Probably on the continued move in Interest Rates. Its a stunning selloff there today. Materials, energy, staples also decidedly weaker. Also tech and Communication Services have been about the only bright spot, there they, still hanging in the green and its kept the market picture from looking worse, as well. Nvidia, apple and amazon getting a lift today. It takes us to the talk of the tape and whether the Fourth Quarter will deliver investors as history would suggest as it does, or is this hills too steep to decline. Nice to see you. When you sat down, utilities, its pretty stunning to see a sector move to that degree. It is incredibly stunning and theres the yield impact. If you look at a dividend yield of 100 basis points less than the tenyear treasury and why take on the rick of compliance and revelation when you can buy it, if what were seeing within the Technology Side of things and theyre a bit more defensive and is that why were seeing so much strength in megacaps as they see t
We are on radio and television ,fx tuesday and were looking at markets. Teachers are 25 and or substantially lower than 24 hours ago, dow futures 160 in the vix was in 18 level. Away from the markets, foreignexchange is a litmus paper for the system this morning. Lisa the dollar is front and center and has been but giving but getting back a little bit of it. When we talk about dysfunction in washington, d. C. Is the dollar. The currency of the nation, are we at a breaking point . Tom its a theme we will go through today and lisa has an edge on what im doing. Each pair and the triangulation of foreignexchange speaks to what we see in the bond market. We will do it in the data check today. Lisa you buried the lead. We had an argument about much gloom as warranted, something that always happens in this time of year. It feels different to me. I think yield space feels difference different because there is a backdrop of what it means if you have rates that can keep climbing potentially to 7
U. S. Are still high yield. T is keeping the long end i think the flat thing has more room to run. It is the lack of faith we have been seeing for the last seven years. It is a lack of faith in the administration, the lack of faith in the qe in other parts of the world that are keeping bond yield suppressed. The expectation that nothing is going to change and it is the business as usual, i think that is an incorrect interpretation. I think we will see curves steepening again as the right policy mixf the begins to unfold. If you look at most people in the fed, they have been around the block. They have seen inflation pick up when no one expected it to, and they are responding in a way that their Life Experience dictates. The one sign that is waved in front of the market everyday is oil prices. They have been heading in one direction for a while now, and that is having a big impact, at least on the bond market. Jonathan lets bring in our roundtable in new york greg , davis, global head o
The Interest Rates in the u. S. Are still high yield. That is keeping the long end i think the flat thing has more room to run. It is the lack of faith we have been seeing for the last seven years. It is a lack of faith in the administration, the lack of faith in the qe in other parts of the world that are keeping bond yield suppressed. The expectation that nothing is going to change and it is the business as usual, i think that is an incorrect interpretation. I think we will see curves steepening again as the right hand tale of the policy mix begins to unfold. If you look at most people in the fed, they have been around the block. They have seen inflation pick up when no one expected it to, and they are responding in a way that their Life Experience dictates. The one sign that is waved in front of the market everyday is oil prices. They have been heading in one direction for a while now, and that is having a big impact, at least on the bond market. Jonathan lets bring in our roundtabl
Here. The company in question is called china evergrand group. Its hong kongs second largest developer. You put out a report in 2012, i have it here, some 61 pages or so in which you say the company was insolvent, used bad accounting and said it was a ponzi scream ay mong other allegations. In rendering its decision last week, this hong kong tribunal said, i quote, mr. Left consciously disregarded the risk his report was false and misleading as to material facts, reckless in conduct. Whats your reaction today . I dont think it was reckless in my conduct at all. Scott, look at that report. Its extremely well sourced. Its well documented. Everything is right there. Their accounting, in my opinion, was ponzilike accounting, taking from one person to pay back the person beforehand. And right now looking backwards, it probably wasnt the best idea to write an article on, i think its the largest Property Developer in china. That being said, you cant take away the truth. Hong kong has made con