Im michael okwu thanks so much for joining me a laundry list of conflicts and uncertainty over the west role in the world are dominating the Munich Security Conference some 3 dozen heads of state along with top ministers and Security Experts have gathered in southern germany the west dwindling influence on Global Security has even spawned a new term west listening. The whos who of international politics. With plenty to discuss. The german president frank steinmeyer spent much of his keynote speech deploring the decline of internationalism and of european unity he had harsh words for russia china and the us. And the been that our closest ally the United States of america under the Current Administration rejects the idea of an international community. Great again great again if necessary also at the expense of maybe. Fittingly enough it was a former u. S. Secretary of state from another era john kerry who made a plea for reviving International Cooperation snow country can solve the probl
Sentiment data does anything for equities. The 10 year yield is back down to 1. 58 . A little bit of buying overnight after we got some comments on the impact of the coronavirus. Expedia one of those companies that seems to be immune. It has not forecast much impact from the coronavirus on travel plans and is forecasting dole digit growth. Well, datacenter growth in its chips helping that company. A much higherfor performance in the s p 500 than even the other chipmakers. Theres a halo effect on some of those as well. Guy absolutely. In europe, we are down by 0. 1 . Eurodollar bouncing back a little bit today despite some really dismal data out of germany. Copper, this is the one you want to Pay Attention to. This tells you what is happening in terms of what is happening with the coronavirus inch ira coronavirus in china, down another 0. 4 . Vonnie the death toll from the coronavirus continues to rise. Disagreements between the u. S. And china about transparency threaten the fight. Nat
1380. Of the reported cases, medical staff being infected. More than 1700 have been infected with the virus as of february 11 as hospitals are grappling to treat the upright with short supplies. In beijing, we are seeing local media reporting that people returning to the city have been instructed to go on home court for 14 days to be observed. This is a human tragedy. At the same time there economic repercussions. What are the supply chain consequences . Sophie the Fiat Chrysler decision to halt at a serbian plant, that due to the shortage of parts from china. That is another example of the knock on effect of the Global Supply chain. That follows on the likes of renaud and g. M. Operations being affected. We are seeing a slow restart of operations. Power demand not picking up as was hoped for after the government called on companies to quicken the pace of reopening at their plant. We do have that in focus. David really appreciate all of your reporting from hong kong. That is sophie kam
That is the crux of the market. Software happens to fall neatly in that category. Do equities need to rerate because rates are so low . Are they giving us a signal that equities arent risk . They are able to issue whatever they want in the Corporate Bond market. You can see that has caused a change in strategy already. It is like everything becomes a bond. Bonds are rallying, gold is rally because of the nature of these things. Jonathan joining me around the table are james keenan, winifred cisar, and peter tchir. It feels like a buy everything situation. The 10year increase below 1 . U. S. Corporate borrowing costs at an alltime low. Is that what does is right now, just by everything, get when you can . Winifred everything but highyield energy. It seems investors have a lot of cash, we see record inflows into Investment Grade but the bias is very much to be up in quality. We dont want to buy cccs haphazardly, by energy haphazardly, but we had but the money somewhere. They are idiosync
Matt no cheating. The Trump Administration removes its designation of china as a currency manipulator ahead of tomorrows expected signing of a phase one trade deal. Proceed with caution. Markshares howard tells bloomberg exclusively, investors should beware of the bull market. The market has been up for 11 years. We are in the longest bull market and expansion in history. Profits are not rising though stock markets are. It does not mean the market will go down tomorrow but it does mean that the odds are in my opinion in the investors favor. Matt fit and focused. Can the former maintain its dominance when it comes to fixed income currencies and commodities . We are just an hour were away from the start of cash equity trading. Let us take a look at future us. Daxave green arrows here on futures and ftse futures and cap futures. We are looking at gains of about. 2 per 0. 25 green arrows in the u. S. Futures picture although they are not quite a strong with the exception in general, they a