Copper, all getting caught up in this risk off seer. Time for Global Exchange where we bring you market moving news. From hong kong is reporter ian marlowe. From london is emma chandra. From new york and miami. Over the weekend, you had protests continuing in hong kong. However, china is seeing some positive signs the hong kong and Macau Affairs said a consensus has emerged to put an end to violence and chaos. Positive changes are emerging in hong kong, most importantly, putting an end to violence and chaos has well as restoring the order has become the strongest and broodest consensus of the hong kong society. Alix we welcome marlowe ian. Is that true or is that violence a reality . Yeah, i think its a bit of both. The violence over the weekend is certainly something that transfixed the city. You had a huge roadblock that was set on fire throwing molotov cocktails. And monday and tuesday, we had a little bit of comments coming from both the hong kong local government and today from Be
Doing very well, up by. 4 . Will play out. Is thiso think it means. 7 . An see pound down by would a trade truce make you happier or a more aggressive investor or do you think this is if we look at the sectors doing something that is going to take uncertainty around global trade well. Even though we see longer, possibly past the 2020 and trade policy is going to persist. It is not just between the u. S. Elections . Truce would a trade and china. Markets up, we shouldnt we still have overhanging europe riskon. That as too at the margin make us more the potential for auto tariffs and we have gotten quiet on aggressive as investors if it that. I do not think that should be was a real truce and not just completely taken off the table. We have other uncertainty some agreement to talk. So that is a look at some of the associated with things like that the tariffs are moving brexit. Markets. Lets look at the other side of is isuggests to me the markets, dollar index. The dollar just a touch to
If she could. The latest. And counting the cost. We had to miami where Hurricane Dorian is capable of causing billions of dollars in losses. Newseen we have breaking out of south korea. Looking at the inflation numbers. Yearoveryear is flat. 0. 6 in july. Forecast to be up 0. 2. This is now the lowest inflation rate yearoveryear for korea on record. Pointing out they are missing falling into deflation for the first time. If you look at the core cpi, it is up 0. 9 . It takes out food and energy. Energy has been under pressure. If you are at the bank of korea looking at this, you have to think this could raise pressure for the bank do something at their next meeting. Gdp coming in for the Second Quarter at percent. Prior, 1. 1 . A small difference, not superstrong. Yearoveryear, 2 . Probably considered enough for the bank of korea for now. That number will catch a lot of attention. We will see how markets react. Lets look across asian market. You can see the red on my board. Asian tradin
congressional republicans as well. we ll bring you some other capitol hill news and update you on our coverage plans of today s a january six committee hearing. first though, to the rate hike and the federal reserve. our opening question for you this morning, the headline in the washington post says that markets and households lose faith that the fed can handle inflation. in that article, they write that the federal reserve missteps in waiting too long to tackle the greatest run up in prices and for decades has shaken trust across markets. the american public that is up to the task of curbing inflation. with a piece about the rate hike and bloomberg yesterday, by jonathan levin, that headline on his piece as powell s late start on inflation traps fed in a dilemma. the central bank lacks tools to combat food and energy costs, which are driving price growth expectations. it can ride it out or risk a recession, they write. here s the piece by jonathan levin. it s, as federal res
Fluctuating between small gains and losses. Investors uncertain about what is next. So much to deal with whether it is geopolitical tension, hurricanes or d. C. A bit edgy on the week. The three major averages are on. Ace, but weekly losses pa bigger moves are happening when we go across Asset Classes. The 10 year yield down six basis points. Haven bonds are rallying. Pretty extraordinary. Two months ago, we had the 10 year yield at 2. 4 , now closer to 2 . Tripping what we have seen out of the election when rates initially backed up, shot higher, now returning. The bloomberg dollar index down six days in a row. The lowest level since 2015, down about 10 on the year. The dollar index on pace for its worst year since 2003. All of this replacing the somewhat obvious dovish commentary from mario draghi, dragging the dollar. Both of these Asset Classes dragging on the banks. Look at the regional banks, down 3 come on pace for the worst day since may. This is a concern to some strategists o