President s promise america 1st policy triggered a trade war that morphed into a technological war continues on al jazeera. Is china backing up its growing power with economic and Political Coalition thats an accusation being leveled in australia europe and washington so is there a line between acting like a great power and taking things too far this is inside story. Hello and welcome to the program i mean ron can i just rent bide your time that famous phrase from chinas communist leader Deng Xiaoping governed its Foreign Policy for decades but not anymore and its current president xi jinping beijing has become an active some would say aggressive player on the global stage when china banned pork imports from germany the official reason was african swine fever but it was also seen as a warning to the German Government to not join u. S. Pressure on china australias products were also blocked after the fish was there called for an investigation into beijings handling of the corona virus a
We will begin, though, this morning with of course stocks, futures indicate an additional testing of that 3220 level on the s p. Were also talking about the possibility, however remote it might seem, of a relief package coming out of congress,given some conversation, jim, between secretary mnuchin and Speaker Pelosi do you think there is a chance i know that they both care passionately about Small Business if you look at the testimony yesterday by secretary mnuchin, he mentioned restaurants a couple of times. Thats where the yelp numbers that we get, yelp yikes is our vc, where the real damage s youre starting to talk about 50 of the bars and nightlife being closed in this country, thats way too big and i think that the secretary is really alluding to that david, do i think there will be a deal i think there is a sense that both sides feel a deal is bad for them, in other words, if they give if theres a stalemate, they will somehow do better at the election i dont think thats true, but
End. Reversing what we saw last week, 128 handle on the cable rate. We saw bank of england pushback earlier. Eurodollar, we are trying to get a 116 handle. 11645. The virus is setting the tone for growth in europe. Global covid19 cases are topping 33 million. We are nearing one million in death. Angela merkel warning germany could face more than 19,000 cases by christmas. The u. K. Health minister refused to allow more restrictions despite lawmakers pushing back against government curbs. Joining us from brussels maria, what have we learned about restrictions from different governments . We havent really seen anything new except for what was already announced last week. It has deftly changed in terms of perv Public Perception and tone. Story making headlines across europe is that warning from Angela Merkel that she is concerned about the virus. She is concerned about the number of cases we could see heading into winter and flu season. You have that number narrow there at 90,000 perhaps
Table . Speaker pelosi says theres a chance she and the treasury secretary can still reach a deal later, pause for tiktok why a judge sided with bytedance and blocked the Trump Administration ban. Futures do imply a big open to start this monday morning of course, coming off the first fourweek decline of the year. Mike, you did some writing over the weekend. Largely about the degree to which september is doing the job its supposed to do. That being the sort of pause that refreshes the argument here is that if we came into september with the markets at record highs and everything looking very stretched to the upside and sentiment and the technical position of stocks and maybe even hopes for an immediate stimulus and this fourweek decline has largely reset a lot of those factors right. You have sentiment very muchal coo acooled off and huge short position develop in nasdaq futures and pretty much 180 degrees on that front. I would say back in the neutral zone, not necessarily super beari
Profits would benefit under that scenario. Tom what is the theoretical justification now for owning such a low coupon . Caroline so this is the big debate, isnt it . Beijing provides stability in portfolios when you do get the downturns, the bonds still act in that manner. With the help of that perspective, in terms of our preferences in the bond space, going to areas where youre getting more yield, so emerging market bonds, for example, where the income is a bit more attractive. Are, theok at where we reset in q4. Is this a moment of drama for you in terms of reset and reallocation, or is it a q4 steady as she goes . Caroline i think it is important to have a continual rebound and seeing portfolios throughout the year on a regular basis as markets move. Whether we are into one quarter or another doesnt matter so much. We have had the peak economic upping if you like from the virus lockdown, so that is quite helpful, but it will fade as we go forward. But our expectation is that we ret