Moody's issues debt downgrade warning to the entire world -London Telegraph
"Ratings agency Moody’s has issued a debt downgrade warning to the entire world on fears that political turmoil from Westminster to Hong Kong poses a threat to the economy. It cut its global sovereign outlook to 'negative' from 'stable' for 2020, cautioning that 'disruptive and unpredictable' politics was worsening the slowdown in growth.
After warning of a possible ratings downgrade on UK sovereign debt last Friday, Moody's said populism and trade tensions globally raised the risk of bigger economic shocks and the ability of policymakers to counter them. Britain, Hong Kong, Argentina and South Africa were singled out as countries being monitored closely by the credit ratings agency amid political turbulence. 'Unpredictable politics create an unpredictable economic and financial environment, prone to volatility in financial and commodities markets and sharp shifts in sentiment.' It added the fragile global backdrop raised the risk of capital flight that would punish vulnerable countries with weaker credit ratings."