Fitchways in on U.S. Credit, monthly full money starts now.

We've got updates from the biggest companies in the world and a breakdown on what's happening at the box office, but we're going to start today looking at the big macro and a headline that I have to admit was a bit of a surprise for me.

Credit rating agency Fitch downgraded U.S. debt to AA plus from its previous sterling rating of AAA bill, I have a layman's understanding of credit rating and to be honest U.S. debt, can you walk me through what's happening here?

Well, it's big in one certain way. The U.S. Treasury notes and bills are the baseline for the entire credit market and a lot of people don't really realize it, but this is a much bigger market than the equity market.

So what we're talking about here is an amount of debt for the U.S. government that costs about a trillion dollars a year just for us to surface.

So the stock market didn't take this news very well. The U.S. credit was downgraded from AAA, which means that there's almost no chance under any circumstances that there would be a default to AA plus, which is still summa cum laude.

That means there is maybe a tiny bit more chance that it's going to default.

It's symbolic. It is a meaningful, meaningful symbol simply because it is such a large part of the global economy as the underpinning of the reserve currency, but it's not that big of a deal.

We are several steps above almost every country in the world. I mean, we're behind like Switzerland and Singapore now.

I believe there's eight that currently have AAA ratings. Maybe eight or nine. Yeah, exactly like Luxembourg, you know, countries that you're like, yeah, their money is good.

So our money is basically good. We're tied with Canada now and you know, we like, that's a great place to be.

I think Jamie Diamond was calling out that Canada cop there and his interview here earlier this week, right? I mean, he was like, listen, this is no big deal.

The grand scheme of things, the market determines rates, not these, not these ratings, agencies, but it kind of felt like it was more for optics.

You kind of seem like you were hitting towards that and it seems like this is more for optics.

Well, I did say a trillion dollars and that's in debt servicing that the US government has to pay each year at this point.

And that, I don't know if you guys know this, but that's quite a lot of money. That's big figure. That is a big figure.

But you know, Warren Buffett came out and he said, look, we bought $10 billion at Berkshire in Treasuries last week.

This next week, we're going to buy $10 billion again in Treasuries.

So it's a little strange being below Singapore and Sweden and Johnson and Johnson, but it's really, really not that huge of a deal.

I side with Warren Buffett on this one. I don't know if you know this. That's always a pretty safe.

That's a good side of things to be on.

That was I think in a lot of ways the macro story of the week, but I also want to zoom in on one that either people missed or if you saw it might have been a little frightening.

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