51. 94. Coming up on 52 here are the big stories were watching new this morning, defense secretary james mattis responding to north koreas latest threats saying the u. S. Will seek a diplomatic solution. Mattis making those comments at a News Conference in india south korea is reporting that north korea boosted defenses on its east coast after it said it would shoot down u. S. Bombers flying near the peninsula. Shares of apple dropped for a fourth straight session yesterday. Debt klein f the decline follows reports about concerns for demand for the new device on the wall street agenda. The s p caseshiller home prices are out at 9 00 a. M. Eastern august home sales at 10 00 Consumer Confidence also out at 10 chair janet yellen will give the keynote address at the National Association of business economics at 12 45 perm even we will hear from lael brainard, mester and bostic. On the corporate front Carnival Cruise lines and darden report results before the opening bell after the close, w
Erence in seoul. He struck a different tone from previous fiery rhetoric on north korea. Andring in Kevin Cirilli bloombergs chief content officer. Marty, when we say he struck a different tone, he wants north korea back on the negotiating table, but declined to comment on whether he wants direct talks with kim jongun. What is President Trump want . Marty it changes hourly. He famously tweeted about rex negotiationsirect with north korea being a waste of time. He is suggesting maybe it is not. Koreau. S. Ace north negotiation would be a change in policy. Many people including the chinese impressions think russians think that is the answer. David is there any realistic prospect of talks anytime soon . Marty no indication. Donald trump shows up in china tomorrow. There are no Public Events on the schedule. Those talks are critical if he wants to make progress on north korea. Shery the carrot has been bageled for decades regarding Foreign Policy dangled for decades regarding Foreign Polic
Down three basis points. We have not hit below 2 since april of 2015. Thats the dollar index strength. Brent is a little weaker by. 3 . 64 crude. Im looking at brent and going what happened . Headlines from outside the business world. Heres taylor riggs. President trump is calling the north korea to make a deal on its missile and Nuclear Weapons program. The president met with south koreas president. He said the u. S. Is ready to use its full range of military capabilities if needed but he said it makes sense for north korea to come to the bargaining table. U. S. On capitol hill House Committee has voted to limit the socalled carried interest tax break often used by private equity and hedge Fund Managers. The new limit would triple the amount of time assets would have to be held to qualify for the Capital Gains rate of 24 . The houses spending four days this week making changes to the republican tax bill. In saudi arabia the anticorruption crackdown is expanding. Banks are being asked
And finally, 1 00 p. M. Time, the u. S. Treasury is set to auction 24 billion in three year notes. Jonathan thank you very much, david. And an uncomfortable market. The s p 500 finished yesterdays session unchanged on a record close. Joining us from hong kong is sean darby. And of course, allen russ kin of fx research. Much has been made on the vix and the s p s. Give us your thoughts and your initial takeaway. Weve got a period where real bond yields have been turning negative in most of the developing markets. Thats been accompanied by a fall in the dollar and the background got a resurgencing global trade. So its a pretty Perfect World for the economy and for equity markets. I suspect why weve had such a low reeding on volatility measures over the last couple of weeks. Jonathan whats interesting about this is people often come out and say this is a sign of complacency but realize its also very low. So isnt this just a case of the market being right . I think the markets have actuall
And russia yesterday deciding to extend the production cuts and the iaea saying the demand outlook is slightly downgraded on lower first half estimates. Non opec increased in 600,000 barrels per day. You can see brent is up on the back of that, 52. 19. It was around 51. 7 when i looked at that. Oil is climbing a little bit more. Reminder yesterday, we found out audi plan to extend production cuts for another six months. Watch oil. We will bring you those trump headlines. That is giving a nice risk to the euro dollar, the dollar weakening for a fifth straight day. The euro is soaring amidst classified information donald trump made or may not have given to a russian diplomat. We are looking for the mexican peso strengthening and the south korean yuan strengthening. We will get more on your markets, but lets get straight to the bloomberg first word news. Reporter we start with europe. Angela merkel has vowed to work with macron. That as the german chancellor hosted the newly elected frenc