Not adjusting well. I dont think there are any winners. It is an accumulation of evidence that Monetary Policy is ineffective. Helicopter money practicality is zero. Scarlet it is straightahead on bloomberg best. Welcome. I am scarlet fu. This is bloomberg best. Start with a look at the top headlines. Monday began with a dose of disappointing data from japan. The company the economy grew less than expected. It contracted a second straight quarter. Well shy of the analyst thinking. What other standouts are there here . These numbers will not help. The take away, net exports were a drag on growth. X fell. Cap the strong yen is hurting demand from overseas. Fromemocratic drag coming a shrinking population is sapping demand. We are getting hit on both fronts. It puts the onus on Prime Minister abe to prevent a recession later. How might he respond to these numbers . He could accentuate the positive. Even that does not get him out of his hole. Think about the potential growth rate. It is lo
We are going to see if he puts his money where his mouth is and is a weapon the center to motivate Japanese Companies to list wages in some kind of meaningful amount. Post brexit hard data, import costs surging, input costs jumping. That is the story and the date of this morning it seems. The number of 4. 3 , to a seenise given what we have post brexit in the pound plummeting. The Banking Industry expects inflation to reach a 2 target that we have been talking about much faster than it originally anticipated. The question is, will the banks look to this number . If the pound gets stabilization, many predict it will decline, then the bank could look through it as a oneoff hit. You get a base a fivestory coming through and the bank can look through it and maybe cut rate further from here. Maybe the pound goes down more. The ppi at. 6 but it was that that put the cut among the pigeon, ending a 32 month period of decline. What does this tell us about inflation prospects . Headline inflatio
Interviews. The market with the euro is not adjusting well. I dont think there are any winners in what is going to be the worlds most expensive divorce proceeding. It is an accumulation of evidence that Monetary Policy is pretty ineffective. The practicality of helicopter money is zero. Scarlet it is all straight ahead on bloomberg best. Scarlet hello and welcome. I am scarlet fu. This is bloomberg best. Your weekly review of the best the most important Business News , analysis, and interviews from Bloomberg Television across the world. Lets start with a look at the top headlines. Monday began with disappointing data from japan. The japanese economy grew less than expected. Business spending contracted a second straight quarter. I think it was 0. 2 growth, well shy of the analyst thinking. What other standouts are for you here . A gloomy, cloudy morning here in tokyo and these numbers wont help. The big takeaway, net exports were a drag on growth. As you mentioned, cap x fell for the s
To have every reason to be down again today in a followthrough and fought through. What do you make of it . We are not buying the same stocks. People have to understand. Part of the market on fire, no good. Look at a stop like bank of america. Look at wells fargo. There havent been bids underneath these stocks. Stocks that the liesman interview with stan fischer is calling for multiple rate hikes. Now, maybe they walk them back, but we get a strong employment number, these stocks continue to fly. Something to live more. Best performing sector today. On fire. This the buy signal in the group . Saying it the last six months, been dead wrong. You have to keep buying these. Buy the ones jim said, the regional banks. The signal that will happen, the economy is okay. If the economys okay, banks will do fine. Trading below book. Trading at a market discount. No money is in the sector, strong balance sheet, dividends, everything people were buying in staples and telecom. And also the ability t
Theres no real risk of keeping Interest Rates low right now, then they should stay low. Thats why the stock market initially greeted the stay put decision with such applause. Dow rallied 193 points before the averages pulled back late in the day as traders rang the register, dow closing down 65 points, s p declining. 26 and the nasdaq advancing. 1 . Remember, i told you we were likely to see a postfed meeting selloff even if they held off on a rate hike. In part because the market had already run up in anticipation of precisely this decision. So the traders who got it right have every reason to take profits, even as long term investors like you should be much relieved that this fed is taking into account more than just seemingly strong employment figures when it makes its deliberations. Before i explain why todays decision made so much sense to me lets get some darn things straight. If the fed had raised rates today, then i fully expect we would have been down 500 dow points pretty muc