fitch. you mentioned the study of congressional offices that found about the half of me melt going to congress are not replied, and half of the replies are being ignored by constituents. as someone who spends 11 hours on an airplane perfecting all of my emails, it was really painful for me to hear. talk about this and your thoughts on what we can do. >> in terms of communications coming in, a lot of it is not your fault. isot of the value that trying to be created by the association and nonprofit community, they are not sending in good information. they need to improve the quality. the congressional foundation is leading it. we are trying to make it more high quality. why they are not opening to reply is an open question to us. piece of research we have done. why you wouldn't reply, is there a technological region? is there a delay in responding? did they not invest a lot of time in that? it is something in the future we want to explore and find out why constituents are not interested in the

fitch began working on capitol hill are in 1988. he left congress in 2000 want to work for the congressional management foundation as deputy director. he offers coveted guidance conducting staff training programs and writing publications on enhancing the performance of individual congressional offices and the institution. in 2010, he became president of cmi. is it doctor nebo? he is an associate pastor political science at ohio state university answers as the director of ohio states institute for democratic engagement. was i supposed to say the ohio state university? all right. sorry. that is what i got from monday night football. the professor research focuses on democracy and political psychology. his new book, politics with the people, develops and tests a new model of politics connecting citizens and elected officials to improve representative government. he holds a phd in political science from the university of chicago. finally, my c harris is a congressional staffer and developer of constituent engagements. ms. harris develop

to be triple be perilously close to junk status fitch cited the recent terror threat from u.s. president donald trump in their revised rating and outlook on that front trump tweeted that the 1st day of talks between the u.s. vice pres. and mexican foreign minister had not produced a deal that would convince the president not to impose 5 percent tariffs on all mexican imports starting on monday june 10th perhaps even more concerning fitch cited state oil company pemex as debt and deteriorating credit profile as well as ongoing weakness in the macro economic outlook for mexico. and the trump administration has imposed new restrictions on americans right to travel to cuba including the ban on the broadest category of travel and on cruise ships docking in cuba the cue to trump and ministration moves are just the latest step in a steady march to undo the obama administration's attempt to move past the cold war status quo here now to discuss more on this in detail is john catholic president of the us cuba trade and economic council thank you walking back john. and john could really b

fitch takes to four hours and 40 minutes to respond. without objection, all members will have five legislative days within which to submit extraneous materials to the chair for inclusion in the record. with that, this hearing is adjourned. thanks, everybody. >> congress is ending work early this week so that members may attend events in europe marking the 75th anniversary of d-day. c-span producer craig caplan tweeted out this video of buss with house democrats and republicans aboard headed to normandy, france. >>> president trump and first lady melania trump are in the uk today for commemoration ceremonies before heading to normandy tomorrow. and this year marks the 30th anniversary of the tiananmen square protests in china where thousands of students met in a pro-democracy movement through the summer of 1989, but in may of that year, the government ended the sit-ins at tiananmen square with assault rifles and tanks. hundreds of people were killed. the senate foreign relations committee held a hearing on the impact of the movement 30 y

we are hearing from moody's and fitch, both the downgrading the outlook for mexico. moody's saying its outlook has been downgraded from negative to stable. also, they have reaffirmed their rating for mexico. the outlook has been downgraded to stable. fitch ratings has downgraded the mexican idr and revised the outlook from stable to negative. you can see the mexican peso right now weakening significantly after the latest news. we are, of course, expecting a press conference from mexican officials on how those trade negotiations with the u.s. have .one as we continue to see the u.s. threatened 5% tariffs on mexico from june 10 if mexico does not do more on illegal immigration. let's get you started on a quick check as markets close in the u.s.. we saw another day of gains for the s&p 500, up .8%. there was more optimism on the mexican standoff with the u.s. easing somewhat. we saw nasdaq gained .6%. most sectors were in the green. the only loser was the energy sector, and a surprising given that we saw wti sink into a bear market is u.s. supplies jumped the most in al

i charles seville, head of americas sovereign ratings at fitch never would have imagined any did that we are lower in terms of reserves. the pressure has been strong. data that every forex trader checks is for unreserved. i would not have expected anything else. the question that is most whether it is $3.1 million that was stands pressure, it is really all about what china wants to do with these reserves. in other words, it should -- if china want to continue to buy companies,high tech it is fine. a lot of those purchases are debt-financed. they are not really using their reserves. it would become handy only if china would withstand massive capital outflows. if the chinese were not to believe in china's strength, and a certain economic strength. number point in time, no is enough to withstand the pressure. we should not focus on forex reserves altogether. shery: we are going to get some new lending numbers. credit expansion in china has been choppy recently. what are we expecting when it comes to new lending and the economy act out -- economy? alicia: the right. i was expecting a much

and that's not the only piece of bad news germany's biggest lender on friday fitch ratings credit rating to triple b. that's just 2 notches above junk status and represents a heavy reputational blow for the former pride and joy of germany's financial industry downgrade heaps further pressure on the lender. to a new all time low last week big international tech corporations like facebook google or apple will soon face higher taxes finance ministers from the biggest industrial and emerging economies came to this agreement at the g. 20 meeting in fukuoka in japan until now companies have only had to pay tax where the countries in the countries where they are headquarters which is why they deliberately construct their words in a way that funnels to low tax jurisdictions but that should not come to an end the g 20 hopes to present details of the new regulation by next year. cooperation is still possible it seems despite the trade disputes and ongoing geopolitical tensions even china and the us found common ground at the g 20 finance ministers meeting in fukuoka both countries supports a refor

payments to be processed without screening georgia bank shares slipped to a new all time low last week and fitch has cut the bank's credit rating to just 2 notches above junk status. and you aerospace defense giantess newman on the horizon i just bounce to shake up the industry to united's technologies call and raphael agreed to a merger of equals among other things u.t.c. you could use engines for america's f. $35.00 fighter ready and also a defense contractor is known for building the patriot missile system. well h.b.o.'s hit series game of thrones has just come to an end to the dragons and white walkers are all gone does this mean we now have to face reality 247 no because the world's biggest electronic games convention in los angeles also known as ethe really comes to our rescue let's take a look at the highlights. the atmosphere was boiling over as fans from around the world came to celebrate the newest and greatest in the world of gaming i this is what they came for. me. to. write that. microsoft exploits platform impressed visitors with the newest versions of its blockbuster games. please

processed without screening the news comes after deutsche bank shares slid to a new all time low last week fitch has cut the bank's credit rating to just 2 notches above junk status for. the world's biggest electronic games convention in los angeles officially kicks off on tuesday but is free preview events have been in full swing since the weekend reeling much awaited next generation consuls games and at least one special guest. the atmosphere was boiling over as fans from around the world came to celebrate the newest and greatest in the world of gaming i this is what they came for. a. microsoft experts platform impressed visitors with the newest versions of its blockbuster games you. believe. nothing. good has. the need to really. know we need to fight. for many will help fuel the launch of its next generation console which they've dubbed project scarlet. posting graphics in up to 8 k. resolution and frame rates as high as 120 f.p.s. . but microsoft could hardly steal the entire show. gaming giant that's also presented a myriad of new games including the latest edition of the venerable doom se

. —— aaron shields is with the retail consultancy fitch. before we move on to sustainability, how are we expecting h&m... before we move on to sustainability, how are we expecting h&m. .. well what are we expecting them to say? there are growing steadily and slowly. we expect single figure growth results which is great, but the progress they are making, they're making the progress they are making, they‘ re making the the progress they are making, they're making the right investment in terms of getting product to market faster, increasing ability online, shutting 50 stores across europe and opening just under 200 source globally. the hand was forced, wasn't it? a few years ago, the numbers are looking pretty bad and thus because of the competition. 0nline retailing has been the big pressure behind lots of change in retail and general and certainly one of the first was to dip into disruption. h&m has had to say what it sustainability programme is, what the future looks like because people are turning away partly because of this particular r

anna—marie baisden, head of autos, fitch solutions joins me now. nice to see you again. there are so much to talk about at this agm, the shareholders will have a lot of questions. if we look at the fiat chrysler merger to begin with, that was looking promising and it came to a swift halt. yes, all the signs we re a swift halt. yes, all the signs were that everyone seemed to be moving in that direction. and then it came, as you say, very abruptly toa it came, as you say, very abruptly to a halt. it depends who you talk to a halt. it depends who you talk to is to wipe it down. there is french government involvement, whether it was nissan not supporting it, we don't clearly no way broke down. it goes to show how comp located this is because you've got the relationship between renault and nissan which is very very fractured since the arrest of carlos ghosn, a lot of conversation about japan not being happy about how controlling the french side of the alliance was, et cetera, that need to change in the future. so —— bring in the at chrysler, american — italian, you can

fitch ratings has downgraded the german lender to triple be in its assessment. it says this reflects its continued difficulty and limited improving its profitability and stabilizing its business model. the downgrade adds to the banks woes which include a widening german probe on dividend tax payments for a number of executives. joining us to discuss is the cohead of west european banks. thanks for joining us. are your biggest concerns for deutsche bank? what do you think the biggest challenges are faced by the german lender? question: the downgrade saidcted our view as you that the bank continues to face challenges in stabilizing its business model and in improving its profitability. deutsche bank targets a return of tangible equities of 4% for 2019. after the first quarter results were earnings were hit by the week markets, we believe that will be difficult to obtain. more important, that means reaching the longer-term target of 10% is quite far away. the question here is is the business model being put on a sustainable way? anna: good morning. you talk about w

calf has abercrombie & fitch and others. there is a big divergence in size. cowz is significant bigger. calf has under 50 million. bloomberg intelligence gives both funds a green light with a notice for their alternative weighting. love the piles of cash. but actually, they underperform their benchmarks. cowz comes below, as well as calf versus the russell 2000. eric: they are very novel and specific. what i tend to find the appeal here is for people who have a problem with price. lenders who do not like that metric, and those people like free cash flow as a metric to determine value. i would assume they have an audience. a lot of etf's use price-to-book. scarlet: maybe warren buffett. that does it for bloomberg's "etf iq." catch us each wednesday at 1:00 p.m. new york time. this is bloomberg. ♪ jonathan: from new york city, i'm jonathan ferro. bloomberg "real yield" starts right now. ♪ jonathan: coming up, fresh trade tensions providing even more fuel for the global bond market rally. 10-year treasury yields breaking down to a new lows for the year. bund

industrial zone >> reporter: the company makes clothes for columbia sportswear and abercrombie and fitch. >> whatever china can do, vietnam can do the same at cheaper price. >> reporter: the u.s. is importing 40% more from vietnam than this time last year while imports from china down 13%. it affects your pocketbook retailers like target, best buy and others would likely charge you more to make up for a proposed 25% tariff on china shifting to vietnam could be one solution if the factories here can find enough new workers, and if the country's infrastructure can handle it. >>> american companies trying to work around trump's trade war so you can get the products you want without paying more carl quintanilla, nbc news, hanoi. >> just ahead, the miracle rescue caught on camera. deputies racing to save a newborn abandoned in a plastic bag. the search tonight for her parents. >>> also, the ransom call released by the fbi hoping to crack a 45-year-old cold case. >>> and our interview with the newest recipient of the medal of honor. what he did to save his platoon. >>> next tonight, the miracl

abercrombi& fitch has authorized a new repurchase program for up to 5 million of its shares. it b allows back at its discretion while continuing to invest in growth opportunities and that brings the total buyback to more than 7.5 million shares and abercrombie's stock rose a fraction to 15.49 today. and the justice department is close to approving t-mobile's $26 billion merger with sprint, but only if the companies sell multiple assets to creat a new wireless competitor. "the new york times woet "says a ttlement could be reached in nd next week or so complicating all of this is the judge who is goes to listen to the merger and that will open next week as well. it rose 3% to $7 and a penny while t-mobile shares were a fracon at $78.90 a fraction higher. time for the weekly market a monitornd it will hold up in an escalating trade war and andy capper is o director research at region atlantic. >> good to see you again. first on the list,anthem, an insurance company. it's been a steady riser for a few years andy it's been ver volatile this year and you think it holds up in the tr

by contrast calf has abercrombie , & fitch and others. there is a big divergence in size. cowz is significant bigger. attracting roughly $250 million in assets. calf has under $50 million. bloomberg intelligence gives both funds a green light with a notice for their alternative weighting. love the piles of cash, but actually they underperform their benchmarks. spy versus cowz. cowz comes below, as well as calf versus the russell 2000. the russell 2000 is doing better. eric: they are very novel and specific. what i tend to find the appeal here is for people who have a problem with price-to-book. those people tend to like free cash flow as a metric to turn value. -- to determine value. i would assume they have an audience. a lot of etf's use price-to-book. scarlet: maybe warren buffett. that does it for bloomberg's "etf iq." be sure to catch us each wednesday at 1:00 p.m. new york time. this is bloomberg. ♪ jonathan: pimco investment management is one of the most influential bond houses in the world. in their outlook, they underlined five key drivers that have insight on f

fitch have downgraded them to triple be. deutsche bank's goals look unrealistic. >> deutsche bank targets a return on tangible equity of 4% for 2019, but after the first quarter results where earnings markets,by the weak believe that will be difficult to obtain. mormon tort and lay, -- more importantly, reaching the target of 10% is quite far away. francine: joining us now is jonathan tyce. if this is not moving quickly enough, how is your move it along quickly? jonathan: it is a tough one. it is not a surprise they will not hit their target. happen is ao wholesale change in the business model, a simple as that. playing around the edges has not helped. the u.s. is considered the biggest source of risk. who rightly can say, is there good enough capital? we don't know what is on the balance sheet because of u.s. exposures. francine: if they get out of the u.s., this is a huge transformational deal. jonathan: it is the same as a business plan trimming and trimming. you have to take a bigger hatchet to reshape the business and f

and last week, it was downgraded by fitch which in short order also downgraded mexico's sovereign debt, which gives you an idea of how integrated their futures are. taylor: when you talk about how deeply intertwined they are, it is really interesting because in the story you talked about the new ceo in charge and how closely they are related to the government. who is the new ceo? >> october io romero is a close associate of the president. other goingw each way back to tabasco, an oil state. so they both also know a lot about the oil industry, although i should say that this man is an agronomist by training with no oil experience per se but, the traditionally the ceo job has appointment and at pemex is typically political. that said, the corruption problem also predates his current tenure. he has an idea though that as he likes to say, if you cut off the head from the body, if you replace the top management of the company, the corruption problem will mostly be solved. taylor: talk to me about that corruption problem. because it seems like you do not just get to this position overnight,

abercrombie and fitch will go green, but not what you think. the retailer says it will sell products maybe with cannabis, it's expanding its partnership with green growth brands to sell cbd infused body lotions, sugar scrubs. i wish i could say there was time to book a reservation at the taco bell hotel. i really like taco bell. this is true. i was way too late. rooms at the hotel for a week in august snatched up in two minutes after the reservation window opened. these guys are going to be treated to days filled with tacos and entertainment. more importantly, a day with tacos. ashley: i'm with you, cheryl. sounds wonderful. let's take a look at a the action on wall street. green arrows, the dow up 81 points, s&p and nasdaq also slightly higher. still ahead, day two of the g-20 susummit is underway. will the president's meeting with china's xi-jinping produce a deal? he's already p given us a hint. we'll get into that. parents beware, we'll tell you about the lat latest recall thad put your kids in danger. you're waifing "fbn -- you're watching

. >> abcrom bee and fitch is getting into the cannabis business. the company plans to start selling items infused with cbd. that is extracted from the hemp plan but does not cause the high of marijuana. >>> lag nitas bruing company apparently plans to open tap rooms. the north bay business journal says they will introduce new brews. the company doubled its international growth last year. they have been fully owned by dutch brewing giant heineken. >>> stephen curry taking his. it's called unanimous media. it has already released a six-part online documentary series, in a series called stephen versus the game. he is also part of a new golf show. he wants to use his fame to inspire and lift communities. he was also part of a documentary that explored life after the 2015 south carolina shooting. >>> bay area home prices went down in may. ic tag their biggest hit in more than seven years. sales of existing homes were down almost 7%. the drop occurred specifically in alameda, santa clara, san mateo, and solano counties. the median price in may of 2019 wa

luxury winter coat maker canada abercrombie and fitch and michael cours falling after weaker than expected earnings. is a predominant theme across these or do these just each have their own story? >> each have their own story. i do think this is consistent when we look across retail earnings season more broadly. we really did see trouble in apparel and home goods. we did not see that same trouble at the big box stores. walmart and target both had blowout quarters. and best buy and home depot were fine. apparel was a tough place to be in the quarter, and we saw that show up again today. vonnie: the u.s. justice department is demanding that t-mobile and sprint lay the groundwork for a new wireless carrier, a fourth with its own network, as a condition to clearing their merger. i am speechless. merging t-mobile and sprint would take away a fourth, but leaving sprint out on its own, it is not clear it would survive. how would any fourth survive? >> i think what the justice department is looking at is trying to preserve some form of competition, and going from four to three might obliterate som

luxury winter coat maker canada goose, casual retailer abercrombie and fitch and company of jimmy choo and michael kors all falling after weaker than expected earnings. is a predominant theme across these or do these just each have their own story? >> each have their own story. i do think this is consistent when we look across retail earnings season more broadly. we really did see trouble in apparel and home goods. we did not see that same trouble at the big box stores. walmart and target both had blowout quarters. and best buy and home depot were fine. those hardline businesses, but apparel was a tough place to be in the quarter, and we saw that show up again today. vonnie: the u.s. justice department is demanding that t-mobile and sprint lay the groundwork for a new wireless carrier, a fourth with its own network, as a condition to clearing their merger. i am speechless. merging t-mobile and sprint would take away a fourth, but leaving sprint out on its own, it is not quite clear as sprint would survive. how would any fourth survive? >> i think what the justice department is looking

chipmakers opened lore after sanctions on huawei i want to bring in my next guest, andrew finnel from fitch. thank you very much for taking the time to chat with us today let's talk more broadly about the impact the trade war is having on your ratings and assessment of the region have you downgraded any sovereigns on the back of the developments >> no, we haven't yet. we actually put vietnam on a positive outlook not that long ago. specifically on china, the rating on china is really at the moment all about policy settings clearly this trade war has put a degree of pressure on authorities in beijing they had to counter act with a significant policy easing since the middle of 2018 >> you're supportive of this policy easing even if it's coming at the expense of deleveraging >> this is the key question for the rating our main job over the next year or so as a rating agency is to assess qualitatively and quantitatively the rating effects. one element that has been more credit friendly is that the authorities have done a significant on-balance sheet fiscal easing. this is different than other ea

takeaways from apple's worldwide developers conference and i'm joined by dexter, a senior analyst from fitch. yesterday at the conference, it seemed clear that the company was trying to emphasize their services-related offerings there has been a big shift from the company away from hardware into software. do you think the announcements they made when it comes to services significantly enhances the potential of this business >> it is kind of a continuation to what they have been saying for a couple years the ichlgt phone hiphone has be but it is starting to stabilize so they need to find another revenue stream services is another one of those. subscription and services in streaming. a cross party in apps within a different part of the ecosystem. so trying to get people into using more of apple's hardware to drive the software. >> and they did have one significant announcement when it comes to hardware and that was around the new mac pro quite a hefty price tag if you take into consideration all the different pieces consumers are looking at a five figure price tag for this. who will buy that?

it's not the only retailer abercrombie & fitch was down after earnings last week, gap was down 17% after same-store sales plunged. it almost is as if the market is calling into question which of these retailers will survive at this point. >> game stop is a special situation, right blockbuster 2.0. >> selling the consoles, more people moving to online and streaming. mall traffic is not what it used to be. lot of promotions they're offering are not resonating. if you look at walmarts and targets of the world, they're expanding what they offer in a really big way we had an article on cnbc.com about them investing in the clothing lines they sell on store because it's a one-stop shop if anybody sees my receipts from target, i go in there and buy all kinds of things i never thought i needed and that's working, whereas the deep discounting you're seeing in abercrombie, ann taylor, whatever it may be, may not be working anymore. >> they're separating even american eagle did fine. its comps were twice what it expected this morning. how old are your kids, eamon >> my oldest son is 15, 15, 12, 8 an

closer on his own deals and given that he wasn't in the room that would make it hard >> we just heard fitch downgraded -- on what is that called the lower third. >> everybody's got one >> he just said lower third. >> downgrades mexico's trading -- >> i'm not allowed to mention that there's a show called "squawk box" in the morning -- >> you did >> up next, final trades (osamah) cancer is... the ugliest disease mankind has ever faced. (henry) i thought it was unfair. when-- when you hear those words that you get diagnosed with cancer. (osamah) successfully treating it still remains one of the most enormous challenges facing us today. we realized that, if we developed the technology that could take 2-dimensional patient imaging and convert it into 3-dimensional holographic renderings, we could enable surgeons to dissect around the cancer so we can precisely remove it. when we first started, we felt like this might just not be possible because computing power just wasn't there, but verizon 5g ultra wideband will give us the ability to do this. we won't rest until we see this technology being a

. >> all right well, thank you very much for joining us and weighing in, head of autos research at fitch solutions. >>> now let's take a look at european markets and see where things stand the stock 600 up 0.5%, adding to yesterday's gains when the benchmark saw 0.38% gains. rising tentions between italy -- tensions between italy and brussels and it was one of the underperformers yesterday. let's look at the regions to see how italy in particular is faring this morning. the ftse is up about 1% now, outperforming the prodder european markets recovering the losses we saw yesterday. of course the dispute remains in focus between brussels and italy with salvini weighing in in response to the european commission's comments yesterday saying that italy doesn't need the eu's help. doesn't need the eu's money but so far italian investors shrugging off the potential face-off we could see there. let's look at the sectors now as well fiat chrysler and renault, sharply in focus in the auto space and the auto sector is up 0.24% today. peugeot within the early outperformer as we just heard there from o

retail analyst i have the list there, there are 12 of them american eagle outfitters, abercrombie and fitch, gap, tiffany. we don't have time to talk about all 12, but what happened? >> i think the reality is sometimes you can learn from what we have and sometimes you learn from what we do not. what might be more interesting is the names we didn't cut this reflects an earnings season that was the absolute worst fundamental earnings season in a long time. what's interesting about it, the stocks have come to reflect that i think there's actually some opportunities. i know this is supposed to be a very negative segment, and there are plenty of cuts there, there there are also this barbell of names that are not >> the ones you cut, and by the way, this is not supposed to be a negative segment how much of this is attributed below to the tariffs, the higher cost that's bringing, squeezing their margins or if they can't pass it on to their customers, which theoretically is only temporary here >> the interesting part of this is that this is a structural challenge that retail has been facing for yea

fitch and moody's have not done that yet but they've signalled they're paying attention to this, that if that happens that will require investors to then want more interest on the cost and that could precipitate these events that you talk about. >> we're out of time here. for my benefit and other members of the committee, i got the feeling you might be able to put together a chronoly and what these events might be that you mentioned once we did get to the point where we've did not increase the debt limimit or whe these automatic cuts would kick in. is thaomething your office could kind of put together to the ability they've got to do it? >> sure. in fact, we've got a little bit of that in ourd testimony. we could add additional -- you would have to make assumptions. >> make assumptions. i'd like a top-ten l list of wh would go. how we sell this to other members of the bodody and the public in interest. >> i don't think people understand the significance of the gap that we have right now. if you wanted to just stay at the 78% of gross domestic debt to gdp ratio, you'd have to cut expen

. >> ab ber kromm but i and fitch getting into the cbd business. it does not cause the high associated with marijuana. >>> the brewing company in petaluma planning to open tap rooms in paris, barcelona and london. the report says the company doubled its international growth over the last year. they've been fully owned by heineken since 2017. >>> sales of existing homes were down almost 2% compared to may of last year according to core logic. it occurred specifically in hall immediate alameda, santa clara. >>> well, in sports, while no giants or a's players were selected to start the major, one player will be the starting designated hitter for the american league. he's hitting .294 with 1 homers and 48 runs batted in. the a's and the giants will have representatives named on sunday. you can watch the all-star game here on ktvu fox 2, july 9th. >>> team usa plays france at noon. it's a must-win match. today's game is a chance for both soccer programs to show the progress they have played. >> where we were four years ago and where france was four year

shery: also not helping is the fact that situating's cut their cutit -- fitch ratings their credit outlook, booties changing their outlook to negative. against taking a hit the u.s. dollar. neil: i think mexico is in quite a challenging position, particularly if it has a un- constructive relationship with the united states. ands reliant on oil price those cash flows. i think when one is thinking about emerging markets, the issues around the auto sector and uncertainty over the mexican president's policy suggest the peso could weaken. shery: broadly on emerging markets, could we expect a stronger dollar on haven demand to hurt them? neil: what i find around the world is everyone would like the dollar to weaken. i have argued the dollar has been dull, if not quite resilient. while the president at the moment is being more aggressive on trade, safe haven trade will be into the dollar and gold, as we have seen the past few weeks. paul: are you surprised gold has not caught more for a bid? neil: i think it is still building momentum. it is our case at allianz global investors that at the end of

but then we have the fitch warning on possible downgrades. it actually downgraded before the tariffs were announced? right, many things happening at the same time. this tight space for fiscal maneuvering and a very ambitious target of 1%. on top of that you have the u.s. mca just waiting to be ratified in the congress. obviously, all of these have to be digested by our own the central bank. with downside pressures on growth, all of these factors could affect markets. itt we already know is that get -- build significant importance around market development. alix: what's going to be the biggest driver? . growth and that? i think we have probably seen the lower end at the bottom here. for the dollar. i think that what is attractive for the leverage community is the short-term build a market in mexico is yielding over eight percent. once it stabilizes, there will possibly be currency manipulation as well with people coming back into mexico, with a leverage community. david: when it comes to mexico, what about president lopez orbit brador'spez ove

. >> dan, we got fitch cutting their debt rating on mexico. you got moodys putting it on negative outlook how do these tariffs help mexico combat the migrant flow? >> i don't think they do i think this is being used as a tool to try and get mexico to do something on immigration that they have never done before. carl, we can argue whether that's the right thing or the wrong thing to do. but now the pressure is there. and i really don't believe that it is going to have an immediate effect in stemming some of that. mexico wants a long-term solution, and a lot of what we're talking about are short-term and medium range solutions. so this is a head wind for risk assets, even if the tariffs don't go into effect, carl, now you have to start saying do you do this with nato on defense spending is it an effective tool to get other policy changes and i think that's dangerous with the inverted yield curve. >> so i know you are sort of long-term value investors, has the trade scares created any opportunities for you? >> there is nothing that dan said that

we also heard loudly and clearly from fitch bond rating service, who changed us from negative to stable after we launched the legislation. we heard loudly and clearly about it. ontario'st was finance minister. if they have their way, you will get beer in corner stores in ontario until getting, the great american tradition. you cannot do that here, but they would like to bring that to a sports arena near us. shery: i will have to visit, a very entertaining visit. let's talk about beyond meat. stockdowngrades, the gaining after the canadian chain, tim horton, announced they were adding beyond meat to their menu. it will be available for breakfast at 4000 locations. let's bring in our bloomberg news reporter. 4000 locations. how significant is this? >> a really big deal because of the number of locations and also because of the product, a breakfast sausage that is new to beyond meat's offerings of the qsr's. so it is a pretty big deal considering they already have a lot of burgers out there and are now adding sausage for breakfast. amber: tim hortons has been struggling to see sustained sa

we have seen fitch and moody's downgraded, cut the outlook for mexico. at the same time, this agreement comes at a time when the fiscal situation can be precarious. what are the implications of this deal? >> is better than the alternative. the alternative would have been a debilitating escalation of the trade tensions between the u.s. and mexico, deterioration of the overall relationship. this increases the odds that the usmca will be ratified before the end of the year both in mexico and in the u.s. it is not a proposition devoid of risks. the mexican authorities have committed more resources, human and law and order assets, to secure the southern border, go after criminal gangs, human smuggling networks. all of that requires extra fiscal cost. those resources are not abundant. they have been deployed in other parts of mexico where violence is significant. if they are driver did the border, it may expose those areas and we may have to commit more resources for them to operate. .ut there is more than that an expansion of the migration protection protocol

credit rating agency fitch downgraded the debt rating of mexico and moody's looked at the outlook for mexico the peso dropped against the dollar and watch the mexico etf. this is a good sort of sense of where things are down and off about 2% right now. joe? >> looks like it's back, kind of. >> kind of. >> i mean, i don't know. that looked like it's back down. basically, the future sold off here as well they're now up i think initially, you know, it was being reported that no deal, no deal. but is president trump the kind of guy that lets one of his underlings announce this while he's over in normandy or wherever the hell he is? >> he made some comments yesterday. >> he'll be back here before -- i would say before -- if he's going to announce a deal with mexico on immigration he's going to be here i don't think it will be announced by either pompeo or whomever else was there. >> but he did make some comments yesterday. president trump did. just basically did - >> not doing enough. >> he doesn't care if u.s. senators are wrong - >> veto proof, they can't do it. >> but he said the tariff

joining us now is grace wu, head of banks ratings at fitch ratings. peter is still with us. thank you for joining the show. talk to us a little bit about how you are viewing china banks right now. grace: we have a negative sector outlook on chinese banks. we think there is still in a lot of challenges in terms of banks needing to maintain adequate goals for the economy, but at the same time preserving profitability and capital. i think the incident you described right now, they needed need toight decimate -- highlight the vulnerability in the system. with potential to increase contagion risk. there are still measures they can employ it to ease liquidity conditions. china construction bank has been asked to basically step in and assist with this takeover to try to calm fears in the market. what we have observed is no significant increase in the interbank rates. haveof the transactions come down. there is more concerns from banks when they are lending to these smaller banks, especially the ones that have not been reporting financial statements for a number of years. nejra: wha