One Percent, Four Percent, Twelve Thirty Seconds discussed on Bloomberg Daybreak


Morning after yesterday's one percent drop for the S. and P. five hundred were coming up to five a one on Wall Street and we check the markets every fifteen minutes throughout the trading day on Bloomberg S. and P. futures again that'll change Dow futures up eleven nasdaq futures up one the dachshund Germany's down a tenth of a percent Kevin Paris up two tenths percent of the forty one hundred down a quarter percent Nikkei two twenty five in Japan gained a tenth of a percent of the hang sang in Hong Kong was down about eight tenths percent ten year treasury down twelve thirty seconds yields two point oh five percent yield on the two year one point eight nine percent NYMEX crude oil down one and a quarter percent or seventy two cents to fifty seven eighty five a barrel comex gold on one and a half percent or twenty one dollars ten cents at fourteen sixteen seventy announce the euro one point one zero four nine against the dollar and the yen and one oh nine point oh seven Nathan cared 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 Powell struggled 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 serve all of those goals but again we're thinking of it as essentially in the nature of a mid cycle adjustment to policy when pushed on the path for rates Powell left the door open for a move in the other direction long U. S. business cycles 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 now 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 and the confusion is introduced into market prices markets have been pricing a lot more than we now can reasonably expect in monetary easing president trump is also weighing in on fed policy he says a quarter point cut wasn't enough and the chairman Powell quote let us down US stocks fell following that fed decision and stocks in Asia followed suit her bloomer surely and soundly joins us from Singapore with the details good morning Juliet good morning Karen at losses were less than 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 low stocks in Hong Kong also continue to full in the M. S. CI Hong Kong index is that still on track for its longest losing streak in three years on increasing signs the local economy is under pressure in Singapore I'm Juliet solidly by daybreak Julia thank you know our next central bank decision comes from the bank of England at seven A. M. Wall Street time to be we also issues its final economic forecast before October's breaks at deadline but works Caroline had Kerr joins us live from London with a preview Caroline good morning yeah good morning Mason accounts at the bank of England is expected to hold interest rates at no point seven five percent but the falling pound poses a challenge for governor mark Carney sterling is we could four percent on a trade weighted basis since may and gilt yields have dropped to market the pricing in rate cuts not the gradual tightening stones of the MPC that's because a cliff edge breaks it looks increasingly possible under the new prime minister Boris Johnson the bank has based its full cost on a smooth and orderly exit from the E. U. to the bank and markets the glaringly at odds live in London I'm Carolyn had kept like daybreak Caroline thank you meantime factories in the UK are stuck in the worst slump in six years you can manufacturing shrank for a third month in July with markets PMI reading coming in at forty eight manufacturing in the euro area also shrank at the start of the third quarter it is the sixth straight month of contraction with eurozone manufacturing PMI falling to forty six point five in July bank earnings out of Europe this morning beginning way so she occasion Erol the French lender outperform most peers in equities trading and boosted its capital C. E. O. Frederick Dana tells a song cancel 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 on worrying competitive school to results from sanctions equity business in fixed income trading beat estimates they'll both measures fell from last year shares are up four percent in Paris earnings at standard chartered topped estimates with pretax profit coming in better than expected chief financial officer Andy Helford says cost cuts are also boasting 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 tweet lost via so the colts all definitely well under control the same time the outlook for standard chartered is clouded by the U. S. China trade war the lender earns the bulk of its income from Asia right now shares are up nearly three and a half percent in London shares of mark laser higher by two percent after the first investment bank outperformed its peers fees from investment banking slipped one percent beating forecasts for an eleven percent decline birthplace posted gains in fixed income currency and commodities trading on the energy front Royal Dutch Shell is reported earnings that fell short of estimates CEO Ben Ben beard and tells us the slowing global economy weighed heavily on results what we are seeing at the moment of course.

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