Host good morning and welcome to bloomberg daybreak europe. Lets get to the top stories. Yields sinking on dovish fed speak. Netanyahu vows retaliation against hamas has only started as militants worn they are prepared to kill hostages. In europe leaders are going to hold an emergency meeting. A lot going on geopolitically. Lets see how it is being priced into the markets. We are going to see a potential turnaround from yesterdays price action. Futures action is crucial. You are seeing a complete reversal. The idea here is that if you have war on the horizon and breaking out your gut reaction is to sell everything. Today it is the opposite. Looking at it from a sectorial basis. The defense bid is being actively priced into the market. Some might view it as an overreaction in the market which is why we are seeing futurists outperform. Futures outperform. Some of that is going to be a function of the yield picture. What is lacking is what is going on in the u. S. Markets and that has a l
Revenue. More labor strikes to come. Thousands of hospitality workers in vegas planning to picket this week after another round of failed negotiations with the casinos. Lets begin with the markets trying to build on yesterdays rally, jim. Were you surprised at all by what stocks and oil did . Yes. Actually i started my show last night by saying a little counterintuitive you could have both at the same time. If you take a look at the same time, obviously, vice chair jefferson speaks and boom, 1 30. They couldnt take the oil stocks down because of whats going on in the middle east. They didnt have the bonds because of columbus day. It was a threepronged oddity that the s p could roar and we didnt have the bonds to key off of and set up a picture that i think was counterintuitive to most people. You had logan and then jefferson talking about higherterm premiums and being mindful, they said, of the impact of higher rates. Yeah. I also think you had the note from edgar din any. Hes always d