Ferro. In the equity market, posited by 0. 1 . We go to the commodity market, brent 94 94. 93. Tom i take your point, oil is game changer here and it is not 95, it is how we got here. Can you imagine 97 . Why cant you extrapolated out on the edge of 100 . Right now we are at 100 per barrel. Jonathan what is it influence, what does it change . We have to ask a question from the Federal Reserve into tomorrow. Does this change anything for policy and for forecast next year . Lisa ellens that never says no at Morgan Stanley and another at moody say it could be game changer. Saying anything over 100 for any length of time and we are going to be very sick. On one hand, you have to think about what this might do with a diff disinflationary way but also good prices as Mohamed Elerian was changing. Game changing for inflation or growth . Lisa its a great question. We dont really understand. I dont really understand what the major driver is. Is the demandside or supplied cuts. If you have demand
Things have changed, we have different numbers. New highs for 2024. The two youre getting closer to 5 two year. The quote of the last 24 hours around this desk, jp morgans david kelley, the sound of their slingshot on a june cut. Lisa stephen of standard charting, rbc, we are changing our fed call from 45 basis points to one of a duty five basis point move. Yesterday we saw the biggest self, the biggest yields since 2022 and it seems there might be more. Annmarie everyone is trying to revise. Starting to revise. This really seals the fate for the june fomc to push this further back. If we came into this year expecting when will the fed cut, and that is a matter of some people asking if the fed will have a cut in 2022 in 2024. Jonathan two big headlines crossing bloomberg earlier, triggers parenting rate cutlets to less than 25 basis points. Look at for exchange, the euro, 1. 07. The dollar having its biggest oneday since the banking stress of last spring. Dollar, 152. Never mind, it is
Equity, stellar, super killer, 1. 92 million. I want to highlight their Wealth Management. That revenue, 4. 4 billion, better sequentially. Margin dipped a little bit at 26 , but that is their breadandbutter and looks very solid. David they put so much investment into Wealth Management they said it is a big part of their future. The margin down a little bit, but they are still doing well. Morgan stanley does more equity trading than others, so there equities are good. Alix Goldman Sachs, the highlight for them was their Investment Banking revenue, but Morgan Stanley showing no signs of letting up. Is 1. 55 compared to an estimate of 1. 3, so they are beating there. Alix joining us are Alison Williams, and on the phone is can leon. He is a buy rating on Morgan Stanley with a price target of 59. You are big takeaway . Is an i would say ficc little bit of a surprise, but no surprise coming in strong. We expected markets to help their execution, and it looks like they are right on plan. Th
We are seeing a little bit of risk removal. This is what we are seeing in european stocks. They are joining the rebound as we see tensions surrounding the north korean country and peninsula easing. The yen dropping, gold dropping. Gainingor haven assets a touch. Lets get to the bloomberg first word news. Heres nejra cehic. Nejra north koreas leader says the testfiring of a missile over japan yesterday was a meaningful prelude to containing guam. Kim jongun added that he will continue to watch the response of the u. S. Rex tillerson has agreed with his japanese and south Korean Counterparts that the test was an escalation of provocation while the Un Security Council has condemned the launch. President trump has praised the Emergency Response to Tropical Storm harvey as he and the first lady visited texas. At least 15 people have died in the wake of harvey while thousands more have been displaced from their homes. Early estimates put the economic losses at 100 billion. The u. K. Wants to
, icks marginally top left dekes up 1. 55 and the catalonia president stepping back from the immediate declaration of independence from spain. The euro rising for a fourth day. Lets stick with the spain discussion. Se are the share prices this is since they result of the referendum a week last sunday with a todays of trading. Last wednesday eight days of trading. In recenthey fared days. 4 since the ex down 7 10 ofib 1 . Leaving the legal base in catalonia and moving them elsewhere. Just give president in process could lead to the assertion of direct control from madrid. Ibex and index to watch. Great chart. Watch Spanish Companies with strong exposure to the domestic economy. Ood retailer topping 14 the index i want to keep an eye on is the white line, the Morgan Stanley domestic spain index has jumped 1. 6 today. D in theover the perio last month. Given the fact that we have inflation but poor productivity, i probably would look at productivity and the fast disinflation in four years