Economic houses in place. Theres seeing property is the biggest threat. You may have seen a glimpse of what is to come in 2018 and the treasuries market with that yields surge we saw today. A lot of nervous investors around how much the yield curve has flattened in the face of more positive economic data. I want to bring up this chart really quickly, which shows how much a yield curve has flattened. It is headed toward that in version, usually points to an imminent recession most times. We heard dow fed president fred kaplan say thats usually the ase, how you determine flattening inverted yield curve, and why this time would be any different. That has a lot of investors nervous, are we going to see some sort of tantrum in the bond market . That would be quite shocking to the market. It has been interesting, too, what weve seen overnight, not just the 10year come the 30year. Reform . Signal of tax could we see some type of Economic Growth, or are we going to reach your end and see this
President trump said he made his decision on iran but refuses to say what the decision is. Speak thison due to hour, hopefully to clarify. Betty welcome back, yvonne. We missed you, a lot has happened in the last several weeks. Today with the fed, that has been the big news. Now we know this qt we have been talking about will Begin Next Week next month. Lets look at how the markets traded in reaction to this. In thiss quite a dip announcement and after with a news conference. We saw markets climb back. The s p closing above the red that, butnasdaq below the dow adding 42 points. I want to bring up a quick , which shows you how uncharted the territory is from markets. Since 2009 we have seen the s p track qe so tightly. Yes, they spread apart in the last year. But it really has been qe that has driven prices. Now where do we go . Yvonne we have seen the success of qe when it comes to equity markets, especially the s p. The big question is, will qt have the opposite effect of qe . Asia,
Hello from sydney, were just past 9 00 a. M. This is bloomberg daybreak australia. We are an hour away from the opening of the major market. Its just after 5 00 p. M. In new york, im betty liu. Over the weekend, the incredible news out of saudi arabia, the 11 of 11 ministers princes, for ministers, dozens of current senior officials. It was prince al believe in so all and his arrest that stunned the markets and pretty much every single senior head of state. He was arrested at his desert kevin. Making seen this prince a Huge Investment all around the world, particularly here in the u. S. By investorss about what might happen when the markets open, given this breaking news over the weekend. , the 50the him richest person in the world. These are some of the companies that he owns, at least a 5 stake in. Jd. Com. Apple, list, he is worth about 19 billion, but this seems to be consolidation of power by prince mohammad bin salman as he , orntially takes the throne consolidate his power ahead
Is worlds 50th richest man among those detained. Betty while we are watching all of these geopolitical events, including more headlines coming out on north korea, lets focus back on the markets how investors are looking at how all these events playing into their own outlook on the u. S. And the world. I want to bring up this chart, 5080. It shows you how the threeyear and tenure spread, or the five and 30 and two and 10, i should ,ay, trying to find out represented right at the end. You can look at it several ways, or maybe specifically two ways,hich is the bill gross way which is the economy is much gloomier than perhaps with the numbers are showing some and there is not much more room to raise rates in the u. S. Despite officials say. On the other hand, others say this is not about the u. S. , the u. S. Is doing just fine, it is about the rest of the world, which is falling apart, they are all coming here to buy the safety of u. S. Treasuries, can get those yields up, they are basica
President en and the may be on different paths next year. We have world coverage here on daybreak asia. We will be live in San Francisco later on to talk about the latest person to leave uber. Betty we are counting down to james comeys testimony, the former fbi director. We will have an update shortly. This is daybreak asia, live from bloombergs u. S. And asia headquarters. I am betty liu here in new york where it is just after 7 00 p. M. Yvonne it is just after 7 00 a. M. Here in hong kong. I am yvonne man. Super thursdarsday is here. Not sure how i will keep up between the ecb conference, james comey testimony, and the u. K. Election. What you watching out for the most . Betty it has got to be comey. Saying yesterday, must see tv. I think the entire country will be glued one of the most anticipated hearings in decades on capitol hill. The markets did rebounded today. Not a lot, but we did see banking shares helping lead the index is higher. That writtene testimony from james comey, n