Im sally bundock. We start here in the uk, where the Chancellor Rachel reeves will pledge A Budget To Rebuild Britain in her speech to the Labour Party Conference in liverpool today. Shes under pressure to provide some optimism after labours gloomy messaging on the state of the economy they inherited from the conservatives. But her controversial decision to Axe Winter Fuel payments for 10 Million pensioners threatens to overshadow her speech, with a vote challenging the move also expected today. Lets get more now from joe nellis, whos economic adviser to mha a Uk Accounting Firm And Professor of Global Economy at cranfield university. Good morning. There good morning. There was good morning. There was a good morning. There was a lot good morning. There was a lot of pressure on Rachel Reeves to change the music, to be more optimistic, what do you think . I think she will struggle to change the mood music. We are in a difficult position, the economy has been flatlining for the last coupl
You go to safety. Youre going to buy volatility, yields, bonds, and the dollar. 10 year yield now 75 basis quite a move from just a few days ago. Crude battered, beaten up today. Less demand for those oil prices. Guy absolutely. Lets recap where we are and what is going on. The german chancellor Angela Merkel currently meeting with heads of the german states. We are going to hear from her we think when that meeting wraps. We are probably likely to hear from her as well tomorrow morning. We are also getting Emmanuel Macron a little later on. Both countries moving toward more restrict of lockdowns. Lets get the latest. Maria tadeo joins us from brussels. Theres a lot of ideas floating around. None of this will be official until both Emmanuel Macron and Angela Merkel speak. The idea is we are moving into something that looks like a fulltime lockdown in the case of the french government, that we understand is seriously considering a onemonth lockdown that would start thursday night, going
Which is indeed making a comeback. The latest numbers show a sharp increase in new cases, running to about 40,000 a day. The virus task force reconvenes today for the first time in two months. Some states are pausing their reopening program. That is a warning to the nations economy and the rebound. The wall street journal, this is an important warning for the president. The powerful Editorial Board bluntly said hes heading for defeat. Thats a warning for wall street, too, because a biden win would be a real challenge for stocks. So where are we this morning . Warnings duly noted. Ive got some red arrows there. The dow is down about 180. The s p down about 10. The nasdaq down about 15. Red arrows for three indicators. All right. Im going to call this a positive. Remember the mob that threatened to take down the lincoln emancipation memorial . They were supposed to attack it at 7 00 eastern last night . Well, it rained. The limited number of people who showed up retreated to shelter. The
Corporate taxes will rise in the united states. That is the possibility, they will not rise as profoundly as they drop. I think it is not clear whether we can make that case or not at this point. Romaine we are speaking with stephen whiting. Here is where we close on the day. Pretty much a risk on day with all of the major indices, including the russell, getting in on the action. Caroline nasdaq up 2. 2 . You really can see where the commitment is within the sector. Volumes were lower. Just coming off the back of fourth of july. Indeed, about 10 for the dow jones in terms of trading. It is notable that we are seeing such outperformance from the nasdaq come up 16 year to date. Romaine we crossed back above some key technical levels. The 50 day moving average, it had actually been declining toward the middle of the end of last month. The s p 500tocks in that at one point today traded at or above the 52week highs. Most of those are actually record highs. You definitely have some enthusias
Great depression. Shares of u. S. Bank stocks looking very weak compared to tech stocks which have been guiyang the which have been buoying the rally. What an incredible rally, the huge losses on the back of jobs numbers which we are getting too used to. Taylor it was incredible, looking at some big losses and in the final hours or so, managing to reverse that and post some of the gains. The only sense of caution is tech is not leading the gains. Tech for one of the first few times has been the underperformer. On the downside in the last two days. The good news is it was not leading the losses. You have microsoft, facebook, being held in a meaningful way. When they are not leading the game on days like this when you would expect to see outperformance, that has people cautious about really the strength of the rally. Quickly, saidere if someone was not watching the stocks already, you should be. If you want to believe in the strength of the rally, you have to see the Big Companies start