The Company Continues to hang in the balance. We start with the big issue. Markets weighing Economic Uncertainty against signs of easing geopolitical tensions. There is still a lot of concern geopolitically involving the global macro backdrop. As soon as we get across this brexit valley and trade war valley, things will settle down effectively. Manufacturing is weak globally. Trade uncertainty, brexit uncertainty. But you are starting to see pmi and the orders inflect a bit. You are at this Inflection Point where you are starting to get better geopolitical news. The mood can improve quickly, and that means Economic Stabilization in 2020. Wait it out. Ultimately, a little bit better geopolitical news is going to cause this inflection. Caroline the key question, what will it take to resolve the macro debate . Joining me around the table is bob miller of blackrock, Krishna Memani of invesco, and in london, james athey of aberdeen standard investment. Thank you for joining us. Bob, Inflect
That. Surprised at david who do you it was directed to . [laughter] alix probably President Trump. David you think . Alix but it isnt the first time we have seen resident we have seen president s talk to fed chairs. It is the first time i think i have seen a president say we will fire you publicly. Alix in the markets, if you are an equity trader, you are probably breathing a big sigh of relief. The question is, is this a bit of a relief rally or did we finally find some sort of a bottom . S p futures up 8 10 of 1 after the worst two days of this year. Eurodollar flat. A record, still seeing low in the bond market, so it feels like the same story, maybe just a pause. David now it is time for bloomberg first take. We are joined by Stephanie Flanders and marty schenker. Lets start with this announcement. The Treasury Department found china to be a currency manipulator. Result, secretary mnuchin will engage with the imf to eliminate the unfair competitive advantage created by chinas lates
Vix collapse a little bit. We now know the fed has our back. , we stimulatets animal spirits in the economy. It will weaken the dollar, which will help multinational companies. They want to sustain the expansion. Are we going to go gangbusters, an . No. It does make you wonder, is the fed trying to over engineered the economy . You look at what markets can behave well. Jonathan joining me is greg peters, andy, and krishna money. Dont fight the fed. Someone said to me this morning, the market is bowling the fed. Actually, we thought the fed and won. If you go back to september and october when they were talking nonsense, that we dont know were neutral is, we will go above neutral by december, they were pivoting hard. I think that is an old adage. The bottom line today is that the fed does not really have a good handle on what the drivers are in the economy. Way, they areent willing to listen to what the markets are telling them. Which is a good thing. Yes, we won against the fed wants,
Bond yields dropping five consecutive days. This line from bank of america, no news is good news. There has hardly been any news. Today light on data, light on earnings, heavy on fed speak. Vice chair jefferson, governor cook, boston fed president collins. Tons more fed speak. Lisa this is giving you a sense of where we are in the cycle of data that we are focusing on fed speak as the leading issue because that is the only thing. Neel kashkari was so loud when he said his base case was staying on hold for a longer time. He raised the possibility of a potential rate hike but he talked about the euphoria of markets. There is an embrace of every disinflationary print we get and he thinks that is premature. Jonathan are we calling it euphoric . Lisa it is a bias to see things in the most disinflationary way possible. Jonathan disinflation the theme of the last week. Pushing back rate cut calls. September feels like the new june. This from morgan stanley. We remain bullish on our call for b
And potentially we have a deal. What about the irish border . At one point it was that a twomonth high, 5 10 of a percent. And we are talking about 58 basis points, modestly steeper by a basis points as you had supplied coming from the front end earlier this week. Bitcoin, 10,000. Jonathan about the happen again. Alix 11,000 call . David it just keeps going. Extraordinary. We want to get some news outside of the business world. First word news. Emma good morning. Breaking news, matt lauer we understand has been fired, according to the new york times. More on that story as it crosses. On capitol hill, republican plans to push a tax bill through by the end of the year picking up steam. There was a closeddoor session, called somewhat of a lovefest. The Budget Committee looking to send the tax bill for a vote as early as tomorrow. And north korea warns that the latest missile can deliver a Nuclear Warhead anywhere on the u. S. Mainland. The regime conducted its first missile test in two mo