More downgrades. This time not on the sovereign but u. S. Banks, 10 downgrades overnight. Tom there is a bank story in italy as well. That is the economic thing to look at. Overwhelming everything here this morning led by the news out of china is it is deflation tuesday. Im looking at the screen and i have not seen that screen in 4, 5, six years. Jonathan dreadful. Tom we were out in front of the story, there is deflation in the air. I can bore you with eight ways, all you have to do is say even oil breaks down. Jonathan every time i get data out of china, it is downside surprise. Lisa one interesting area, the divergence between the u. S. And china has been accelerating. What you have seen with respect to the u. S. Dependence on china is it is decreasing even though in europe it is not. I wonder how much those stories are linked. The underperformance of germany and the outperformance of the United States. Tom the banks have to deal with this disinflationary, deflation tendency. You go
The nasdaq down even more, 1. 8 . You add the magnificent 7. There was a pullback of, i think, 233 billion in market cap for those big magnificent 7. The only one that ended higher was invip ya shares of apple down 3 after a report of struggling iphone sales in china then you had tesla, down by even more than that, and pretty decisive declines in technology. It was interesting watching them one by one. Kind of roll . Were going to need a terrific two. Terrific two or the rest of the averages the rest of the stocks to kaup up to what the magnificent seven do. They want to solve income inequality that i wamgt to bring everybody else down. I wish everyone would join the magnificent 7. Apple has been a great stock and a great harbinger of this tech bull market of the magnificent 7. So has tesla now were really i mean all our eggs are in nvidia at this point, although, i dont think we need to anybody whos worried about most over the past 25 years has been proven wrong . Yeah. Yeah. Im not s
Good morning, this is bloomberg daybreak europe. I am tom mackenzie. Stocks in asia make china weaker despite reporting a surge in exports after the fed chair jay powell keeps the door open to Interest Rate cuts before the end of the year. We believe that our policy rate is likely at its peak for this tightening cycle. If the economy evolves broadly as expected it would be appropriate to begin dialing back policy restraint later this year. Tom it investors look to europe with the ecb said to deliver its latest Rate Decision and new economic forecasts. Yemens houthi rubble strike a commercial ship killing three crew members an escalation of the red sea crisis. From geopolitics to the earnings story, we are looking at what is causing in terms of lufthansa, the redhead on the terminal, adjusted ebita on prior year levels, so they expect on the forecast. You will get a repeat of what came true in terms of earnings for 2024. In terms of revenue for the fourth quarter, 8. 7 seven 6 billion e
Estevez in that movie. Charles just hope you never have to meet em in real life, theyre rough. Liz charles, thank you very much. Folks, weve got a special edition of the claman if countdown due to multiple plates in the air that are scheduled to start spinning in the next couple of minutes. Weve got stocks right now mixed at the moment. The dow is down 14, s p up 16. It just needs a gain of 19 to hit a new record. Nasdaq up 92. And we are conning to watch this mixed picture, but mostly higher due to the benign inflation read. The 2year yield has been falling in response. Weve got it down 1. 6 basis e points, off the lows of the session. But, look, does anything about that january pce Inflation Report change . Blackrocks bond guru rick reiders timing of the Federal Reserves first Interest Rate cut . Rick is coming up in just a moment the tell you. In the meantime, bitcoin very quickly here continues it epic climb. Coming up in this hour, the ceo of Bitcoin Miner marathon digital is here
Yesterday, but again we were talking about Massive Gains not just through the month of july but year to date as well well continue to keep an eye on this if youre watching treasury yields, this is where you would anticipate seeing moves if there were a downgrade if people were afraid of rushing into this. But it turns out u. S. Treasuries are still a safe haven and why the yields are still a bit lower. The 2year note trading at 4. 86 . Of course, all that related to what were seeing. Talk about the downgrade because it is our top story. Theyre citing what theyre calling an erosion of governance Emily Wilkins joining us now good morning to you. Good morning, andrew. Yes, shocking news yesterday at least for some of those in the Biden Administration seeing that downgrade in the u. S. Credit ratings from a aaa to a aplus this is only the second time the u. S. Credit rating has been downgraded like this treasury secretary janet yellen is quickly depending the Biden Administration she says