Sydney, Australia discussed on Bloomberg Daybreak: Asia
And Sydney was just gonna nine AM Thursday morning and was saying at futures up by more than one percent here in Australia as well the Bloomberg daybreak Asia is presented by interactive brokers he can take the Bonn challenge by using the free I. B. K. up on search tool to compare available yields against those of your broker you can learn more at IBKR dot com slash moms all right we've talked a little about what futures are implying that let's get a bit more information get affordable index Brian Curtis in Hong Kong Brian Paul thanks very much markets appear to be trying to discount the re opening of economies do we get caution or do we get pent up animal spirits is probably somewhere in the middle but it feels like the markets now are expressing that they all are looking for more animal spirits so we've had eight days of gains for global stocks and a lot of our commentators just have a tough time believing that it can continue and one of the examples that I would give is for the reason why the market is rallying right now is a catch up trade or a reversion to the mean trade of some of the a cyclical type companies so look at the Russell two thousand yen today up two point four percent so that's kind of powering the gains the Russell two thousand is up double the nasdaq one hundred over the past three weeks and so we're seeing that reflected in these overall gains you've got a stock like JP Morgan today which was let's see was up five point four percent and it is up thirty percent since its lowest point and that was after it had fallen forty three percent so hello has it made it away all the way back no it's still down twenty six percent for the top so money is flowing into these we'll see if it continues a lot of investors believe that maybe we're getting to a period here where some digestion is needed so the numbers Nikkei futures up suggesting a three hundred point rally yourself and sing index futures are trading up one and a half percent China futures up as well about nine tenths of a percent Dalian one await ninety eight so a lot weaker yen and right now the yield on the ten year seventy four basis points so the bond market credit markets stock markets all showing a little bit of enthusiasm Douglas to you all right Brian thank you here in the states we got word that the fed is expanding an emergency lending program for state and local governments it has about five hundred billion dollars available to it and it's not going to be open to smaller public sector borrowers no you know the feds policies have already helped many companies survive the economic collapse caused by the lockdown one question going forward is on the longer term results of the fed's actions Scott Minerd is chief investment officer at Guggenheim investments he says the fed may encourage companies to take on too much risk pressures will be on C. E. O.'s to to continue to increase the amount of leverage especially when the fed is got a policy of maintaining low rates for an extended period of time I think that ultimately is there a day of reckoning I think that the the federal reserve will be you know faced with the challenge of whether they allow a day of reckoning or whether they'd basically decide that they just have to continue to provide liquidity to the system until inflation rates pick up to levels that probably would be viewed as unacceptable by most participants of the fed today now minor is also saying the fed's actions increase the risk of a bubble in the corporate bond market all well the trump administration suspending passenger flights from China based airlines we've got more on this from bluemix Charlie palette the administration says it's retaliation for Beijing barring American carriers from re entering that market and that's a continued escalation of tensions between the two nations the department of transportation says the order will take effect June sixteenth but president trump connects sooner if he so chooses the move is the latest in an escalation of tensions between the US and China which has included disputes over trade the corona virus pandemic on the treatment of Hong Kong in New York Charlie public Bloomberg daybreak Asia well speaking of Hong Kong two major British banks are backing Beijing and the standoff over a proposed new security law for Hong Kong HSBC's top executive in Hong Kong said the bank respects and supports laws that will enable Hong Kong to rebuild its economy and standard chartered said the proposed law can help maintain the long term economic and social stability both of these banks dominate Hong Kong's banking system not critics of the proposed national security laws say it will violate Hong Kong's one country two systems principle meantime the British government has backed the former colony prime minister Boris Johnson said he will give as many as three million Hong Kong residents the chance to seek refuge in the UK if China were to press ahead Paul well charges against the former Minneapolis police officer they're traveling have been operated it backs disco global news.