We consider the frenzy over the loan market. We start with a big issue Interest Rate risk in the bond market. During the summer, it was almost as if Bond Investors were making another run at treasuries. They wanted to get the 10 year below 2 when wartime one more time and it is built on the base of market is never going to grow again, we will not see any fiscal policy, it and they had it completely wrong. The fed is moving towards beginning credibility with investors so we know what their plan is, we can make investments based on this and you will see people reacting. The fed has clearly said this is what we want to do. They want to reload their cannons. They want to get the Balance Sheet down and normalize the frontend of the curve. You see the betting odds on the december hike change dramatically. The fed views low inflation as a way to continue with a gradual pace. The market thinks they shouldnt touch rates unless we are at 2 inflation. I believe janet yellen, that the u. S. Econom
And a real yield hog. We consider the frenzy over the loan market. We start with a big issue Interest Rate risk in the bond , market. During the summer, it was almost as if Bond Investors were making another run at treasuries. They wanted to get the 10 year below 2 when wartime one more time and it is built on the base of market is never going to grow again, we will not see any fiscal policy, it and they had it completely wrong. The fed is moving towards regaining credibility with investors so we know what their plan is, we can make investments based on this and you will see people reacting. The fed has clearly said this is what we want to do. They want to reload their cannons. They want to get the Balance Sheet down and normalize the frontend of the curve. You see the betting odds on the december hike change dramatically. The fed views low inflation as a way to continue with a gradual pace. The market thinks they shouldnt touch rates unless we are at 2 inflation. I believe janet yelle
Were at post 9 at the New York Stock Exchange jon fortt is off today joining us out west is general partner paul holland a lot to get to with paul. Good to see you, man first up, we talk snap reporting earnings after the bell dispinlted disappointed on revenue and growth stock is down this morning and currently trading down almost double digits, down 11 earlier today. A lot of discussion about daus not that they just missed but that instagram is able to add so many more to stories in the first half than snapchat has what did you make of the quarter . Well, paul, i think the snap story is fascinating and complicated at the same time i think youve got people here in the valley that are sort of snap owe fish nad yoes and cheerleaders you have folks that are more on the facebook corner. I think what you thought a year ago, maybe even a year and a half ago, you really thought snap had momentum and had a chance to overtake facebook in part of its core audience. I think that whole strategy is
Headquarters in palo alto, 11 00 a. M. On wall street, and squawk alley is live. Good wednesday morning. Welcome to squawk alley. Im Carl Quintanilla with jon fortt, sara eisen at post 9. Obviously, a busy day, even though the markets arent showing a whole lot of volatility. The president is going to sit down with some infrastructure ceos at 12 30 eastern time. Attendees include teslas elon musk, apollo cofounder josh harris, real estate moegle Richard Lefrak and david tepper making waves on squawk box this morning, discussing the new regulation atmosphere in washington. Theyre going to give you less regulations for obamacare. Theyre going to give you a tax cut. Everything is this everything is neutral to positive that can come their way, versus an atmosphere for the last 16 years, lets call it, thats been regulation, regulation, regulation. Joining us this morning, ben mandel, jpmorgan global strategist, michael kacannon. I dont know if you heard what tepper said, but hes talking abou
Autumn statement, the chancellors first major physical address. Since the brexit vote. Have a look at where european echoes are changing, just under 30 minutes until the tuesday session, gmm go is the function and stocks rising today, all the currencies in the are following against the dollar, yields are following. Following. A busy day for corporate news. Lloyds Banking Group shares up 1 and the u. K. Treasury selling further shares in lloyds, cutting the government stake in the british lender to 8 . Raising the total amount recovered to 17 billion pounds from 20. 3 billion pounds injected into the lender at the height of the financial crisis. The government seeking to cut lloyds ining stake in a measured way, shares have dropped 19 this year and the governments breakeven price, excluding fees received, is 73. 6 pence per share, below the breakeven price but the government close to offloading its stake in lloyds after betting. This is one of the more unusual stories of the day, a frex