Alix and we will be previewing that speech. Were going to speak with the chief Global Equity strategist in just a moment. But first, checking on the market heres. Calm, but overall no, big positions being put on ahead of riday. Jonathan futures doing ok. Equity market in europe they can d. A. X. Up agassi. 8 . Ftse up. 5 . He story in the f. X. Market is weaker. You see in the stronger cable rate, we have a 132 handle very briefly on the pound against the u. S. Dollar. In the commodity market, the retracement continues. Big week on w. T. I. We come in at. 9 on w. T. I. We trade with 4698. All the focus on treasuries still. 10year yields higher up two basis points. I will say though another auction, more supply. Thats going to be a focus 20 e twoyear notes are billion worth. Alix now lets go around the world with check in with more top stories with caroline. Could it be a 50 premium on before any of these talks started to be decimated . Its been a roller coaster for monsanto. But it loo
Wagging. Wagging. Kit juckes will join us in a moment. Jonathan looking at the msci world index global stocks, and august 2015 hi. 600 aope, the stoxx january 2016 high up one quarter of 1 . The story in the fx market is a little bit of dollar softness. We come in 2 10 of 1 . The cable rate pushes up to one point at 133. A fifth straight day of gains. The discussion for this program in the next 10 minutes, are the bears in the u. K. Starting to capitulate . In the bond market, the bulls are not capitulating. Crude gets back to work with a little bit of rally and russia joins the output. In the bond market, the story of last week, the long end of the jgb curve, the worst week for 30 year japanese Government Bonds, yields coming in three basis points from the session. The focus is whether the boj and governor kuroda allow the yield curve to steepen and hopefully assist the banks to make a little bit of money. David they have been waiting for that in japan and it has been tough. Lets chec
They all did dip into the red earlier. Strongerq has been the of the three averages. We saw a shift in tone after we got the august isn numbers showing an expansion of the Services Industry at the slowest pace in six. 5 years. 6. 5 years. That caused a Ripple Effect across the market. Take a look at the bloomberg for how that is shaking out among the various groups. Stocks on thecom ride. Tilly companies tend to do well. Financials are lower in tandem with lower bond yields. I mentioned energy as well. , oilf the strongest groups has rebounded bit. There is a deal in the pipeline energy. Acquirednergy has been in a 28 billion deal. It is an all stock deal. Pipelineping the other companies. You are seeing them on the rise as the steel happens. We are watching a relatively smaller deal. They are buying yates petroleum. That is 2. 8 billion. That exposes expands their presence in the delaware basin. That is coming from morgan stanley. Withare signing a deal Subsea Services for that compan
There is some spec edition of when the speech was announced and publicized, Lael Brainard might later foundation for a rate hike in september. Does not appear she has done that. In the speech she gave and the q a to follow, she talked a lot about doing away with the old normal and looking to the new normal, sane policy must rely less on the old normal as a guidepost, noting that you have to be forwardlooking and acknowledge that inflation has undershot the fed target of 2 for 51 straight months, and also giving indication that she does not believe that the u. S. Economy is at full employment yet, saying perhaps there is more slack yet. A line that stood out to me is in the presence of uncertainty and accelerating inflationary pressures, it would be unwise for policy to foreclose on the possibility of further gains in the market. Vonnie entirely not what we would have anticipated but there were a lot of people speculative she turned slightly hawkish. Wage inflation in particular, saying
Lower in japan. 30 minutes into the trading day so lets head straight to the market desk where julie hyman has the latest. Julie we are seeing a in the major averages. They have not yet changed and may have flirted with the negative three fully before positive. After the swings we have seen in the past couple of days, things have calmed down to some extent. That is true not just in stocks but to some degree in the other Asset Classes as well. Lets take a tour. If you look to the vets, we see it come down a little bit, still at elevated levels. The 10 year yield coming down yesterdayzable spike to its highest level since late june. The dollar index up. Here is oil. , ahead of the 1 weekly inventories for it. The question is after three of 1 plus moves in the major averages, what happened now after the a lot ofy lunging investors have been calling for for quite some time. In s a couple of the indicators. We will come back to it later. Other big stories, there is the chart, here it is. Th