[Bloomberg](
No end in sight to the Boeing 737 problem, the U.S. really wants a trade agreement, and yes, there’s another Brexit vote later.Â
Crashes linked
Evidence has emerged that the Boeing Co. 737 Max which crashed on Sunday may have [experienced the same problems]( as the plane that went down five months ago off Indonesia. The Federal Aviation Authority cited similarities in the flight path of both planes when it joined regulators around the world in [grounding the jet](. With no indication yet as to how long the no-fly orders will be in place, Boeing’s [$600 billion-plus order book]( for the model is at risk.Â
Need a deal
Gary Cohn, the former head of Donald Trump’s National Economic Council, said the president “[needs a win](” on Chinese trade talks and is desperate for a deal. While it’s now more likely that an agreement won’t be forged until [April]( at the earliest, U.S. Trade Representative Robert Lighthizer, giving testimony before the Senate Finance Committee yesterday, said that America must [keep the option of raising tariffs]( as a way to ensure Beijing lives up to any trade pact. Republican Senator Rob Portman said no deal would be closed without substantial changes to how China treats [intellectual property rights](.Â
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Brexit vote
If you were looking forward to March 29 as the last day you’d have to hear about Brexit negotiations, you’ll probably [be disappointed](. Another vote is expected after 1:00 p.m. Eastern Time on whether to delay the date Britain exits the European Union after parliamentarians yesterday rejected a no-deal scenario. European Council President Donald Tusk said on Twitter this morning that he will ask EU leaders to be open to granting a “[long extension](” to the deadline. The pound is having another volatile session with short bets on the currency rising to the [highest level since December](.Â
Markets mixed
Overnight, the MSCI Asia Pacific Index slipped 0.3 percent as weaker-than-expected [data from China]( weighed on stocks in the region, while Japan’s Topix index closed 0.2 percent lower. In Europe, the Stoxx 600 Index was 0.7 percent higher at 5:50 a.m. Eastern Time in a broad-based rally led by energy and communications shares. S&P 500 futures were flat, the 10-year Treasury yield was at 2.636 percent and gold dropped.
Coming up…
At 8:30 a.m., U.S. weekly jobless claims are published, with February import/export price data due at the same time. January new home sales numbers are at 10:00 a.m. Earnings today include Oracle Corp., Broadcom Inc., and Adobe Inc. Tesla Inc. is poised to unveil its new Model Y at an event in Los Angeles.
What we've been reading
This is what's caught our eye over the last 24 hours.
- China calls on [European and U.S. companies]( to join Belt and Road ventures.
- Negative-yielding bonds [top $9 trillion]( as growth worries return.Ă‚
- [Beto O’Rourke]( to run for president.Â
- When Elon Musk tried to [destroy a Tesla whistleblower](.Ă‚
- Huawei [isn’t a trustworthy 5G partner](, German spy agency says.
- Investors say today’s CEOs are not fit to handle tomorrow’s tasks.
- It’s Pi Day, so time not to be so [afraid of math](.Â
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And finally, here’s what Sid's interested in this morning
It’s really fashionable for hedge funds, corporate chiefs and the like to signal their prudence by projecting a recession in the next year to 18 months. But I have a hard time being bearish, not just because it’s so easy and therefore boring. I just can’t see the structural imbalances that are going to spur a material downturn anytime soon. Credit and cross-asset volatility markets implicitly agree, with fear vanquished everywhere you look -- even as the global economic growth slows down. There are two huge anchors for bulls. Implied price swings in Treasuries are close to record lows, harking back to the famous synchronized growth of 2017. And, relatedly, inflation remains low and stable. It’s all giving equity investors confidence about what discount rate to apply to cash flows, while flattering the earnings yield. Meanwhile, low expectations about the real economy lower the bar for the data-is-rebounding narrative. In short, we might be in a market sweet spot right now. So a narrative merry-go-round from monetary easing to tightening isn't out the question -- creating fresh good-news-is-bad-news-for-markets memes.
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