Optimism toward a vaccine. On the other hand, bonds, we have this quiet rally. The 10 year yield firmly in this range. Bonds are pricing for the possibility of nearterm challenges around virus spread, oil stocks are looking ahead. It is not clear which side is right. Theres going to be some interesting activity ahead. David thank you so much to abigail doolittle. Fast congressional action helped bring the u. S. Economy back. Theome now one of those at center of the debate over future stimulus, republican congressman patrick mchenry. He is Ranking Member of the finance committee. As i say, i think most people agree, congress acted big and fast and help bring the economy back. Now we are seeing wobbly notes. Do we need more stimulus to avoid a double dip in the economy . Rep. Mchenry yeah, i think we do and i think the Federal Reserve agrees. Art of our country and segments of our economy are doing quite well. You have other segments, like the Restaurant Industry for instance, that are j
And continues on into the fall campaign, which has started now. That is sort of divide and conquer. He looks at the political equation as those who will support a very clear black and white option. The black and white option for years ago was the border and immigration using almost the same rhetoric that Illegal Immigrants were drug dealers, rapists and murderers. Transitioned has into his description of social unrest around the country. David does that put joe biden in a difficult situation . He is trying to take a tax that is not black and white, basically saying we should allow demonstrations, but we shouldnt be violent. How effective was that speech he gave monday . Rick i think it was an effective speech setting out barriers and boundaries for this debate around donald trump. It is always easier from a political context to make a minds. E stick in voters trump is particularly good at embedding these dark themes. Biden has an additional requirement where he has to convince voters t
Isaac there is not much agreement we have down here, but that is undeniably top of the list. What we have seen over the past few weeks is both parties coalescing around the idea it is necessary and in the vital when it comesest to my policy with china. It is not just here. It is also our partners around the globe. I think the eu has been more serious around this matter. We have had some developments in terms of Congress Passing limited sanctions and china responding. Note thatrtant to thus far the backandforth between china and the United States has been measured, proportional, and largely symbolic. My call is we will continue to have these back and forths and a degree in headline volatility, but there is no reason to believe leaders on either side of the pacific want to see a massive unwind of their relationship in the near term and theyre battling with issues domestically. There hasyou say, been backandforth in the last day. There is also been backandforth between joe biden and Presi
Meantime, lets talk about the headlines. Brexit, Prime Minister Boris Johnson and the had a callmmission earlier on in the group agreed to hold two months of talks to talk about a postbrexit trade deal. Boris johnson said there is no reason why they shouldnt get a brexit deal done in july. However, u. K. Has ruled out an extension. We have a political economist joining us, what is your sense of what is going on here . Degree, is there any surprise in the idea that an extension is not forthcoming . I dont think so. What we are seeing is pretty much the same old story, different day. It feels like its 2020 but it feels like its 2018 all over again. The same issues are coming out. You can see that from the eu which is saying we wanted an agreement but not at any price. Both want an agreement but there are stipulations and as we have seen for the last few years and we will continue to see for the next while, there are red lines that are still sticking points that will ultimately they will
Big tech is seen as a haven and growth play because they continue see demand for their products and services and have sheet to write out this disruption. Havens are in favor. You can see 68 basis points. The dollar edges higher for the fourth day in five. Indexes are coming off their lows. There is still a lot of trading day to go, but by the dip but buy the dip seems to be in effect. David another narrative we have been seeing is a divergence between mason street and wall street between main street and wall street. When will we see something that might help main street . Scarlet that will be critical this week, especially with jay powell speaking to congress. That will be a big issue, especially since you see data like interim manufacturing come in better than expected. We also get retail sales as well as Industrial Production on tuesday. Housing starts on wednesday. Housing has been doing very well in this economy as Mortgage Rates have come down and a lot of people are looking to re