This is daybreak australia. We are still an hour away from the start of asias major market. Betty a brandnew week, but it will be a short week. It is just after 5 00 p. M. In new york. The thanksgiving holiday break already. Last week we saw a second decline in u. S. Stock. We ended on a red note. The s p and dow off by about one or two points as well. Decline, twoek of an a row since august. It continues to dog investors. Where is the fed going to go next year . Beheadedl tax reform and will we get it done by the end of this year . These Research Notes coming through last week. You have this market, nothing seems to bother it. You have something skittish starting to build, it seems like every headline might comes to that tax reform seems to be hurting the markets as well. We get this brandnew trading week started, lets take a look at new zealand where trading is underway. At about 1 10 of 1 . Australia, coupled members speaking early this morning about financial stability. Cindy futur
We will hear exclusively from the economy minister in japan. Betty just moments ago, breaking news out of europe, germanys chancellor Angela Merkel, her push to unite for parties together into a Coalition Government seems to have collapsed. They were just running up against that deadline. This is going to put germany into uncharted territory. And really puts Angela Merkels job on the line. You can see there is immediate Market Reaction already in the currency markets in particular, the euro dropping right as the news broke about the talks. It was already uncertain if Angela Merkel could pull this off and it looks like at least for now, the answer is no. We talked about how intense these negotiations have been come and they were in deliberations for 12 hours on sunday. It seems like there is more uncertainty, we could possibly see another election triggered. Merkels job could be on the line. Atre was a lot of doubt even the beginning after the election earlier this year that they would
Kong. The pace of tightening is critical with risks on all sides. Janet yellen does not want a boom bust economy. Rishaad correction, what connection correction . Last week was a harbinger of something, turnaround, but that does not look like the case this morning or yesterday. Lets have a look at btv 39. It feels a bit like 1999. Is it . Market bears try to draw comparisons between todays bull market and that of the late 1990s possibly are wrong, could be wrong. There is a reason behind the link being unwarranted. Market graft is alive and well. More than 70 of s p 500 members have been advancing. Research partners wrote a note on tuesday that this was not the case in 1999, when less than half of the s p 500 saw members rise. Before the crisis, 50 of stocks ended the year higher. What we have is market breadth. That could bring solace to some there. Ut there bulls out what about the situation here in hong kong . A hairs breadth away from the psychologically important 30,000 level. Let
Rishaad what an afternoon it was, just one gentle slope all of way down to record a loss 3 . Let us put this into context. The csi 300 benchmark in shanghai, shanghai shenzhen stocks. What happened to that beijing that is what investors in china were asking themselves after this date of largecap shares plunged, rattling the market, one which has become rishaad margin debt below the bubble peaks, has been increased seeing for six straight months. A lot of investors nursing their wounds this morning. Haidi. Haidi absolutely. Getting the Bigger Picture look. Coupon that before 2015. A 3 jump or fall in any of these chinese indices was almost a calm day. How farteresting to see it has, and how little volatility we have had from the worst in 2015 until now, so we are looking ahead to the shanghai and hong kong open, taking a look at how sentiment worsened and if it provides a little bit of support. A lot of analysts saying there is no point in them going in right now because it will make no
What does that mean . Hello and welcome to bloomberg daybreak asia. Im haidi lun. Betty i am betty liu at the mobile headquarters in new york. Weve got one i clearly watching what is happening in the korean peninsula. In the meantime, we are watching what is happening here in tax reform and u. S. Markets. It looks like tax or formal possibly passed by the end of the year and markets will move higher,. I want to pull up a chart that shows perhaps a little bit of a warning sign. It just shows you the valuation of snp stock versus the euro stoxx 600uro companies. You can see how the valuation so muchinues to widen, so that it has some investors saying even if stocks rally, maybe there is better value in other parts of the world, particularly europe. Maybe it is europes time to shine next year. Haidi absolutely. It is interesting, this idea of momentum and sentiment driven rally we have seen. Haveore record highs we seen overnight as we get closer to closing out the year. Usuallyet period