Good thursday morning, welcome to squawk on the street. Im carl canton . Eua. News is solid and question is can johnson sell that to parliament as early as this weekend. Sterling has had a big mix Housing Starts disappoint. Our road map begins with netflix soaring despite the miss, the streaming giant warning that increasing competitive head winds could weigh on growth. It shows Morgan Stanley to be rallying, this on what looks like a strong quarterly result the banks cfo will join us this morning. As we said, futures rallying on new brexit hopes, uks parliament, approval, though, remains uncertain. Lets start with netflix subgrowth did mix. Rebounded to almost 6. 8 million thanks to International Strength on the earnings call, Reed Hastings did talk about the competition with disney and apple, set to launch their own services next month. Fundamentally there is not a big change here. It is interesting we see both apple and disney launching basically in the same week after 12 years of n
But news that could turn the good news to green purchase of new ships and resources to ship. The crew to interactive content to choose the next generation because it took such a. Person playing the channels available to School People to take action and most are turning to doing something here for the next generation gloomily as the environment series of global 3000 on t. W. And online. In. The Federal Reserve takes us Interest Rates down another note but after its 3rd reduction this year the fed says it will think twice before knowing rates again. Decries are in persia i thought to be in the fast lane to manage freezing a call making tightened. Valued at 50000000000. 00. And then warns that falling tax revenue may force it to tighten its belt. Germany to spend spend spend. Business the u. S. Federal reserve has cut Interest Rates for the 3rd time this year the central bank lowered the benchmark rate by a quarter of a percent to a range between 1. 5 and 1. 75 percent. Jerome powell has
The day when the dow was down more than 300 points the russell 2000 fairing the worst. Lets go to bob at the New York Stock Exchange remember all this optimism on friday the jobs report helped dispel some of the concerns about recession. Dispel didnt get rid of them. The market started expecting some positive news on trade. We have an escalation of the trade war and thats pressure with the usual names the problem is the markets increasingly coming to believe that a trade deal even an 80 trade deal may be unlikely this year thats a big problem it means potentially lower growth in 2020 it means flat to lower Interest Rates. It means flat to lower oil and it continue emphasize on owning the defensive sectors. Those utilities, those Consumer Staples that have been so much a stand out theis year and so expensive. They are the stand out sectors this year. This narrative means stocks are expensive right now. Number one the Fourth Quarter guidance, if this uncertainty continues is not going to
With Steve Liesman and fresh comments frommed fed chairman. Jerome powell sieve times said Interest Rate policy depends on the Economic Data he added the economy is overall in good shape despite troubles on the horizontale many indicator show a strong labor market solid job gates. Unemployment at half century low and rising prime i age participation. There are risks. Prin will i from Global Developments growth around the world mass weakened the last year and a half and uncertainties apprehend trade and, brexit and other issues close risks whats did are does it mean for the outlook process . He appeared neutral about what the fed would do at the late october meeting. Markets took his comments as affirming expect aches for rate cuts jp morgan if the fed leadership wanted to push back gesticulate against expectations we think powell would have chosen language not calling out downside risk. Speaking in denver, the fed chair said the central bank will increase the size of the Balance Sheet
Dissents was back in 2016 when there was a vote of no change, they wanted to hike. The projections show a very divided Federal Reserve. Seven fomc members forecast a third cut this year. That is one more from where we are now. That would bring the rate down to 1. 63 or the average rate. Five members see no need for any cuts at all. They didnt even want the one today. If everybody had a vote. Not all the members vote it would have been five dissents from today if they voted that way and five more forecast just the one cut this year. Put it all together and do all the imagine. The median is at this is it in terms of cuts thats the median of the funds rate forecast for the Federal Reserve. That said, the plurality does see one more cut coming which is seven, does it include the chairman we dont know. Thats going to be important now, the fed also lowered the interest on excess reserves, and another administrative rate in order to atept to get ahold of the fed funds rate, which as weve been