Rates because they have already accounted for trade. Id weve taken caracalla weve taken care of that, i didnt have to worry about every up and down in trade negotiations. The nature of the war is that you have titfortat going on all the time. It is not reasonable for Monetary Policy to respond to all of these threats and counter threats. Weve already taken that into account. Trade regime uncertainty is high , and we are putting that into the Monetary Policy calculus. Alix then you have a three month tenure curve that doesnt want to listen threemonth10 year curve that doesnt want to listen. David i dont think markets believe him. Alix it is an extraordinary day shaking out. Equities continue to climb. We are seeing some followthrough buying, watching some moving averages. In asset classes, it is a really unbelievable day. Money flooding into all bonds. Europe. Ves over in almost 60 basis points in the tenure german bund yield. Amazing actions by Central Banks across the world, new zeala
Katie welcome to Bloomberg Markets. You take a look at these markets and you can see there is green on the screen. The s p 500 is up by about 0. 5 . Compared to what we been seeing, its exciting. The nasdaq 100 is seeing a bigger game, up about 0. 8 . Weve been talking that inflation data coming in as expected with a bit of a relief there and you can see that in the bond market as well. Not huge moves that its the direction of travel. You have yields moving lower right now to the tune of four basis points on your 10 year treasury yield after the feds preferred gauge of underlying inflation, the pce rose in january as expected, supporting the feds patient approach. For more, were joined by mike mckee. After what we saw in cpi, this is probably good news for the fed . Mike its good news for wall street. You probably heard that big whoosh at 8 30 a. M. In the pc was a little higher than its been in recent months but it is not too high and a yearoveryear basis, inflation is still going dow
And a large part of that has been driven by growth in the manufacturing and the construction space. Some of the numbers do offer a lot of question marks because if you look at agriculture, if you look at industries, you know, our core sector data is from steel, cement, all of them have actually shrunk. Consumption, in fact, has also been weak too, almost for the nine months it grew by only 5 . And thats why there was there has been a lot of question mark, but a large bit of this has been pushed by the Government Spending in the construction space. You know, Building Infrastructure around the country and some bit of private capital and private investments also seem to be flowing in to the economy right now. And that has pushed the growth to this level right before the national elections, where Prime Minister Narendra Modi is seeking a third term in power. Narendra modi. And this is the premise, the high growth rate where india has become somewhere an alternative to china for most compan
Impact in oil prices because if you even though iran has been under solutions for the last years it been quietly providing oil to customers in the globe and the white house has turned a blind eye especially the last year or two because its been trying to smooth relations between iran and the western world but now if the white house decides to enforce those sanctions, that means supply from iran would be cut off and coming at a time when oil supplies have been tightening because saudi arabia and russia, the two largest exporters of oil in the world, were also part of 0pec have collectively being reduced 1. 3 Million Barrels of oil per Day Sincejuly and will get you to do so to the end of the and there is a good chance it may continue next year as well so if this happens there will be a scenario where there will be less oil supplier, more demand, and that leads to higher prices. Major Oil Producers are not directly involved in the conflict but it has still sparked uncertainty as far as o
Around the globe, and the white house has turned a blind eye, especially the last year or two because its been trying to smooth relations between iran and the western world. But now if the white house decides to enforce those sanctions, that means supply from iran would be cut off and coming at a time when oil supplies have been tightening because saudi arabia and russia, the two largest exporters of oil in the world, who are also part of 0pec , have collectively been reducing 1. 3 Million Barrels of oil per day since july and there is a good chance it may continue next year as well. So if this happens there will be a scenario where there will be less oil supply, more demand, and that leads to higher prices. Even though Major Oil Producers are not directly involved in the conflict it has still sparked uncertainty as far as oil prices are concerned. Talking about that was azlin ahmad, covering crude oil markets in the middle east and asia pacific and she told me that yesterdays spike in