Nathan, One Percent, Four Percent discussed on Bloomberg Daybreak


The dollar and the yen one oh nine point oh eight Nathan can we begin with the federal reserve cutting interest rates for the first time in a decade but warning against a lengthy easing cycle the dollar is stronger after chairman Jerome power struggle to signal future fed policy the committee is really thinking of this as a way of adjusting policy to a somewhat more accommodative stance to insure against a downside risks to provide support to the economy and then to support inflation so we do think it'll sort of all of those goals but again we're thinking of it as essentially in the nature of a mid cycle adjustment to policy no and pushed on the path for rates pal left the door open for a move in either direction long U. S. business cycle have sometimes involved this kind of event where the fed will stop hiking in fact will cut and then we'll go back to hiking again I don't know whether that'll happen here it doesn't seem like something that's particularly likely frankly but we don't know that traders are pulling back on expectations for more easing from the fed David Kotok is chief investment officer at Cumberland advisors when you look at the explanations you come away with a puzzle in the confusion is introduced into market prices markets have been pricing a lot more than we now can reason Billy expect in monetary easing and president trump is weighing in on fed policy saying a quarter point cut wasn't enough in the chairman Powell called let us down US stocks fell following the fed decision and stocks in Asia followed suit Bloomberg's Juliette Sally joins us from Singapore with the details good morning Julia good morning Karen at losses will lessen those seen in the United States Japanese shares in particular helped by the yen's decline okay two two five close high by tenth of one percent Chinese stocks fell as the fed cut raises the timing question as to when if the PPO say will follow suit with the cut to it seven day reverse repo rate the CSI three hundred closing down eight tenths of one percent lower stocks in Hong Kong also continue to full in the M. S. CI Hong Kong index is action on track for its longest losing streak in three years on increasing signs the local economy is under pressure in Singapore and Juliet Solly Bloomberg daybreak or Juliet thanks the next central bank decision comes from the bank of England in less than hours seven AM Wall Street time be we also issues its final economic forecast before October's brags that deadline bookmarks Caroline have Kerr joins us live from London with a preview good morning Caroline give owning Nathan and Karen the by giving it is expected to hold interest rates at no point seven five percent of the falling pound poses a real challenge for governor mall colony settings we can four percent on a trade weighted basis since may and gilt yields have dropped to markets are pricing in cuts note the gradual tightening stones of the NPC that's because the cliff edge breaks it looks increasingly possible under the new prime minister Boris Johnson now the bank has based its full costs on a smooth and orderly exit from the east to the bank and markets look glaringly **** we'll find out more less than an hour live in London on Caroline it can be a big day break Caroline thank you meantime factories in the UK are stuck in the worst slump in sixty years U. K. manufacturing trying for a third month in July with markets PMI reading coming in at forty eight factoring in the euro area also shrink at the start of the third it's the sixth straight month of can crack a contraction with eurozone manufacturing PMI falling to forty six point five in July bank earnings out of Europe this morning beginning associate Asian around the French lender upper for most peers in equities trading and boosted as capital CEO Frederick Dana tells us on Jensen largest restructuring in years is starting to take shape we are restructuring so we have of course the effect of the activities we decided to stop but when I compared with all this I think it's a pretty decent performance and we own ruling compared with a school to and results from sanctions equity business and fixed income trading beat estimates shares are up four percent in Paris earnings at standard chartered topped estimates of pre tax profit coming in better than expected chief financial officer Andy Helfer says cost cuts are also boosting results call factually were low hold a reported basis than last year by three percent if you do it on constant currency they were flat with Austria so the colts all definitely well under control at the same time the outlook for standard chartered is clouded by the U. S. China trade war the lender is the bulk of its income from Asia right now shares are higher by more than four and a half percent in London shares of our flat tire by two percent of the firm's investment bank outperformed its peers fears fees from investment banking slipped one percent beating forecasts for an eleven percent decline on the energy front rolled that shall is reporting earnings that fell short of estimates CEO Ben van beard and tells us the slowing global economy weighed heavily on results what we are seeing at the moment of course.

Coming up next