We had been down nearly triple digits less than an hour ago after commerce secretary wilbur ross echoed the president s America First policy in davos. Even signaling we may be heading for some kind of a trade war. I got to say this. Good for wilbur, good for wilbur. I said over and over again, as we deal with the north korean crisis, we need to be willing to play tough with china. That is what is indicated here. If it means losing a little bit on the economic side, wouldnt you rather lose dollars than lives. So good for wilbur ross. Well talk about effect on markets. News today, starbucks is handing out bonuses because of the republican tax plan. Get this, liberal media and democrats cant seem to give the president any credit for optimism out there or any great Things Companies are doing because of tax reform. Wait until you hear what one reporter said to gary cohn. We go to blake burman out in davos where President Trump will address leaders. Reporter hi, trish. It is a bit of a trick
Draghi said the ecb will keep as much stimulus as the eu economy needs. We have an exclusive interview minister,s finance Pier Carlo Padoan. In london, european stocks, little changed. One hour into the trading day, up marginally for the fourth consecutive day. Best run since september. We have had fresh threats from north korea, sending money into haven assets. The euro falling for a second day post the german election down to 1. 1813. Falling five basis points in the wake of the german election. Brent crude is just a low 60 a barrel, down by. 6 . Why we saw gains in the last 24 hours, turkey threatened to shut down curtis shipments shutdown kurdish shipments through its territory. There is no a seven dollar spread between the benchmarks. Greece willank of start stress tests to determine if they need fresh capital before the greek bailout program. The results of the test could be ready in early may. That comes as maria draghi said yesterday the single supervisory mechanism might hurt
I feel good about it. Steph and i talked before the show ive tried to be cute at times, did in the beginning of september, if you remember i thought the market had a lot to overcome from a trading standpoint you have put a small position on, but listen, this is a market that punish eds you. You need to get out quickly to see where we are today i love whats going on with technology the software play is the play that i have. Its the the three big names. Its microsoft, its s. A. P. , its red hot, and im not looking to get out of any of them. Steph, you know, we mentioned mike wilson who is the the gentleman we were alluding to at the very top of the show i of Morgan Stanley. Sat right here hat the desk recently saying theres greater risk of a correction than hes seen in a while. Points to the Balance Sheet reduction from the fed uncertainty around the next fed share. Negotiations on text legislation. Counter trend dollar rallies is he wrong . Those are all real risks, no. For sure, and i
Jonathan it was better with cable down and the euro at 1. 17. Alix talking about cable, take a look at the gilt market. In the gilt market you are seeing yields up about four basis points. After thetively flat data out of the u. K. Unemployment and wages. Dollarmex down slightly. Aluminum missed, down 1 . David it is time for your morning brief. We will start out here in from two fed president s, bill dudley and Robert Kaplan in a discussion. U. S. Nutes later we get Housing Starts and Building Permits for september, and the Senate Finance committee will meet with President Trump. Jonathan chinas president xi jinping laid out a roadmap to turn the country into a leading country by 2050. He warns there may still be a bumpy road ahead to success. Our development is due within a great situation. Slight but our challenge is tough. Jonathan opening chinas doors to foreign businesses and monetary policy. Joining us are Tom Mackenzie and enda curran. Just run us through the highlights of what
Meetings and say if we will get dissent. If we do not see process, i pledge another fetched these 42016. Monetary policy on wednesday. The secondlargest public pension plan in the u. S. Portfolioinvestment value at 193 billion. You dont want to miss that conversation coming up. Jonathan treading water. That is the way things are set up. Equities are positive in europe. The taxes moving higher as well. By around. 6 . Eurodollar, it is a snooze fest in the fx market. I will talk about that later. Positive, but just only by. 1 . In the mind the market, a rollover on crude today. Brent back 7 10. We talk about this stealing of the yield curve, jake peavy bonds, and right here in the u. S. On treasuries. Treasuries at the long end, 30 year yields at three basis points. Today, centralbank decision. Alix it is finally going to happen. Lets check in with our Bloomberg Team part indepth coverage. Where one day away from that decision from the fact and the boj. Iswashington as wells fargo chief