Stephen mnuchin speaking on the phone today regarding stimulus negotiations with a promise to speak again tomorrow and new york city is back in had the coronavirus spotlight. People refuse to wear a mask still to come, coming up on todays show, embattled e. V. Maker nick la with new lows. Well ask the former auto executive what it all means for nikolas pending deal with gm. Plus, well speak with the newly minted president of shopify about the run that stock has been on. Up more than 150 . Well ask about the recent news of rogue employees stealing some Customer Data. Harl Harley Finkelstein will be our guest. We have the latest headlines coming out of washington, d. C. For us start with you, mike a little bit of low volume churning going on today. Maybe a little apprehensive. Kind of Holding Steady ahead of these couple of known potential catalysts, of course the president ial debate and the jobs number. After 4 two day rally, s p 500 year to date, train day, we kind of had that half 1
Moving news from all around the world. Delhi, newg to new jersey and washington come our bloomberg voices are on the ground todays top stories. In asia, you had the pboc lowering the rate it charges on shorterterm loans to lenders. Index added 150 billion yuan into the banking system. Joining us is tom mackenzie. Is this the start of an easing cycle, or a shortterm term liquidity crunch into the new year . Tom it seems like more of a shortterm liquidity crunch. We are looking ahead to january, what it looks like you will get a withdrawal of cash out of the Financial System here of about 450 billion. They take that liquidity out ahead of the chinese new year, which comes in towards the end of january. It does seem like it is more of a seasonal effect. More broadly in the economy, credit has been tightening. We saw today from the pboc was some gradual measures to try and address this queasy liquidity, and a couple of basis points and a sevenday reverse repo as well. About 28ly, you got b
In europe, the dax up 1. 5 the cac up 1. 4 . Ibex up by more than 1 . Looking at the treasury yields the tenyear yield cracking 1. 7. Went out on the day at about 1. 71 the tenyear yield now at 1. 675 tom and i were chatting about a blog post from pimco saying u. S. Nominal yields could go negative dont blame the Central Banks, there are also Secular Forces at play that could bring down u. S. Rates. I think thats what happened overnight. It caught a bid because of that blog post. Thats a big story with pimco, the Largest Bond Fund manager in the world saying rates could go negative, rates could go negative. 1. 67 on the tenyear yield. Disney shares are under pressure this morning. The company reporting earnings of 1. 35 a share, missing analyst estimates by 40 cents. Revenue coming in short of forecast disney blaming costs related to the creation of its new streaming service, which we knew would cost something and the integration of foxs entertainment assets which it bought for 71 bill
What is required to bolster the economy. Basisx faces of tech of grilling. The biggest showdown with congress in 20 years. Shery lets get you started with a quick check up on how markets closed. The tuesday session in the u. S. That p 500 halting fiveday rally that we saw in the past week. We have the tech sector underperforming as we had more scrutiny on regulations from congress on some tech giants. The nasdaq fell. 4 . Energy producers were waiting on the s p 500. We continue to see the oil selloff. We had great news when it came to a few earnings. Goldman sachs jumping after the beat on their trading revenue. Pretty solid bailout when it came to u. S. Retail sales in june. Lets see how we are setting up for asia. Sophie this wednesday, asian futures are pointing lower while stocks and wellington are not budging too much after a twoday decline. A rise in iron ore output. Korean chip related stocks on view on reports that they are Testing Hydrogen fluoride from other countries. Crypt
Right now. Coming up, still sticky inflation has fed official sounding hawkish, feeling a continued crime climb in treasury yields and signs of weakening demand on thursdays 30 year sale. Maybe the feds job is not finished yet. We have a lots of pricing pressure from services. Fear free acceleration. Where is the real acceleration going to come from . It is not exactly what the fed wants. I think they are done on rate hikes. I dont think the fed has done enough. That will bring inflation down to 2 . The doors open for a hike in november. It could be the fed skips the next meeting and then hikes again. We do not see rate cuts in 2024. We have a lot of crosscurrents in the data. The fantasies the fed sees putting inflation down as a marathon not a relay race. Katie joining us. Eric, when you put together everything we learned on the economic front from ppi to cpi in the past 24 hours, what does this mean for the fence after the feds path forward . Eric i think the development was good. C