About how many Interest Rate increases they are predict and. All three major averages are higher, ounce around a little bit. Withlooked at the s p 500 s p 500 versus oil prices. Oil prices went south and it comingike both of them back. Oil has been in focus with inventory reports showing a fourth weekly decline, though not as big a drop as anticipated. Factory production pulled back by. 4 , double what was estimated. That also seems to have affected the bond market. We have the two and the 10 here and yields going lower and took a turn lower after we got Factory Production date of. Going into the commentary from the fed. And ahead of the fed, it is worth checking on w. A. R. P. Ive change this to look at the swaps market to see what they are protecting. We have a 50 chance of an interest increase not until february of next year. Checking on the u. S. Dollar, weve seen a decline in the dollar going in the same direction as rates. Talked about pound ballot pound volatility because of the
Bloomberg exclusive, three hours to set you up, but first, a look at the markets. Yields moving higher from here. Mark lets get you up to speed. Futures on the front foot at the moment, firmer on the s p 500 after yesterdays alltime high. Look at the moves in japan. The nikkei up by two point five Percentage Points and it is a twoday rally up over six fourth Percentage Points. More stimulus potentially from the japanese government. The nikkei rallied and the yen declined. Weaker japanese yen and the dollar yen trading with a 103 handle an approaching one of four. Cable rates gaining as well. The pound doing very well. It is a firmer story for risk assets, but this is what i find the most interesting. We talked about highly correlated markets, equity markets at record highs and bond yields at record lows. Today is different. Equities on the front, bond on the back, little defensive. Yields going much higher. 30 year yields up seven basis points. Yesterday, there was an auction of threey
With the matter. Matt headlines coming out from imf chief Christine Lagarde, giving a speech at the new york fed. She is saying that small nations are at risk the of you banking regulations. Big banks have curtailed riskier often ints that are small countries. They are pulling out their operations, leaving small countries with a lack of credit. She will be giving us headlines throughout the next hour. Then we will hear from Christine Lagarde. Scarlet because later on, bloombergs exclusive interview p. M. Ame lagarde at 1 1 00 p. M. Today. Lets get to the markets now. We are halfway through the u. S. Trading day. On whats been checking the markets are doing. What can you tell us with the indexes all higher . I want to mention, going back to Fiat Chrysler, and the news that the doj is potentially looking into the company for securities fraud. You mentioned the stock it has now taken a leg lower. Down by about 2 . We will keep monitoring. It may have taken a few moments for people to see
We are getting a headline from it is a of japan and significant number because it is double yesterdays amount. We are seeing bank of england and bank of japan. Are we seeing the limit of what they can do . Tom i am kind of amazed. Francine, it is the most interesting day and then we go into the jobs report tomorrow. Everybody will recalibrate. Theve one item that shows central bank dysfunction that you talk about. Francine if we compare, which i know we will do. Mark carney on the speech june 30 was very careful. Lets get to the bloomberg first word news. Taylor sticking with Central Banks, economists predict the bank of england over deuce the benchmark rate to a record low. Mark carney surprised investors by keeping rates unchanged and they signaled they would cut this month. The central bank will publish the first full assessment of what the brexit vote means for the economy. In london, one person was killed and others injured in a knife attack. Police are looking into whether terror
Surveillance. There are many delta flights that have been granted because of a system failure, something to keep an eye on. We also have a little bit of Economic Data coming from germany. We also have a little bit from america. Obviously, a light week in america after the festive set of data we got last week. I would focus as well, francine, what we saw from japan this morning. Truly, since world war ii and back to the middle of the 19th century, quite an announcement from the emperor. Francine we will have plenty more on that, but first, lets get straight to the bloomberg first word news. Reporter more on japan. The emperor of japan is signaling he is ready to step down. Said he is concerned he would be difficult for him to carry out his duties. Succeeded by his son. Secrets confirmed that information has been provided to the u. S. He claimed he had been kidnapped and held in the u. S. For 14 months. But the Washington Post provided that he was promised 5 million after he defected. Th