You have these records stimulus plans being proposed and a pretty Bleak Outlook certainly by the ecbs madame lagarde, and yet, we see the fear of missing out trade in full force across equity markets. It just feels like if this fomo trade continues, how much does the pressure come on fiscal policy makers to continue these programs . Jonathan i completely agree. Right now. Ope italy rallying because of what europe is about to do, or what they are talking of doing, and germany not really backing up any big way. We had record issuance in the United States. What have treasury yields done . Not a whole lot. The market is wide open for these guys to do a whole lot more. Lisa yesterday, the Federal Reserve sold twoyear notes at ,he lowest ever yield of 0. 18 which brings us to what we are looking at today. You are seeing u. S. Treasuries selling another 45 billion of fiveyear notes. Also it to 00 p. M. , the fed is going to release its beige book also at 2 00 p. M. , the fed is going to relea
Rally and 30 points on the s p 500. There arent many things that story thanter the market rally in. Lisa you said it before, fiscal support, more fiscal support, lower rates. This is what is driving it. I wonder at what point fundamentals catchup because we are not seeing the Economic Data to justify this, and yet, people are looking forward to data they are expecting as we see reopening start to take hold. Clearly, what we see in the next few months is common sense sense, an economy that goes from shut down to reopening. You will get that month on month sequential improvement. July will look better than june. August will look better than july, if we can keep on reopening. Part two is the limit of the recovery, the limits of normalization, how dependent we are on a vaccine, on improvement from the science side to really adjust the limits of that normalization. I think at the moment, were focused on the sequential improvement. At some point, youve got to get your hands around the longer
Of that will be technical selling. The bond market is a little bit unusual not so much happening in yields here, but in europe you are seeing pretty strong support. The time now for the market moving news from our new york team. We want to begin with china and that historic economic slump. Ae first contraction in backdated. We have our correspondent with all of the details. Mike it was actually worse than you expected, 6. 8 decline, the worst since they started reporting quarterly in china back in 1992. The economy has not contracted the fullyear basis since 1970s. We will watch that. One reason the numbers were not worse, if you look at the second number, smaller than expected, Industrial Production of on. 1 , factories returning to work. The problem for them is with the rest of the world unlock and there is nobody to buy their stuff. Consumers are not buying. Lockdowns were lifted but people are still reluctant to go out and spend. Retail sales down 15. 8 this is important because th
Weaker as you have no agreement over finance chiefs on what to do over the crisis. Russia doesnt think a 2 million barrel a day cut is enough to get anyone to the table. In the bond market, 17 billion worth of supply coming online at about 1 00 today. It is time for todays market moving news from our london and new york offices. European Union Finance ministers now failing to reach a deal on a unified strategy combat the economic damage of the coronavirus. Germanys finance minister olaf scholz did give a press conference shortly after talks ended. I think it is absolutely clear that the recovery of great will be a very activity. We have to organize together. As anyone knows, i think it is absolute possible to do this within the framework we already have. Alix bloombergs Michael Mckee joins us now. I couldnt believe it, but i could believe it this morning when i woke up and saw they could not agree, and it was north and south. Michael it seems that way to a lot of people. Talk is cheap.
Well china for instance reporting an increase of cases and u. S. Officials warning this week will be the toughest yet as hospitals struggle to maintain and eck up and down their capacity. Coming up on todays show, blackstone is donating millions of dollars to support Health Care Workers and First Responders in new york well speak to the ceo about that and his thoughts on this volatile market. Plus, well be joined by the ed of the transports union. 59 minutes left of trade. Lets focus on the big stories we are watching nowful meg with the latest on treatments for the virus. Peter from canter fitzgerald is here with us to talk b about the volatility in the oil market in particular, but first, mike, want to get your take on todays rally and where this puts us a pretty crisp rally, cant argue with that. Where it takes us is one of the most interesting things. A oneyear chart, 26. 30ish on the s p 500. Its exactly where we closed on march 30th so you remember that was that big three day ral