Matt the coronavirus spreads stateside. New cases across the u. S. Including in new york city. President trump meets with pharma executive today as the global death toll passes 3000. The fed is in play. Policymakers stand ready to cut rates but doubted they can fully offset the virus in fact. Goldman sachs sees a 50 basis point reduction this month. Berlin reports its first case of the coronavirus. Italy seeks a wider deficit to pay for emergency economic measures as cases soar. We are under an hour away from cash trading in europe. You are getting 1 to 2 gains in futures, the ftse futures up. This is after the biggest route we have seen, we saw last week since 2008 for the broader stoxx 600 european index. Getting gains in the preachers in the u. S. Are not as sharp but we are 7. 5 hours away from the start of trading there. The nasdaq, down, many contracts rising this morning. What are you seeing . Money going into risk assets. That is the theme through the Asian Session and markets
United states and weak business in fixed investment. I sit at the time we should do modest limited adjustment to the fed funds rate. The other thing i was worried about is the curve was inverted and i felt it would be much better if we had an upwardly sloping curve. To me, the curve is a symptom that maybe our adjustments were about right it was not intended to solve these issues but intended to adjust policy in light of these issues. I think the curve being upwardly sloping tells me we are in the right place. Want to move on to the consumer because the fed is putting so much impact on the consumer. Beenl sales have decelerating. A november number was half of what the Consensus Forecast was. Our Bloomberg Economics team expected holiday sales to come in at a gain of 3. 4 , the second weakest of the cycle. What if your main engine of growth is starting to run out of gas . That weakbeen worried Business Investment and weak manufacturing would seep into other parts of the economy. We have
Investors wait for stimulus clues from the ecb accounts, as pmi data today is set to confirm further contraction for European Manufacturing. Fedsak with kansas city astor george today at jackson hole. Angela merkels 30 day challenge. The german chancellor gives Boris Johnson a month to find a brexit solution, though francis says a no deal is france says a no deal is most likely. If we approach this with sufficient patience and optimism, as i say, we can get this done. Silence onbreaks its the unrest in hong kong, as the city faces an earnings recession not seen since the financial crisis. Good morning and welcome to Bloomberg Markets european open. The threeday moves on the 10 year yield, just up and down, up and down. Yesterdays spike was after we got the minutes. At first it looked like they were not telling us much, then it was a little bit confusing. Markets still expect a cut. Now you have the yield going back down, as we await all of this pmi data in the u. S. Sorry, pmi data in
After the Islamic Republic seizes a tanker in the strait of hormuz. Healthy growth phillips beats Sales Estimates for the Second Quarter as the ceo gives bloomberg his take on the trade war. These trade wars that are , as ave in the world strong believer in what globalization has brought to the world, i hope that we can see coming closer to each other. That will be good for the world economy. We had some outflows. If i had that back, we are actually within the target range. If i look at margins and revenues compared to the second half last year, they have substantially recovered. A very more welcome to the European Market open, everybody. European markets opening what . 28 minutes time . There or thereabouts. Futures suggesting we will be a little bit weaker at the start of the trading day. European markets expected to be a little bit weaker, apart from the 3100. I should point out, seen as a bit of an outlier, and that could very much the case in oil markets. Futures dewpoint slightly
Biggest weekly gain since 2016 as the u. S. Prevents new sanctions on iran. The lira rallies after the opposition candidate wins a repeat of the istanbul mayoral election. Be for a blow could this erdogan . Ride for daimlers new ceo as the group issues its third profit warning in a year. Good morning. Matt im looking at bitcoin as well, climbing up at one point over 11,000. You can see we are trading for 10,733. The question is, if this all due to Facebooks Libra . We did see a rally before that. 10,000 tohed past 11,000. Futures rise. German futures were down this. Orning a little bit earlier then we got an announcement about lufthansa causing changing its dividend payout. 0. 1 . In is less than a little stronger, but not much on cac and ftse futures. We are just treading water this morning. What do you see on the gmm . The a bit of trading in asian session, you wonder how long that will continue. Weve got the trade conversation toward the end of the week in the g20. Even if expectati