. >> while many analysts say the loce-term consequens of the breech are unclear a moody analyst warns longer term risks include concerns guests may have about staying at a marriott property. >> the attorneys general forrk w wsh maryland and noinl are launching investigations appear and senat mark warner chiming in calling for laws ensuring eempanies don't sensitive data they don't need. for "nightly business repor i'm adid idy roy. >> given the massest data breec are marriott are there industries more null ckrable to athan others? we are joined by the cofounder of the cyb the security firm shape security. nice to have you here. >> likewise, bill and sue nice to be here. you say there's been a huge technological shift over the laea ten. and basically security at many firms just hasn't kept up with th move in technology. >> that's very true. if you think abos consumers our lives have become more and moreal dig the promise of the interpret is something we now enjoy in full. but t reality is that as an overall society the combination of government, law enforcement, technology providers an

moody's, chris says moody's one of his best long ideas and you can see the stock pop on that good news. back to you. >> thanks. want to give a quick comment on moody's? >> long time buffet name went through massive restructuring after the financial crisis and now poised to go higher because it is a cheap stock. >> you've known chris well. >> i've known chris over 20 years. very smart investor in this area. i'm in a few funds and i'm sure anthony is, too, skybridge that own moody's that have the story anthony just stated. it's interesting, contrarian, you think of moody's, you think of old media, it's ripe. >> it's not often warren buffet gets called out by a fellow billionaire investor. that's what happened over the weekend in an op-ed published in "barron's" and carl icahn saying he was wrong to abstain in the vote for the employees compensation plan. >> great to be back. >> you as well. why did you feel compelled to write this op-ed? >> there are a lot of problems in our economy that worry me and i think worry warren buffet and charl charlie munger. i didn't go to the conference or a

moody's downgraded the stock yesterday and today the stock sank nearly 50%. based on that drop it's lost more than three quarters of its value this year. and that's tonight's "market focus." >> susie: with the end of the u.s. involvement in iraq in sight, the obama administration announced today it will now focus on trying to secure jobs for returning veterans. president obama's first initiative calls for community health centers to hire 8,000 vets over the next three years. the president wants to use his executive powers to work around republicans in congress opposing his $447 billion jobs plan. the unemployment rate for veterans who've served since the 9/11 attacks is 11.7%. the national average is 9.1%. the white house is also releasing details of president obama's plan to bring relief to those with student loan debt. the plan would make it easier for students to consolidate loans. the administration is also pushing a new project, know before you owe. darren gersh recently visited a high school to find out if students really know what they're signing when

copper is on the move after moody's downgraded china. we'll hit the future pits next. ♪ predictable. the comfort in knowing where things are headed. because as we live longer... and markets continue to rise and fall... predictable is one thing you need in retirement to help protect what you've earned and ensure it lasts. introducing brighthouse financial. a new company established by metlife to specialize in annuities & life insurance. talk to your advisor about a brighter financial future. >>> welcome back to "the halftime report." i'm jackie deangelis. we are watching copper today falling after moody's downgraded china's credit rating for the first time in nearly 30 years. china the world's largest consumer of copper. did you short copper on the down grade? >> i did not. that was a mixed down grade. think of how moody's hedged themselves. that was actually an upgrade. the modern day silk road from 2,000 years ago in china, that silk road we're calling one belt one road will touch 50% of global gdp, and that infrastructure should buoy

it got a top rating, triple a from both standard & poor's and moody's as you see it's grilling current and former executives of the rating agencies. investigators for this committee say the rating process was corrupted by the agencies chasing market share by a lack of resources and by flawed rating models. when the agencies acknowledged that the housing market was in trouble, the sudden cascade of downgrades made the crisis even worse, investigators say. in the trenches analysts knew a year earlier there was a problem. like this e-mail in 2006. it reeks of greed, unregulated brokers and not so prudent lenders. one bank that pushed back a lot was goldman sachs which was pushing the now infamous line of products known as abacus. over one of those offerings one s&p employee complained it is messed up. goldman has done something like 15 of these deals and it's understandable that it gets upset when the s&p demands changes. one of the goldman execs who is cc'd is fabrice tourre. >> scott, cohn, thank you very much. are the rating agencies the biggest culprits of the financial crisis? we wan

i just think that s&p and moody's represent one of the great duopolies today. plus the litigation against s&p for the role in the housing crisis giving aaa ratings to pieces of mortgage back paper that turns out to be junk has left the firm totally unscathed since it got free speech protection. this is much ado about nothing. it's a side show. and while s&p is the largest part, it's not the only part. once they get rid of the textbook business, i think you'll see some of the pieces unlocked, like this thing called plats, the energy information service. given the commodities, hedge funds trade them in and out, pension funds, the value of plats has never been greater. since you have a whole new class of buys who need their service. we also know that mcgraw hill is coming out with major cost cuts expected to deliver $100 million of cost savings by the end of the year, they've got hundreds of people working to find where costs can be cut. buyback going on. they've got a very aggressive buyback since the beginning of 2011. they have repurchased 36 million shares and

moody's cut the city's bond rating from aa3 to a3. it cites chicago's "very large and growing" pension liabilities, high-fixed costs, "unrelenting public safety demands" and "significant" debt load. as part of its $1 billion deficit, the chicago public school system is giving pink slips to 2,000 employees, including more than a thousand teachers. in a city overseas, government officials are using the power of gold to get people to lose weight. city officials in dubai are payng people in grams of gold to get them to slim down. ironically, fast food chains such as mcdonalds, subway and kfc are thriving in the arab emirates... we're just sayin'! coming up, is apple set to take a fall on earnings? what the charts have to say. first, though - they're watching you... the extent retailers will go to to track your every move. bill moller steps in, next. we've certainly learned just how much a fact of modern life it is to have so many of our habits tracked by the government, but also the private sector. and on the private side, data help retai

we got that and moody's changed to negative for germany, for luxembourg, netherlands.

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and ed admarino, who rates moody's a buy. ed, why is this. >> well, first of all, you know, you don't fix what ain't broke, and the rating agencies ain't broke and congress did that. they put in some regulations, oversight, transparency, but didn't attack the core business. the core business for moody's and for s&p has gotten a lot better. bond issuance is up dramatically, particularly corporate finance, structured finance -- >> sorry for interrupting, but when you say you don't fix what ain't broke, is it simply because revenues continue to come, moody's first-quarter report was pretty decent, and so therefore, according to the financial health of the company, they're not broken? >> no, the basic problem is, there's a perception that the rating agencies, for some reason, screwed up badly. they really didn't. it's like blaming a weatherman who predicted one to two feet of snow and it turns out to be six feet of snow. they acted very early on to downgrade these securities -- >> what is this. >> but the degree of downgrade, the

. , the rating onch brazil is two notches behind moody's. moody's smp is more aggressive. do you know why that's the case? surprising not too when you look at the case. turkey had doubled the plus, which was too generous. quiteense, they weren't as optimistic and they seem to be a little more pessimistic on the way down. viewed or wrongly, it is as being a tougher judge on emerging market credit. every agency and myself, we have our own metrics and a lot of things are common in terms of the fundamental numbers, but each industry can wait on different indicators and that's where we see a little divergence. my model is to find the middle ground and predict where rating downgrades are likely to come. all of: having said that, ratings agencies generally don't like to stand out from each other too much. expect to see moody's follow any time soon? guest: i get the sense moody's has been the most generous. investmenttill at grade, which is a had scratcher. it does occur, but at least two or three of them are sort of the key going forward, especially for commodity producers is how

every time germany's market is hit -- and it will because of the moody's change to the negative, the iron cannes lor austerity merkel rises to the occasion and buys time, allowing the stocks you are buying to recover losses. there are so many companies with high yields and no exposure to europe or minimal economic sensitivity. the only reason you run away rather than toward when you get a sell-off is panic. i never get tired of it. panic is not a strategy. bottom line, buy high, sell low. has that worked? not in my years in wall street. this could be different. it could work. you never know. the weight of the evidence doesn't favor money being made with that particular investment style. that is if you can bother to call it a style at all a. jason in ohio, please. jason. >> caller: b-b-boo-yah! >> nice stuttering boo-yah to open the show. what's on your mind? >> caller: my company is rpm international. >> i know it well. >> caller: they boosted the dividend again as they have done year after year. it tooks like they came out ahead on earnings. what's your outlook for the future for th

i mean, moody's, standard & poor's, these agencies are telling us, if we increase this debt limit without credible and long-term deficit reduction, that they're going to lower our ratings. that means it's going to be harder and more expensive to borrow money, and we can't borrow another $10 trillion that the president's proposed. again, the president -- >> i'm not getting an answer, though. but what's going to happen? how does this end? i know what your position is. how does this end? are you saying that you would put the country into default by not raising the debt ceiling unless you get this balanced budget amendment? >> well, david, we're not going to default. and if you listen to your previous guest, he said we won't meet some obligations, but he didn't say we were going to default. i don't want to put the country through that, but the fact is, republicans and democrats have been irresponsible. they've brought our debt to the point where we literally can't borrow much more money without bankrupting our country. so, now is the time for the president, senator durbin, and the democrats t

. >> no, i mean, it's had a very huge run, i do like bill moody from the old days but i do think the stock is up too much. i'm not going to recommend it. >> let's go to marvin in maryland. >> caller: i would like to know about sigh loan pharmaceuticals. >> cyclone is up a lot, too. they're into trying -- they have been trying to cure a lot of diseases and i think it's too speculative for a very big move. >> let's go to joyce in new jersey. >> caller: booyah, jim, from rose land. how are you doing? >> how are things going? the garden state. >> caller: going straight. >> all right. >> caller: going great. i just want to ask you con edison. >> con edison i have made a recommendation since we've started the show i still like con edison. still. all right. let's go to chris in california. >> caller: hi, jim. i was wondering what your thoughts were on regeneron. >> a lot of the biotechs, some of them hit highs this week, i think those are dangerous, the big one celgene, regeneron i think are still good. regeneron is a buy but you have to be willing to accept the fact there are some price ri

outlook cut by moody's. the markets are shrugging it off, focusing on yesterday's better-than-expected u.s. manufacturing data. asian stocks rallied and european stocks on track for a five-day winning streak. positive news on australia's economy. the ucf as a positive sign that we are beginning to shrug off china? , thewe saw china sweating markets fell apart. >> something interesting is going on around china and it is related to the g20 meetings we had in china last week. we are talking about china as a normal economy that has normal challenges. it has significant challenges, but we need to talk about china in a context in which they knew better and the china case is different. it is not different. it has a problem of excessive use of leverage, overcapacity in sectors, credibility issues on the government side. it is good that the whole dynamic of western finance has been to bring china to the side of the table, putting them into and subject them to western standards in terms of transparency and policy beha

. >>> shares of mcgraw hill and moody's down for a second day. our on air edithe had charlie gasparino joins us. >> i couldn't understand why stocks got crushed because i was doing a separate rating agency story. this is a huge story and i'll tell you why. for years the rating agencies have been able to sort of hide behind the fact that they're dispensing opinions and that their ratings, they can't really be sued for bad ratings because it's a first amendment right. the problem with that notion is that unlike journalists, we're not nationally recognized journalists. the s.e.c. does bestow upon the ratings agency this imprimatur as a national rating agency. bond deals have to be rated by one of the three, i think there are three nationally raised. fitch, moodies, and s&p and it allows them to maintain a business monopoly. what this ruling says, we should put up some of the statements, they will tell you it's very narrow. that the claims themselves are baseless. what that almost doesn't matter. what matters is that the judge basically in this rulin

there is a clear disconnect with what ge says and what moody says a are looking for. i don't have a great explanation on why we are not reaching the divide. joe: on honeywell, the stock is bound nicely. industrials and honeywell included have sold off on concerns to trade and slowdown in the global economy, china, all of that stuff. in earnings, do they shed any light into any of the macro questions of industrials? brooke: they were both asked about it and they have similar responses. ge gave an estimate for the impact for the tariffs announced so far and said it would grow 300 million or 400 million impact. half of that is mitigated by that ways of mitigating and honeywell did not give specifics, but they said it is something they are hyperaware of. they meet about it weekly, one of the most important things they discuss and both companies are looking at alternative sourcing aspects. >> that was perfect. it really helped me understand the movement. sutherland, bloomberg opinion columnist, thank you for being with us. but so isy is strong foodstamp use. we have more o

moody's has done something interesting. they have thrown in some other factors that actually boost the amount of wealth that these universities have. that is interesting. i do not think there is any great surprise there that they are a little richer than we thought of it what is really thing here is that they look at the growing disparity between the top 40 universities in the united states, and anybody else that they rate. and that is what they found. that is what is most troubling. that there is this growing disparity. that the wealth is increasingly concentrated among these top universities. betty: right, because they have the fundraising power. right, mike? mike: they have fundraising. yeah, they dominate. moody's pointed out that in 2014, the top four universities collected 60% of the total gift. when you look at harvard last year, they collected $1.2 billion in gifts. a record amount. clearly, they are dominating there. they also pointed out something interesting. that these universities tend to be more aggressive in

allen, -- governor quinn, -- moody's out with a warning saying for most your days are numbered. details next. this is bloomberg. ♪ david: the shift toward passive investing is not temporary. this according to a new report by moody's. , i suspect you have a different viewpoint because you are active. charles: it is not an either/or. we are active. one of our strategies, long short strategy. it is all about providing a .rack to adjusting returns when you go to passive, it does -- it doesn't incorporate sound advice. at different peaks in the market, you're overweight in the passive strategy the thing you want to own least. deskck to 2000, s&p's 2007, the sector weighed -- 2007, the sector weighed, financials. you haven't got paid to be risk manager. we look at the risk adjust returns out of all of the benchmarks, they are astonishingly high. you had no volatility. i would come back and say if you want to be quarterback, good luck. don't forget fundamental investment matters. this is going to be environment where what you on matters with correlation at three-year lows. stocks are

here's some of the forecast, atlanta fed and moodies at 2.8 on the high side action 2.6. action, goldman, oxford right there. and we have gone from a 1% print on this wrap it up date in early march all the way up by 1.4 percentage points up to 2.4, scott, on the back of the better trade data yesterday and better retail sales data today. >> good stuff. thank you very much. >>> let's bring in tom lienio, head of research at fun scratch. we have better economic data better earnings, we can say clearly. yet you're looking for a swift and could be quick pullback in the market because of what we discussed specifically at this desk >> yes health care is a huge sector for institutional manager. it's saying their bacon last year, health care is 65% of the prospectus, 60% growth and that's hedge fund's traffic. there's real political risk emerging for the group for the first time i think you guys mentioned it. it looks like early '93. if it's 60% of what you traffic in, they're going to start to rotate into growth cyclicals, which is not health care i think because someone said you

and some people are really concerned, including mark zandy of moody's nanalytics saying asset markets are very highly priced not everybody feels that way thom melcher says despite the list of potential worries and the elevated valuation we believe it will continue to g w grind higher as interest rates drift higher. >> steve, you know, that idea that markets are a little bit way ahead of themselves potentially, financial conditions being so easy that's one of the reasons the fed is going to get aggressive if they see one more hike in december. >> i think that's all they see right now. some are saying after december they may stop for a while. in addition to doing the balance sheet. by the way, we're not expecting the balance sheet tomorrow to be announced. but that is, i would say, a potential risk 39% see that balance sheet reduction coming in september and a bunch see it afterwards. i think the fed will be concerned about that fiscal policy and monetary policy work together if you're looking for less fiscal policy you're going to get less fed policy. the concern was that you would hav

marriott now launching its own home-sharing pilot program for that and much more let's go to seema moody live with a special guest. >> good morning. we're joined by arne sorenson, head of marriott international >> great to be with you. >> let's talk about trade. interestingly enough, that's the topic of discussion at today's hospitality conference talk to us about the wider implications of a potential trade war, not just on marriott but the broader hotel industry >> obviously our business depends on economic growth around the world demand is driven by economic growth people sometimes forget that our business is not only about taking vacations but boots business travelers and about companies having their meetings with us. all of those things are driven collectively by economic growth. our fear, of course is that a trade war, depending on how it develops could dampen economic growth that may be in the united states it might be globally you never know it's still early in this process. but we're watching these steps that are taken by the united states and other countries around the world in

misses a debt payment, moodies says it would downgrade the country's aaa credit rating. on the funding issue, four-year deal looks unlikely with a short-term extension perhaps more doable instead. and then the senate's ability to pass a health care deal with 51 votes runs out at the end of the month, too now a key senate committee is holding hearings for a last-ditch bipartisan pitch to stabilize the system the president tweeting congress, get ready to do your job, daca! referencing this new deadline he's about to set for them, immigration program for children of undocumented immigrants that is a long list. and, david, it doesn't even include flood insurance, health insurance. some other issues that congress is potentially going to take up. you can see its very long list and not a lot of time as appears to be the new normal for washington. >> no, not at all, given how many days they'll actually be working. kayla tausche in the nation's capital. >> as we head to break, take a look at shares of disney upgrade today. the bank citing increase presence in direct consumer prog

moody's changed the outlook following the uk's decision to leave the european union. moody's rating agency has changed the outlooks at eight banks. to negative from stable. three of which include barclays, hsbc and two banks have been reduced to a stable outlook from positive, those two include lloyd's and principalities building society and moodies expects that the high degree of uncertainty over the uk future, trade relationship with the eu, leads to lower gdp growth in response to diminished confidence and lower spending. they say or expect reduced credit demand for banks for volumes of uk banks. nonetheless, the ratings changes. guys, for now, back to you. >> all right. thank you very much. i think it's all coming down to a lack of understanding of what's going to happen here. you know? when there's so much uncertainty, of course, you have an impact on the economy. right? >> it is something to sit up and pay attention to. when you see the massive drops on the stocks. what happened with all of this, it does suggest of concerns there. larry summers was on today. the

the other big headline is moody's downgrading france. really take a negative look at france's economy and say it continues to lose come pettiveness and the new president there has doubled down on a lot of the issues that prevent france from growing as fast as it could. doesn't look like it's any worse for ware for the french stock market because it was widely expected. this is the ten-year by about seven basis points. 2.1%. they have been climbing very studly today. let's go on to the other country making news there this morning. spain was able to borrow a lot of money this morning. more than they expected. so that's the good news. this is the spanish stock market. lower by a quarter of a percent. not a huge move. show you what's going on with the ten-year yield in spain. yes, they were able to borrow more than expected. still, worrisomely elevated is the way to describe spanish -- 5.8% for the ten-year. show you what's going on, we've been talking about potential fraud at a u.k. company. let's tell you about some real fraud that we lear

some moves we've seen have maybe already happened before the moody's downgrade. so three-year gilt are higher today, 2.29%. one issue, of course, is weather the quest for growth means we get more action from the bank of england, as well. the other big event going on in europe today is the italian election. it's the second day of polling right now. and those polls close 3:00 central european time. there will be some extra programming on cnbc world. we'll take a snapshot view of those polls, not quite clear whether anybody will get overall control of the senate. italian assets, 3.39%. they had a small auction index link. didn't raise quite the maximum they targeted, just over 4 billion. big tests coming up on wednesday for italy. we're going to get a fresh ten-year. that will be the first test post the election. keep your eyes on that. and the currency market has been weaker. maybe getting the nod for bank of japan governor is mr. kuroda. that's where we stand here in europe ahead of your trading day. back to you guys. >> for a while, you were aaa and we weren't, r

a senior economist at moody's say the plans should go a long way to make greece's debt burden sustainable. >> kristie lu stout in hong kong. >>> do you take your smart phone with you everywhere you go? i do. do you take it in the bathroom with you? 39% of people admit they take their phones with them when it's time to get some business done while doing your business. of that 39%, 19% say they've dropped their phones in the toilet. think about that. >>> triple-digit temps blamed for more than 20 deaths. today may be the hottest day yet. let's go to rob marciano live in atlanta. >> it's hot. >> i don't even know what to ask you about this. i've never seen the map behind you look like that. >> when you get into the pinks and purples, that's when you know there's bad news on the horizon. ridiculously hot temperatures yesterday. for a while we didn't have much in the way of record breaking temperatures. we set all sorts of records yesterday, especially across northern new england and upstate new york. today and tomorrow, not a whole lot better. just getting through today, which will have simil

. >>> moody's has affirmed the u.s.' aaa credit rating going from stable to negative. they cite the surprising drop in the budget deficit. the u.s. is on track to report its lowest annual deficit in five years. moody's had cut its outlook to negative in 2011, but never went as far as s&p which stripped the u.s. of its aaa rating the same year, you might recall. >>> japan's ruling liberal democratic party is widely expected to secure a convincing majority in japan's upper house election this sunday. political watchers say a positive outcome for the ldp would mean a return to the old one party dominated system and end the bickering in the japanese parliament. it is going to be a big weekend regardless to the elections. >> that's right. i think this election is significant because it is likely to end six years of political gridlock that has led to paralysis in parliament here in japan. anytime any kind of reform agenda was put to the table, it did not get passed. so the prospect of another victory by shinzo abe, the prime minister and his liberal democratic party, potenti

pick your favorite forecaster and go with it moody's who puts the survey together for us, they're on the high side at 3.2 mark would be whacking it down more if it was really coming in week bank of america, 2.8 atlanta fed, the body follows to the middle of our survey at 2.35 goldman sachs down at 2%, and high frequency economics, that's jim o'sullivan down at 1.5%. the other thing you can gauge from the gdp is let's look at what happened with the fed funds prolkt where did they go? they went up they believe the fed is going to look straight through this number, and you can see we're running about 80% this morning probability of that december rate hike, and only a 1.6 for november that's really where we are in terms of the hurricane so far we're not seeing big whacks to the gdp data, which makes me think that the economy may have been even stronger up towards the 3% number if not for the hurricanes >> richard >> richard is -- we've had him on this show one of the most interesting picks out there. richard has led an insurrection into modern economics, which decided, you know, everythi