This is bloomberg daybreak europe. Im lizzy burden in london. Fitch stripped the u. S. Of its aaa Credit Rating citing deficits and an erosion of governance. Mobile equities sell off treasury secretary janet yellen blast the surprise decision calling arbitrary and outdated. Plus, donald trump charged. The former president is indicted over his efforts to overturn the 2020 president ial election. Charges he has repeatedly denied. We will bring you all the details. Good morning and welcome to wednesday. You might have as but of deja vu. Remember 2011 one s p downgraded the u. S. And triggered a selloff in risk assets around the world. It somewhat ironically boosted treasuries as investors sought out haven assets. Fitch as downgraded the u. S. For the First Time Since 1994, you will see that initially pushed treasuries higher before the move stabilized moving the two down a basis point. U. S. Futures now pointing to a lower opening. The rally that drove the s p up almost 30 from its octobe
helped drive forward returns, as you say. this target was what we were expecting to hit at the end of the year, but we have seen a little bit of better than expected economic data also helping optimism that earnings growth might pick up a bit in the next few months. so is this all about expectation for rate cuts? is the optimism because of strong earnings? i the optimism because of strong earninus? ~ ., , earnings? i think it really does reflect earnings? i think it really does reflect rate - earnings? i think it really does reflect rate cut - does reflect rate cut expectations and the growing belief that the us can have a soft landing, because when you look at earnings growth, actual earnings growth has been slow and negative for some companies. growth is slowing, it does cast doubt on the possibility of a re acceleration in the interim here. so it leaves that rally a little vulnerable to any failure to reach those expectations. japan s nikkei has crossed the 37,000 mark f
continued to expect continuing to read cuts from the fed, which is held jack forward returns. as you say, this target is what we were expected to hit at the end of the year but we have seen a bit better than expected economic data that is hope and optimism that things might pick up in the next few months. is that things might pick up in the next few months. is this all about the next few months. is this all about expectation - the next few months. is this all about expectation for - the next few months. is this | all about expectation for rate cuts was to mark as their optimism because of strong earnings? it optimism because of strong earnings? optimism because of strong earninus? . , ., . earnings? it reflects rate cut exnectations earnings? it reflects rate cut expectations undergoing - earnings? it reflects rate cut l expectations undergoing belief that the us can have a soft landing, when you look at earnings growth, actually earnings growth, actually earnings growth
Welcome to daybreak asia, to you live from new york, sydney, and cutting down to the major market opens in asia. The top stories issue sops up ahead of the u. S. Holiday, traders looking at jobs reports and putting bets that the fed is near the end of the tightening cycle. Country garden said to have made a payment on a bond with a separate you on no. And softbank lining up biggest customers as Strategic Investors for their multibilliondollar chipmaker ipo. We are seeing some Downside Pressure today, but muted after the s p 500 saw its best week since june. We are in the Labor Day Holiday weekend in the u. S. , heading towards thin trading. What akin to friday it was interesting because u. S. Stocks rose but they faded after an initial rally as bond yields started climbing. We have a Strong Manufacturing number offsetting that optimism from the jobs data which showed more than of a controlled cooling which could perhaps lead to the fed pausing on its tightening again in september. We a
500 leading the way. Carl, we are seeing oil prices down after yesterdays big run there. In the mid92s right now. 92. 56. Maybe some relief because we saw those run pretty far, pretty fast. Got to 95 today. Vix below 18 after yesterday as well. As we get closer to the end of a down month for the major indices, our next guest doesnt see it Getting Better from here, forecasting more weakness ahead for stocks and a potential recession on the horizon. He does say there are opportunities out there in the market in places Like Health Care and industrials. Joining us on set today, sameer, Senior Market global strategist for wells fargo investment institute. Great to see you back. Thanks, carl. No chance you can close out the quarter on at least a stabilizing note, you think . There should be certain rebalancing flows that will probably come in tomorrow. Those could maybe put in a little local low. The thinking is we will have a recession by the end of the year. If you look at the gdp data, th