Today’s Big Idea – UBS thinks there’s one thing that could end the Fed Put and that’s corporate earnings growth falling to a big fat zero.

What could end the ‘Fed Put’ on the market, or the notion that the U.S. central bank will cut interest rates in response to deteriorating economic data and thereby boost stocks? Francois Trahan, strategist at UBS Group AG, thinks the recent market tendency to interpret ‘bad news as good news’ for risk assets will come to a screeching halt if U.S. earnings growth drops to zero. Tracy Alloway reports on “Bloomberg Daybreak: Middle East.” (Source: Bloomberg)

https://www.bloomberg.com/news/videos/2019-07-10/what-s-the-big-idea-here-s-what-could-end-the-fed-put-video

Today's Big Idea – UBS thinks there's one thing that could end the Fed Put and that's corporate earnings growth falling to a big fat zero.https://t.co/TPhZH8kI2P

— Tracy Alloway (@tracyalloway) July 10, 2019