Even though we saw stocks lower today, it seems like this run is still intact, particularly if tax reform moves forward by the end of this year. Not so great for one particular asset, 8240, this chart i want to show you, gold. Week,rd this earlier this if we get tax reform through and Interest Rates rise, which they look set to do, that was also pointing to the fed minutes, gold will suffer. We have seen gold slip from a oneyear high in september. , it though it is choppy looks like that down trend is in place. Dont buy gold. Some people would beg to differ thing gold has reached a bottom and you still have to find a decent return in this situation. Given fed minutes and inflation coming you have to wonder how much higher these rates can move and the dollar move. Exactly. If there is no inflation, or very little inflation, that is the same case for gold. Lets pull up the chart for the u. S. Markets and show you how we , particularly after those fed minutes. The dow, s p, and nasdaq clo
Its 30 minutes until the end of the session. We are lower right now after being up and down. Volume is lower today because of the thanks giving holiday even though there isnt a holiday here in europe. Its a spill over a spillover effect and these are the currencies against the dollar with the dollar drifting lower after eight dovish fed meeting. After a dovish fed meeting. Silver, bonds, communities and cdss. Shortgs just felt fell of estimates. In the cognac business. The french spirit makers cognac sales have been improving in china after a fiveyear government crackdown on extravagant spending. The company has been expanding its ultra premium versions is prices run as high as 80,000 louissix liter bottle of roma xiii cognac. There is a 15 jump in annual profit by germanys largest steelmaker, forecasting higher earnings this fiscal year. Steel producers have been bouyed as china cuts plants to curb pollution and exports. Demand remains a strong and prices are rallying and the key stee
Angry birds, indeed. Sydney, where its just past 9 a. M. , this is daybreak. Friday, everyone ah, thank you. Its just past 6 a. M. Here in kong. I think betty is probably into second or third thanksgiving course right now, so im thankful to be filling in with on bloomberg daybreak this morning. Also want to wish a happy ourksgiving to all of viewers globally, of course. What a day yesterday its been pretty quiet out it really is china, front and center. Take a look at my terminal here. Rout,tarted as a bond spreading onto stocks right now. The 10year Government Bond yield, that sent them tumbling. In 17 months. I think its still too early to tell. Feels like 201516 all over again. But when you see a cell off cant help butu get flashbacks. Absolutely. Of the boom bust of 2015 certainly looms large for a that verywho remember vividly. But i was just talking to adam. 3 was like a really stable low volatility day when it comes to Chinese Markets, so weve come a long the support of chinese
Stocks declining for a second day. A slump in chinese equities in a , which is why we might see exacerbated moves. More dovish than expected Federal Reserve. We had the minutes yesterday. We are getting pmi edit europe, better than expected. Better than expected if you look at services. Manufacturing also that are than expected. Manufacturing also better than expected. We are looking at a pretty strong economy. Au will get to europe in second. Eurodollar currently 118. 45. Coming up, we speak to alexander stubb. Brexit talk to him about and the eurozone. In the meantime, lets get to the bloomberg first word news. Democratsmany social are ready to start talks with Angela Merkel. Totin schulz is prepared offer her limited support for a full term. It is said he could back her in a minority government but not but would not offer another grand coalition. Philip hammonds budget has been welcomed by members of the conservative party, while stilla mays future is questionable. Some ball boy the
Tenyear. But get you up to speed on top stories. Is taylor riggs. Federal reserve policymakers signaling there will likely be an increase next month. Their most recent meeting shows that officials are looking for stronger science of their rights. Want people want to see inflation on an upward path before another rate hike. Tomorrow, zimbabwe gets the first their first new president for a few decades. The the new could country as a democracy. He had fled after being president bite fired fired by president robert who got a, who will not face prosecution. In the u. K. , conservative party makers are delighted with a by hammond, who targeted Younger Voters with tax biggestand promised the Homebuilding Program in almost five decades. Conservatives lost over brexit. In germany, chancellor Angela Merkel make it a partial lifeline from democrats. Social democrat leader Martin Schultz is prepared to offer a limited support for a fourth term. According to people familiar with this plan, schultz