Move is the 1st of its kind since its 2008 financial crisis and the scary part is the fed still doesnt know what caused the spike so lets take a step back and really understand what the repo market is its essentially a short term borrowing market where banks and institutions lend to one another banks exchanging billions of dollars every day and overnight lending in order to maintain their reserve ratios now this borrowing isnt free you have to put up collateral usually in the form of treasuries or other tear one securities so under normal circumstances the repo market runs smoothly the rate is steady around 2 percent and the entire system is dependent on trust trust that the borrower can pay you back plus interest its a great way for commercial banks to make money now what happened here was when the rates suddenly spite we dont actually know what happened yet because we havent seen a spike like that since 2008 and in 2008 when the rate suddenly shot up indicating that there was a risk
Or everything is falling apart. The house of pain the value, of course, is somewhere in the middle. Today we took a step in the right direction. The market was, yes, mixed dow only gaining 100 points, s p add 2. 5 , nasdaq declining. 9 some stocks went up, others went down rather than the whole market marching in unison out the window however, most of the stocks that rallied were what i call slow down stocks, the ones that do well in recession. The foods, drugs, turbo charge, secular growth stories that can transcend the growth cycle which are very few thats a start but its hard to outrun the bond bears, arent they arent they hard people who look at plummeting treasury yields and decide eat economy is obviously headed off a cliff. Oh, they blame the trade war with china or the fed reserves unwillingness to signal theyll take action to prevent as serious slow down. Who can blame them i lost assurance from fed chief j. Powell that hes willing to do something about it, that he wants to bu
You know dying extreme weather pushes the Mississippi River to record levels taking a heavy toll on. Plus. East meets west of chinese shell the monks make an entrance into an american style wrestling ring. We got the usual case of sunshine and showers across Southeast Asia malaysia seeing some lively downpours once again some rather wet weather also making its way to central and southern parts of the philippines because showers likely to be congregating into this part of the region some heavy showers there across northern parts of borneo rather humid another close one there in bangkok temperatures around 35 celsius but it should stay dry was a chance of an afternoon shower lousy dry to into indonesia 31 celsius in that dry weather stretching data across much of australia still got some nasty showers just rattling through that southeastern corner and we will see some blustery showers coming through here possibility of some snow is this weather system just slides across adelaide melbourn
This meeting it was a working level but it was a very small working level meeting just 2 south korean officials met with 2 counterparts from the Japanese Trade Ministry so picture says it all its a very small meeting and they explained to south korea that the country is now out of what so called white countries least this allows japan to export its high Tech Technologies to countries on this list without any restrictions and now south korea is on its way to be exempted from this list so from now on Japanese Companies are not allowed to export their eye to products south Korean Companies without certain rules on said certain procedures the weather is next and then. Oysters die and the shrimp are moving out we have wildlife mammals you know dolphins are past you know dying extreme weather and the u. S. Pushes the Mississippi River to record levels taking a heavy toll on wildlife costs. East meets west chinese shalyn mines make an entrance into an american style restaurant very. Hollow to
United states is the next Prime Minister the United Kingdom and he just i think rather wisely chose in these circumstances not so very publicly engage right i think hes made to the right choices but that other people who have who have other reasons are not an accident or a drawing to a made the wrong choice let our other 2 guests come in i know that but i think this is now out of here and say now he has to you then to mount you nancy what did you have to say. By not saying anything he could he was not endorsing one of britains finest diplomats and i think its important that thats why you have the rockets and i think thats a fair criticism but the bigger issue here is that the special relationship is going to be just fine and what happened is that. Kim said what everyone in washington is saying talking to all the other diplomats in washington theyve all written back exactly the same thing so the bigger question is does this hamper how a diplomat can do his job he has to be able to give