Losses. Concern about luxuries that again. The bond market has taken something of a pause, but you get the sense investors are adjusting to the higher for longer narrative from the fed. Fed officials saying further hikes are likely. The focus on the Auto Industry in europe on the back of continued discussion about this probe by eu officials into chinese autos. A couple of individual stories barclays a stand out in terms of the upside in the banking sector. This bank listed in the u. K. Upgraded by Morgan Stanley for the First Time Since 2018. Prospects for that lender despite concern about the slowdown in terms of the u. K. Pound down 3 10 of a percent. We keep an eye on the benchmark 10 year in germany. Yields of come in, money has gone in to the benchmark on the back of the news the German Government will be reducing issuance. For the fourth quarter, you did see money coming into the back end of that curve in germany. Alix s p off by 1 . Having a hard time pegging it to a specific ne
Wall street journal columnist and former george w. Bush speechwriter william mcgurns excellent piece called, time for zombie reaganomics. That is in todays wall street journal. Mcgurn calls it zombie reaganism because people think the gyppers free market, low capitalist, low tax, deregulation policies are hopelessly out of sync with modern thinking. People who make that case are mostly part of the new socialism, practiced by todays democratic party. Wasnt always so for the democrats. John f. Kennedy slashed tax rates. I wrote a book on the subject. Ronald reagan always promoted the jfk tax cuts when he himself smashed tax rates in the 1980s, bringing the top income tax rate believe it or not down from 70 to 28 . Incidentally joe biden voted for the reagan tax cuts when he was a senator, just saying. So after the tax cuts the economy boomed in the 1980s, i mean boom boomed. Between 1982 which was the end of the carter recession really and 1988 the gdp growth rate was an astonishing 5. 4
Thank you for joining us. I am Maria Bartiromo tuesday september 26. Your top stories. 6 00 a. M. On the east coast. Today this printed fund government, lawmakers returning to resume work on for appropriation bills this week including Homeland Security and defense as they try to avert a Government Shutdown next weekend. The economy and focus as a shutdown could spark a booties downgrade of the u. S. Credit rating according to moodys. The inflation story will unfold the final read of secondquarter gdp out this week on thursday and the august pce and dex out on friday. We have all the numbers coming up, the expectation on screen. The stocks are lower, the u. S. Across the board, the european and the red. Take a look at the eurozone, s p 141 quarter, the dax index lower by 112. Take a beekeeper wall street where the dow is down 161. In asia overnight right across the board we have the worst performer overnight in asia the hang seng index on what and h how . President biden traveling to mi
The last week or two. Lets talk about what minneapolis fed president Neel Kashkari has been saying because he was speaking at the Wharton School of business kashkari saying if the economy is stronger than we realized on the margin, then that tells me rates would have to go a little bit heiigher and held higher to cool things off. We will talk to him about that directly he will join us live in the 8 00 hour he sounded more hawkish. He is sounding hawkish, but maybe we got to be hawkish given how strong things seem how they seem who knows . And Jpmorgan Chase ceo speaking to cnbc in india overnight. Here is what he said about the economy and fed policy so, if you have higher for longer and good growth and inflation is contained, thats good you have more fighting for capital and payment for capital. The world needs it for the military and Green Economy and i. R. A. Act and chips abs act an deficit spending right now, it feels good fiscal stimulation was extraordinary. That was a global ph
The russell 2000 down 11 with the small caps since the watermark on july 31st. It has people wondering with the small caps and industrials down, is that a worse sign to come . Germany is in recession. China is slow there. Maybe we shouldnt be surprised. The fascinating thing is people are writing articles that we could be in the First Quarter of the slowdown. Not negative, but a slowdown. It would be one of the things where it happened gradually and all at once. The indicators are not saying that. Correct. We are hearing more and more people and it is depressing with the former fed guys, the smart ones we had on. Daniel. That narrows it down. Saying the biggest problem the fed has is they dont have a crystal ball. We know that. We need to remember that. If you are looking at three months or six months ago and making policy decisions, they will not be at that rate. I dont know what is better. Maybe some rules based regardless of what your gut is feeling. Sometimes that doesnt always wor