Well, good thursday morning and welcome to squawk alley. Im Morgan Brennan with david faber and mike santoli, live from post 9 here on the floor of the new york stock exchange. Carl and jon are both off this morning. Stocks are staging a recovery today. S p coming off its largest comeback since december of last year on pace for its Third Straight day in the green, but is todays rally sustainable or is more volatility ahead . Key question for investors joining us now is Wells Fargo Asset Management multiasset strategist, brian jacobson, and invesco, vice chair of investments, krishna mumani. Krishna, ill start with you what do you think . More volatility ahead . I think volatility is to be expected in a stock market thats dealing with lots of issues but at the end of the day, the real question is, where do we go from here . And as the economy stabilizes in the second half and trade issues dont get exacerbated further, the markets are probably going higher rather than meaningfully lower.
We sell or receive. It is about the transfer of data. It is about royalty payments, licensing deals we have dealt with. The world is much more global than we think. And globalization is a kind of and mucher force softer force. David to what extent does the Trump Administration embrace what you are talking about . Is that why they are embracing intellectual property . A they really pursuing what you are suggesting . In one sense, they are. Intellectual property is a huge part of where the 21st century economy lets. But at the same time, we have a huge this is from this administration in washington on manufactured goods and on the Manufacturing Center sector, bases tariffs away to boost manufacturing when the fact is there are more Disruptive Forces in the World Economy and the world of manufacturing. And the simple fact that i can listen to whatever i want on my whatever music i want on my iphone. I do not have to go out and buy a cd. I do not have to buy anything physical to get all my
More solid, with the exception of what is happening in hong kong. Yvonne saw another violent weekend. Police firing tear gas at subway stations. Hong kong relatively stable when it comes to the hang seng. Cathay pacific, seeing one of the biggest worst sessions we have seen. Lets talk about what would watching in terms of currencies. Dollar china below that 710 handle. Comingseeing strength through in the earlier losses. The close on friday was not pretty. David we took one of the three levels we were tracking, which would not take you back to the referendum. Took out 121, 10 speak looking at 11986. Watching those levels very closely. Iron ore is continuing. 28 depending on what contract. Still holding up at the 1500s. Yvonne lets talk more about what is moving on these markets. We saw stronger fixing from the pboc, where the currency headed now . What the pboc is signaling is aat it is trying to oversee steady, controlled weakening of the currency. Thats what the fixes have shown over
German defense minister steps down as defense minister ahead of a secret ballot that could cement her as the first female European Commission president. Manus warm welcome to your biggest concern to daybreak europe, and what is your biggest concern, a meltdown or a meltup . This is the msci world index. To bail on stocks. Central banks are giving you a gift, that is their message. More of a risk as equity markets go up, and people dont appreciate that. The question is, do you believe that going into earnings season . The least attractive market for them, the usa, their top calls australia and japan. A couple more markets, even i cant make wti more exciting than it is. Downgraded, what will the inventory tell us . And gold, it was red, i do promise you, ahead of retail sales. The point, if you want to protect yourself as yields go back up, do you want a little gold for protection . That is a question for markets. You have the glorious s p. [laughter] nejra it wasnt so glorious yesterday
Region. Where mark mobius is putting his money. In stocks, and by the way, gold. Think about it. If you are not getting anything in the bank at these low rates, it makes sense to have gold in your portfolio. Anna missing out on the everything rally. Boil weakens and iron ore slumps as much as 4 in singapore amid supply concerns. Watch miners at the start of european trade. We are less than half an hour from the start. Welcome to the market open. We are without the u. S. Today, independence today. Lets look at where futures put markets on european trade. Lackluster in comparison to stateside yesterday but we joined in with some of the rally in europe yesterday. Cac futures, ftse futures, dax in the green but not by much. Be aware of low volume. Happens with lowvolume. In the Asian Session on the bloomberg, giving us a picture on the gmm function. Volume pretty low, investors thinking about the record highs we have seen on stocks in the united dates. Also thinking about the b readth of t