Issue. That and much more on making money. There is greating feeling about trade talks an shut kel button potential deal . Want to bring money map press, chief investment strategist Keith Fitzgerald to join us now keith, let me ask you, how surprised at you of this really over the last couple weeks . As usual throughout the last 10 years, it always felt like a stealth rally but even more so in the last couple weeks . Well it has, save the one thing you and i talk about frequently which is china will come to the table and Companies Look forward. Was it a surprise to me . No. Was the extent of the rally . Yeah, that was a little refreshing or surprising of. Charles we got retail sale numbers out this morning it was better than expected. As i look at this report, Motor Vehicle sales were strong. Absolutely through the roof. We were told they would be strong. Building materials strong. Sporting goods strong. A last minute rush on guns, that they wont be able to buy guns. Internet. 64 billi
Lows. 1. 30 . You can keep going. You could still get another 25 basis points. In the nearterm heading toward 1. 5 . 1 on 10 year treasury rate is not impossible. Potentially all the way to zero. There is no lower bound. If the economy is weak, and the leading indicators point to that at this point. We and the rest of the world will own long government bonds. Lisa joining me around the table in new york, kevin giddis, ed alhussainy, and Scott Kimball. Agree that there is no lower bound . Let the basement be the ceiling or whatever it is . Seriously, the data, in terms of inflation and growth, point in that direction. There will be a limit in terms of how crowded the position will get. I think we are getting to that stage. Basis point or so, most are quite longduration. There will be a limit in terms of how low they can go. Negativenation around nominal yields in the u. S. Is premature. You would have to give up on the fact that the u. S. Economy has not found its way to recession yet.
The market moving news from around the world. Joining us on the phone from hong kong is karen lee, from london, emma chandra, and here in new york is michael mckee. First we want to kick it off and hong kong come over the chief executive carrie lam spoke at a briefing following 12 straight weekends of protests in the city. Lam the government is confident we can handle a months long disturbance. I think it is a common goal and hong kong to handle this by ourselves. Alix bloombergs karen lee has the latest. Where are we at . Carrie lam speaking publicly after another weekend of violence, saying they can handle unrest without assistance from chinese forces, and that she still wants to hold talks with protesters. This comes after beijing issued its most direct warning yet, saying in a commentary on state media that the government has the Legal Authority to halt what it said had become a revolution, even though analysts still say such a move remains a last resort. There are calls now for an
Previous lows of 1. 54 . A lot lower. The tail is lower than this. Another 25d get basis points. Quite heading toward 1. 5 . 1 . 1 is not impossible. To zero. E way down there is no lower bounds especially if we end up in a recession. If the economy is weak and the leading indicators point to that scenario. We and the rest of the world will go own long government bonds. Lisa on bears are dead. Guests. Me now, our lets start with you. Do you agree that yields, there is no lower bound, but the basement be the ceiling or whatever it is . The data, seriously the constellation of data in terms of inflation growth due point in that direction. There is going to be a limit in terms of how crowded the position will get. We are getting to that stage, the next 25 basis points or so, most are quite long duration. It will be limited in terms of how low they can go. The conversation around negative nominal yields is premature. Kevin you would have to give up on the fact that the u. S. Economy has no
Weekend for labor day. Road map, it starts with some optimism on the trade war front. Same thing we were saying yesterday. Stocks rising amid cooling rhetoric but here come tariffs. A new set, theyre going to be hitting chinese imports and will kick in this weekend. Keeping an eye corporate earnings, plenty this morning. Campbell soup, ulta, dow, workday. Shares rallying, this on news that 16 models will be exempt from the china import tax. All three major indices in the red for the month. And the nasdaq is the biggest decliner still down more than 2 , this might despite what has been a last rally the last few days well see how we end the month. It has been a round trip, actually, from last thursday to yesterday on the s p 500 you recouped all that was lost on that friday, a surprise escalation in trade war fears. Todays open at the s p level that were seeing right now, it would take you back three weeks. Basically august 8th, most of the losses of august, it is kind of partly, i think