Good morning. It is 8 00 a. M. Out west and 11 00 a. M. Other and squawk alley is live. Good wednesday morning. Thanks for joining us on squawk alley. As were looking at a day where the dow and s p have recovered, their loss for 2016 now in positive territory and well start with the markets. A day after all major averages closing up more than 1. 5 currently extending a second day into that rally. Lets bring insane matthews. Sean, thanks for joining us. Thank you. Good morning. So now the markets in the u. S. At least have made up about half of their postbrexit losses. Do you see a scenario where well get back to that prebrexit baseline or do you think this is where were repricing for now . I think you can definitely see more capital coming in to the markets the equity market. But its really what are the implications long term for brexit and whats going to happen with the eu will be the overhang on the market over the next year or so. So what about the european markets because now were
The same. France bucking the trend, up about 0. 3. The tenyear note, a gauge of risk sentiment across the markets. The yield falling. Wti crude, almost down 3 today. The latest s p caseshiller home price report has been released. Prices nationally up 5. 4 in january from a year earlier. Our road map starts today with apple. The fbi dropping its case reported it was able to break into the San Bernardino gunmans phone. We talk to apple experts about what this means for Online Security, apple customers and laws going forward. And fed anticipation day. John williams urging the central bank to stay on track with rate hikes. Janet yellen speaks this afternoon. How hawkish will she be . And reports out that jetblue and alaska air planning to bid on Virgin American. The hijacker of an egyptairplane has been arrested and taken into custody. Nancy holgrave has the latest. Reporter about five hours after this unfolded, the alleged hijacker on board the aircraft has been taken into custody. Offici
That we weigh in on how other countries set up their own regimes, in a manner that will be good for u. S. Firms and the u. S. Market. Its an attempt to influence what other countries do and thereby ensure a level Playing Field that works in our best interest. Their angst is based on the fact that they believe we might end up accepting standards from the International Community that might create problems for them here at home. Nothing thats adopted internationally has any binding force in the United States. We go through our own rulemaking process and decisionmaking. Its our internal decisions now. Of course, given our thoughts on whats appropriate, were using that and collaborating, doing this collaboratively with other u. S. Insurance regulators. Were presenting positions in basel, attempted to influence the international decisions. But we decide here whats the appropriate regime. Thank you, madam chair. Time of the gentleman has expired. The chair recognizes the gentleman from illino
European markets following through to a certain extent largely in the green. Spain is the outlier there. Election. A little more election. 2. 18 for the tenyear yield. I hear that r word, but everybody says well hit below 2 again. If youre in other parts of the country youre talking r. Were talking recession. But we could be talking road map. Ours starts with star wars. And a rare look inside apples operations, and what ceo tim cook is calling political crap. And mark Martin Shkreli spe out after his arrest. The latest after that ongoing drama. Quite a sigh there. People may have been seeing on friday. Stocks set to open higher. Both the dow and the s p finished the last week below the 50 and 200day moving averages. Oil is a major factor. Brent crude has fallen to an 11year low. You know, when it comes to oil, jim, very simply it is a collapse in a central part of the world economy. Thats the way you have to think about it. I think we have to recognize there was a belief that oil would
Slowing in the Housing Market might have constrained the rise in household leverage, as mortgage debt growth would have been slower. But the job losses and higher Interest Payments associated with higher Interest Rates would have directly weakened households ability to repay previous debts, suggesting that a sizable tightening may have mitigated vulnerabilities in household Balance Sheets only modestly. Similar mixed results would have been likely with regard to the effects of tighter Monetary Policy on leverage and reliance on shortterm financing within the Financial Sector. In particular, the evidence that low Interest Rates contribute to increased leverage and reliance on shortterm funding points toward some ability of higher Interest Rates to lessen these vulnerabilities, but that evidence is typically consistent with a sizable range of quantitative effects or alternative views regarding the causal channels at work. 4furthermore, vulnerabilities from excessive leverage and reliance