Our bloomberg voices are on the ground with this mornings top stories. We begin in asia. Chinas economy stabilized last quarter, showing greater than expected strength if december. Fourth quarter g. D. P. Rose from the year earlier. Joining us now on the phone from beijing is james, bloombergchina economy editor. Walk me through the details and where the question marks are still Going Forward . Reporter looking at the data that came out today, it really was a surprisingly strong finish for 2019, for chinas economy. I think if we look past the g. D. P. Numbers, chinas g. D. P. Is more a political target than a real indicator of whats going on. If you look at the retail sales, Industrial Production and fixed investment numbers, there was a bit of a rebound in december. Sort of ending the year on a high note. A part of that was, i think, the chinese numbers efforts to sort of support companies is working and also i think the optimism you may have seen in december from the signs that the t
We create second down d 260,000 month. And there is the idea of a recession looming around the corner most of the big picture data points tend to be small. The Labor Department and payroll report this one tends to linger, painting the whole market in whatever light that report is and in this case, of course, its a positive light. These matter why . Because we head into next week its going to affect all of our game plan. On wednesday the Federal Reserve will reveal the next move when chairman Jerome Powell holds his press conference and after the fabulous numbers we got today, i dont know im worried. Im worried he can turn hawkish like did he late last year he took a wrecking ball to the economy. Colin powell, a wild card. Even though we have great job growth, there is not much inflation. That will be a Huge Positive if you take more hawkish tone, well, you no he what look out below and hes capable of that sometimes i think he just cant lose the old model the other big nine earnings eve
Trust me, would you be hit no matter how much youre invested. Fed kicking off twoday meeting. The issue isnt whether they will cut but how much they will cut. Consensus is quarter point in Interest Rates you never know. Fbn Lauren Simonetti is with us. 25 point basis cutter is considered bake in the cake. Markets predict 76 chance is the size we get tomorrow. President trump wants more. I would like to see a large cut. I would like to see immediately the quantitative tightening stopped. See the tightening stopped. Stop the quantitate tightening and raising rates was a big mistake. He says they are doing the opposite of quantitative tightening. Theyre easing but injecting money into the economies difficult making it for the u. S. To compete. The u. S. Is with ongoing trade negotiations with china impacted both countries. Take a look at this, the impact for consumers would be marginal. Greg mcbride, bankrate. Com says a cut would reduce the minimum Monthly Payment on 5,000dollar credit c
10year yield is below production broad base slow down in demand chewy debuts at the nyc and biden verses amazon. A lot for investors to digest today. Retail sales is the latest thing. I these are the people who ae focused on the feds. There is to reason to cut now because retail is not that bad may was okay not great, not bad what matters is this book. And it is significant because hock t hock tan missed by 2 billion revenues thats the president a billion of just the overall slow down. Now we are starting to get it. Now we are starting to see why the fed has to be worried. 22 billion in sales and it is being heard. That means everybody is being heard. If you miss what hock tan said last night, you got to listen to this piece in the Conference Call. It is clear that the u. S. china trade conflict including ahuawei is creating economic and uncertainty as a result, volatility have increase and our customers practically reducing inventory levels to manage risk. Maybe this gets the white ho
The table. Today the feds governor, Michelle Bauman says the policy rate may need to rise further to stay behind the goal. So what should we expect from Monetary Policy and for the markets overall . Joining us now is Marathon Asset Management chairman and ceo, bruce richards. Reminder, marathon has 20 billion in assets under management. Always good to see you. I do want to talk about the fed and inflation and everything, but i think we first have to start with the middle east and whats happening in israel. You see this as a macro challenge for the markets, for the economy . Well, first, let me say that we all pray for peace and stand with the president of the United States, who stands staunchly behind the support of israel. I say that as a personal citizen, as well as a ceo of marathon. Listen, israel is a great credit. Its an aplus rated credit. It has a strong currency, the equity market has done woeell or time, its bonds trade well and its debttogdp is over 60 . In terms of risks re