Saying the u. S. Is winning the trade war with china, but the u. S. Deficit is set to balloon. Toeing Warns Companies to the line if they want access to the mainland economy. Get you started with a quick check of how markets closed the window session. Stocks were higher. They pared back some earlier gains. The s p 500 ended. 8 higher with every sector on the s p 500 and the green. Retailers were also hired. Today, we saw the bloomberg retail index at a threeweek high as we saw some positive s and target, lowe not to mention we saw that rally after we saw home depots stronger second half. That theyes signaling were ready to ease but not really hinting that this july rate cut was the start of an easing cycle, so twoyear treasury yields rallied. Treasury yields unchanged at the moment, so lets see where we are starting out the asian session. Sophie we are setting up for potentially positive gains with more earnings on tap for the region as well. We have a new zealands report card to consi
Saying america is winning the trade with china but the u. S. Deficit is set to balloon to 1 trillion. Hong kong protesters mark one month since gang attacks on the subway. Wantswants beijing companies to toe the line. Shery lets get a quick check of the market close in the u. S. Stocks are higher but after paring back some of those earlier gains, every sector in the s p 500 was in the green. We had Consumer Discretionary and tech leading the way. Not to mention we had numbers out of retailers like lowes. We also had them from target. That helped with investor confidence. We had home depot showing signs that the second half would be strong. We had seen that rally. This is adding to the sentiment. At the same time, we have the fomc minutes. After that, the twoyear treasury yield rallying. And we have eight the yield curve and we have the yield curve inverting. S p active futures up. 2 . Lets see how we set up in asia. Sophie asian stocks brushing off the midweek fumble. Qantas and calls
Negotiators are coming out and saying china is a problem. Resident negotiators with no deal odds rising. The timing is a hint there may be a willingness to talk. Rosalind another round of earnings reports sends signals about the Global Economy. Xiaomi is facing headwinds on a number of macroeconomic fronts. Certainly in europe, there is no question we are seeing , weakening. Rosalind Federal Reserve chairman jay powell speaks at jackson hole. And bloomberg gets exclusive insight. We are at a sort of equilibrium right now, and i would be happy to leave rates here. We have to be careful not to ease too much when we do not have significant problems. Lower rates will stimulate our economy somewhat. I dont see this as the end of a ratecutting cycle. I think right now we are where we need to be. Rosalind it is all straight ahead on bloomberg best. Hello and welcome. I am rosalind chin. This is bloomberg best. Your weekly review of the most important Business News and analysis around the worl
Minus less than 1 10 of 1 . The president just speaking, and said, we dont need to devalue the dollar. Interesting to look at cnh. At 7. 093,uan trading so quite a lot of weakness today. Guy lets get back to those comments from the president , stoking the fire on trade. He said he wouldnt devalue the dollar. We dont need to. He said talks with china are progressing, but not ready to make a deal. He also said he would be fine if the september china talks are canceled. Lets talk to christian schulz, citigroup director of european economics, live from frankfurt. I just want to ask you a question about the fed. The fed wants 100 basis points from the fed. Inthe talks on trade september are canceled, using the fed will deliver at least another 25 basis points, possibly more . Christian we do expect another rate cut from the fed, and our base case is for these trade talks not to come to a conclusion, certainly not before the end of the year. This is i guess all in line with that base case of
Its the bond market where we getting all the interest. Weve seen upon rally tech place, a quick look at whats going on. The bond rally has been pleading out of lake. Still were seeing a move upward and indonesias 10 year yield ahead of that third decision, looking for yields. There you go. The 10 year yield, a bit of a selloff in the bond market. Yesterday there was a zero coupon bond offer in germany. Eurosing like 2 billion worth of that, only one third of the allocated bonds. Thats a look at whats going on at whats going on it bond markets. Lets look at the first word news with su keenan. Budgettart with the u. S. Deficit, its going faster than expected and the Congressional Budget Office at President Trumps trade war is a drag on the u. S. Economy. Up from an estimated 960 billion in the year ending september 30. In january the Budget Office forecasted deficit of 980 billion next year and did not seek topping 1 trillion since 2022. China is threatening retaliation against u. S. Com