Bidens agenda. He may have a different tone toward china but there may not be substance. Kiwi rise ind the early asia trading. At some ofke a look these early market reactions. Sophie kamaruddin in hong kong. Sophie we are seeing some risk on tone in australia. The aussie is extending last weeks gain as the greenback has stayed structurally quicker. Weaker. They could test that 650 level this week. The yen, the best week for the currency since midseptember. Softbank results are due this monday. We have nikkei futures in chicago moving to the upside. This after the benchmark rose to a november 1991 hi on friday. That was 37 off the alltime high that was back in 1989. New york crude is gaining ground but still staying under 38 per barrel there. Some pressure may come through in the oil. Is very much in focus after the chaotic week we saw in turkey. That is the Central Bank Governor fired there. Racing for more voluntary they are embracing more volatility there. Joe biden is projected to
President biden, if he does become president , can be. Can he reach across the isle . Aisle he reach across the . He spoke and talked about the need to unite america at this moment. Oflor i think thats one the key points coming out of this election. Its clear that perhaps maybe by popular vote or electoral vote, there is a clear winner, but it is deeply divided, and there is not a clear mandate and we are seeing that in the house and senate, that there was not a sweep. There was a much less strong mandate that we saw coming in through the polls. Can we at least find something we can agree on in terms of stimulus and pass that . Theine lets bring into conversation our reporter who covers a lot of what is going on in washington with our Bloomberg Government product. This message we heard from the former Vice President , joe biden biden, a few minutes ago that basically, the government is not your enemy. The idea that he, if elected president , will represent all people. The idea that he
Tweeted. Is it the art of the deal . Time will tell if this man, the commanderinchief, is bluffing. We had seen investors rotate value stocks. We had seen a widening of the yield curve. Airlines, what for job losses and people hurting . Off, askets selling noted. In the last few days, it felt like a reflationary narrative had emerged. That loseyimpressed and mnuchin are still working on a deal. All of that is still possible. Perhaps a deal after the election. But at least part of the stimulus story had the legs kicked out with that trump debate. Romaine this is a market that moves on narrative. Thatmarket was the idea the economy was improving, fiscal stimulus was coming, and the outcome of the election would probably print some sense of stability. Set to talk all about reflation, steeping yield curves, stimulus, blue waves, and then you had to rip up everything to come on the show. Trump tweet. Bout the last timeof that happened. Clearly, traders were pinning their hopes on losey and
Did meet today, but there was no deal announced on a new round of relief. Weekly jobless claims this morning remained near 12 million, and the monthly payrolls data may still telegraph a great deal of doubt about the economic recovery. Investors continue to bid up stocks, the s p 500 and the nasdaq and the green, despite one of the biggest cliches of the year no connection between the stock market and the economy. Joe will put the cliche to the test today. Joe not everyone accepts that, even though it is repeated all the time. Our guest points out that if you were to break down stocks by quintile of sales growth, you see that the companies with the highest sales growth are on the right side, the far right column, they have the strongest yeartodate return, pretty clearly. On the left, the worst sales growth, you see the worst return. Judging by return performance of companies, you can see whether stocks are connected to the fundamentals. Romaine they look like they are. Some would argue
It is showing how much power these businesses have to move the index in one direction or another, outweighing technology. As we look at the valuations 2000, the big underperformer today, relative to the median forward valuation on the s p 500, the ratio looks ugly, we are back down to the lowest we have been. I dont know if that is the denominator of the s p 500 continuing to decline. It could be both of those. It has been a downward trajectory, and we have yet to see it. Calls forwe have got questions to be asked of our guests as well. You are a growth investor. There are queries from viewers whether this can be sustained. We have been talking about the heady heights and valuations. You think the nasdaq 100 may have hit a wall here, or can it pull higher . I think we can continue to go higher for no reason at all other than sentiment. As a fundamentally biased investors, you believe you need to have some cyclical rally that comes through for most of these sectors to come to fruition.