Watching us from the united states. These are your markets. We are seeing a bit of a lift to european stocks, actually, not so much. They were lifting, but now they are flat. About 56. 65 after that opec plus meeting. Gold is down a touch. Remember, because it is fourth of july in the u. S. , treasury markets are closed. Coming up, dont miss our coverage of the boston pops fireworks spectacular, it is a bloomberg special and starts at 8 p. M. New york time. So if youre watching from asia or europe, its definitely worth it. Lets get straight to bloomberg first word news. The tanks are ready to go and the fighter jets are set. All part of President Trumps changes to the traditional fourth of July Celebration on the National Mall. The present will speak from the steps of the Lincoln Memorial and critics say he is turning the event into a campaign rally. President trump warned iran against stepping up uranium enrichment. Iran says it will restart the model reactor if europe fails to offer
Situation where the u. S. Economy is growing. This is bloomberg surveillance with jonathan ferro, lisa abramowicz, and annmarie hordern. Jonathan live from new york city this morning, good morning. This is bloomberg surveillance. Lets take the temperature in the middle east. Fruit lower 1 . Brent crude down almost 1 . An unprecedented direct attack on israel over the weekend. I ran lighting up the sky on saturday night, launching more than 300 drones and missiles. Nobody killed, limited damage done. One word contained. Jonathan deescalation. What efforts will be there be to deescalate on the part of u. S. And france and germany. To me the market will not pricing a geoPolitical Risk that has yet to transpire. This is a market on edge with the new redline crossed. Iran has never directly attacked israel. Even if it is an immediate retaliation it raises the temperature. Jonathan the consensus view on the street. This from citigroup, irans attack unlikely to lead escalation in the near ter
of the coronavirus outbreak. the 10 year yield at 1.64%, creeping back up. crude oil holding its 3.5% gain. the dollar index is stronger. , coty is the best performer. the market will take anything, i the moment anything at the moment, it seems, to bounce. guy: i think the u.s. data is definitely helping head of the big payroll number friday. europe up by 1.22%. the dollar is bid pretty much across the board, and crude, as you are talking about a little while ago, certainly catching a bid today, up three point 5% on the brent contract. that s get the latest on the coronavirus as the death toll climbs towards 500. joining us is bloomberg s sophie kamaruddin. risk assets rallying today on talk that may be the chinese are approaching some kind of cure. the who is not convinced. what do we know? progressho downplaying on the potential drug treatment and the u.k., as well as in china. who iseo - the reviewing all potential therapeutics. china is starting to test a drug with seve
Bear market than a grizzly bear market. We dont need to worry about the 10year getting too expensive. Weve seen 3 in the past few years. Our work suggests the sort of positive effect on the Financial Sector of the 10year moving higher right now overwhelms the potential negative effect of the valuation compression as rates rise. We have been talking about this rate rotation for years. Returns, we are only three weeks into the year but they are not very good. Maybe you start to see as rates move higher and returned sir to deepen in the bond market, people moving equities and supporting the equity market. At some point, when the bond yields get up to 285, perhaps it will get to 3 in the 10year, i dont think so but perhaps the , equity market is going to pick up and take notice. I think it will be to the benefit of the bond market. With higher rates, we think the economy will slow a bit, but the spreads her tight in Corporate Bonds right now. We have been derisking. Within the markets, we
Bear market. We dont need to worry about the 10year getting too expensive. Our work suggests the sort of positive effect on the Financial Sector of the 10year moving higher, the potential negative effect of the evaluation compression. We have been talking about this great rotation. , they are nots clearly good. Last year they were just ok. Maybe you are starting to see rates move higher. People are moving to equities in the bond market. If the yield gets up to 285, perhaps it will get up to 3 , but the equity market is going to pick up and take notice. It will be to the benefit of the bond market. We think the economy will slow. Are tight ands Corporate Bonds right now. We have been derisking. We are introducing the highyield exposure. Jonathan joining me is robert tipp, chief investment strategist at pgim. Watson have marilyn coming to us from london, the head of the fundamental bond strategy at blackrock. Told this is significant postelection. How significant is it now that we have p