France threatens to get out of the rescue plan altogether. 11,000 jobs slashed, the german giant fights for survival. Welcome to the program. Looking at the futures, reflecting the way the european and u. S. Equity markets closed yesterday. Futures down in europe, mixed in the u. S. , reflecting what we saw yesterday were the u. S. Wobbled into the close at the end of the session. New york schools closing seems to be the factor. Breaking news, some commentary from astrazeneca in connection phasehase two, not the three news we have been waiting for. That is expected to come within weeks. This is more detail on the phase two data. They are confirming the vaccines immune response in older adults, that is crucial considering who is most vulnerable to the virus. The lancet is publishing the findings. A lot of stuff we have heard already from phase three trials more advanced than this from other drug companies. It has not been peerreviewed or in journals. We are getting the phase two study,
Saying china is the greatest threat to democracy worldwide. The u. S. The bloomberg u. S. Dollar index. Crude getting a lift after an opec agreement that came through. Theyre going to be keeping curbs in place in terms of production but we could see on a month by month basis some of those curbs being removed. Agrees to ease cuts more gradually. Gold about 1 10 of 1 lower. Bitcoin using some of its sheen and declinings extensive 1 . With all that in mind, lets find out what is happening in new york. Karina we start with the news on pfizer. It slumped on reported may ship only half of the vaccines it planned to this year. Issues supply chain will cut it to 50 million. Anthony found she is taking the u. K. For rushing to clear the pfizer vaccine. Moderna claims it shows what it claims is durability. Republican Senate Majority leader Mitch Mcconnell is calling for a smaller more focused stimulus package for the u. S. Economy as democrats scale back demands to find a route forward. The base
The dow coming off its first close ever above 30,000. Still down 180 a lot of focus continues to be on the socalled cyclical trade, energy, banks, airlines all pacing for their best month ever rob, its good to see you again. I come to you first because your note to our producer today really piqued my interest. The last three weeks, you say, were transformational. How so i think going into this, scott, we did not have a prospect for a stimulus plan it pivoted focus to the virus and the virus count really, really increasing. Since then youve had three months of very, very positive news on the virus front. Youve had an election outcome that appears to be more and more benign with the actions of the with the actions of our president elect. Specifically nominating janet yellen it looks like it was an outcome that was squarely middle of the fairway that was not too far left, not too far right. Really goldilocks like from my perspective. Now youre at a place where when you look at major pivot
So that is pretty evenly split, actually. Theres certainly quite a lot of recognition that Central Banks need to think about new toolkits. We are going to go to some questions now, but if you want. O use the platform to submit i think larry gave an excellent description of what the core problem is that the developed world faces, that there is a glut of saving and a , and it of investment really means that we have to have fiscal policy, structural policy, and things other than. Ust relying on Central Banks i think Central Banks need to do what can come about they can. Adopting a system called flexible average inflation targeting, i think this is an appropriate change. Somewhat improve the scope of Monetary Policy to show that shortterm Interest Rates are often constrained by the effect of lower bound. I think it is helpful in preventing a cycle of falling inflation feeding falling inflation expectations, but i strongly believe Central Banks need to be independent and need to do everythi
The s p market barely budged but the stunner was the bond market, hitting its highest level since march. Chris called this on the show a couple weeks back. Where are we headed from here . I think we are headed with the yields going up still. What is important about this move, it is not a few days old it is a few months old the trend here is several months old. I think any shortterm pullback in bond yields, that would be an area to be a seller of bond. We think yield can go up from here if you look at the longer term chart, you have to focus on where yields bounce from in 2016 and where they broke down from in 2020. When you look at this move, i think 130, 140 is ultimate lit where this is likely to go thats where the key levels are. I think as bond yields have gone up, the yield has gone up. 80 basis points and i think Equity Leadership changes ri long with that the kre here is starting to break out, not just relative to s p but on its own right the technical is starting to improve her