News

Failure to provide more fiscal stimulus is a ‘significant mistake’ that could cause more businesses to fail, Moody’s chief economist says

Moody’s Analytics’ chief economist Mark Zandi told Bloomberg TV on Tuesday the fiscal gridlock in Washington is a “significant mistake.” “The longer we wait to provide that additional support the more likely the recovery from the economy is going to stall out and backtrack,” Zandi said. Zandi said lower income […]
Failure to provide more fiscal stimulus is a ‘significant mistake’ that could cause more businesses to fail, Moody’s chief economist says
News

The airline industry will be ravaged for years to come and the effects will be felt across the entire economy, a new Moody’s report says

Commercial aviation will be ravaged by the COVID-19 pandemic for years to come, according to a new report from Moody’s. Every stakeholder, from airlines and airports, to plane lessors, plane manufacturers, and parts suppliers, will be squeezed, with effects rippling across the entire global economy. In a best-case scenario, Moody’s […]
The airline industry will be ravaged for years to come and the effects will be felt across the entire economy, a new Moody’s report says
Markets

Moody’s cuts Saudi Arabia’s credit outlook to negative, cites oil-price shock driven by coronavirus

Moody’s downgraded Saudi Arabia’s sovereign outlook to negative from stable on Friday, citing increased downside risks to the kingdom’s fiscal strength from the oil rout. “The government’s balance sheet has weakened since the previous oil price shock in 2015-16, notwithstanding some recent improvements in budget execution, leaving the sovereign’s credit […]
Moody’s cuts Saudi Arabia’s credit outlook to negative, cites oil-price shock driven by coronavirus
Markets

Cancelling student-loan debt could have limited positive impact and introduce ‘moral hazard’ that would make the situation worse, Moody’s warns

Erasing student-loan debt could create a “moral hazard” that would weaken the effect of any economic stimulus, Moody’s Investors Service said in a recent report. Outstanding student-loan debt is $US1.5 trillion, equal to 6.9% of US gross domestic product. Cancelling student-loan debt could hurt the US government because it collects […]
Cancelling student-loan debt could have limited positive impact and introduce ‘moral hazard’ that would make the situation worse, Moody’s warns
Markets

An ‘Achilles’ heel’ in credit markets means fund managers are bracing for a recession — here’s how they’re adjusting their portfolios

Asset managers are growing wary that a US recession might happen in the next year and are shifting portfolios accordingly. Participants at an annual Moody’s conference cited the Treasury yield-curve inversion and a slowing US economy as key factors. They’re buying gold, gearing up for consolidation, are wary of the […]
An ‘Achilles’ heel’ in credit markets means fund managers are bracing for a recession — here’s how they’re adjusting their portfolios