A bowl in this market as well, as it has been for much of the year. It looks like investors are pricing in a high likelihood that the tax bill is going to get past, after some back and forth regarding senator marco rubios vote today. We learned that it sounds like concessions to what he would have happened on the tax credit is getting into the bill. The index isof touched major intraday records today. It is outpacing the gains we are seeing in the major averages today. Thats get a temperature on the high tax proxies we have been watching. Here in the white line is an index of high tax. These are the companies that are seen as benefiting more from a Corporate Tax cut. This is the russell 2000 four reference in blue and the s p 500 in yellow. It is interesting the action we have seen in the russell, because within these companies that are mostly domestically oriented, with they are also tax as benefiting from the bill, but the russell has not been performing as well, perhaps in part beca
The european markets were down a couple minutes ago. They are pretty much back up. It seems the feel good factor in u. S. Stocks have now petered out somewhat. Im looking at u. S. 10 year treasury yields, pretty much a picture of stability. The dollar off the trade bound. The dollar, gaining a touch. Coming up on bloomberg surveillance, we sit down with luca paolini, the chief strategist at Pictet Asset Management. Thewe will also break down saudi budget with the director of Economic Research at the Gulf Research center. First, lets get straight to the bloomberg first word news. Sebastian uber has lost the battle as it differs from traditional taxes. The car hailing app should be regulated. The eu court of justice ruling, think of the president sentting. British officials fear spain will threaten to veto, if negotiatey fails to with madrid. It has been in british hands since, 1713 but spain could make a claim over the land. To the u. N. Assador nikki haley is pressing other countries n
Concerns about harsh factory conditions. Yvonne, we know equity markets here in the u. S. Were lower but what has been rising and rising quickly has been s p estimates by analysts. See so many upgrades because of how high the markets have passed the markets have run. I have a chart view that shows this g btv 8902 here is the yellow line here for s p earnings estimates this year. But how they are accelerating and rising given that the bull run, the record bull run we have seen so far, much faster than the s p estimates for 2019 and 2020. It looks behind the curve, perhaps wall street has been to how much tax reform seems to be propelling these markets higher. It is quite rare to actually see these earnings upgrades in the months of january so i guess they are starting to see this windfall when it comes to tax reform. But it was a wall street overnight. First you had down a 26000 and then you had down and you get back to flat and a lot of russians on whether this is a onetime affair or i
We are about 30 minutes out from the open in china and hong kong. Very interesting couple of days to come. We are keenly watching the u. S. Inflation report. Disappoints if cpi to a market that has been awkwardly repricing. Were also passing these comments from jay powell is saying that nothing has changed. Also a reminder, the last trading day for mainland markets before they shut down for the oneweek holiday. The last trading day of the year of the rooster. A modest recovery story playing out a link the lead from wall street. David, it is a busy day in terms of investors passing the data. David there is a lot of data coming through. As you alluded to, there is an Inflation Report that we are stuck between that. We are waiting to exhale or to gasp. Yes, you are getting gains but they are capped. Across the getting likes of gold, the dollar is back below one. 08. 1. 08. That is essentially a picture across the region. Little higher on the regional benchmark. We have malaysia gdp still
Betty one longstanding story we are watching is treasury yields and where they are headed, and i want to pull up a is behind thethat volatility we are seeing in equity markets, 10year gilts yields. Key level of 3 , and we have been watching that like a hawk, it is almost like a movie. Once you get to the big box somee opening, but for will hit that at three years time, what happens after that . We have seen quite a bit of volatility headed as we have been seeing yields had towards this level, but afterwards is the question. What are we going to see in the markets . Yvonne it is interesting you mentioned this earlier, and the markets have changed. They are not buying the dip anymore, and the 10 year yield edged lower, so whats shifted and what hasnt. Lets take a, closer look to Investor Sentiment and what happened with u. S. Stocks. Stu keenan has more. What we are seeing is the technicals of the market which can show underlying weakness. Does the second day of reversals, it is green ac