Definitely a flight to safety today and for the entire week when it comes to stocks in general. Lets take a look at this tenyear note, the yield on that, because it continues to move lower as investors are buying bonds, the yield moves lower. We havent seen the inverted yield curve with the three month this low since september. The concern from investors here, what theyll read into it, is that the Coronavirus Impact could potentially, potentially cause a recession, and so were getting that talk circulating back on the floor again. Meantime, were seeing a big move in gold today too, another 25, supporting the idea that people are worried about the virus, the notion that the chinese may not be telling us the whole entire story and that its moving outside of china quicker than we thought. The final point ill make about this is, yes, apple said it was going to have a big impact on its first quarter, but coke saying its going to take a penny or two off the ets, but were going to hold on to
November 10th and 11th. That is thrown into the mix. Were told this is not part of the ongoing trade talks but put as wrinkle or maybe a hatchet in them. Blake burman at it whoo house with more on that. Markets are confused. So am i. What do you make of this port . I spoke with someone familiar with the matter. The way it is described there is a ongoing policy process, taking place, during the policy process one of the discussions the u. S. Might, it was stressed to me, might, limit investment flowing into china. A couple things were pointed out to me which you hit on, according to the source, this is a way essentially to protect u. S. Investment. As you know the u. S. Feels there are a host of issues, once you start dealing with china and and protections, companies there and making sure those companies are taken care of. Also it was put to me this is separate from the ongoing u. S. Trade discussions. Now about you believe that to be the case is another matter. We talked about the issu
Predicted every last recession weighs in. Now to Edward Lawrence at the white house, on the trade front where things stand. What is going on there . Reporter looks like better than expected numbers coming out of china helping markets today. China says their exports have increased 3. 3 from june to july. Surprise with some with escalating trade tensions. Export numbers deficit from the United States has shrunk 2 billion from june to july. It is still a huge number, look at yeartodate. It is 168. 5 billion yeartodate. Also thursday, Chinas Central Bank made moves signaling future devaluing currency even though today theyre stablizing. Should the currency weaken too much that should cause Asian Countries to cut their Interest Rates even more. White house Economic Advisor Peter Navarro down playing that this morning. Listen. The yuan has gone down 12 . We put on tariffs at 10 . The yuan goes down 12 . Theyre basically trying to offset the effect of the tariffs but it does have ripple effec
The Administration Made a big move on huawei with Edward Lawrence covering it from the white house. Reporter President Trump is not ready to make a deal with china. Every countermove or every move to increase pressure on chinese, are met by countermove by the chinese who have not backed off, or come back to the table, when china had stimulus for its companies and economy, white house announced 90 days for companies to stop selling to huawei. The news heard on mornings with maria. It is another 90 days for the u. S. Telecom companies, some of the rural companies are dependent on huawei. So were giving them a little time to wean themselves off but there are no specific licenses being granted for anything. Okay. Reporter this is relief chinese were looking for, they said u. S. Should allow huawei to continue to do business with u. S. Companies. The they are looking for chinese to reverse course to buy agriculture from the United States. This delay comes as tim cook, the apple ceo, met wit
Of course, so i think we are a long way from that. Digital currencies are in their infancy. So essentially, not too concerned about, you know, the Central Banks no longer being able to carry out Monetary Policy because of crypto currencies or digital currencies. You know, facebook, i believe, has made quite broad rounds around the world, really, with regulator regulators, supervisors and lots of people to discuss their plans and that certainly includes us. And its something we are looking at. We meet with a broad range of private sector firms all the time on Financial Technology and theres just a tremendous amount of innovation going on out there. The potential benefits here, there are also potential risks, particularly of a currency that could, you know, could potentially have large application. So i would echo what Governor Carney said which is we will wind up having quite High Expectations from a sort of safety and soundness and regulatory standpoint if they do decide to go forward