This is Bloomberg Markets asia. Lets have a look at whats been going on. There has been a steeping of the yield curve going on, more flattening taking place. What we have is perhaps an economic slowdown in prospect. Lets have a look at this chart. It goes back to 1986 and it tracks whats going on in the white line into the two to 10 year yield spread. That is indicated by this axis here. Just over 60 basis points between the two of them. The green line is where gdp is. This is inverted. You can the lowest number of growth here, 4 contraction. What happens next is that the yield curve perhaps sees more flattening. We see growth has been improving of late. What happens in the future . We have a strong correlation between the two of them. One of the head scratchers in terms of what we been looking at this year. We had off to christmas break and volatility has been settling going lower, that if we can hold on to the moment in what we are seeing for this rally, we are going to see the asiap
Surveillance. What a week we had on the markets last week. This is the tension as we get onto monday. This is what im looking at in terms of stocks. They are gaining some 1. 6 . We are also seeing futures in the u. S. Pointing to a higher open. Things can reverse quite quickly and change quite quickly. Downan see the vix index some 10 and eurodollar, 1. 2276. If there is an infection beyond equities and the vix, it would be in credit markets. Also coming up, we talk markets and last weeks correction with Morgan Stanley. Later on, we talked to eric nielsen, chief economist at unicredit. Plus, we talk ecb and brexit. Lets get straight to the bloomberg first word news. Is readye u. S. Says it to engage in Nuclear Talks with north korea. Vice president mike pence dubbed the new strategy maximum pressure and engagement at the same time. The comments signal a shift in policy after they agreed to pursue a dialogue with pyongyang at the winter olympics. Budget director Mick Mulvaney has warned
Cheryl investors shrugging off inflation concerns. Stocks building on the recovery rally in the u. S. Open and stronger. All i hear. Lauren asia celebrated the new year pic markets are closed in china as south korea and japan jumping 1. 5 . Cheryl in washington, President Trump in person at 25 gallon hike in the gas tax to pay for his infrastructure plan. Its not going to fly with voters . Fbn am starts right now. Lauren good morning. 5 01 a. M. In new york on thursday, february 15th. Im lauren simonetti. Cheryl im cheryl casone. Lauren we are learning more about the suspect and the Horrific School shooting. 25 miles northwest of fort lauderdale. Trained investigators say 18yearold nicholas cruise post on social media before the deadly rampage. His adoptive mother died on november 1st. He was staying in a mobile home with a friend and his parents. Cruz was expelled for disciplinary reasons. Police searching the mobile home last night. He had been staying there for about 90 days. Lauren
On food handouts plus. You know right the free market like. An emotional appeal a song sung citys fellow female nobel peace laureates visits bangladesh to meet refugees. In hopes of a homemade revival is the first time a film made in sri lanka in more than forty years hits the screen. Russias president Vladimir Putin has ordered a daily cease fire in the east and in syria and a humanitarian corridor to allow civilians to leave as defense minister says the ceasefire would run from nine am until two pm twenty six people were killed on monday in the rebel held on cave near damascus despite a u. N. Resolution calling for a truce across the come. Want to say one government airstrike killed a family of nine on sunday syrian troops launched a grand assault entering the through three towns arrest. We hear and chef food media that last time has reportedly been attacked using chlorine gas well some of the joins us now from on turkeys southern border with syria hi there salma so the cease fire ho
Weve gathered and the ideas we are going to be discussing. Welcome to the committee for responsible budget for thostherf you who do not know if they Nonpartisan Organization the board of directors or people many of whom are with us today who have run all the bigbudget institutions in washington so the federal reserve, the treasury department, omb, the Budget Committees comes of a. To try to have a realistic understanding of the budget improvements are going to be needed to improve the fiscal situation in the country and to trick yo to have in a bipartisan way it kind of understanding of how hard it is to make these traces but there are so many reasons they are necessary to keep moving the ball forward. With that said i will say it is a rough time for the budget policy this country. Nobody should be under the impression that the Fiscal Health of the country is good. It is not. Our debt relative to the economy is twice what its been on average. We are on track to bother us to be 10 trill