Good afternoon from asia. Im Francine Lacqua in london. Stoxx 600 down. We are expecting more choppy trading on the back of the testimony this week from jay powell. Prospects after we had conflicting signals from the world economy. 1. 12. Ollar coming up, paul the fx calls all the fx calls with david bloom. Tensions between japan and south korea are threatening to wallop much now depends on whether shinzo abe and moon jaein can work out a compromise. A cycle of measures and countermeasures would not be ideal for both countries but if south Korean Companies begin experiencing actual damage, the government would have no choice but to respond as necessary. I hope it does not come to that and we urge japan to withdraw its measures. Greece primenew minister has a new finance minister. One of the first tasks will be to renegotiate. Epstein being held at a Correctional Center in new york as he awaits a bail hearing on charges of sex trafficking and conspiracy. The charges include sex acts 14,
In a correction or worse, down 10 or more from their highs and check out some of the biggest names on the list. Intel, ups, exxon, sales force all falling from their 52week high do you buy any of these names for a catchup trade or are they a no touch pete, where do you start with the list i see a couple of names i already own and i will start adding to because i think theyve been pushed down enough from the 52week highs and i think theres room to the upside i would start with finish with intel and add ips. The execution is there and the fundamentals are there and for me theyve also got growth when you put that all together, mel, when they pull back, thats an opportunity and those are names i would be adding to what do you think of intel . You picked one that has some very specific issue to their own execution and theyre very involved with what the headwinds are to the macro situation and thats an interesting list and the same thing as far as macro headwind sales growth and they made th
Were peppy boys. Three down weeks in a row for stocks. It looks like weget out of the gate in a positive way. Dow would open higher by 133. The s p is good for 21. Still early with the nasdaq which has been beaten up is up 89. Bond yields here come after declines of 2 last week for each of the major averages. Treasury yields spis part of th story. 10year treasury eased off last week, but still at 4. 29. Steve. The upper end of the range recently. 4. 30. Some people telling me 4. 50 is not out of the question. A lighter touch from the China Central bank. Lowered the oneyear prime rate by ten points. Economists expected 15point cut. The economists expected a 15basis point rate cut to the fiveyear prime rate. Major indices in china were down across the board. Palo alto here for liesmaniacs want to talk about the fed. Palo alto. You must have been talking about this. It is odd they did the release on the summer friday in the afternoon. It wasnt a bad one. It was a good one. Everybody thoug
Im Tom Mackenzie in london. These are stories that set the agenda. The bank of japan hikes Interest Rates for the First Time Since 2007 and scraps yield curve control. The yen falls through 150 versus the dollar. Traders cut fed bets as fomc members gather. U. S. Two year fiveyear yields climb to the highest levels this year. Plus, nvidia unveils the successor to its old ai processor. But markets deliver a muted response to the highly anticipated speech. This is hopper. Hopper changed the world. This is blackwell. Tom a new era for the japanese economy. The first hike since 2007, ending of yield curve control, and an ending of etf thats in buying. We have Stephen Engle on the ground in tokyo for all the details and we will cross over momentarily. Lets check in on the markets as we set you up throughout the trading day. The fed starts its own policy meeting with that decision on wednesday and a focus on the dot plots, the focus from the fed officials. European futures up. When it comes
A further rise in business investment. Private consumption fell on the quarter as consumers struggle with rising living costs and falling real wages. How do you think investors are going to respond to this news . The japanese economy is performing quite well. I dont think it will be a big market reaction. Simply because the indications for Monetary Policy are not clear cut. The bank ofjapan is already quite optimistic about the gdp growth, and what really matters for Monetary Policy is how global inflation is. Strong gdp growth, the margin, Rising Inflationary pressures. As we have seen in the past, it can turn around things injapan, so the wage growth really matters, how much it will ease Household Burden on the cost of living. In terms of the bank ofjapan, looking at whether they are actually going to raise Interest Rates after quite some time, what do you project . We time, what do you proect . We dont time, what do you proect . We dont thinkļ¬ time, what do you project . Dont thin