Impact the holiday season, but also what hes refused to acknowledge to this point, that the trade war is hurting u. S. Businesses and consumers. So what now . Lets start with the new york stock exchange, julia chatterly, she is there for us. I appreciate you coming on. Explain why the bond market is scaring everyone at this moment . Its a great question, kate. What we have seen in the past is where weve had these kind of warnings signals from the bond market, it can mean a u. S. Recession. In fact, all u. S. Recessions have seen this happen in the bond market, but it doesnt always mean a u. S. Recession is coming. This is key. Stock Market Investors are clearly nervous. Theyre worried about the trade war, theyre worried about the data were seeing, and weve china data weakening, germanys data weakened today, so theres a lot of nervousness. People then buy bonds, because they think its a safe haven, security, but that then results in the warning signal that were seeing right now. So the
Program koss the country so that those who own them can be recompensated for the money that they spent. Recession is a definite possibility, hardly definite but take a look. Dow down over 600 points right now, 630 points and investors say theres every reason for those deep market worries of the one is this. Yield curve inversion, on longterm bonds falling below shortterm bonds. Such an inversion hasnt happened for a decade and its a phenomena thats preceded every recession the past 50 years. Other warning signs come from overseas. Worlds largest economy, germany, might be tipping into recession. Plus new chinese economic numbers overnight, showing its powerhouse economy slowing. A big piece of that is the trade war with the United States. For everyday americans, a recession would mean job uncertainty, but also for the president , toochlt stronger economy is any president s best friend in a Reelection Campaign and the boom has help this had president weather storms over his character an
if we think as democrats that spending $10 million to get 130,000 donors is grass roots support, we re missing something. we re not going to win this election based on facebook ads. does he have a point or is that a guy having trouble moving up in the polls whining? all of the above, john. this plays nicely into bullock s wheelhouse. he has tried to make campaign finance reform one of his go-tos and this gets at what some democrats would see as the absurdity of this process in which you have someone who hops in the race fairly late in the process and then drops millions of his own personal wealth to get attention on facebook to, therefore, get grassroots donors. it s hard to wrap your head around that. i get why he s frustrated. that said, governor bullock has a larger challenge, the fact that times have changed in twooev2019 a red state governor does not have the same cache among folks
this blood bath and run for cover in a safest place in the markets and that is what is causing the inverted yield curve, which is a wholly unnatural state. basically you are paying more for borrowing for a shorter period of time. investors waking up, realizing perhaps they were too optimistic about the tariff delays yesterday. there is still uncertainty in the business community, which has pulled back from investment spending and this tariff delay doesn t do anything to resolve that uncertainty, which has caused so much of a pull back in stocks and throughout wall street. john? cris tichlt na alesci on the floor of the stock market. with me in the studio, julie pace with the associated press,