The president accusing Prime Minister theresa may of making a mess of brexit. He said the u. K. Will have a new Prime Minister soon, good news. In the markets, we are seeing risk off attitude. You want to buy the dollar. Equity futures down. 4 . Semis could get particularly hard. The chip guys have three months of inventory stacked up. Yields going nowhere in the u. S. Oil a bit firmer. You have some iran conflict there, the military playing hardball with bp. Altogether, it is a by dollar story, sell u. S. Equities buy dollar story, sell u. S. Equities. We are joined by Lisa Abramowicz and michael mckee. 72 hours, has a busy giving a speech to open this Boston Press Conference and then going down to d. C. Michael you dont have to pay any attention to boston. Towill be fed by satellite the conference. Tomorrow, you have to be sitting in front of your bloomberg terminal and watching jay powell. He has to ratify the idea of the month, which the markets are anticipating, or we will have in
Day. It is definitely a top heavy move. You see it up 0. 8 . The equal weighted up too. Nasdaq up by a full percent. Alphabet as mentioned popping this morning. It is now up about 4. 3 and the biggest upside contributor. Apple is ahead as well, 1. 4 on reports that apple might use googles zoo a. I. Capabilities in the iphone. Crude up another the high since halloween. It leads to the talk of the tape. Based on a goldilocks economy, a. I. Excitement and prospect of an easier fed, is the playbook changing . Lets ask adam parker, Research Founder and ceo at a cnbc contributor so. Adam, yeah, those have been the narrative threads that worked pretty well. Almost no pullbacks. Some pockets in the market in the last couple of weeks and things have cooled off but not fallen apart. Where does that leave us . I think the bull case is still intact, right . If the average company can have gross Margin Expansion and if i start thinking earnings will be up for the next few years well be ahead 25 ver
Abramowicz some Jonathan Ferro your equity market on the s p 500 slightly negative this morning fantastic lineup looking ahead retail sales just around the corner. Earnings from home depot dropping across the bloomberg tomorrow. Numbers from target results from walmart on thursday. But once again this morning, we have to begin in china. Rate cuts bramo and the data not great at all. The biggest rate cuts going back to 2020. The data coming weaker across the board. Whether it has to do with retail sales, whether it has to do with industrial production. They scrapped their youth unemployment metric, which is not exactly encouraging. And now the question is, are they preparing a big enough stimulus to really stave off weakness that is much deeper than people expected . This is the right signal. The big question, youve alluded to it, whats next . Heres the commentary this morning from standard chartered. The cut has been aggressive from sogdian. This is unlikely to be the last measure. So,
European equities rise, selloff in the bond market, but equities are up. There are some interesting themes in the market today. Polish assets, insurance companies, polish stocks all doing well on the donald tusk victory, getting close to a victory. Polish assets responding strongly to that. By 13 points. Shell is up by 1. 3 , record high. We had been seeing a number of factors driving this. The most interesting one is that this is a company that pivoted away from renewables. It decided it was not getting the rate of return it wants, not getting the rating it wanted from the market. It wanted to be valued more like u. S. Majors. Maybe some evidence that that is really working. Alix shell sold its shale assets in the u. S. Will they have to go back in . Yields up, stocks up. Go figure. 10year yield up by eight basis points. Stocks dont care. The s p is up by 8. 2 . Tech outperforming, up by 1. 2 . Charles schwab up 6 . However, net interest revenue, 24 . We know why. Clients moving cash
Earnings season kicks off this week. From new york, im alix steel with guy johnson in london. I do wonder what the catalyst will be this week to be honest. Guy i dont know what this week will be about. Is it going to be about the fed and yields . We have acres of fed speak. Is it about what happens in israel . We are all anticipating that we will see some sort of a Ground Invasion of gaza. Or will it be about earnings . So much going on this week, it is hard to pin down what the catalyst could be. Alix that is why i found the apple story so interesting overnight. We have not talked about china in a while. The china risk when it comes to certain sectors. Some that we know, some that we dont. How do you price that in . Guy you wonder if the earnings season means we will have to revisit this. We did this with the lvmh earningsn noticed a clear slow down. Why there is that slowdown remains an omen open question. You bring up apple which is fascinating. Reports that the latest iphone is not