Provide administrator to provide information about security protocols with chinese behemoth tencent. Meanwhile, bytedance and oracle have tentatively agreed to a deal has to be approved by the Chinese Government, and there is significant confusion about timelines. Lets check in without markets ended the day with senior markets correspondent scarlet fu , leading declines but outperforming all year. What has been happening . Scarlet there was a lot going on and to some extent, you can blame the federal reserve, j powell saying rate will stay at current levels, lower for longer, but investors were expecting a dovish surprise and were left hanging. When you look at equities, most of the damages from the large cap, big tech names, but it was a broad decline, eight out of 11 sectors in 20 active 24 sectors finishing lower. Outperformance today were value encyclical stocks. If you look at the past two weeks, it has been a clear theme. The two bestperforming groups were materials and industria
Hurricane laura nears the u. S. Gulf coast. Massive activations take lace for fears the storm could drive 30 miles inland, causing massive damage. Jobgermany extends preserving subsidies until 2021, as europes with this economy recovers from the coronavirus. This as the japanese official warns over a second wave. It has just gone 6 00 a. M. In london, 9 00 a. M. In the difc in dubai. We will spend a lot of time talking about specificity. [laughter] hopefully at got that right. Put it to you this way, the end is reallyael well anchored in the u. S. I see those as being the two risks if there is a lack of specificity. Annmarie you make a good point. It is clearly going to be center stage. Writes, theper dollar is the guest of honor even if it doesnt want to be. Can we see more u. S. Dollar unwinding . Of course, this is the bond market moment. It comes back to the conversation we had on monday with a great Bloomberg Businessweek satire speech. They said no, i stuff, jay powell. Manus exa
Surveillance. I am Francine Lacqua here in london. This is what the markets are looking at. We are trying to look out for any spot here in europe. Are am looking at what we in general focusing on, of away fromare that key data hours away from that key jobs data in washington. Of course labor day holiday, gold taking higher. Now lets get to the bloomberg first word news in london with leighann gerrans. Hi, leighann. Leighann good morning, francine. Avoiding a Government Shutdown right before the president ial election. Sources tell bloomberg House Speaker nancy pelosi, treasury secretary Steven Mnuchin and made this in full agreement on a phone call on tuesday. They were on a stalemate after virus relief to hold up a virus a stopgap spending bill. Meanwhile, Financial Aid to shore up the financial recovery, according to chicago fed president charles evans. He said the stalemate in washington is a significant downsize risk to the economy. Even with the deal, evans down beat on the econom
A lot of folks thinking it was over and done. Ck upof those sto sharply. Nothing is changed for these companies. What is changing as investors saying we have gone too far, too fast, so now we are seeing a pullback. Again,take a look at the we are seeing a pullback. If it is a fearful look for stocks, you can see those haven assets rallying. The point wisely yesterday. What is going on with softbank . There is a Financial Times report that what triggered this is they went big and some options on big tex. Abigail that is an interesting point. I do not know if it has to do with softbank, but theres been a lot of unusual options activity where you have folks buying shortterm call options. That is expiring this week, next week, betting that after the huge move up, the nasdaq up 80 from the march lows come after that it will go even higher. Some thinking that is not so stable. What we think because of all this is it is technical selling down to the 50 Day Moving Average. If the 50 Day Moving
And the recent peak last week up more than 80 . Some investors taking trips off the table. The 10 year yield down. It does not feel panicked. It seems more orderly. If below that, it could get disorderly but right now, orderly selling. You mentioned froth the market when it comes to tech. Any indication that comes out so far question mark they are still so far . They are still relatively high. Relative to technicals, it seems the buyers are trying to step in even with the sellers at work. Nasdaq 100 holding its moving average. Apple has not touched that support line. We could see some selling pressure but we are likely to see the market hold up so long as they are in place. Tech has taken the spotlight away from oil. Oil is down today more than a percent. It is something to keep in mind. It is risk off but oil is very sensitive to the economy. This is one time investors may be nervous around the economy. But overall, orderly and risk off. David lawmakers return to washington with a ful