The other big central bank today, talking about the ecb in a moment, turkeys benchmark , in cut 425 basis points line with president erdogans plan for the country. He lira is stable guy amazing. Getcut 425 basis points and your currency going in exactly the opposite direction. Lets talk about the ecb. This is maybe not the reaction mario draghi would have wanted. Initially, yields went down. He says inflation, we are really worried about it. Someone asks, why didnt you do anything this time around . He says we didnt even talk about doing anything this time. Yields go exactly the opposite direction. We are 41. An amazing day in terms of bond Market Action in europe. Lets take a look at other assets as we continue to focus on this story. Eurodollar trading higher. Again, not what draghi would have wanted. Thanks stocks have gone up because there was an expectation that next time we will see some structure. Ring that is really worrying for the snb in switzerland. Vonnie lets get to some analysis of that. Ecb president mario draghi sending a strong signal that stimulus will be set up after the summer break, with lower Interest Rates and renewed asset purchases on the table. Have a listen. Inflation expectations have been at historical lows for some time, so we have to consider admission, and i stress this, that we dont like this. Vonnie we are joined now by strategasnert, Research Partners chairman. Did the ecb send a confusing message today . Messaget is clearly a that is not resonating with investors. In the 1930s, there was the term that came about called pushing on the string. The idea that youre going to provide more stimulus to the european economy that is somehow going to work you have already 13 trillion worth of negative yielding sovereign debt seems very uninspiring to me. Confusing,omewhat but i think what investors are really coming to grips with is youve reached the limits probably a long time ago of what you can expect central banking to do. It seems to me that europe has to try capitalism. Orhas to try fiscal stimulus regulatory stimulus, things that would spur capital formation. Just lowering rates clearly is not going to do the trick. Vonnie and indeed, he said fiscal stimulus is very necessary. But on the Monetary Policy about, he talked the economy getting worse and worse, and that the ecb was not forecasting imminent recession. Jason the good news from my perspective is that investors, if everything goes wrong, it doesnt grow or it declines , i think, and my opinion, its justified to be gloomy about europe because theres nothing particularly affirmative coming as far as fiscal stimulus or regulatory stimulus or other changes, so it is hard to get optimistic if you are not doing anything other than what youve been doing before. Guy can i take you back to what you just said about fiscal stimulus . Berns 75 the ecb is not there yet, but could be because it is allowing tiering on banks. One of the reasons why governments may not be dealing with structural inefficiencies in europe is they still believe the ecb has got some wiggle room. Does the ecb need to go all the way to the edge, all the way to the end . Where do you think that line is . Jason i have to say, it is a great question. You are talking to someone who probably think they reached that line a long time ago. It seems like when all you have is a hammer, everything starts to look like a nail. I think that is the attitude of a lot of central bankers around the world, with the possible exception of the fed, but of course, in the u. S. We had the trump administration, who had a very expansive view of fiscal policy, regulatory policy, and certainly a big change in trade. I think if you continue to ease, you also let elected officials off the hook. You give them more wiggle room to delay and less of an impetus to try things that would really stimulate the economy. Argue, ae, i would moral hazard in terms of elected officials to do things that would affirmatively help the economy grow. Guy do you think we are reaching a point where we see a turning point for european banks . European banks have been badly beaten up because the ecb tiering structure like the snb does to protect overnight deposits. There was a hint today that maybe they will look to buy other assets. Could this double whammy of actuallylus purchases mark a turning point for the european Banking Sector . Jason it could come up but i would argue that that is a bandaid when surgery is required. It certainly is not a compelling case. It makes european banks and interesting trade, and my opinion, but it doesnt make them an interesting investment longterm. I think mario draghi has and wondered idea, aloud, whether there are unintended consequences to negative rate. On the the impact it has Banking System makes it pretty clear that the unintended consequences are actually quite large. Those things might help in the shortterm, but i think there are much bigger structural issues that cant be solved through financial engineering. You need a change in approach and attitude to really get the economy going if that is what you are going for. Growth, it like slow is sort of a bad way to do it. Vonnie we have a new Prime Minister. Take us inside the dinner you had last night with some strategas clients. Comebackt partys vehicle is winning over remainers and tory hardliners. Im curious as to whether you came away with that dinner with anything new or fresh outlook. Jason the biggest take away is thatit seems to be now Prime Minister johnson has to put up or shut up. It seems to me that most of the people who are remainers, a good portion of the people would probably vote to leave right now , just given all of the drama and angst over the last couple of years. I think theres a general , and this is nigels view in my view, that you had a and now itprocess, is time to actually go through with this. We heard from mr. Berridge and our clients mr. Farage and our clients whether johnson is committed to a real brexit or whether it is likely to be delayed. We came along with the idea that it could be delayed further. On the is there a view element . E the farage jason be more confusion, more concern about volatility. Longerterm, if you can get this process behind us, i would be a big buyer of pound sterling. In the short term, i would be quite cautious because theres going to be a lot of handwringing and gnashing of teeth about this process and the impact it would have on economic growth. I think there was an acknowledgment on the part of nigel that if there was a hard brexit, you would have to do other things to stimulate the economy like cut the Corporate Tax rate and also had a very strong keynesian public works project on the other side. It clearly would have an impact on the economy, a negative impact, but you have to do other things to smooth that over and get the u. K. Back on track. Vonnie jason, come back again soon. Jason i hope so. Vonnie Jason Trennert of strategas Research Partners. Get a bloomberg first word news update. Heres kailey leinz. Kailey the first day with Boris Johnson as new Prime Minister, hes made it clear hes willing to go with a no deal brexit. He said he would turbocharge negotiations for a no deal divorce with the european union. He met with his new cabinet. Members under theresa may are no longer in their jobs. Kim jonguns regime has resumed missile testing. South korea says they fired at least two short range missiles into the sea north of the johnsula, just after bolton left south korea. Beenerican rapper has charged with assault in sweden. President trump says he offered to personally vouch for his bail. Kim kardashian west reportedly brought the case to the president s attention. Global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Im kailey leinz. This is bloomberg. Turkeysoming up, central bank makes its biggest rate cut on record, slashing its benchmark by 425 basis points even as inflation runs around 15 . A look at what it means for turkeys economy, next. This is bloomberg. Guy a bit of breaking news. Barnier talking about the speech Boris Johnson delivered a little earlier on in parliament and the comments he made last night. Barnier, the eu brexit , said become its on the backstop were unacceptable. The elimination of the backstop is on except about. To be honest is an acceptable. To be honest is unacceptable. To be honest, not surprising that barnier is not particularly happy about that. Vonnie it couldnt go unsaid, and there we have it. Now the line in the sand. Lets check markets with abigail doolittle. Abigail we are looking at a risk off tone for Global Equities at this point. Take a look at the s p 500 and the nasdaq in the u. S. , dealing with a number of earnings reports. We will take a look at two of the key ones dragging at this point. The dax down and emerging markets down fractionally, most likely in reaction to Mario Draghis comments about the outlook getting worse and worse. If we look at the 10 year german bund yield, we see something pretty remarkable. Earlier today, hitting a record low 41 basis points. That would be a seventh down day in a row, but after that Ecb Press Conference in statements by mario draghi, we are seeing a up backup in rates, net three basis points, but still down sharply. As for those earnings reports in the u. S. , take a look at tesla plunging, down 13. 8 , its worst day since january. Some question whether profit ability as possible. There was also the surprise anmenouncement of the cofounder in of the cofounder. Investors not liking met. A strongdown despite quarter. Finally, we are still in the summer doldrums because we have slightly bigger losses for the s p 500. When we go into the bloomberg terminal, we are going to see that last summer, we had a series of months all the way into the end of september of the s p 500 not making moveo the upside or the downside. Moves inolatility, big the beginning of this year. Right now we are in day 33 of the s p 500 not making a move greater than 1 up or down, mimicking last summer. Guy you wonder whether the fed next week can jolted out of that range. Thank you very much indeed. Lets focus on turkey. The nations new Central Bank Governor delivering the biggest Central Bank Interest cut in 17 years. Joining us is our Turkish Bureau chief. Good afternoon. Normally if you cut by that amount, your currency falls. It didnt. It went up against the u. S. Dollar. It is back to flat now. Just walk me through this, and why. Reporter it did actually go down for like 10 seconds. Then it came back up again. It was quite surprising. If you were to ask me what would happen if there was a 425 basis point cut, i would probably say the lire would decline massively against the dollar. It didnt turn out to be the case. Speaking to different people in the markets, people seem to think that a lot of people are trading the lira and just looking at the massive rate cut, and just focusing on what the real yield on the lira is, which is still among the highest among peers when adjusted for inflation. Vonnie i have a graph of it up here, and it looks like we are 15. 4 on the 10 year. It has come down quite substantially, but still it is extraordinarily elevated relative to comparable yields across europe. We can show the chart here in the bloomberg. Are traders playing this for carrie, then for carry, then . Onur thats right. Quite a few investors thought if it were to liver if it were ,o deliver a massive rate cut investors are backing the lira for the carry it offers. Guy president erdogan has a different view of economics than many of us. He believes that high rates contribute to high inflation. How low, how much pressure is he going to put on the new Central Bank Governors to deliver a series of rate cuts like this . Onur we know one of the reasons the previous Central Bank Governor was ousted was a somewhat unexpected or sudden decision. Rates diverged massively from erdogan. It is unusual view on how the cost of money and cost of goods interact with each other. We know that no one forward, hes going to push for lower rates as turkish inflation is expected to slow down, which is something expected because with all other factors contributing to turkeys inflation, how far he will go will depend on how the lira reacts. Erdogan may have certain ideas about the economy, but after all, hes a pragmatist. He will look at how the lira reacts, how it is taking a toll on the rest of the economy, including inflation and unemployment. Guy hes going to look at today and take a very interesting conclusion away, maybe. Thank you very much indeed, ant, aunt onur bloombergs Turkish Bureau chief. Vonnie taking up, our factor funds discussion. This is bloomberg. Vonnie live from new york, im vonnie quinn. Guy in london, im guy johnson. This is bloomberg markets. Lets turn our attention to factor investing. We are seeing it start to seep into the fixed income market, which is slow beer than the equity market. Here to discuss is it sleepy an theis slippier th equity market. Psarofagis. Is tom why has it taken so long to get to this point, but now that we are at this went, what impact could it have . Anasios the two things that i think held it back was the increased complexity compared to equities. When youre looking at trades and all of that. The other thing is when you look at these, theres a huge bench of Academic Research that goes back decades and decades. Fixed income is not quite as built out. Data backer to get that far and harder to validate it. Youre starting to see it go over, it is just a lack of data and fixed income that has been more on the equity side. Vonnie we have the likes of aqr in this space. Are there other Asset Managers joining in . Athanasios there definitely are. Why i think this is interesting, we have Bank Earnings and all of these companies coming out with earnings releases. ,f you listen to Blackrock Larry fink mentioned building out new exposures as one area they are focusing on. When you look at what has been happening over the last several years, theyve been away from nontraditionals. Not your broad, aggregate exposures. It is these factorbased strategies. Inres been a big uptick new, nontraditional product launches. Guy today is all about the ecb, so i have to ask you an ecb question. Draghi has pointed the staff to examine other assets that the ecb could buy. Ownsalready owns xe etfs. Is there much there that these be could own . That the ecb could own . Athanasios im sure they are looking at what japan has done. It is just a matter of is it politically or regulatory, will they be able to do it . Im sure they will be looking at equity etfs and even bond etfs. Guy thats an interesting point. We will watch and wait until september. Thank you very much. Bloomberg etf analyst tom psaro fagis. You can find all of these factors on your bloomberg. Is your function. This is bloomberg. Were the slowskys. We like drip coffee, layovers and waiting on hold. What we dont like is relying on fancy technology for help. Snail mail we were invited to a y2k party. Uh, didnt that happen, like, 20 years ago . Oh, look, karolyn, weve got a mathematician on our hands check it out now you can schedule a callback or reschedule an appointment, even on nights and weekends. Todays xfinity service. Simple. Easy. Awesome. Id rather not. Vonnie live from new york, im vonnie quinn. Guy from london, im guy johnson. This is bloomberg markets. Lets get a first word news update with kailey leinz. Kailey the European Central bank is sending the strongest signal yet it will step up monetary support for the economy. They expect borrowing costs to stay at present levels or lower for the first half of 2020. That opens room for a rate cut in september. The ecb also signaled it will resume its Bond Buying Program if needed. Theres a sign that Corporate Investment in the u. S. Is regaining momentum despite tariffs and a global slowdown. Orders placed with american sactories for businesse increased. That indicates secondquarter gdp due tomorrow may be betterthanexpected. The federal government awarded million forna 237 hurricane recovery come but as of this month, the state had only spent about 6 of it. Europe is sweltering through record High Temperature today. Paris has beaten its alltime mark, 105 degrees. It was a july record 98 degrees at Londons Heathrow airport. Summers in much of europe are usually mild, and few homes have air conditioning. Global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Im kailey leinz. This is bloomberg. Vonnie thank you. Lots of news in the auto business today. Tesla shares are tumbling as the Company Cofounder leaves, and earnings werent exactly and earnings coming out, and wasnt exactly an earnings quarter. It reminds me of the old prevailing wisdom, im not sure which of the carmakers said it, that what you lose in a car you can make up for in volume of sales. Is tesla hoping to do that . Yes, you now have people openly positing this morning with tesla, is the model three structurally unprofitable . Hashave a car that tesla come into their credit, proven that they are able to sell at high volumes. They are moving a lot of metal, but they are not making money. They had a record quarter of deliveries, and yet the loss was quite a bit worse than analysts were expecting. This is an open question at this point, whether or not this is a company that can make money. Threere selling the model at prices on average about 50,000, so we havent even really seen the average price the down with more of purchase is being some of the lowerpriced cars. This was a car that was supposed to start at 35,000, and theyve never really gotten to that price point in any sort of large numbers. Guy was at the numbers that freak to the market out, or the fact that one of the cofounders is walking away from the business after unloading a load of stock . Craig looking at the session last night, the stock was really taking it on the chin as a result of the numbers, and the muddied outlook for whether this is a company that can be profitable. But the shares were sort of beforeack a little bit the cofounder of the company o since 2000n the ct since 2005 is going to leave that role. He says he is still going to be an advisor, but it is difficult to take him on his word when a new guy is coming into the role, and hes already been selling shares. Hes already had his fingers in other pies, starting these sort of different pursuits. It is definitely a blow because weve seen a lot of management turnover at tesla, but this is a guy who, when tesla talks about the people within the company who are key, the people that they rely on and are highly reliant on, they mentioned him and elon musk. Vonnie another company where management has caused difficult in the past is nissan, and now we are seeing more job cuts, and revenues down. Is this another idiosyncratic story, or broadly a structural issue for the car industry . Craig this is a story, if you are listening to the nissan management now, one of cleaning up after the mess left by carlos unceremoniously arrested and booted from the company late last year. He was notorious for setting these really Aggressive Growth targets, focusing on volume. We were talking about that flawed strategy before. This was a company that was doing more sales maybe then was justified, was getting there by incentivizing and selling too many cars to rental fleets. It is now in this sort of positions with markets slowing, with too much capacity, that they are really paying the price for too much ambition, and the heir apparent to ghosn is not shy about pointing the finger at his predecessor. Guy mario draghi highlighting the difficulties the german auto sector is facing right now in his press conference a little earlier on. ,f you look at daimler and bmw you can see that. Why is it not there at volkswagen . Craig i think you have a situation where they had so much room for improvement from a product mix perspective, they took so long to get into the suv game and take that segment seriously, so you are seeing a situation where they had an opportunity to move the needle on that front. You are seeing them hurt by sales declines and some arelenged markets, but they able to offset that a fair amount by really getting serious about selling suvs at richer prices, and that is sort of buoying them in this environment. Vonnie we are going to leave it there, but lots of news for the car industry. The auto index in the s p 500 is down 3. 3 right now. That is Craig Trudell of bloomberg news. Coming up, guy . Guy facebooks resilience. Company ishow the handling regulatory scrutiny. Thats next. This is bloomberg. From new york, im vonnie quinn. Guy from london, im guy johnson. This is bloomberg markets. Its time for your Bloomberg Business flash. Southwest airlines has become the first carrier to drop the grounded boeing 737 max the rest of the year. It has taken it off its schedule through january 5. The airline is the largest operator of the max. See capacity will shrink by up to 2 . American airlines has removed the 737 max 8 from its schedule through november 2. The airline estimates the grounding will cut around 400 million of its fullyear profits. American Second Quarter profits beat estimates. Anheuserbusch and bev reports its Anheuserbusch Inbev reported strongerthanexpected growth. Volume grew at the strongest paste in five years at the strong pace in five years. That is your Bloomberg Business flash. Of puertoe governor rico has announced his resignation after weeks of as it struggles back from a ruinous hurricane and a bankruptcy. Joining us is bloombergs michelle caskey. He had to go eventually. The incoming governor has her own issues as well. Is the situation getting any better . Reporter thats part of the problem. She would be the next one in line unless something happens, maybe if the governor were to assign a secretary of state approved by august 2. That is still so up in limbo. It definitely that also be the secretary of justice who takes over. That person, whoever it is, would be in office through 2020. Affectw is this going to debt restructuring . Reporter regardless who is governor, the bankruptcy process will continue, and those cuts will be imposed on bondholders. Some bondually seeing prices going up a bit today. Theres this expectations that may be the new governor and potentially with the federal Oversight Board, if it were to gain some more powers, that would maybe speed up the bankruptcy process. Won moreall street than 900 million in fees with these bonds, and now theres a 120 day pause. The judge in the case has decided to apuse the whole pauses two pau to the whole process. Reporter it is also a pause on not the bankruptcy itself, but these litigations related to the bankruptcy and tied to the bankruptcy. Lets put that all aside, and shes asking all the parties to work things out in mediation for the next few months. Guy back to the politics. More broadly, how is this going to affect the longterm within thearrative Political Class . Are we going to see a wholesale shift of the Political Class . Theres been this antidemocratic theme that seems to have been running through politics. Im wondering whether or not Something Big changes as a result of that. Michelle up until a few weeks ago, there seems to be two Major Political parties on the island. You were either part of the new progressive party, which supports becoming a state, or the Popular Democratic party, which supports keeping rico as a commonwealth. What we are seeing is theres a possibility that people, maybe even younger voters, are starting to feel like maybe we need other types of Political Parties on the island. Maybe we dont need to just choose between these two. Vonnie the island went into bankruptcy in 2017. Theres been a fierce process of austerity imposed on its 3. 2 million citizens. Plenty of these politicians have fled and decided theyve had enough. What has been reaction to the resignation . What are the people saying . What do they want . Michelle a lot of the protesters were celebrating after rossello resigned. They are happy about this announcement, but what happens next . How do they feel about the federal Oversight Board . How do they feel about whether or not the security of justice is coming in or somebody else . That is yet to be determined. Vonnie bond prices going up in some cases. Thank you. Kaskeis michelle covering part of rico. Covering puerto rico. Coming up, futures and focus our next futures in focus our next. This is bloomberg. Guy from london, im guy johnson. Vonnie in new york, im vonnie quinn. This is bloomberg markets. Facebook keeps rolling despite an onslaught of regulatory scrutiny. Second Quarter Sales beat estimates. New user additions helping, and also advertising revenue. Joining us from San Francisco is Bloomberg Intelligence senior and of just is our Bloomberg Intelligence senior analyst. An effect on facebooks advertising revenue. Reporter pretty much. Going into the quarter, if you look at the expectations, Revenue Growth was supposed to decelerate. Instead, it accelerated 28 . That is showing the strength of how they are managing this transition to stories. That has been one of the worries for growth for facebook. Stories pricing is lower than newsfeed. They are moving to that platform much more aggressively. Theyre moving to the privacy focused initiatives. What does that balance due . But theyve been managing pretty well, but in light of the regulatory scrutiny and ftc fines, these results were very impressed are thats very impressive were very impressive. Guy is there fear that if the regulatory scrutiny doesnt touch the sides and this Company Continues to produce results, that the regulatory scrutiny does not work . Jitendra they are saying that the growth rate will decelerate 2020, second half and in and they are facing challenges with ad targeting, potentially ofw product rollouts because the scrutiny, and higher Compliance Costs. Those are the sort of unknown variables that could have some impact, but given that they are managing the advertisers and user base well in the background, that is the offsetting factor here. If you look at the expectations for this year, 25 in the next in 2020, you line these up with how fast the market is growing, what the advertisers spending is growing at, it is pretty much in line with that. If they are able to deliver on some of the newer initiatives , thanayments, ecommerce the Revenue Growth would actually be accelerating in 2020. Vonnie what is the outlook for Campaign Advertising . It is a hot button issue and will only get even hotter as the months go by. Is it important to facebooks bottom line . Jitendra it is important. What we are seeing in the past few elections, they have seen some success with the changes in transference they are doing. They are adding more tools. One of the reasons they are being more cautious is because of the Compliance Costs around it. It is going to be a big deal for facebook. Ande will be cautious tone how it impacts their product rollouts, things like that. But you can expect this to be a continuing, ongoing issue that investors will look at, especially heading into the elections next year. Guy what is going to win out . The stocks are reasonably close to record highs. What is it that is going to hold it back at this point . You talk about the regulatory scrutiny and the impact in terms of the cost. But at the same time, youve highlighted the strength that his company is producing. The stock has been on a tear. Is that going to continue . Jitendra over the last couple of years, youve seen facebook be conservative with their guidance in general. They kind of did the same thing now as well. But if in the next two quarters, what we see is these Compliance Costs as part of the ftc deal or all the regulatory concerns they are having are actually deteriorating to margins in a structural way, that could be a worry. That could change the story a little bit. But as far as the end Market Growth and facebook market share right now, and the stronghold on that market share, it really becomes an offsetting factor. The organic demand overcomes some of these challenges. The uncertainties that they are highlighting, how much can they really materialize in the second half and next year . Guy thank you very much indeed. Great analysis. Jitendra waral joining us from Bloomberg Intelligence. Lets figure out what impact draghi is having on the bond market. Now by joe at the cme. Draghi is lining up the bazooka for september. Is any of that being priced . Joe if you look at the bond market, you see the rates popping up. Dont know if it is putting more pressure on the u. S. Fed. I think everybody is firmly feeling like the fed put is in place. It is just going to really come down to, other than Monetary Policy, which i think the market is telling us we need more in europe than just Monetary Policy , and youve been discussing that this morning, what are they actually going to come up with as far as that bazooka . What is the makeup of that . Obviously they are going to keep powder dry going into next week, with probably a 25 basis point a 25 basis point cut. We will have to wait and see next week. Guy was there a sense of surprise there about how the market reacted to draghi . Initially we saw yields going lower, i. E. The bond market bid. We got to near record levels for the german tenyear. We got record levels. Then the market completely changed direction. What did you see down there as the whole process was happening . Clearly there is an effect in the treasury market. Joe we saw some more action. The bonds started to hold up, and then we saw the euro pop. We saw the dollar got a little bit weaker, which is definitely not what draghi wanted to see. Then we saw the actual bonds starting to move down, rates moving up soon after that. I think the markets are becoming wary of Monetary Policy being the only tool that anybody is discussing on how we are going to get inflation up towards 2 , and that is the target globally, and get economies moving. I think people are becoming numb to it. Guy is there expectation that we get 25 . Is that where we are now. We saw comments just before the blackout period that brought us back into line on that 25 basis point. Is that now firmly entrenched . Joe i think it is. The trade has already been baked in. 50 basis points i think is still a 5050 shot at best. Guy thanks for your time. Joe cusick joining us from the cme. Ofnie shares in our stock the hour having their best day ever, rising 35 after Advent International agreed to buy them for 5 billion. Emma is in london today. Here . Is going on emma this offer would take them private. You can see that shares in cobham reaching that today, rising this year some 26 before todays move. If you look back over the last off ofars, we are still the highs we saw in 2015 for the company. The company also has a fair amount of debt. That means it would be very difficult for the board to reject this offer with advent. Of course, sterling making the lower. F cobham look we have seen Companies Move to buy u. K. Companies. June was perhaps the busiest month in about a decade. Also talking a little bit about regulatory scrutiny. You will face some scrutiny from the u. K. , but we are seeing that move in the stock price today, investors thinking this is likely to happen, that it will get approval from the u. K. Government, and of course the new Prime MinisterBoris Johnson is probably likely to want to show that he is open to investment, certainly from outside investors. Is there expectation it will go through . Melrose tried to buy this company and got kicked into touch on National Security issues. Emma there is a sense that with the new regime in the u. K. , they may be a little more open to it. Certainly they will have to get past that as well. Vonnie and of course, weakness in the pound isnt hurting either. British Companies Looking a little more attractive at targets. Our thanks to emma chandra with our stock of the hour. Coming up, adam posen from the Peterson Institute for international economics, former member of the bank of england as well. Lets to cover in terms of Monetary Policy and more. 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From london, im guy johnson. Vonnie from new york, im vonnie quinn. This is the european close on bloomberg markets. Guy lets take a look at the journey the german tenyear has taken today. This is when draghi starts to unveil what the ecb has been up to over the last couple of days. Then the market kind of starts to take yields lower. We get down to record lows. Then somebody at the press conference asks him, you keep saying it is really bad, but why didnt you do anything . Did you discuss doing anything this time . Didnt,no, actually we and you see the market turn. We moved sharply away from that low that we hit earlier on in terms of the yield. In terms of other asset classes, draghi wouldnt have liked this reaction either. We saw the euro going up. It