Doug Chris, FED, Doug discussed on Bloomberg Daybreak Asia

Automatic TRANSCRIPT

Bloomberg's Doug Chris and another day of losses equity wise, but ready for you what really characterized things here, because we are in wait and see mode for inflation news. You're absolutely right. Mild loss is the tone was cautious ahead of tomorrow's report on retail inflation. Rich, I know that you are well aware that markets have been on high alert for any clues regarding a shift in fed policy. Now, you were talking a moment ago about minutes from the last fed meeting. They include officials saying it would be appropriate or important to calibrate rate hikes to mitigate risk. Now the notion of calibration seemed to briefly inject some hopium into the equity market. It was fleeting, though, will have a closer look at that momentarily. We had the S&P 500 down for a 6th straight day, the benchmark now at its lowest level since November 2020. Today we were down about three tenths of 1%. The Dow, the NASDAQ comp each lower by just about a tenth of 1%. Today, the report on wholesale inflation so that price is paid to U.S. producers up in September by more than forecast a hot reading on CPI tomorrow could seal the case for a fourth rate hike of 75 basis points. So we had yields across the curve moving a bit lower today, especially at the long end of ten year that was down 5 basis points to three 89. Some of that decline may have been tied to weaker oil prices, WTI off by more than 2% in New York, we were down for a third day. Today, OPEC lowered its demand expectations for this year and next, the dollar little changed but boy, look at the yen much weaker here, one 46 85, I'll take another look at markets in 15 minutes, right? Let's take a closer look at the fed developments now, thanks very much, Doug. Beneficials have stepped up their commitment to raising rates to a restrictive level. However, as Doug mentioned there, they said it's important to calibrate the pace of hikes to mitigate adverse economic risks. As according to the minutes from the fed's September meeting, policymakers emphasized that the cost of taking too little action to bring down inflation likely did outweigh the cost of taking too much action. So that's why we say there's still very stiff on this issue. And ahead of the release, Minneapolis fed president Neil kashkari had warned that the bar for a fed pivot is very high. We have not yet seen much evidence that the underlying inflation of the services inflation, the wage inflation, the labor market, that that is yet softening. And so I think we're quite a ways away from anything like that. So fed officials like everyone else will be eyeing very closely the reading on consumer prices tomorrow. That data will come out at 8 30 a.m. Wall Street time. Right, American supplies are beginning to withdraw stuff from Yangtze memory technologies this week, which all the suppliers include Applied Materials KLA and lamb research yancy is one of China's leading chip companies. It's among the more than 30 organizations that the U.S. commerce department put on its so called unverified list the company may also be impacted by new regulations last week from the Biden administration. Chinese companies are not banned from buying advanced chip making equipment or employing American citizens without a license. Deputy treasury secretary Wally, adema, telling us that The White House is trying to build more resilience in the supply chain. We want to make sure that American companies are competing on a level playing field with companies in China and around the world, and that's why we've taken actions like restraining the ability to ship some key components as well as making historic investments in semiconductors here in the United States. Meantime semiconductor producer ASL at ASML told its employees in the U.S. to refrain from servicing customers in China the firm said it is actively assessing which particular fabs are an affected by new U.S. regulations. Coming up in a few moments we'll be chatting with Carol schleif, deputy CIO at BMO, family office, and that's coming up right after it's time for global news

Coming up next