The Dow Jones climbed 200 points, or 0.7%, the S&P 500 gained 0.8%, and the Nasdaq Composite advanced 0.9%; the gains are the indexes’ first in three sessions as worries around trade negotiations have dented investor confidence. Optimism around the upcoming trade talks between the US and China has increased as China reported they are prepared to accept a partial trade deal as long as no more tariffs are imposed by Trump. China also added that they would be offering to increase purchases of US agricultural products in order to reach a partial deal. On Tuesday, the Department of Commerce added 28 new companies and agencies to its “blacklist” of Chinese companies banned from doing business in the United States. The yield on 10-YearTreasuries and 2-YearTreasuries increased three basis points to 1.56% and one basis point to 1.43%, respectively. The US Treasury will offer $24 billion at its monthly auction of 10-Year notes, the same as the last offering. White House officials continue to obstruct the House Representatives’ investigation into Trump’s attempt to influence the next election. The White House said that it would not cooperate, claiming the proceedings amount to “baseless, unconstitutional efforts to overturn the democratic process”. White House counsel, Pat Cipollone, sent an eight page letter to House Speaker Nancy Pelosi, House Intelligence Chairman Adam Schiff, Oversight Chairman Elijah Cummings, and Foreign Affairs Chairman Eliot Engel which stated, “You have designed and implemented your inquiry in a manner that violated fundamental fairness and constitutionally mandated due process”. Cipollone’s letter came hours after the White House blocked a key witness in the impeachment probe from testifying and sharing documents behind closed doors before the House panels.
PG&E has intentionally cut power to more than 500,000 customers in Northern California and that it plans to gradually turn off electricity to nearly 800,000 customers to prevent its equipment from starting another wildfire during hot, windy weather. A second group of about 234,000 customers will lose power starting at noon. The cutbacks followed a plan instituted after deadly wildfires destroyed dozens of lives and thousands of homes and forced PG&E into bankruptcy over an estimated $30 billion in potential damages from lawsuits. Gusts of 35 mph - 45 mph winds were forecast to sweep across the state, from the San Francisco Bay Area to the agricultural Central Valley and in the Sierra Nevada foothills. The California Department of Forestry and Fire Prevention said it increased staffing in preparation for extreme fire weather. PG&E commented that “it could take as many as five days to restore power after the danger has passed because every inch of power line must be checked to make sure it isn’t damaged or in danger of sparking a blaze”. Following in PG&E’s footsteps, Southern California Edison said more than 106,000 of its customers could face power cuts as early as Thursday as Santa Ana winds loomed.
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The Dow Jones climbed 200 points, or 0.7%, the S&P 500 gained 0.8%, and the Nasdaq Composite advanced 0.9%; the gains are the indexes’ first in three sessions as worries around trade negotiations have dented investor confidence. Optimism around the upcoming trade talks between the US and China has increased as China reported they are prepared to accept a partial trade deal as long as no more tariffs are imposed by Trump. China also added that they would be offering to increase purchases of US agricultural products in order to reach a partial deal. On Tuesday, the Department of Commerce added 28 new companies and agencies to its “blacklist” of Chinese companies banned from doing business in the United States. The yield on 10-Year Treasuries and 2-Year Treasuries increased three basis points to 1.56% and one basis point to 1.43%, respectively. The US Treasury will offer $24 billion at its monthly auction of 10-Year notes, the same as the last offering. White House officials continue to obstruct the House Representatives’ investigation into Trump’s attempt to influence the next election. The White House said that it would not cooperate, claiming the proceedings amount to “baseless, unconstitutional efforts to overturn the democratic process”. White House counsel, Pat Cipollone, sent an eight page letter to House Speaker Nancy Pelosi, House Intelligence Chairman Adam Schiff, Oversight Chairman Elijah Cummings, and Foreign Affairs Chairman Eliot Engel which stated, “You have designed and implemented your inquiry in a manner that violated fundamental fairness and constitutionally mandated due process”. Cipollone’s letter came hours after the White House blocked a key witness in the impeachment probe from testifying and sharing documents behind closed doors before the House panels.
PG&E has intentionally cut power to more than 500,000 customers in Northern California and that it plans to gradually turn off electricity to nearly 800,000 customers to prevent its equipment from starting another wildfire during hot, windy weather. A second group of about 234,000 customers will lose power starting at noon. The cutbacks followed a plan instituted after deadly wildfires destroyed dozens of lives and thousands of homes and forced PG&E into bankruptcy over an estimated $30 billion in potential damages from lawsuits. Gusts of 35 mph - 45 mph winds were forecast to sweep across the state, from the San Francisco Bay Area to the agricultural Central Valley and in the Sierra Nevada foothills. The California Department of Forestry and Fire Prevention said it increased staffing in preparation for extreme fire weather. PG&E commented that “it could take as many as five days to restore power after the danger has passed because every inch of power line must be checked to make sure it isn’t damaged or in danger of sparking a blaze”. Following in PG&E’s footsteps, Southern California Edison said more than 106,000 of its customers could face power cuts as early as Thursday as Santa Ana winds loomed.
The curve has bear-steepened with UST 10-Year yield up 2.73 bps.