To see a two year yield come in and a 10 year bond coming in with a vengeance. Coming in is that signal slowdown, massive curve flattening. Jonathan 10year yield breaking down. We are down eight points on the s p 500. Lisa, phase one was about access to capital and drawing down credit lines. Phase two is about the permanent decisions, cuts and layoffs. That is what has been building this week. Lisa we have seen those cuts and layoffs likely to be ongoing with a number of cfos studies pointing at Bigger Companies looking to shrink their workforce further through the end of the year. The thing im watching is how much can we plug the gap, the deficit of production with regards to fiscal stimulus . As we wait for that, we will be waiting for the data coming out today. We get the u. S. June Producer Price index, measure of inflation. 1 00 p. M. , this will be interesting in light of the fact that you seek shale producers bringing rigs back online due to higher oil prices. Later today, Presi
Florida. It is about the pandemic. The Market Reaction to that, as Jonathan Ferro mentioned earlier , we have seen remarkable stability in the pricing of the Global Financial system in the last three or four days. Mathematically brilliant, in the last 48 hours we have seen yields in. There is no question all of our conversations, including Mohamed Elerian and jim paulsen have to be about what the bond yield signal. Jonathan it is not a huge move, but it is a break. It has been so sticky for the last several weeks, and we break lower by several basis points. Yield, which real have moved aggressively lower. Treasuries on the one hand, on the other, dollaryen. Morning, 1. 06, they are not huge moves but we are starting to break down in a way that is maybe complementing the Risk Appetite elsewhere. Tom totally on the point of real yields yesterday. I do not think people understand there is the visible yield, and then there is the yield after you adjust for inflation. Business has trouble g
The governor of texas warns of a massive outbreak. The imf adds to the gloom, further lowering its Growth Outlook, saying the pandemic will cause even more damage than first feared. Haidi that lead really playing into the downside we are expecting in the asian market session. Lets get it over to Sophie Kamaruddin in hong kong for a look at what we are expecting. Board, pulling up the asian futures pointing to losses of 1 or more amid the imf. Warnings of a deeper recession with japan and the Growth Outlook taking a hit. 1. 2 in theup by red this morning. A down day with trade disruptions back on the table alongside virus risks. Flipping the board, we are seeing bonds on the advance. Aussie tenure yields off by four basis points. Treasury futures to the upside after the overnight flattening we saw in cash yields as the bond market is signaling a more cautious outlook than we have seen in stocks. Check out the dollar extending gains against g10 peers with increasing u. S. Trade tensions
Covering the facts that you know hes directly responsible for this erosion of price discovery of you know free speech essential is hes like the tyrant of the markets he doesnt allow Free Speech Free price discovery free markets thats absolutely right he is censoring the machinations of capitalism which weve doubt the weak hands and gives us only the winners so that we may become glorious in our quest to dominate the Global Economy but because of the printing thats going on in the bailing out. Of the we can still weakest the monks just in Corporate America what happens is the vibrant new small to Medium Enterprises are pushed aside they dont have access to credit and the worst behaved myths the albatross the no good mics are flooded with cast to do more bad things exactly so here he is warning the Small Business is going to be doomed of course investors love that because just like Warren Buffett he likes most he likes only copleys he only invest in those like if if you could force the p
Statistic referring to Zombie Companies is very telling me you know its its really the pictorial graphic representation of something weve been saying on this show or ive been saying on the shelf for some time now is that money printing doesnt cause a rebound in inflation it in fact causes deflation and you have no statistic that proves that more than the rise of Zombie Companies right this is why money printing doesnt fight the flesh and it causes deflation because youre pouring money into companies that are zombies that have inability to function as ongoing enterprises but because they are friends of the central bank and because Steven Knutson and donald trump in the all those folks in washington believe it strategically important to keep their donors these are donors thats who are being kept alive here are the. Corporate donors into Trumps Campaign are being flooded with cash even though their underlying businesses are not viable and no longer able to sustain themselves and they end