Moody’s strips US government of top credit rating, citing failure to rein in debt

Moody’s strips US government of top credit rating, citing failure to rein in debt
Members of the House Budget Committee meet on May 16, 2025, to considerthe House Republicans’ reconciliation bill, which includes US President Donald Trump's proposed tax and spending cuts. (Getty Images via AFP)
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Updated 17 May 2025
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Moody’s strips US government of top credit rating, citing failure to rein in debt

Moody’s strips US government of top credit rating, citing failure to rein in debt
  • Moody’s is the last of the three major rating agencies to lower the federal government’s credit
  • White House dismisses downgrade as the work of a political opponent of Trump

WASHINGTON: Moody’s Ratings stripped the US government of its top credit rating Friday, citing successive governments’ failure to stop a rising tide of debt.
Moody’s lowered the rating from a gold-standard Aaa to Aa1 but said the United States “retains exceptional credit strengths such as the size, resilience and dynamism of its economy and the role of the US dollar as global reserve currency.”
Moody’s is the last of the three major rating agencies to lower the federal government’s credit. Standard & Poor’s downgraded federal debt in 2011 and Fitch Ratings followed in 2023.
In a statement, Moody’s said: “We expect federal deficits to widen, reaching nearly 9 percent of (the US economy) by 2035, up from 6.4 percent in 2024, driven mainly by increased interest payments on debt, rising entitlement spending, and relatively low revenue generation.”
Extending President Donald Trump’s 2017 tax cuts, a priority of the Republican-controlled Congress, Moody’s said, would add $4 trillion over the next decade to the federal primary deficit (which does not include interest payments).

White House communications director Steven Cheung reacted to the downgrade via a social media post, singling out Moody’s economist, Mark Zandi, for criticism. He called Zandi a political opponent of US President Donald Trump.
“Nobody takes his ‘analysis’ seriously. He has been proven wrong time and time again,” said Cheung.

A gridlocked political system has been unable to tackle America’s huge deficits. Republicans reject tax increases, and Democrats are reluctant to cut spending.
On Friday, House Republicans failed to push a big package of tax breaks and spending cuts through the Budget Committee. A small group of hard-right Republican lawmakers, insisting on steeper cuts to Medicaid and President Joe Biden’s green energy tax breaks, joined all Democrats in opposing it.

 


India’s Sigachi factory fire death toll rises to 39; cause still unknown

India’s Sigachi factory fire death toll rises to 39; cause still unknown
Updated 10 sec ago
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India’s Sigachi factory fire death toll rises to 39; cause still unknown

India’s Sigachi factory fire death toll rises to 39; cause still unknown
  • Police say more than 140 people were working in the plant when the incident occurred
  • The government of Telangana state has formed a committee to investigate the incident

HYDERABAD, India: The death toll from the explosion and fire at Sigachi Industries’ chemical factory in southern India has risen to at least 39, officials said on Tuesday, forcing the supplier of pharma products to shut operations for 90 days.

The government of Telangana state, where the facility is located, has formed a five-member committee to probe the incident, the cause of which is yet to be disclosed by the company. The explosion on Monday also injured 34, according to officials.

“We are still clearing the debris,” GV Narayana Rao, director of the Telangana fire disaster response service, told Reuters, adding that the building had completely collapsed.

“Once we are all done with the clearing, only then we will be able to assess if any other body is still remaining under the debris or if it is all clear,” Rao said.

Police officials said more than 140 people were working in the plant when the incident occurred. Twenty-five of the deceased were yet to be identified, district administrative official P. Pravinya said.

“I came out (of the plant) to use the restroom and heard a loud blast. It sounded like a bomb blast. I came out and saw fire. A part of the fire also spread toward me. I jumped the wall and escaped,” Chandan Gound, 32, who has been working at the factory for six months, told Reuters by phone.

“Many of them (those inside) managed to escape, but a large number were trapped and could not come out,” Gound added.

Sigachi, which makes microcrystalline cellulose (MCC), caters to clients in the pharma, food, cosmetic and specialty chemicals sectors in countries ranging from the US to Australia.

MCC’s compressibility, binding properties, and ability to boost drug release make it a vital ingredient in pharmaceutical manufacturing. It is also used to prevent the formation of lumps in food products, to maintain texture of cosmetic products, and as a fat substitute in low-calorie foods.

Sigachi’s Telangana plant contributes a little over a fourth of its total capacity of 21,700 million metric tons per annum.

Its shares dropped about 8 percent on Tuesday and were headed for their sharpest two-day drop on record.

Sigachi halted operations at the plant for 90 days from Monday citing damage to equipment and structures. The plant is fully insured and the company is initiating claims.

In a separate incident on Tuesday, five people were killed and four others injured in a massive fire at a crackers factory in the Sivakasi manufacturing cluster in the southern Tamil Nadu state, a fire department official said. The incident is the latest in a series of fire accidents in the area.


In Senegal, luxury sheep shine at a beauty contest and fetch a high price

Updated 2 min 54 sec ago
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In Senegal, luxury sheep shine at a beauty contest and fetch a high price

In Senegal, luxury sheep shine at a beauty contest and fetch a high price
DAKAR: The regal creatures are led into the open arena, stamping their groomed hooves as if to acknowledge the cheers, music and fireworks from the crowd of spectators. Their majestic figures embody pride and status, their towering size, prominent muzzle, curved horns and polished skin on full display as night falls.
Welcome to one of Senegal’s most anticipated beauty pageants – not for humans but for the locally bred Ladoum, the equivalent of a Ferrari among the woolly creatures.
The annual contest featured more than a dozen Ladoum, competing in three different categories as adult male, adult female and young/promising.
As each sheep is led into the open arena, a panel of judges note down their points based on distinct features like beauty, size, height, horns and body texture for each round. Winners, announced at the end, are rewarded with food and cash prizes.
This year’s Best Male Adult sheep is Prive, 1 year and 7months old, whose breeder estimated him to be worth more than $100,000 in the market.
“It feels good to be here, I cherish him so much,” Isaiah Cisse, Prive’s breeder said with a wide grin as he massaged the sheep for a successful outing.
Unlike the more common sheep eaten and used as sacrifices during Muslim celebrations, the crossbreed Ladoum are mainly seen as a living, breathing symbol of social prestige and luxury bred for years before they are sold.
Widely known as one of the world’s most expensive sheep, the older ones usually fetch a price of $70,000, compared to $250 for a regular sheep, and attract buyers from around the world to this West African nation of 18 million people, where livestock is a key source of livelihood.
Mostly weighing up to 400 pounds (181 kilograms) and up to 4 feet (1.21 meters) in height, the Ladoum are known for their physical grandeur with curling and symmetrical horns and lustrous sheen.
As the contest unfolded in Senegal’s capital, Dakar, each sheep is announced before it is led by the breeder onto an elevated stage where it is inspected by the judges, to the elation of the crowd.
Each receives joyful chants from a band troupe, featuring the local Senegalese instrumental Assiko music with the sheep’s praise names ringing out aloud.
“You can’t see a sheep like this in Africa or even in the world,” said Elhadji Ndiaye, a member of the judging panel. “Ladoum is special.”
Many agree with him.
Musa Faye, a 22-year-old breeder, said his 18-month-old sheep was named Diomaye, after Senegalese President Bassirou Diomaye Faye, to show the sheep’s significance for him and his family.
“I spend a lot of time with him and play with him,” Faye said of his sheep. “I am preparing him for the next competition because I know he will win (the trophy),” he added.
The contest, which has been running for some years, took place alongside an exhibition that featured even young breeders like Ibrahim Diagne. At 12, he is anticipating bringing his Ladoum for the contest someday.
“My parents like this and have always done it, so I like it too,” Diagne said of his passion for the family’s sheep rearing business.
Such passion is common in Senegal where sheep rearing is an age-old tradition deeply woven into family life and culture.
Even animal traditions are passed down through the generations.
Maniane Ndaw’s prized sheep Alou won this year’s Best Junior Male, following in the footsteps of the sheep’s father who won several titles.
“For me, it’s a great, great pleasure,” Ndaw said. “It shows that the lineage is a good one.”

A stabbing attack at a German company kills 1 person and seriously wounds 2

A stabbing attack at a German company kills 1 person and seriously wounds 2
Updated 12 min 12 sec ago
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A stabbing attack at a German company kills 1 person and seriously wounds 2

A stabbing attack at a German company kills 1 person and seriously wounds 2

BERLIN: A man armed with a “sharp object” attacked people at a company in Germany, killing at least one, police said.
Two people were seriously wounded in the attack Tuesday in Mellrichstadt, a small town east of Frankfurt in southern Germany, police said in posts on social network X.
A 21-year-old German man was arrested.
There was no danger to the public, authorities said.


Heavy rains kill two in central China: state media

Heavy rains kill two in central China: state media
Updated 15 min 2 sec ago
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Heavy rains kill two in central China: state media

Heavy rains kill two in central China: state media

BEIJING: Heavy rains in central China killed two people and left six others missing, state media reported on Tuesday, as the country endures a summer surge in extreme weather.
“Short-term extremely heavy rainfall” struck the towns of Taiping and Erlangping in Henan province between 9:00 p.m. and midnight on Monday, state news agency Xinhua said, citing the county emergency response center.
A cumulative 225.3 millimeters (8.9 inches) of rain caused the local Shewei River to rise dramatically, “causing damage to some facilities and leaving people trapped,” according to Xinhua.
“So far, two of the trapped people have been rescued, two have died, and six remain missing,” it said.
It also said local authorities had launched a full-scale search-and-rescue mission in the stricken area.
China is the world’s biggest emitter of the greenhouse gases that scientists generally agree are driving climate change and making extreme weather more intense and frequent.
But it is also a global leader in renewable energy, adding capacity at a faster rate than any other country.
Extreme weather has swept large parts of China in recent weeks, with six people killed and more than 80,000 evacuated due to floods in southern Guizhou province last week, according to state media reports.
Authorities issued heat warnings in Beijing last week as temperatures in the capital rose to nearly 40 degrees Celsius (104 degrees Fahrenheit).
Tens of thousands of people were evacuated last month in Hunan province, also in central China, due to heavy rain.


Thai court suspends Prime Minister Paetongtarn Shinawatra over a leaked phone call

Thai court suspends Prime Minister Paetongtarn Shinawatra over a leaked phone call
Updated 01 July 2025
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Thai court suspends Prime Minister Paetongtarn Shinawatra over a leaked phone call

Thai court suspends Prime Minister Paetongtarn Shinawatra over a leaked phone call

BANGKOK: Thailand’s Constitutional Court suspended Prime Minister Paetongtarn Shinawatra from office pending an investigation over a leaked phone call with a former Cambodian leader.
The judges voted unanimously Tuesday to take the petition accusing her of a breach of ethics, and voted 7 to 2 to suspend her from duty.
Paetongtarn has faced growing dissatisfaction over her handling of the latest border dispute with Cambodia, involving an armed confrontation on May 28 in which one Cambodian soldier was killed. The leaked phone call while she engaged in diplomacy over the border dispute set off a string of complaints and public protests.