And then later, getting set for netflix and whats in store whenit reports later today after the bell. It is wednesday, october 18th, 2023. You are watching Worldwide Exchange right here on cnbc. Good morning and welcome to Worldwide Exchange. Im Frank Holland. We get you ready to start your day as always. We get a check on the u. S. Stock futures after a mixed session yesterday that saw the dow send its win streak for three days. The dow is in the red. It looks like it would open up 30 points lower. The s p and nasdaq as well, lower. Checking treasuries, normally we start with the 10year. Today we start with the 2year note, something not seen since 2006. Im going to draw a line. Right now the 2year note at 5. 195 now. We continue to watch the moves on the 2year. We also want to take a look at the rest of the bond picture right now. The benchmark 10year at 4. 85, trading at levels we havent seen since 2007. The long bond getting close to a 5 yield. We also want to turn to energy. Oil po
By 0. 1 . In the last 24 hours, the president of the United States is heading to israel. Tom per is no other story today. There is no other story today. He is basically traveling to a war zone. Jonathan he wants to present prevent the conflict from enveloping the whole region but how to develop a plan to get aid into gaza. Lisa thats one of the key components with the talks with tony blinken. I find it interesting that President Biden will be going to israel and going to jordan right after, entering the zone with Security Issues and Strategic Issues and have the u. S. Will influence this. Tom im reading on the turkish war in world war i and its amazing the parallels to right now. We are out front on diplomacy. Someone asked the secretary of state where hes been and he said he can remember. They have parallels to 1914 as they try to avoid war. The daily mail in london today talks about the tunnel structure of hamas, 40 feet underground and maybe as many as 300 tunnels. Thats the reality
For our audience worldwide, this is bloomberg surveillance. Alongside tom keene and Lisa Abramowicz, im jonathan ferro. The s p is positive by 0. 2 . It felt like we were on the brink of a full Ground Invasion all we can. Tom im using the Live Services of all the different news sites and it just migrates forward, waiting. Waiting for what . You could see the politicians. I think the most interesting, jacking near to keep their options open. Jonathan we intended to follow this war through the weekend. Rockets fired at tel aviv and some in israel as well. Back channel talks between the United States and iran. Lisa there is a feeling of a frantic diplomatic relation, the idea of iran, who does not have any formal relation with the u. S. Having back channel talks, also having back channel talks in some capacity with israel. Nobody wants this to percolate out of control. And yet the pressure keeps building and no one can come to any resolution at a time where there are hostages, strikes and
Coming up yields go for a ride. Seeing some ground to end the week. And thats because mixed with official saying the market is tightening rapidly. Inflation still running hot but how hot is too hot for the fed to push rates higher . We begin with the big issue, the market gets ahead of the set. The bond market is tightening financial conditions and that is doing the work for the fed. Europe was doing the feds job. We have been watching the rising bond yields the last few weeks and tighter financial conditions so we think that is doing some of the work for the fed. The fed is probably done raising Interest Rates because they realize the bond market has been recently doing all the heavy lifting. Dont worry, the fed will have to do less because the market will do more. It does not want to work that easily. Sonali we are coming off a week with drastic moves in the bond market. The 10year alone with sawing the last few days, 20 basis points for more. What does that mean for the direction of
Britains watchdog gives the green light. Boeing is the biggest drag on the dow, expanding this probe of the production defect on the max. Lets begin with the banks, jim. Overall, not just the beats, some of the commentary about Investment Banking, efficiency ratios look good. Its funny because obviously this group came in as cold as ive ever seen it. What a change from even earlier this week when pepsi came in hot and then rolls over. I mention that because that was the first big quarter. These quarters, when you listen to them, you forget how much money they can make in this environment. And then you start thinking, you know what . These things are seven, eight, nine, ten times earnings. Theyre trading like steel mills, and theyre really filled with a lot of smart people who are doing a lot of good things who show you they can make a lot of money without underwriting, without m a. Theres going to be a revaluation here, recognizing this group had become really went to the bottom of the