Story of the day, congressional testimony from j powell. The fed chair j powell maintains the economy is in good shape, labor market is strong with inflation coming down but the fed needs more evidence on inflation coming down before cutting interest. How much evidence . Maybe is not as much as we previously thought. More evidence that ill give us more confidence that inflation is on a path down o 2 sustainably. Not looking for better readings then we have had, but more of them and what will happen is as we go forward, 12 months will continue to drop. Because it will be lower than early last year. The first of two days of testimony before congress j powell says the fed can cut before it reaches 2 , he does not believe the economy is close to recession and higher bank capital rules could be re examined. He says it is possible before it goes to capital higher levels being withdrawn, they could be reproposed on commercial real estate. There will be losses, it is a serious problem, but mos
City this morning. For our audience worldwide, this is bloomberg surveillance. Equity futures on the s p 500 up. 2 . Date two for chairman powell and in washington, d. C. It is the state of the Union Address. We will catch up with amh in washington. It was a win for wall street but not the kind of win we were thinking about. This was not Monetary Policy, this was about Financial Regulations. Lisa there are lobbyists in washington, d. C. Getting massive bonuses. We saw that 19 Capital Requirement that the largest banks in the u. S. Were going to have to hold under new proposals basically being rolled back. Jay powell saying we will make a lot of changes to this after a lot of lobbying. Jonathan day one was in front of the House Financial Services committee. Date two was in front of the senate committee. The senator from massachusetts, Elizabeth Warren, i imagine Elizabeth Warren has followup questions about yesterday. Lisa i imagine she will not be particularly happy when people are loo
The union speech and the latest on jobs. Lets start there, because we just received the report. This is news. 275,000 jobs added to the economy in february. That is way down from the reading in january. The unemployment rate, that kicked up to 3. 9 , but that still is historically a low rate. Heres the Market Reaction to that. Stocks picked up when those numbers were release. They had been down, markets were down, dow up maybe 4, s p up 12, but the nasdaq 40 points ahead in the early going. The 10year yields, theyre coming down. Very close to the 10year, to 4 even. You now at 4. 07. Down just a fraction after those Inflation Numbers jobs numbers. The 2year, 4. 48 . Yields down across the board on those jobs numbers. Bitcoin, 67,000 and change as of now, 67,7. Gas up 1 cent, youve reached 3. 40 for regular. Diesel coming in at 4. 05. All right. Now, the state of the union. It was a Campaign Speech devoted to Bashing Trump and the republicans. We didnt hear much about his policies in a s
Nikki haley took herself out of the president ial race, Jerome Powell didnt exactly push off an imminent cut in Interest Rates. You might take powell and the points on this. Charlie gasparino driving investors now. This is a slam dunk. The markets, Jerome Powell have more influence and for the time being president ial candidates, but lets sort out what powell is saying. How do you see it . Charles it has been telegraphed. I wrote a column, hes been telegraphing rate coverage and it wont be march and it will be june. Hes telegraphing it will be 24 basis points. Thats what the markets are saying. Confirmed his telegraph that we reported on the show. Neil things are really far pushed off. Charles i told people, they told me june, 25 basis points, thats the likely scenario unless something wild happens with inflation if it starts popping up. The last cpi print was three. Adam as long as you are trending. Charles he thinks he will get it by june one thing about powell, whatever he telegraph
Caroline bitcoin hits a fresh record since its peak in november 2021. We will have coverage of the market and those meme coins in the rush. Lets first check in on these markets. Bitcoin is up, but the rest of the market trying to digest some of the runup we have seen. We focus in on mixed Economic Data today. The u. S. Showing some Services Weakness and we look ahead to testimony from jay powell, his semiannual experience in terms of the politicians. What will the grilling mean . How much will he be reticent to say that they are looking at those rate cuts anytime soon . We are looking at 1. 8 down. I want to focus on what is happening in china, the tradenames in the United States with a Golden Dragon index, off by 1 as we see a Growth Perspective coming from china. How will they get there . That ultimately what is the debt they are going to be fueling in terms of the focus on a i, on technology coming from china . Not enough to buoy the stocks and chinese names. Looking at the 10year y