wake of the china rating cut by moody's, cutting the rating on china's debt for the first time in almost three decades. the aussi is chased lower. and brent crude ahead of the 0.5%,eeting is up by $54.45. let's get to the bloomberg first word news. reporter: amber rudd says thousands of troops are available for deployment to help police guard public events around the country following the manchester suicide bombing. 22 people were killed and dozens injured. authorities are now hunting for possible compasses. prime minister theresa may announced intelligence analysts raised the u.k. terrorist threat levels from severe to critical, the highest level, for the first time in a decade. >> our assessment is not only that an attack remains highly lightly, but that attack might be imminent. debt ratingina's has been cut by moody's for the first time since 1989, reduced to a-1. this challenges the view that the nation's leadership will be able to rein in debt, while maintaining the pace of economic growth. >> the authorities have recognized the risks at home with economic leverage. account

just getting breaking news out of ericsson. it has been downgraded to junk by moody's. it david esteban look but this is one of the most in a "comes from -- it is one of the most significant outcomes from ericsson. this was one of the main worries a lot of the debt holders had. being downgraded to junk, and th e outlook stable. so, this is what we know so far. we will keep an eye on it. this is the share price, down from 1.7%. if you look at the share price over the longer term, i have it on my terminal, taking it back f ive or 10 years, it has fallen from quite a peak. 57 at the moment. it was at 170. that's pound. i'll put it up for you. ther eyou go. this is ericsson longer-term, at 120 mid 2-105. -- 2015. let's check in on the rest of your markets. mark: i thought we would look at seag. a season aality chart. this is euro-dollar going back 10 years. up yellow color. the average over the last 10 years as a drop of 1.9%. jeremy stretch is a currency man. maybe he can explain it. that is the worst month over the 10 year average. wonderful function. you can use this function for

believe that moody's will downgrade your country to junk like other ratings agencies have done in the last couple weeks? can'tanyago: well, you speculate on what rating agencies are going to be doing. i think what is important is that moody's -- what are the effects of, that could lead to them cutting south africa's rating? we are engaging with them. we don't believe that the issues they have raised are insurmountable. we believe that the things they have raised are within the control of south africans. they have given us time to say ont, they would put us review and would be making a decision in three months. i think that getting into this data, it's important to reemphasize south africa's credit strength. that we've got very strong institutions. a proud history a very prudent t management. the change of the team at the government has not affected the commitment to prudent it macro economic management. yesterday, i think what you guys interview the minister of finance, you could hear that re- commitment. ard from the just he new finance minister. governor, have you had to raise or will yo

currency. do you think they are stabilizing it or do you feel downgraded, moody's but the regulators stand firmly. david: for a while, we've seen china do a lot to hold its currency up. the great irony is mr. trump saying it is a currency manipulator and accepting that now. there have been hopeful signs in the last couple of months about the chinese authorities getting on top of some of the biggest distortions that have been created by the growth targets and the development of complex liabilities. groupre trying to get a of that. that is the strengthening in the currency. you see that cap opening up in interest rates. francine: what is your take on china and what is your favorite investment opportunity right now? jon: take on china, we are in the same camp. china is doing a lot to manage the slowdown. it is going to certainly -- how successful they are is going to have a huge impact on the developed market economies. whether it is europe, u.s., or japan, very important to the recovery we've seen. toit hits anything close 6.5%, i think that is very good for the markets. in terms of fa

-- what moody's cited in their -- yesterday.he how does china deal with that? i guess letting a little bit of steam out of the engine without causing a panic on the international stage. mr. straszheim: they do this as carefully as they can. ,hey don't want it to be abrupt but they don't want it to remain where it is. last yearrowth this was 10%. the year before it was 14% and the year before that, 16%. tom: so they are doing a dampening function of debt. i get it. i want to go back to the lagrangian function of lack of growth. a cash always caused by infusion. how far are they from a bailout by printing money or using their government wealth to bail out their financial system? mr. straszheim: not close. tom: why not? why can't they just clear the market? mr. straszheim: they are much more continuous, not discontinuous in all the things they do. excuse me, 2017 is their political selection year as was our election year last year. they did a lot of stimulus this year that is already in place. tom: gabriela, you are listening to this clinic with mr. straszheim here. let's get basic. what

medef, where he is the president. it is france's biggest business lobby group. moody's saying that macron's policy platform is credit positive. tom: credit positive, the news keeps coming. when is the honeymoon? guy: i think that is the critical question. the honeymoon is going to be short. tom: the national assembly vote is june 11 in june 18. we should do this again. guy: can we be warmer then? tom: i don't know. have you ever sailed across the channel? that is what this feels like. it by thell do harbor. mark, back to you. mark: coming, we take a look back at the earnings season so far. our next guest says there's more potential upside in store. this is bloomberg. ♪ mark: you are watching "bloomberg surveillance." check out what's happening to european markets. they are down today. the big move of course came after the first round of the french election a couple of mondays ago. in the interim, we saw the biggest leap in french stocks between the first and second round in history, 7% rise in the cac 40. stoxx 600 is lower today. has risen in the last two weeks. up 9% this year.