Shrinks, but it doesnt set the u. K. Up for a good spot Going Forward. We are seeing the relationship between fiscal and Monetary Policy really evolve the u. K. We will break that down over the next few hours. You are seeing bond markets bid across the board, as we are koff develop. We want to kick it off with Michael Mckee. Theld central bank mike,entral banks if i say mmt, am i wrong . Anyway. Yeah, [laughter] its confusing, though, what is going on with the economic philosophy called mmt. Yes, it is unlimited cash in unlimited amounts for unlimited periods of time until we get through this. Youre still going to work your tail off today before we get to 4 00 p. M. Lets start in london come over the bank of england is going to finance Government Spending for the time being by lending money directly to the treasury. It is called the ways and means facility, a shortterm credit the last used during great financial crisis. Government and the bank say any borrowing will be repaid by the en
Exception of the bond market. We are down at session lows on the stoxx 600. Sector certainly taking it hard today, as we see this drop, a very sharp drop we are getting in the crude market at the moment. Theres a top line running on the bloomberg of the sharp drawdown we are seeing. In terms of the bond market, and some ways, this is where the real action is. The expectation is we will see significant supply, as a result of this we have a big move in bunds and btps. Btps pretty under pressure. It looks like the ecb via the bank of italy was in the market earlier on. When it comes to the markets, dollars strong. We are now trading at cable rates we havent seen since the mid80s. We went through 1. 20. Now we are trading with a 1. 18 handle on the cable rate. Alix i love that you brought up btps. At one point they were up by 58 basis points. The Trump Administration now promising a 1. 2 trillion dollar stimulus package, including direct payments of 1000 or more to americans. President tru
Points. Brent really rolling over by about 5 , much worse than wti. It is now a pure demand issue. You see equities taking it on the chin, as well as commodities. Time for todays top market moving news from new york and our london team. We want to begin in the u. S. Come over Senate Democrats blocked Mitch Mcconnells attempt to advance the coronavirus economic rescue package. Minneapolis fed president neel bloomberg the fed can do more to support the economy. We are being more aggressive. Is there more we can do . Yes. Is there more we may end up doing . Yes, but i feel we are being very aggressive. Alix joining me for more is Michael Mckee. Walk us through what he said, what more they can do, and what is going on in d. C. Michael jim bullard is the one who really scared the markets by saying a 30 Unemployment Rate and perhaps a 50 annualized decline in gdp during the Second Quarter. Morgan stanleys is the closest to that 30 , so he thinks things can be much worse. They still say the f
Detention they are playing out within markets. Time now for todays top market moving news from washington and new york. We want to begin in washington, where President Trump extended his National Warning for social distancing in the United States until the end of april, abandoning his easter goal. Pres. Trump we can expect that by june 1, we will be well on our way to recovery. We think by june 1, a lot of great things will be happening. That was aspirational when i said easter. I said it would be great if we could do it by easter. Alix joining me from washington is kevin cirilli. What did we learn in terms of how the government is looking at the lockdown in the u. S. . Kevin President Trump has significantly backed off the claim that he would be able to get life back to normal by easter, now making that marker june 1. Thatresident pushing back timetable to june 1. Over the weekend, talking with sources, i can tell you that the conversation around the next form of economic stimulus wou
Check, the fed is announcing some coordinated central bank swap line enhancements. We saw them a couple of days ago increase it for a variety of Central Banks. Now those swap lines will have further detail and enhanced swap lines. Absolutely. This is missioncritical right now, figuring out how we get dollars to everybody that needs them is the most important thing, it seems, at the moment, when it comes to financial markets. That is going to certainly help. My question today, does a weaker dollar indicate that the funding stress and design for dollars is beginning to ease off a little bit . We will get an announcement from the chancellery of the exchequer on further measures to help out the u. K. Economy. Similar move when it comes to the 10 year. In terms of stocks, we are seeing a bid finally returning to stocks, and finally enough, i think it is worth paying attention to the fact that we are getting some of the cyclicals in particular catching a bid today. You can see the travel and