders on both sides of the political divide to agree on a compromise plan to raise the debt ceiling and avoid a potentially devastating default.
Kumar Palghat, Director at Kapstream, compares the raising of the debt ceiling in the U.S. to an extension of a credit card limit. He believes this will cause a lot of headaches and uncertainty for the markets.
Jens Lauschke, Interest Rate Economist at DBS Group Research, says the U.S. debt deal will remove uncertainties from markets but it's not substantial enough to avert a possible rating downgrade and he maintains a negative outlook on the U.S. dollar.
Ajay Kapur, Head of Equity Strategy, Asia at Deutsche Bank, says U.S. politicians would pull together a debt deal at the last minute, but still he expects the S&P to downgrade the U.S. longer-term sovereign rating.
The reverberations of Washington’s impasse over a debt deal are already being felt in the short-term credit markets, a key artery of the economy that daily supplies trillions of dollars of credit the New York Times reports.
Shane Oliver, Head of Investment Strategy and Chief Economist at AMP Capital Investors, believes there is a an 80% chance of U.S. credit rating downgrade even if the House & Senate comes to an agreement at the eleventh hour.
Across Wall Street, bankers and traders—including company executives—are aggravated that the Fed "is refusing to engage in scenario planning for a US downgrade or default," the FT reports.
When "the dollar is the reserve currency underpinning the system, waking up to discover that U.S. debt may not be AAA after all is surely a market event,” says an analyst at one European bank.
You might be surprised by some of the possible answers. Click ahead to see what happens if the U.S. credit rating is downgraded.
Discussing the impact a downgrade on U.S. credit would have on cities across America, with Mayor Ron Littlefield, (D) Chattanooga, TN; Mayor Michael Coleman, (D) Columbus, Ohio, and Mayor Greg Fischer, (D) Louisville, KY.
Last night, I spoke with David Beers, head of S&P's sovereign debt rating committee on CNBC’s Kudlow Report. He made it very clear: the U.S. must take steps to lower its debt/GDP trend over the long run.
CNBC's Hampton Pearson has the details from Capitol Hill on the role of major credit rating agencies in the U.S. debt ceiling debate.
Martin Feldstein, Council of Economic Advisors former chairman, weighs in on the debate over raising the debt ceiling and what it means to the U.S. economy.
As we edge ever closer to next Tuesday, August 2nd, those of us who cover the housing market are trying to figure out what this will mean to mortgage interest rates. They are currently bouncing around historic lows and have been for some time. Refinances are surging, as the seven people left who haven't yet refied are scrambling to do so. But are we all worried over nothing?
Which sovereigns are the potential winners of the U.S. debt crisis?