Number. Dont forget yields at 2. 46. A tear, and crude a little bit down but still above the 61 level. David emma chandra is here with first word news. Emma thank you. North korea has agreed for the first talks with south korea in years. The Winter Olympics are being hosted by south korea in february. North korea has assigned a delegation to the games. Environment to ask the trump thenistrations fight trump administrations plans for offshore drilling. The Obama Administration gave up on drilling rights. In the u. K. , productivity rose in the Fourth Quarter by the most in more than six years. Still, british products is barely higher than 10 years ago. Global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. I am emma chandra. This is bloomberg. David. David thank you so much. Time now for our daybreak first take. First up is of course a jobs day. Second, continuing the new year tear, and third, the chip program has affected apple. Alix joini
Some of the averages with the dow and s p are a little bit lower. The nasdaq is higher. Nxp semiconductors is pushing tech stocks a little higher today. I want to focus on some of the weighing downe some of the major averages. Im going to start with merck off almost 2 . Federal judge tossed out the verdict that merck had previously won. Merck is a little bit lower. Walmart and Procter Gamble are all. Off. Dragging down all of the staples including Procter Gamble. I want to take a step back and look at the broader macro picture by looking at the dollar. Were having the first threeday rally so far this year. Doesnt sound like much, but for a year that i see no weaker up threedayout 9 , so far this year isnt a terribly bad story. You would not expect the dollar to appreciate, but we have a lot about rates rising. Focusing on the treasury auction 6039. Es g btv the twoyear bond deal relative to the s p 500, pretty incredible going back to 2008. You are seeing that gilmore blended dividend
Take a look at what is dragging on the transports. Its worth noting the major averages are on pace for weekly gains. The dow the best since the end of april. Relative to transports, weakness for shares of American Airlines come united, with a downgrade over and jpmorgan to neutral with analysts saying estimates seem unachievable. Royal caribbean down 1. 8 . This on a downgrade at credit suisse. Analyst cutting shares to a neutral, saying the outlook is uncertain. We had that terror attack in london. That could be impacting some of these stocks as well. At two otherlook big movers, oracle, fax. Oracle down 6 after they Beat Estimates for the quarter but it is that cloud outlook weighing. Fax down once again as senator Elizabeth Moran setting her sights on them, proposing legislation around the company today. Shares down once again. Overall, it has been a risk on week. This is an index of risk onrisk off. On the week, big risk on. Going into the weekend, on that terror attack in london,
A conflicte is between the politics and the economics here. To my knowledge, nobody has asked for clearing to move from a business standpoint. A very warm welcome. I am anna edwards. S they met in june. They discussed, and they were divided in terms of federal reserve, the Balance Sheet. They are sticking to the gradual pace. We dug deep into the roots of what is going on. Anna loves this chart. The story of this chart, this is about the influence station Inflation Expectations from the fed. Saw, there wasu this view inflation was going to return and there were more officials who viewed the risk waited on the upside. That has shifted. There are now three cardmembers who think the risks are to the downside. This is about a shift in expectations. This is the doubting thomas factor. Anna they dont understand why inflation is so weak. The timing on the Balance Sheet, an open question. Morning, theres seems to be lots of say and not a lot to show for it. The geopolitical tensions that exist
Politics and economics here. To my knowledge, nobody has asked for clearing to move from a business standpoint. Francine good morning. This is bloomberg surveillance in london. E lacqua we have a lot to get to. The fomc meeting some underpinning everything we see on the market. Bunds are very important because they are getting closer to taking out that 0. 5 yield level by the day. Todays push could be coming som comments by the bank nonstandard measures. Oilnted to show you crude as well, 45. 47. Lets get straight to the first word news. Reporter the United States has warned military action might be necessary to deal with north korea. This is after the test of a Intercontinental Ballistic Missile on tuesday. The United States is prepared to use the full range of our capabilities to defend ourselves and our allies. One of our capabilities lies without considerable military force. We will use them if we must, but we prefer not to have to go in that direction. Reporter the Trump Administr