Pres. Trump thank you all very much and for the great job you are doing. It is incredible, frankly. Many of the states are stocked up. Some of them dont admit it. But we have sent so many things to them, including ventilators. There is a question as to hoarding of ventilators. Chains,pitals, hospital ventilators g can hold them if we think there might be a problem down the road. This group has been fantastic. We want to thank you. We and fedex in particular, appreciate everything you have delivered. The federal government continues to mobilize every resource to make sure our frontline doctors have the equipment frontline doctors and nurses have the equipment to save lives. The u. S. Comfort departed for new york, fully loaded for 12 operating rooms, 1000 hospital beds, and hundreds of the best doctors, nurses, and medical professionals anywhere frankly in the United States. Most of you saw that on television as it was leaving. Literally three weeks earlier, it was under maintenance. Th
He says and hands power back to brussels. To braceg warns china for a long struggle. President trump says a trade deal will be far tougher if he is reelected. Shery a quick check of how markets closed in the u. S. After being back from a long holiday weekend. Started firmly in the red. We had brexit concerns and trade tensions as well. The dow and nasdaq lost more than 1 . Tech and industrials leading the declines. The s p 500 showing its first loss in four sessions. We continue to see these concerns, not to mention that u. S. Factory numbers that we got during the morning session, we also saw the worst contraction in about three years. Treasury yields were under pressure. U. S. Futures at the moment not doing much but we have plenty of data coming out on asia as well. Let see how things are shaping up there. Selina that contraction in the u. S. Factory is a reminder of how fragile markets are amid the trade war. The futures market pointing to a mixed and muted market. Dataso saw some
Rates because they have already accounted for trade. Id weve taken caracalla weve taken care of that, i didnt have to worry about every up and down in trade negotiations. The nature of the war is that you have titfortat going on all the time. It is not reasonable for Monetary Policy to respond to all of these threats and counter threats. Weve already taken that into account. Trade regime uncertainty is high , and we are putting that into the Monetary Policy calculus. Alix then you have a three month tenure curve that doesnt want to listen threemonth10 year curve that doesnt want to listen. David i dont think markets believe him. Alix it is an extraordinary day shaking out. Equities continue to climb. We are seeing some followthrough buying, watching some moving averages. In asset classes, it is a really unbelievable day. Money flooding into all bonds. Europe. Ves over in almost 60 basis points in the tenure german bund yield. Amazing actions by Central Banks across the world, new zeala
Market. The german tenyear is now at 60. We wait to see what the ecb does. Brent crude continuing to drop in a bear market, today falling by another free. 4 . Another 3. 4 . Vonnie we are getting a surgeon bonds. We are joined by Cumberland Advisors chairman and cio. What you make of the last 24 hours in the bond market . Guest it is extraordinary. We have a three front war. Trade front protectionism, weve been doing that for a year. We now have a declared currency war. We are seeing it in the currency markets. What that means is we are having capital flows change. All three. That is a perfect storm for trouble. You see the markets adjusting to the trouble. We havent had a trifecta of risk like this in a long time. Vonnie if you take a look at my terminal, all it is is a one month 10 year yield chart. The last three days, we are down 2 to belowrom above 1. 60 . David it is extraordinary. When it is like this, risk is rising. Risk premia rising. When you have it in a global setting, you
Years, along with china and others. Alix and today is the start of the fomc meeting, and hes been putting a lot of pressure on them. What are you guys doing for me and my growth . David it is fascinating that hes really accusing them of being a currency manipulator. Alix we have another headline crossing, saying that they a rate cut as a primary tool for stimulus, outlining what draghi said. What is surprising in that headline is that the rate cutting will be the primary one. David particularly because he mentioned Forward Guidance and the asset purchase program. Now the report is that when they do it, they are going to do it through the rate cuts. Alix to me, the question is how much lower do you want to go . You are already at a 40 basis points. How low do you go, and what does that mean for your tltro, the longterm Borrowing Program . David and ultimately, is that going to get them to do percent get them to 2 . They havent gotten close. Alix our other story is facebook, so staying w