Story of the day, congressional testimony from j powell. The fed chair j powell maintains the economy is in good shape, labor market is strong with inflation coming down but the fed needs more evidence on inflation coming down before cutting interest. How much evidence . Maybe is not as much as we previously thought. More evidence that ill give us more confidence that inflation is on a path down o 2 sustainably. Not looking for better readings then we have had, but more of them and what will happen is as we go forward, 12 months will continue to drop. Because it will be lower than early last year. The first of two days of testimony before congress j powell says the fed can cut before it reaches 2 , he does not believe the economy is close to recession and higher bank capital rules could be re examined. He says it is possible before it goes to capital higher levels being withdrawn, they could be reproposed on commercial real estate. There will be losses, it is a serious problem, but mos
The s p 500 negative by 0. 1 . 16 positive weeks out of 18 for the First Time Since 1971. A long run to friday. We have a double dose of chairman powell, state of the union from the president and a payroll support. Lisa which is the most important aspect for these because its a blockbuster week across the Monetary Policy and economic activity. Ultimately it has to come down to the jobs report, ultimately its can it come down to whether the economy continues to grow at the case people expect. Weather february confirms january. If it does we had a big repricing, what is that mean for the fed and this market . The Market Pricing out only a 25 basis point rate cut or less than that by june for the First Time Since october. We have not seen this type of lack of rate cuts being priced in since going back to late last year. Markets arent really alarmed about that. Maybe people think they are just pushing it back. They are not deferring them indefinitely. Jonathan we begin another week at reco
Difficulty of hitting it. They need to hit it if you are tesla or apple. Lets begin with apple. This from counterpoint research. Iphone sales in china following 24 . Lisa how much it this weakness in china and how much is this the nationalism around huawei and going away from apple phones . These are the Big Questions from apple and tesla. How much is this is endemic of an economy that is slowing. Jonathan lets go through these numbers from tesla. Tesla had a difficult session. The numbers from the china Passenger Car association, shipments out of the shanghai factory down 6 month on month and year down 19 . Lisa this is the reason you are seeing shares down 2 . Tesla is down more than 50 from its peak in 2021. This is very much a china story about demand for u. S. Auto manufacturers. It is hard for them to hit the price point. It is also about the idea u. S. And china are moving farther apart. He saw this with amd and regular issues that would get in the way of commerce. Jonathan tesl
September, and if you havent paid attention tesla shares are down 10 this week alone only two trading days. If they had gotten ai from oh. Well talk about that, a war of words, openai is firing back at elon musk. Theres 1 chance well talk about it. Publishing emails appear no show the tesla cofounder did support creating a for profit entity. Lets begin with the markets and the testimony from the fed chair today. Jim, got some news on what he will say in terms of written words. Yeah. Look, i kind of when march is off the table, i think this is, obviously, one of those, i want to get a little more expansive and getting tired of the game of what month instead, what i see is a man who said listen, were not going to have a hard landing or soft landing. Were fine if it gets weaker well cut. Its kind of a Great Central bank essay about what you need to do in order to be able to get out of an inflationary period. David, i think hes becoming more of a, lets just say a true statesman how far to
Everybody. Thanks very much for joining us this morning. Im maria bartiromo. It is monday, march 4, you 7 00 a. M. On the east coast. Time for the hot topic of the hour. Customs and Border Protection data revealing the number of chinese migrants encountered at the san diego sector of the southern border is exceeding that of mexican nationals now. Chinese nationals who are coming to the country look largely military aged and they are coming in consistently. I spoke with kansas senator Roger Marshall on sunday morning futures about the explosion of these nationals coming in and what theyre doing once they get there. China backed Human Trafficking traffickingand massage parlors t a front. The chinese triad, an organized crime unit, multinational, been around for hundreds of years is behind this and wherever youre seeing fentanyl trafficking, youre going to see Human Trafficking explode as well. It goes back to the chairman mao when he had ccp labs making methamphetamine precursors, now th