MORNING COFFEE

Moody’s questions U.S. Debt. The rating agency Moody’s says the four largest countries with triple-A credit ratings - the U.K., the U.S., France and Germany - all face "an increasingly delicate balancing act," and "substantial execution risk" as they try to reduce government debt. None of the four countries are in immediate risk of a downgrade, but their "'distance-to-downgrade' has in all cases substantially diminished."

China lectures U.S. China had some harsh words for the U.S. at the end of its annual legislative session on Sunday. Chinese Premier Wen Jiabao said he doesn’t think the yuan is undervalued and warned the U.S. and other countries not to pressure the country for a currency appreciation. He also said he is concerned about dollar volatility, calling U.S. efforts to boost exports through a weaker dollar "a kind of trade protectionism." Wen asked the U.S. to “take concrete steps to reassure investors” about the safety of dollar assets.

Google To Leave China. Google (GOOG) is '99.9%' certain that it will shut down its search engine in China, sources say, and has drawn up detailed plans about how to wind down its search operations there.

Upgrades

Wal-Mart (WMT): Citigroup upgraded their rating from Hold to Buy and changed their target price from $54.00 to $65.00.

Downgrades

Boston Scientific (BSX): JP Morgan downgraded their rating from Overweight to Neutral.

Sara Lee (SLE): Standpoint Research downgraded their rating from Buy to Hold.

Coverage Reiterated/Price Target Changed 

United Tech (UTX): Jefferies & Co reiterated their Buy rating and changed their target price from $77.00 to $82.00.

·         Futures: Dow -0.3%. S&P -0.4%. Nasdaq flat. Crude -0.6% to $80.76. Gold +0.2% to $1104.

·         Asia: Nikkei flat at 10752. Hang Seng -0.6% to 21079. Shanghai -1.2%to 2977. BSE flat at 17165.

·         Europe: London -0.2% to 5613. Paris -0.3% to 3913. Frankfurt -0.2% to 5934.