Undermine the now popular soft lining economic story and what will it mean for the markets. Here to help answer that is private wealth chief investment officer, cnbc contributor. So first on the action today, we were only down 3 4 percent but it is two days in a row where it seems like the expected august pullback is resuming. We had the big Growth Stocks of apple, microsoft and nvidia 10 or 11 below and the broader take is Holding Together okay. Do you take heart in that or feel like its noise or delusion . Maybe a little bit of all of those. I feel like there has been a sense of somewhat capitulation in the middle of the day over the last couple days and i think that there continues to be a very strong underlying bullish sentiment which stems from the expectation we will see soft lining or none, we have seen a lot of sectors from even soft landing over the couple weeks. The other thing is investors are trying to determine how much the cpi tomorrow but change the narrative and the thi
That is what ive been hearing. Lets look at the risk off tone in europe that is being hit the hardest. We are now at eight straight down days and have not seen that kind of streak since 2014, the dax hit particularly hard. A bit of a safe haven bid as far as bund yields. That does not feel like a risk off move in bunds. The dollaryen down 6 10 of 1 . The bloomberg Commodity Index down 3 10 of 1 . Not just oil and copper, the base metals across the board hurt. David now we turn to emma chandra. Emma Senate Republican leaders may have made tax reform a little more complicated. They decided to add repeal of the obamacare individual mandate to their tax package to help them meet the fiscal target but will change the vote calculations in the senate and house. Twice the senate tried and failed this year. The russians have agreed to restructure more than in venezuelan debt. The Credit Rating firm declared venezuela and its state oil company to be in default after missing payments. In zimbabwe
Bad form of ranking. Anna oh yen, high confidence. Cinnamon sentiment improves for the First Time Since june last year. What does it mean for the stimulus . Johnson johnson ins discussions for a potential deal, leaving the door open for another better. Reports say they are now in talks. A very warm welcome to bloomberg daybreak europe. We are here in london. Im anna edwards. Breaking news coming through on the car industry in relation to china. China is set to be planning a 7. 5 small engine car pat car tax through 2017. China has said the plan extending the auto sales tax incentive to 2017. China is set to set a small engine car tax at 7. 5 and cars at 5 . We will see if that has any impact on european carmakers are other global Car Manufacturers exposed to smaller in of the car industry. Lets look at the risk radar and show you where we are on this fed day of all days. Expecting a decision later on from the fomc and the wide expectation market that we will see a hike. China and brexi
Coming employment, and inflation, and other factors. The actual path of the federal funds rate will depend on the Economic Outlook as informed by incoming data. Out growth and rapid inflation would suggest the neutral federal funds rate was rising were quickly than expected. Making it appropriate to raise the federal funds rate as well. Conversely if the economy were to disappoint, the federal funds rate would likely rise more slowly. The committee will continue with policy of reinvesting proceeds from maturing treasury securities and principle payments from agency debt and Mortgage Backed securities. As highlighted in our policy statement, we anticipate continuing this policy until normalization of the level of the federal funds rate is well underway. Maintaining our sizable holdings of longerterm securities should help maintain accommodative financial conditions and should reduce the risk that the federal funds rate might return to the effective lower bound in the event of future adv
Down, that would be of concern. We have called attention to some inght downward movements survey measures. We are watching that. I still judge that Inflation Expectations are reasonably wellanchored. Inflationve tolerated shortfalls that we thought would disappear over the medium term. Just as we did overshoots of inflation that we also judged to be transitory. But we do need to monitor inflation very carefully because if Energy Prices and the dollar prices,stabilize import our expectation is headline and core inflation would move up, and if we failed to see that occurring in a manner that we expect, of course, we would need totake further action reconsider the outlook and to put in place appropriate policy. What with that action look like . Wereellen if the economy disappointing, our actions would not really be based on inflation. We would take employment into account. I cannot give you a simple answer. But we would pursue a more accommodative policy, because we do certainly are a cur