these things, but it's not right here and right now. but it will happen. moody's and s&p will help with that decision on the 26th. the eu has plenty of time to delay this. thank you to our panelists. vincent, marcus, joining us. firstcheck in now on the word news. here is courtney donohoe. courtney: bloomberg has used -- learned that the u.s. will be withdrawing from an international treaty that gives chinese companies discounted shipping rates for small countries shipping to the u.s.. it's an arrangement that benefits china. the secretary of state, mike pompeo, says that the u.s. takes the disappearance of the saudi journalist seriously. thatsh officials has said he was killed inside of the pompeo said he didn't have anything to say about that. plane carrying melania trump to philadelphia had to be returned to washington to an area airbase because of a smoke inside of the cabin. everyone is five and safe -- fine and save according to a spokesperson. it is not known what caused the problem. i'm courtney donohoe, this is bloomberg. guy: thank you very much indeed, courtney. coming u

those entities funded sovereigns. they have no rating from s&p or moody. so what we have built is a unique and new window into credit risk that did not exist before. caroline: so you are shining a light on the credit risk within the banks. what is the data telling you about where we are in the credit cycle? we have been talking about fed minutes, rates on the rise, what you starting to see in the 30,000 you look at? william: we slice and dice any different ways. risk, and geography, i do not know if you want me to jump into other retail stuff we have done. caroline: let's go with it. william: we've done a little quality,on roughly 340 large retail names in the u.s.. three years oft history in our data, you can see a pronounced downward trend in quality. in the last two to three months, it might be bottoming out, but we do not know. the u.s. department of commerce released interesting data on retail sales. is you more interesting split this data by loaded, high , and when doing that, the trend is much more pronounced. -- tell really is -- retail debtu look at the high retailers, it h

of weeks by s&p and moody's. we are expecting a downgrade. debt to stay in investment grade. that is the important bit. moment,think at this the rating agencies are ready to go any further. yes, you will be on the lower rung. for at least one rating agency, bbb-. it doesn't mean italy is going to drop out. i know you cover investment grade, but are there better opportunities in investment grade or high-yield? the sub investment grade space, particularly loans. you have a floating rate asset class. much in thehad as u.s. market. in the area to look at. investors are looking at at the moment. juliette: you are talking about brexit. don't forget the irish in terms of the hard brexit. sticking point at the moment in terms of the brexit negotiations. what happens to that border. they want it to be as open as can be. opportunitieshe for the u k to stay may be bit closer to the eu. these are interesting negotiations. nejra: we are seeing lots of headlines coming through. netflix, just one example. something like five deals pulled in the last few weeks. u.s. a more opportune market at the mo

moody's did not cut italy to junk rating. we do have to look forward a little bit. s&p global ratings will issue its verdict to this friday. investors are waiting to see what they will say. . for: the chief economist moody's analytics had harsh words for italy's government, which makes sense. stable is not a word i would think of when i am pondering the future of the italian economy. >> that's correct. the chief economist at moody's analytics repeated his of you that the italian budget is a mistake and he points out that higher borrowing costs will eat into whatever economic boost there may be. anna: thank you very much. , bloomberg'soe editor in loan -- in room -- editor in rome. a six billion euros sale of fiat's corporate unit. carmberg has been -- fiat's parts unit. bloomberg has been reporting on this. we will get you stocks to watch as the sun comes up. this is bloomberg. ♪ matt: welcome back to bloomberg markets. seven minutes to go until the start of european stock trading. we go to bloomberg's dani burger looking at fiat chrysler. annmarie hordern is covering ryan there. --

friday. a risk on day. u.s. futures have turned positive. we got the news out of china. s&p futures at 0.25%. the benchmark did close be hot -- below its moving average. italian bonds trading lower. removed the immediate moody's- movies -- removed the immediate threat of a downgrade. thank you for your patience as we talked to michael o'leary. i know you love talking italy. spread is below 300 basis points. it might not say below there for long. you are saying it won't either. >> the risk has not changed. -- the fact iss they have -- the spread is down because the italian government -- theying a popular have not read broken that chain. that chain. you had a lovely twelve-month period in europe and we have problems. who cares what moody's says? is trying tont drive through an agenda that says i'm going to spend more money in a come -- a country invested.avily it has not changed that -- the dynamic. we did not get here because of moody's. -- manus: when you see these significant moves in btp's, are we going to see fools rush in to btp's? is this an opportunity to look at more truck betwe