"The president is right to make this the center point of the rising and sustained trade conflict," says Sen. Chris Coons.Politicsread more
"We're gonna take this meeting by meeting. We're not on a preset course," Clarida told CNBC's Sara Eisen during an interview Friday on "Squawk on the Street."The Fedread more
More than 400 Chinese products will be temporarily exempted from tariffs that President Donald Trump's administration imposed last year.China Economyread more
"I feel like I've contributed all I can to this primary election," he told MSNBC's "Morning Joe." "And it's clearly not my time. So I'm going to end my presidential campaign."2020 Electionsread more
The United Auto Workers union and General Motors are making progress on their labor contract talks, however there remain "many" outstanding issues, according to a union leader...Autosread more
Democratic presidential candidate Elizabeth Warren has been given more than one opportunity over the past two weeks to clarify her response to a key question about her...Politicsread more
Apple will get a taste of whether upgraded features on the new iPhone 11 are enough to lure shoppers to retail stores around the world as the new smartphones officially hit...Technologyread more
James Bullard said he dissented on this week's Fed decision to lower rates by a quarter percentage point because he didn't think the cut was big enough.The Fedread more
Joshua Harris, Apollo Global Management's co-founder, has a message for private equity's naysayers in Washington.Delivering Alpharead more
Roku shares have more than quadrupled this year, but the stock has had some rocky days of late as more players jump into streaming.Technologyread more
Two sites were hit Saturday — the Abqaiq and Khurais oil facilities — which took out 5.7 million barrels per day of oil production.World Politicsread more
The Moody's upgrade, the first since January 2004, lifted India up a notch to the second-lowest level of investment grade. Standard & Poor's and Fitch have had the country, the third-largest economy in Asia, at the lowest investment grade level for about a decade.
The timing of the Moody's move was actually surprising given questions around India's fiscal health, three different analysts said. The rating upgrade also came at a time when the most recent gauge of economic growth had shown the country slowing to a three-year low of 5.7 percent — with consumption hit by the new Goods and Services Tax and a ban on high-value notes.
"The timing of the upgrade is odd," Vishnu Varathan, Mizuho's head of economics and strategy, wrote in a note on Friday.
He added that India's widening deficit is made worse by a pick-up in oil prices, while creeping inflation will limit the Reserve Bank of India's options in managing policy to boost growth. Furthermore, the risk that New Delhi may waive more loans by farmers to gain political favor adds to concerns about the government's finances and credit discipline, Varathan said.
As such, the other two major rating agencies, Fitch and S&P, would not be in a rush to follow suit, analysts said.
"The timing of (Moody's) announcement is a positive surprise," Nomura analysts wrote in a Friday note. "The question now is whether or not S&P and Fitch follow. Our bias is that they will likely wait for the government's fiscal position to actually improve before making any changes."
India's fiscal deficit hit a four-year high of $14.3 billion in the quarter that ended in June — a figure that's 2.4 percent of the country's gross domestic product — according to latest data by the central bank.
The Nomura analysts said they expect India's deficit for the fiscal year ending March 2018 to be larger than the targeted 3.2 percent of GDP. They estimated the shortfall to come in around 3.5 percent of GDP.
But Prime Minister Narendra Modi's reforms will benefit India over time, Moody's said on Friday explaining the rationale behind the upgrade. Even though India's government debt is high — 68 percent of GDP compared to the median 44 percent among countries of the same rating category — reforms have "reduced the risk of sharp increase in debt, even in potential downside scenarios."
Bank analysts said they agree with Moody's assessment of India's outlook. Nomura said the government's effort may pay off in the next fiscal year with its deficit likely to come down.
"In our view, Moody's upgrade confirms the positive direction of government reforms and their expected benefits over the medium term. These include implementation of the GST, bankruptcy reforms, infrastructure spending and the large-bank recapitalisation, among others," Nomura said.