Morning 10-7

Worries about this week’s US-China trade talks initially weighed on Risk, as this week is trading session got underway. Bloomberg reporting that China “may be increasing reluctant to agree to a broad trade deal with trump,” The vice-Premier, the head negotiator on The Chinese side is visiting Washington on Thursday for talks. Lower level negotiations will start before the VP arrives so this week will likely see markets on edge for any tape bomb/Tweet from both sides of negotiators.

 Spoos initially traded lower as did  the Dax ,Weaker than expected German Factory orders weighed a bit on prices but risk saw a bit of bounce  around 5:00 AM as the unofficial start  of U.S. trading occurred. The 132 level in 10s is stiff resistance, twitter, and Bloomberg talking about heavy interest at the strike likely being defended. Bonds trading near session lows Gold and Silver -.3%, Bunds steady Oil bouncing a bit today +1% after a rough trade last week, Copper little changed and Nat gas -2% as weather forecasts shift towards warmer weather.

  Economic calendar this week shows CPI as the highlight, Chairman Powell speaks tomorrow at the NABE (national Association of Business economists) this a venue for Policy talk and discussion about Economy .On Thursday the Monthly WASDE crop report is released at 11:00

News and Notes:

  • China reopens tomorrow after week  long holiday
  • FT’s David Crow: “HSBC has embarked on a cost-cutting drive that threatens up to 10,000 jobs,
  • In its October 2019 outlook out this morning, the National Association for Business Economics finds that “panelists … anticipate GDP growth will fall below 2% next year for the first time since 2016   but  The business economics group does not see recession in 2020
  • Plenty of Impeachment talk and possibility of  a second Whistle blower dominate Political airwaves
  • President trump is allowing the Turkish Army to Invade norther Syria and possibly Attack the Kurds, these Kurds are U.S. Allies in the fight against ISIS.This may cause some rifts in Congress
  • GM workers strike enters its  4th week
  • Navarro on @NPR says it’s a big deal or no deal with #China – that @realDonaldTrumphas a “steely resolve” on the issue(mizuho)

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