The virus infections now pushed 8 million globally. Haveoutbreaks in the u. S. Some states weighing whether to pause reopening. Shery lets get you started with a quick check of the markets. We are seeing u. S. Futures up 2 10 of 1 . It was a very volatile trading session. We had a boost after the fed pledged to follow through with the Corporate Bond purchase, but then again, we had concerns over a second wave of the pandemic. Not to mention the white house now ending an Unemployment Bonus Program on july 31. We have the s p 500 gained 8 10 of 1 . At one point, they lost as much as 2. 5 . It was a really volatile session. Financials and staples led to gains, after dropping last week by the most since march. Take a look at how the dollar is doing now. We have seen the dollar underperforming against all g10 peers and weakening to session lows after the Federal Reserve made the announcement. Right now, we are seeing more pressure on the bloomberg dollar index. The 10 year yield at 72 basis
Reopening on hold. The bank of japan is expected to leave policy unchanged later while reassessing measures already taken to help the virus hit economy. Look at how take a markets are doing on boj decision day. We had that ricocheting session in the u. S. Overnight. If you needed further conviction as to the hand the fed intentionally has when it comes to showing up market demand, you have the announcement from the fed really causing that gain back into positive territory after we had declines of more than 2 in that trading session for the s p. Futures are looking positive. About. 25 in the green. We are looking at chicago nikkei futures trading higher by about. 3 . We are expecting just more operational steps from the bank of japan in terms of providing support to Small Businesses to be able to ride out the pandemic slowdown. In sydney, we are looking at a pop at the open. 2. 5 higher when it comes to futures, with indicated upside of two point 5 when the cash trading session begins,
Getting some headlines for the International Energy agency. The focus on what they see oil demand like in the coming years. Oil demand will not fully recover until at least 2022. That may have an impact on the price of oil. New york crude wti pretty much flat. Markets focused on this extra stimulus. We are also expecting to have more data points with damage the economy. Plans with sentiment in the wave of it would also be great to look at treasuries and things like that. Lets get a Bloomberg News here in london. President trump is weighing an infrastructure proposal worth nearly 1 trillion to spur the u. S. Economy according to bloomberg sources. The plan would reserve most of the cash for traditional work such as roads and bridges but they would also go to wireless and broadband pretty broadband. Ae eu and u. K. Seem closer to brexit deal. Russells is confident Boris Johnson is willing to compromise and the Prime Minister said chances of agreement are very good. Injected new momentum
Look at the tenyear reaction. All of this on the eve of the big fed decision. Joining us is the chief executive officer for blackrock global fixed income. I know everybody wants to blame it on the brexit,ry, but the reality is the yield on the german bouund has been falling r 30 years so what does it tell you when the bonds of one of the biggest economies in the world are now a negative yield . So, first of all, i think youre right in terms of they have been falling for a while. Some of it is aggressive Monetary Policy and theres not enough bunds relative to what the ecb has been buying and that people use them to manage their risk and use them as hedges against credit, hedges against other sovereign risk so all of a sudden when theres a flight to quality you get the extreme moves that have created this dynamic today which, about by the way, bleeds into the u. S. Treasury market and other safe assets in the world today. Lets say its only the ecb or primarily the European Central bank d
Beneath these sand dunes lie 18 billion barrels of oil, more than four times the proven reserves of alaska. And its costing billions and billions to tap into it. With all the talk about kicking our addiction to foreign oil, the kingdom of saudi arabia is doing everything it can to keep the oil age going. Let me be blunt is it your hope to prevent a switch away from oil . Somebody said the country is the oil business. I mean, you absolutely need to do this for your own survival. And whats wrong with that . [ticking] when the u. S. Oil companies came here in the 40s and 50s, the americans moved into the area with their families and developed it to suit their tastes and their way of life. They created a replica of american suburbia. Today you could be in the outskirts of houston or los angeles. Its almost like its an enclave within saudi arabia. Itsdifferent from the rest of the country. Yes, thats true, because very different. It kept a lot of the american ways. Yes, of course. But block