Today toe all of you extorting there news flow. An to an extraordinary news flow. An election in five days. Markets, there they are, and reversal. You see it in the futures of the s p 500. Jonathan we are down five on the s p 500, 0. 2 . The bounce in europe was never convincing, and the bounce in the United States has not held up. Eurodollar clinging to a 1. 17 handle. The ecb is getting what it once for all the wrong reasons. A weaker euro for a fourth straight session off the back of more restrictions in germany and france in the past day. A 1. 16 handle, that will be symbolic. Of course, distracted by the death in nice. Lisa abramowicz, what was so clear yesterday was that the bond market did not move, and that it did. Lisa to me, this is the story of the week. Weve got very hardcore risk off in response to very real threats of a widening pandemic. Treasuries are not the hedge they used to be. Yields rose yesterday, which is exactly the opposite of what they traditionally do when s
They go south and what do we really do . This is bloomberg surveillance with jonathan ferro, Lisa Abramowicz and annmarie hordern. Jonathan bramo got so bored with this market that she took the next two days off. Yesterday, 5187 in this equity market going absolutely nowhere. Dani burger is in the hot see this morning, good morning to you all. Amh is down in washington dc and we have a lot to talk about starting with central bank decisions. Some might say the global easing cycle is underway. First out of the gate is the s b bank than the ecb. Dani you brought the fake britt joining the real britt. The swiss and the sweetest have already shown as theres a willingness to not just go before the fed but before the ecb. The concern is currency weakness. Deutsche bank says actually the sterling will move less than it has the past decade and the rate sensitivity is not as big as it used to be. Jonathan sterling is 1. 24 and that decision is about 15 minutes away. Dollaryen 1. 55. The yen has
Thermometer but the correlation to equities bonds is really rich. The team leave for me on a monday morning is i see japanese yen just creeping ever so slight. It is just a bit of a weakness. Jonathan 149. 74 at the moment. We averted a shut down and we will get payrolls friday. Ultimately we will do this again. Lisa i cant wait until november when we can do it all again. What i find interesting is the threat of higher rates and the lack of economic weakness on the heels of a Government Shutdown is what is spurring the concern in markets today. All of the sudden people are taken the bond who seriously. Jonathan energy prices, rates, apparently this is the quarter when this consumer frame begins to crack. Tom is the basic theory and then you talk to optimists and there are a number of them and they say no, you saw that in september. I had a great conversation with neil by the neal dudda. He said is not about 4 growth it is tuition to issue two ish. Jonathan jane fraser at city talking a
Crew touching 95 a barrel. 4. 6427 is the new cycle high. Tom this thursday is more tumultuous than monday through wednesday. An equity pop at the back end and we are short covered. And the optimist will be here with us in a little bit. You have to reset and recalibrate. There was a moment yesterday and let me get out the surveillance mouse and tell you that we had a 2. 30 10 year real yields. I did not frame that six months ago. Jonathan the equity market is kind of a snooze. Bond market huge moves. Fx one point four briefly against the dollar. The dollaryen getting closer to 150. Lisa that is exactly the right observation. Why are stocks so subtle and why are they not responding to the markets. Is there just simply a paralysis, or this is forced selling for funds that do not have a big position. At this point are we looking at some unraveling that is gaining steam that nobody wants to get in the way of. Tom i am going to when mike mckeen gives us the gdp blah blah blah, but there is
Ahead of that big fed announcement. What do we see on a day like today . The dow, the s p lower, not seeing a big budge. The tenyear yield, 1. 79, below 1. 8 as we have seen some buying in treasuries. Bi big move into gold and drop in oil. More than 14 million barrels, thats the biggest increase in the 34 years of u. S. Energy information agency, actually been collecting the data. Wti is lower by 1. 44, decline of 3 to 45. 23. It is down more than 8 in the past week. Brian . Michelle, heres what else is happening at this hour. Ford sales dropping 12 last month over a year ago. Shares are also down. Keep in mind, october of this year, two fewer selling days than october of last year. Car news, 2015 model year, the most fuel efficient on record for all cars. That according to a new government report. And in the job market, adp saying 140,000 private sector jobs were added last month. That was slightly worse than the average estimate of the economists. We begin with two events that could