The coming days will be pivotal in reaching a trade deal. Two of the most senior officials from the Brexit Campaign left Boris Johnsons inner circle last week. The chief negotiator says he will not be changing his position. Hurricane iota will be slamming into Central America today as the strongest hurricane of the year. Now a category five storm, it will bring torrential rain and catastrophic wind to an area still reeling from a storm two weeks ago. Global news 24 hours a day, onair, and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im Mark Crumpton. This is bloomberg. Vonnie it is 1 00 p. M. In new york, 6 00 p. M. In london, and 2 00 a. M. In hong kong. Im vonnie quinn. Welcome to bloomberg markets. Here are the top stories we are following on the bloomberg and from around the world. U. S. Equities in the green after that positive news on a covid19 vaccine, sending shares tied to an economic reopening higher. Stayathome stocks l
I mentioned microsoft reporting. You have four big names on thursday, amazon, apple, alphabet and facebook. Tech is the sector most likely it is see its earnings hold up. Care were theh sectors that posted profits and sales growth. All of that is priced in, which is why value stocks have outperformed in october for second straight month. Gina martin adams at Bloomberg Intelligence says Growth Companies are beating estimates more widely than Value Companies , but analysts are upgrading their forecasts more for the Value Companies and for growth. When value stocks do beat estimates, they outperform the. P 500 david weve been talking about the stimulus. Now it is pretty clearly off, at least until after the election. Our markets reacting to that . Scarlet we still see it in the equities because we are not getting we also see it in safe havens like the u. S. Treasury market. The 10 year yield is down for a third day. Also below its 200 day moving average, trying to get past that but we are
It is a decided direction and big tech. The lagging sectors are energy as Oil Prices Fell 2 , and health care. A picture of an economy that has largely stabilized but is also at risk of stalling out, especially if there is a second wave of the virus. No vaccine and no stimulus forthcoming. Jobless claims moving in the wrong direction and new home sales rising more than expected as americans continue to hunker down. The vix inching higher. It did get to 29. Treasuries are moving higher. That means lower yields, or at least it did before the most recent change, and the dollar stronger versus all of the g10 currencies except the loonie. Higher dollar means lower gold prices, and we have seen gold turnaround. They did fall to a two month low earlier. Gold could stand to use more groep to lose more ground. David i want to connect two things. You mentioned uncertainty be out the recovery, how fast it is coming back. Jobless numbers not optimistic. Also doubts about the virus. We heard from j
Rebound we had off of the lows and how magnificent it was. You have to put that in context with how fast we sunk into a bear market. That bear market drill down we 500, s p p p 500, that was the quickest drawdown we had on record here to see a bounce like this i guess is not completely out of the realm of expectations given how far and how quickly we fell. Taylor we were member that day clearly. It was march 23. Just at the pace and rate at which you talked about the fall and the rebound. In the middle of this, we talk about a 50 rebound. You are still giving incredible superlatives when you talk about it really has been a risk on. It is Consumer Discretionary materials, tech, they are up 60 since the lows on march. Really interesting that even though the fed has been so involved, the rate sensitive sectors have not been the all performers. Romaine i would like to get amys perspective on the rates market. Treasuries have been the lowflow shower of Financial Markets for the last few mon
Permeate. It has largely been driven by the concern that we dont have a handle on the virus and we dont have a handle on a solution for this difficult situation we are now seeing involving washington. It doesnt seem to be at the moment a landing zone for the democrats and the republicans. They are significantly far apart. The fact that you heard such partisan briefing suggests we are no closer. Thender at some point markets will have to shift from focusing on the dollar to shifting to other Asset Classes as well. That has been something we have been watching very carefully over the last few days. We have been watching carefully what has been happening in europe. Offpean equities are sold because of the resurgence in the virus count. That doesnt make sense if you believe that we are going to see a story developing in the United States. We will try to get an assessment of what is happening with the economy throughout the program as we continue to watch what happens in the United States.