Tom good morning, happy friday. This is bloomberg daybreak europe. These are the stories that set your agenda. Chinas lopsided recovery. Factory growth moves up a gear, but consumption unexpectedly slows. Chinese officials hold urgent talks to address the property crisis. Stocks retreat as traders reassess the path forward for Interest Rates with more fed officials morning lending costs will stay higher for longer. Plus, jp morgan ceo jamie timon tells bloomberg he is still more worried about price pressures the markets appeared to be citing Inflationary Forces ahead. We bring you more from that interview. Lets check in on these markets then. On a day when there was a bit of a pullback. The dow jones crossed above the 40,000 level for the first time. The s p coming back below the 2300 level. A breather coming through for the markets have worked so much to add those gains year to date. Pairing some of those gains by the end of the session yesterday. European futures pointing lower. Mark
Rishaad just looking at what is going on, you would think asian equities would be expensive relative to the u. S. They beat the s p 500. I want to bring up this chart. If anything, pricetobook ratio, and forward asiatoearnings spreads, stocks looking more attractive compared to u. S. Counterparts. Those spreads have widened to four. Nus there we have it. The rally could have legs. Fascinating its not just a more by you, but getting cheaper. Have not seen the political dysfunction in Washington Play out when it comes to the markets , and some jitters in the asian session. The last time we had a the lastt shutdown, three times, the s p 500 gained. Three, so wen day not just asian equities, but in the u. S. As well. Decisionsnk dominating the agenda, as well as u. S. Gdp. Sophie kamaruddin joining us now. Jitters. E do have asian stocks kicking off the session subdued. Japanese stocks are slipping as the boj policy decision is due tuesday. Lets check the open. We do have the taiex gaining
Fastest car ever made, hurtling in space. Keeping the government chugging as oneas deal described nobody loves. It seems like life has changed and rather than talk about no volatility or low volatility in markets, the only thing both are talking about now is to get used to volatility. Andtility is here to stay, i want to show you a chart that reminded me of the great ernies peng lei Ernest Hemingway quote. This chart shows you that ed acency that is br the shortterm fix, the several to blame of the rapid selling in the session. You can see complacency all the way up until the very and, and then these devastating losses. Many warn us about these induced leverage etns, however, nobody thought would go to zero, as a got to zero yet but they are headed straight there. It lays the question or puts into question where it goes from here. Of aard from the likes credit analyst who warned about the shortfall trades prior to the selloff. Is now ang me it opportunity to start buying, but but the m
We are seeing a little bit of risk removal. This is what we are seeing in european stocks. They are joining the rebound as we see tensions surrounding the north korean country and peninsula easing. The yen dropping, gold dropping. Gainingor haven assets a touch. Lets get to the bloomberg first word news. Heres nejra cehic. Nejra north koreas leader says the testfiring of a missile over japan yesterday was a meaningful prelude to containing guam. Kim jongun added that he will continue to watch the response of the u. S. Rex tillerson has agreed with his japanese and south Korean Counterparts that the test was an escalation of provocation while the Un Security Council has condemned the launch. President trump has praised the Emergency Response to Tropical Storm harvey as he and the first lady visited texas. At least 15 people have died in the wake of harvey while thousands more have been displaced from their homes. Early estimates put the economic losses at 100 billion. The u. K. Wants to
Big emmy wins are a major breakthrough for streaming services. First, highlights from the Bloomberg Global business forum, a gathering of more than 50 heads of state and hundreds of global ceos addressing Economic Growth and prosperity. Lets begin with jack ma. Alibaba has seen massive growth this year. Stock easily outpacing other tech giants, and amazon, thanks to sales in china. Here is what he had to say between the comparison between alibaba and amazon. Jack amazon is an Ecommerce Company and very successful and we respect a lot, but alibaba is not an Ecommerce Company. We are an ecommerce enabler, infrastructure builder. As i said, people may not like it, our job is to enable more companies to become amazon. We see amazon is doing a good job, successful. We are telling everybody, you know, ecommerce works. We are not necessarily competing, but investors like to put them as competitors. I spent very little time very little time, how we compete with amazon. How we can learn from am