To raise rates it could increase in inflation. He doesnt conclude that would happen but we need to think about that. He repeats kind of the normal argue amount for raising rates and says f1 policy remains extreme and inflation is close to target. Not strictly endorsing but saying thats the normal argument for why rates should be normalized. Former Federal Reserve chairman ben bernanke out with a blog about negative Interest Rates and says the fed is not out of ammunition but there are signs Monetary Policy is reaching its limits. They include lowering rates but not much to do there. A quarter point. Forward guidance could be powerful. More quantityive easing and negative Interest Rates. What does he say sna that evidence from europe suggests they might be more powerful than had previously been thought and argues anxiety over negative rates could be overdone. Banks could still earn a profit by charging a higher rate than they pay. Bernanke also says negative rates have modest benefits a
Right now. Good morning and welcome to Worldwide Exchange on cnbc. Im sara eisen. And im wilfred frost. Sara, welcome back. Missed you yesterday. Came back, though, for double day. Fed meeting, boj, super tuesday too. Its getting exciting. We sort of missed you. I dont want to be too clear on it. We dont want to make you think we have to have you back every single day and you cant enjoy some holiday once in a while. Lets have a look at u. S. Equity futures this morning. Of course, yesterday we sort of lost a bit of steam. We had the lowest volume day of the year so far. Were looking at a little negative again today. The dow called lower by 84 points. The s p by 13. The nasdaq by 27 points. A quick look at the tenyear yield as well. A good gauge of risk sentiment the last few weeks. The moves have been clear. Weve been ticking up closer to 2 . However, the last couple days weve been treading water. Were back down to closer to 1. 9. Nonetheless, seeing a little bit of riskoff sentiment t
Biotech is down 3 . A lot of this is politics and the unknown there but also these stocks were super, super great performers over the last five, six, or seven years and i still think theyre pretty overowned so i think that you can actually, based on the bull packs, i think you can start to look at some of the bio techs and i do still think you juan to find special situation stories. Either new management teams or companies that have gotten hit really hard from currency so im kind of looking at Something Like an abbott labs. A back administer. At a United Health care im not in a rush to buy the bio techs until we get more clarity these are the poster children for the move from growth into value. It condition be all about politics. Yes, Hillary Clintons tweets may have started the clyde but it cannot be all about politics as to why these stocks cant do anything. Right. Well, its what happened with valeant and having it go from a 30 billion stock at the beginning of the week to 9 billion.
What a day they are having with the latest from the president s visit in havana. We have a billionaire hospitality mogul to discuss whether he is eyeing that country as a place to expand. I hope he saw the News Conference with raul castro a short time ago. Speaking of News Conferences, breaking news out of washington. Donald trump is holding one of his own. Lets have a listen. Certainly should be careful with third party stuff. If trump gets it well start a third party. A third party means the democrats will win, almost certainly. You cant be that spiteful. You cant be that spiteful. Youll destroy the country. Third party would destroy the country. Im going to be ive already shown it to a lot of people and a lot of people like a little bit worried about which judges. I want a very were going to have a conservative, very good group of judges. Im going to submit a list of justices potential justices of the United States Supreme Court that i will appoint from the list. I wont go beyond th
Again on the Housing Market pending home sales today. Right. We have watched all of these, this one coming in and it looks like it is better than estimated. Different than some of the Economic Data we got today, an increase of 1. 4 , and that is to half of a percent estimated by analysts. The number coming in better than estimated but not showing much lunch overall. Nasdaq issingly, the down three quarters of 1 . Comprising 7 of the nasdaq composite or the s p in the dow are little changed. The other earnings news we also have out today. Take a look at the groups that are on the move, energy is gaining today once again. Information technology, not surprising, providing the biggest drag. To apple, a lot of different disappointments for investors. Secondquarter sales down 13 . In 13ide we have seen years in the annual revenue number sales in china sliding. A lot of areas of concern for investors. Perhaps not just for apple. You look at the major averages but you have to consider all of i