Red flag the main yield is nearly inverted and germanys benchmark bond yield hitting its own alltime low after weaker data out of the economy. And the spice returns earlier than ever. How starbucks is planning to bring a little fall to its late august menu. Its wednesday, august 14th. Worldwide exchange begins right now. Good morning welcome to Worldwide Exchange. Im dominic chu. What youre seeing here, lye shots, live pictures of hong kong the citys International Airport resuming checkins today after days of mass demonstrations and disr disruptions. First heres how your money and the Global Markets are setting their day up stock futures indicating the dow will open slightly to the down side marginal losses, about 37 points the s p would open down by 5 points if these losses hold into the regular trading session and the nasdaq off by 14 the dow is coming off its best two day stretch in two months thanks to a cooling off of trade tensions between the u. S. And china with the Trump Admin
At the Capital Exchange event this morning making a ton of news. Closing the deal. Ibms 34 billion acquisition of red hat has closed both ceos will be with us in just a moment. As we said, pepsi beats the street, strong snack and beverage sales backs the 2019 forecast Hugh Johnston will join us straight ahead. Futures lower ahead of tomorrows capitol hill testimony by fed chair powell. Moments ago at the Capital Exchange event in washington, larry kudlow offered his views on the fed to our kelly evans. Take a listen. Price signals suggest as they have all year going back to last autumn that last policy move in december was unnecessary and i think they could take it back. Price level stability, steady dollar, is what the fed should aim for in my view among the things he said, defended a rate cut this month, said no effort to remove powell at the president time. Mnuchin, lighthizer may go to china. Larry is the happy warrior in this era everything he said made me feel better, made the ma
Decision to move the Central Bank Governor. It could undermine the regulators independence. Diluting the case for cuts. Asian stocks and u. S. Futures fly. Morgan stanley cuts its Global Equities allocation to the lowest in five years on concerns about elevated valuations and profit headwinds. New democracy problems. Greeces centerright party leader takes over as Prime Minister abe and am quite election victory, but will his as Prime Minister after his election victory. I have a strong mandate to deliver on my agenda. Which is an agenda to grow the economy, to create more jobs, but also to make sure that people feel safe again. Manus a warm welcome to bloomberg daybreak europe. Deutsche bank is the most read it has all changed. Read headlines coming through. There is an news ceo. Withp is named as ceo immediate effect. He was brought in to take over from the previous dealmaker. He is the new ceo, effective september 1, part of the longterm Succession Planning. What else can until you .
Francine welcome to bloomberg surveillance. These are the markets. The stoxx 600 gaining a touch. The u. S. 10 year yields going to around 2 . Deutsche bank after the massive overhaul gained one point 7 . We did have a little news out of the german Industrial Production data. Bit of gaining a little temper on some of these markets. The market is going toward 2 . Coming up, we heard from the associate general chairman, what he had to say about the fed, ecb, and more. Lets get to the bloomberg first word news. The lira swamping after president erdogans decision to replace the countrys central bank chief. The dismissal has fueling concerns over the regulators independence. In a meeting, erdogan reportedly told policymakers to get behind his conviction that higher Interest Rates cause inflation. This morning, greece has a new Prime Minister from the right Democracy Party. The election handed him a mandate to tackle the nations chronic woes. New democracy is set to get a perlman treat major
Whether you embrace or reject etfs, they are here to tay. Their flows often signal Broader Market trends. Our own etf expert Eric Balchunas is here to walk us through what he is seeing. Eric thank you, scarlet. If you saw the show last week, you know that yours predicted we would see a lot of risk on in the flows and i was right. After the fed came and saved the day, people are back into equities. You see spy at the top. You got a little iwm, lqd, ifa. What you dont see here is shortterm and ultra shortterm debt etfs. They ruled only two weeks ago. That is how fast things can change on a dovish fed. Lets look at the outflows to see what is coming out of etfs, and again, build shortterm treasury, there is another shortterm treasury. Efa, i think some of that went to ifa. That was a move to cheaper pastures. But ultimately, 25 billion has gone into u. S. Equity etfs this month and 44 billion into etfs overall in june. Lets look at traders versus allocators to see if the hot money has com