There. Im trying to figure out whether the trade or the adp number has been the biggest catalyst of the action we seen so far. Volume is pretty good in europe. Cyclicals,ating into banks, rotating out of more defensive names. The pound is trading higher. Weve almost completely seentripped what weve since Boris Johnson became Prime Minister. The real action is what is happening in the bond market right now and treasuries. To 58 from 74 from 74 to 58. That is a huge move. Vonnie those talks to begin again, china and the u. S. Planning to have facetoface negotiations to end the tariff war in washington next month. Skepticism remains on both sides that any substantive progress can be made. Lets welcome bloomberg trade reporter shawn donnan from washington. Is there anything to suggest this particular announcement shouldnt cause us to roll our eyes today . Shawn its good that theyve agreed to have these facetoface negotiations. , these wereber originally scheduled to take place this month, so we are seeing a bit of a delay there. But something clearly has changed in the conversation between the u. S. And china. We were hearing as recently as last week that the chinese were holding back on committing to facetoface talks. Its unclear exactly what changed in the dynamic. The chinese had been pushing for a delay in the tariffs that went into effect over the Labor Day Holiday here in the u. S. They didnt get that, but maybe there was another carro offered by the u. S. Side. We should be very careful to raise expectations too high for these october talks before those even take place. This was apparent in the ustr Statement Last night. There are working level talks that need to take place. In that statement, there was a telling line in which they said those talks would seek to lay the groundwork for meaningful progress. In other words, theres still a lot of work to be done. Guy still a lot of work to be done. Shawn, is there anything to disabuse me of the idea that the chinese are still trying to wait the president out . Shawn i think this would very much fit with that scenario as well. Both sides are trying to manage the markets. Neither side wants to be the one that walks away from these talks. Theres no harm in meeting. , at a technical level clearly a deal cant be done in one session. This is going to be done over months. The real work is being done at a technical level. Shawn and it is unclear how much work has been done over the summer at the technical level. As we understand it, the discussions have been over how to resume negotiations. They have not been actual negotiations, if you will. We still dont know if the chinese are willing to go back was draft agreement, which about 150 pages that had taken us very close to a deal before the chinese objected at the last minute, and that caused a breakdown in tariffs and the escalation we saw over the summer. So we dont even know where these talks are starting. That means we dont know where they are going to end or when they are going to end. Guy i want to get your take on what you perceive is happening in china right now. Ive seen the chinese try and deescalate and hong kong. Theres talk that there are reserve cuts coming. The Interest Rate factor is there. Currency is still in focus. What is your read on what is happening on the other side of the table right now . Side, on the economics they are doing their best to shore up the economy. They feel very much they can write out the trade war, that they have the policy levers, and they are starting to pull them, to keep growth from slowing too ish, perhaps below 6 , which another line in the sand that we are watching. The hong kong thing is very different, of course. That gets into the to domestic politics. I was talking to someone this week this back from china, who was really struck by how much were linkingthere the hong kong situation to the u. S. Trade talks, and theres a lot of suspicion in beijing, and we seen this in the state media, that the u. S. Is involved some forin feeding that unrest those protests in hong kong. I think that the chinese are taking a long view here, but they clearly have their own level of skepticism about these talks and how much of a meaningful deal they can get from donald trump. Vonnie thank you for that update. That is bloombergs shawn donnan for us in washington, d. C. Lets discuss the impact on the levitt,with brian invesco strategist for north america. In a sense, it worked. We have indices up 1. 5 plus right now. Is there more to this rally than just a kneejerk reaction . Brian theres more to this rally then just a kneejerk reaction. We need to, as investors, we dont want to view this in terms of good and bad. We want to view it in terms of better and worse. What we are seeing right now is some moderate steps perhaps toward some greater clarity. Things had gotten pretty extreme in the bond market. The fed has backed off. U. S. And china are agreeing to meet. It looks like the u. K. May be kicking the can down the road on brexit. So is this great . No. But our things moderately improving . Yes, and that is why markets are responding to this. Vonnie are you looking for this bull market to continue, and for how long . Brian typically when cycles and, you usually see high cycles end, usually see high and rising inflation. Weve been in this nice environment of a couple of percent both and inflation, and the only time of percent growth and inflation, and the we clamp down on growth early in the cycle or try and fight these trade conflicts overseas, conflict this can continue for longer than people expect. The key term is are a a major policy mistake. Onelieve peak uncertainty policy is a 2019 story. I feel we start to see some improvement, some clarity on policy as we move into 2020. Guy you talked about the extreme positions of the treasury market. Similar thing over here in europe with the bond market with the bund market. How out of position is the market . If we are to see some of the big moves in august reversing, walk me through the implications of other asset classes. Brian we saw this in 2016. In essence, the bond market globally was responding to concerns about a policy mistake. Unravels is policymakers step back. In 2016, it was the fed. This year, it would be the fed and the trump administration, which would help the United States economy recover some as sentiment improves, bring rates backup closer to what we think real gdp would be, which is around 2 . That would steepen the yield curve some. The fed would probably come in with another Interest Rate cut. That should take some pressure off of the u. S. Dollar, should ease financial conditions in the ease financial conditions in the u. S. , should help oil stabilize, should help highyield credit spreads come down a bit, and in my opinion, it gets us back to this environment of modest growth, no looming policy mistakes. The u. S. Is still probably the big winner in that, but i wouldnt be surprised to see stabilization in chinese growth start to unlock some of that value that exists in the emerging economies. Brian, strong adp number today. Correlation with the payrolls is not even close to 100 , but if you were the treasury market right now and you had a decent month, and you are looking at that adp number and the payrolls tomorrow, what do you do . Brian i think investors should expect Interest Rates to go up modestly in the next cycle. That doesnt mean we are going into an environment of a prolonged and deep bear market in u. S. Government bonds. Cyclically, rates should be higher given what real Economic Activity is likely to be in the United States. Buildingor investors longterm portfolios, quality bonds need to be a part of it. If you want to look to the credit markets to augment the income and diversify some of those risks, that is going to be difficult to time for most investors. Cyclically, rates are going somewhat higher, but i think Interest Rates are going to stay low for a prolonged period of time given relatively weak growth globally. Vonnie what are you advising investors when it comes to europe . He spoke about brexit, but in terms of european stocks and bonds, is there value there . Brian if we get a bad deal or a no deal, that is going to be painful for u. K. Growth, and in the near term, u. K. Assets. Europe needs some stimulus. They need a stabilizing china. Those markets are cheap, but there needs to be a catalyst to unlock that value. I still suspect the United States will be the outperform or. , youyou need from europe need the fed to remain accommodative, you need the trade war to continue to move towards further clarity, stabilization of chinese growth that should start to help germany and the rest of europe. I would suspect that u. S. Growth assets and the emerging markets would likely outperform europe. Guy probably worth keeping an eye on, the german 30 year this briefly went positive. Just worth noting that to everybody. The entire german curve is no longer in negative territory. It was just a brief spike to the upside. Danger here presumably is that the ecb doesnt do enough. Theres an expectation the ecb is going to pull out all the stops next week, but theres a bunch of hawks out there saying we dont need to do that. If the ecb doesnt do that, how do i trade that . A lot of people are short the euro right now. Im just inking of the symmetrical nature of the risk. Is it asymmetrical here . Are trading,estors it could be a fools errand. If the ecb doesnt deliver everything, there will be further concerns about where European Growth goes, and you may see those yields start to drift lower. Policymakers seem to be coordinated. They recognize the backdrop we are in. They recognize it is weak growth , benign inflation or in some parts of the world, disinflation. Even if the ecb doesnt deliver everything in the coming days, we know central bankers are going to continue to be accommodative, and in my mind, that is supportive of risk assets, and it is a very different picture than what we whereading into 2019, there was concern that policy tightening in the United States was going to curtail this cycle. We are now back to a coordinated move from monetary policymakers. Whether we get all of that in one shot or whether that continues over time, that should be a good backdrop for risk assets. Vonnie brian, thank you for joining us today. That is brian levitt, invesco Global Market strategist for north america. Weve got some Economic Data crossing the bloomberg at 10 00 a. M. Eastern. The ism nonmanufacturing index surprising to the upside at 56. 4. The service is part of the economy doing well. The Services Part of the economy doing well. Another couple of basis points higher there for the 10 year, as you can see. Once again, ism nonmanufacturing coming in at 56. 4. Economists were looking at 54 for august. This is bloomberg. Vonnie live from new york, im vonnie quinn. Guy from london, im guy johnson. This is bloomberg markets. Bonds selling off, stocks definitely bid. Lets find out what is going on with have ago doolittle. Abigail lets take a look at global equities. We see a big rally here in the u. S. The s p 500 and the nasdaq both 0. 5 or more by 1. 5 or more. On tuesday, we had a negative ism print around manufacturing. Today, betterthanexpected for services. We see the german dax is higher, and the nikkei was up 2. 1 . The bigger story could be the move we are seeing for bonds around the world. 2019 been about the big bond rally. Not so much i were the last two days not so much over the last two days. This is the biggest backup for rates in the u. S. , at least for the 10 year yield, going back to 2016. Investors feeling a bit more confident now that the Services Number came in strongerthanexpected. As for the 30 year german bund, it has turned positive briefly, up 12 basis points. It is really pretty extraordinary, so all the concerns around the economy really waning a little bit today. In the u. S. , having an influence this isr action, we see the nasdaq imap, more sectors higher. Defense on bottom, growth sectors on top. So really a risk on day. Stocks higher, bonds lower. Guy same here in terms of the composition. Shares in jetblue getting hit yesterday. I spoke exclusively earlier today to the companys president geraghty about the companys forecast. That is associated with puerto rico softness associated with some of the government disastern, along with associated with the impact of dorian. There were hundreds of Flight Cancellations over the past week. The other 1 3 we describe as macro softness. What we are seeing in terms of and ourrends, International Footprint as well, the domestic is staying solid. It is consistent with what other carriers in the United States are seeing, but we felt that based upon early trends in may, june, july, we expected 1 more in terms of increase, and we just didnt see it. Guy so you are not seeing any clearly defined trend in terms of demand in the United States . Correct. With regard to the to domestic market in the United States, we are not. Guy and in the International Space . It is coming broadly based. There are not any specific pockets as we look at international. We mentioned puerto rico, caribbean. We got onto, weve got the Dominican Republic and haiti. As we thing about overall demand domestically, strong. International, weve got some pressure points, but that is fairly, and that part of the world. Guy in terms of your expectations on what the guidance looks like, do you expect the u. S. Demand story to hold up . Joanna we dont died out beyond this quarter, so i want to be idetious we dont gu out beyond this quarter, so i want to be cautious. Guy if your expectation that the consumer strength in the sector is sustainable . Joanna that is a question i wish anyone of us could answer with a degree of certainty. I think it requires us to look into a crystal ball. What we are seeing now is consumer demand strength is domestically strong, and we are optimistic that that trend continues into september and hopefully into the fall. Vonnie you have a big guy you have a big leisure footprint. What about business . Are you seeing any shift in demand there . Joanna as we look at leisure and business, we are seeing fairly consistent demand stories. Guy you are going to be joining us here in the United Kingdom very shortly. Youre going to be operating a transatlantic route. The big question everyone whats to ask is where my going to get on a jetblue plane here in the United Kingdom . You talked to the panel we were just on about a range of airports. How close are you to making that decision . Are making progress. We think that the jetblue experience could work well at any number of airports, and potentially at a couple of the airports. We are working through the regulatory process, and working with our partner airlines, to understand what we have available at places like heathrow. We think the jetblue experience coming to london could work well in any number of airports. Geraghty,ues joanna who is certainly having a big week. This is bloomberg. Guy from london, im guy johnson. Vonnie in new york, im vonnie quinn. This is bloomberg markets. Its time for the Bloomberg Business flash. Wework is significantly reducing the valuation it is seeking in its ipo to between 20 billion and 30 billion, according to people familiar with the matter. Billionaire real estate mogul the worst part about it is the Corporate Governance. Corporate governance is unconscionable. The idea that jp morgan is putting out an ipo with that kind of Corporate Governance is just unacceptable, and it is very negative for a whole economic system. The be that comment from capital agm. Shares of slack plunging today. The maker of Office Communication software projected slower sales growth for the thend half of the year, first time slack reported results since june. Facebook is launching its dating service in the u. S. The social network has been testing it in 19 other countries , unveiled in 2018. Users can combine element of their facebook and instagram accounts to create a separate dating profile should they wish. That is your latest Bloomberg Business flash. Guy thanks very much indeed. Lets talk about what is happening with the pound, rallying for a third day after british Prime MinisterBoris Johnsons Brexit Strategy crumbled. The Market Pricing out a hard brexit. Johnson will speak a little later from whitfield. We will be listening into what exactly he has to say. This is the sterling over the last few days. Weve almost roundtripped completely the losses weve seen since boris became premier. The big focus is what is happening in the bond market. Massive moves in the treasury market and determine curve. We are seeing a big move, the german 30 year briefly positive a little earlier on. This is bloomberg. Here, it all starts with a simple. Hello hi how can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. Guy from london, im guy johnson. Vonnie in new york, im vonnie quinn. This is bloomberg markets. Guy u. K. Prime minister Boris Johnson is set to make a rallying speech in the north of england after a series of humiliating defeats in parliament on wednesday, and the resignation now of his brother joe from the cabinet. Its go to westminster. , chander is standing by. Emma chandra is standing by. It looks like this is a critical moment in time for how this process unfolds. What could happen on monday . Emma you are absolutely right. First of all, you mentioned they will have the Prime Minister making a speech this afternoon, where he is going to make the case for going back to the public for a general election. What we are hearing is that the government will ask mps once again on monday to approve an early general election. They plan to do that because they expect the bill currently working its way through parliament now to prevent a no deal brexit will have passed where it is at the moment, and come back to the commons. That means Opposition Mps will agree to an early general election. They want to make sure that i no eal brexit has been that no deal brexit legislation has been passed. We will see whether they will call for that general election. Boris johnson making the case later this afternoon when he makes a big speech in the north of england, an area which voted to leave. Vonnie johnson purged more than 20 conservative mps, and there was some talk they would be reinstated, but in fact, what is happening is that more people are leaving. Emma thats absolutely right. What you are alluding to is the fact that the Prime Ministers own brother, joe johnson, conservative mp and minister in the government, resigning today, citing the tension between family obligation in the national interest. It is a pretty humiliating blow for the Prime Minister. There have been reports that other members of the cabinet did not like the expulsion of these 21 socalled tory rebels, and said they wanted to find a way for them to rejoin the party, but we understand the Prime Minister has declined that request. Guy thank you very much indeed. Much andra joining us from westman emma chandra joining us from westminster. Boris johnsons hard Brexit Strategy, the do or die strategy, crumbles. Bloomberg news managing editor paul dobson joins us now. We are closing in on closing out that chapter of the market. Its all about positioning, really. There were people building up increasing short positions on the concern that boris would be able to push this hard, no deal brexit agenda, taking things right to the wire at the very least. Those shores are having to close out with a little more optimism. At the samegui time, now seeing a pretty big unwind, higher on the yields, and that adds to the moment and for the pound. Vonnie optimism for what, though . A general election . A no deal brexit . A potential referendum . A Jeremy Corbyn government . Paul we will have to wait and see exactly how it all unfolds. How the Political Parties aligned themselves, whether they will be a brexit focus in these effort to come to some kind of reasonable accord. If you think about it longer term, the pound still near those two year lows despite the rebound in recent days, although ,ts been an impressive rally on a longerterm basis it looks week. Theres definitely potential for more gains if scenarios are taken off the table. Guy some moves in the bond market this afternoon. We almost got a positive german 30 year, 10 or 11 basis points on the german tenyear. , and august was such a massive month for the bond market. Payrolls are tomorrow. Ecb is next week. How nervous is the market at this level . Paul the move in the bond in terms of the yields is pretty pronounced today. Caught us a little by surprise as well. The bond market had gone very complacent. Few people were really to talk about there being a selloff. Today we had a number of things coming together. We got a lot of supply coming on, a record week in terms of sales. Youve got loads of u. S. Supply coming to market today. We had apple yesterday as well. We have Central Banks under delivering what the market is pricing in. We had the rba at the start of the week not as dovish. Then the bank of canada similarly disappointed. Today we had the third in a row not a more dovish approach. They are starting to question how big a package ecb can deliver. Vonnie i wanted to point to the pound index for one second. Againstook over time the broad basket of currencies, look how far weve come, going back 14 years at this point, but. Eve been in this range what has it done to the british economy, and what if it goes even lower still . Paul there are some interesting effects on the british economy. One of the arguments people predict is that it is a safety itthat will allow doesnt seem to be doing much to help the economy because there is so much uncertainty out there. People are holding off from , taking theirnt business elsewhere. It doesnt matter what the currency is doing. On the other hand, influencers finding it harder to get a hold of their goods. Business in the doldrums as a result. Consumer spending under pressure , the economy looking in a soft spot at the moment. To bring us back, the hope is if you can shortcircuit that and find some sort of certainty on brexit, that might unplug some of those holdups weve got and give the opportunity for more cash to feed through into the economy. Vonnie great analysis as always. That is bloombergs paul dobson. Lets check in now on the first word news. Heres renita young. Renita the u. S. And china will try to end their years long trade war in october. Willse vice premier liu he make the trip, but there is skepticism that there will be any breakthrough. Tariffs impose new onh sides raised tariffs monday, and the u. S. Has another round of tariffs set for october. According to the National Hurricane center, dorian will move over the coast of North Carolina tonight and tomorrow. In the bahamas, one risk modeler said insured and uninsured damages may total 7 billion. At least 20 people were killed. Iran says it will announce saturday what steps it will take to pull further away from the nuclear deal between tehran and world powers. President Hassan Rouhani reiterated his threat to accelerate Nuclear Activities if europe doesnt provide a solution to sell its oil abroad. Have has deal the nuclear deal has steadily unraveled since President Trump pulled out of the deal. 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 renita young. This is bloomberg. Guy thank you very much indeed. South africas government is intent in putting a state Power Company on stable footing. We spoke about it at the World Economic forum in cape town. That is in the works at the moment. ,s the president pointed out what will the ascom of the future look like what does the eskom of the future look like . In particular, how do we deal , onethe two key issues being the debt and financial issues, and the other the restructuring of eskom . Reporter and we deal with the restructuring . The discussion weve been having a a proposal to stave off part of the entity. Guest we certainly would think we could do with more transparency. They are part of a world where these entities are separated, and by that, i mean generation, transmission, and distribution. Eration and south africa generation in south africa comes largely from coal generated power. As far as transmission is concerned, that is a Strategic National asset in most countries because that is the great that enables energy from any source to move. Each country has its own idiosyncratic way of distributing or articulating electricity at the local level. We have our own peculiarities. Reporter and everybody has their own peculiarities, but are you behind that . Guest absolutely. That is what we are working hard at. Reporter on the debt side, what can you say to debtholders in terms of ensuring them that they will not have to take a haircut . Thats what the market is worried about. Guest i think the market understands. Are going to run a fair process. We will treat all lenders on an equitable basis. That will require a bit of wherece over this period, we are looking at different options, a Second Period where we consult with all the lenders, and a third period during which we will implement whatever bothn we go for, which we and the lenders can come to an agreement on. At the moment, we are entertaining all sorts of proposals. Before the end of the month, we are going to narrow that down, and asked the government to make some choices in terms of which direction we want to go in. Do some market sounding around that, and then take the next logical steps. Guy that is the south african minister for public enterprises, former finance minister, speaking exclusively to bloomberg. Vonnie coming up, a bloomberg exclusive. We hear about Recession Risk and trade threats, among the issues we spoke about at state capital agm last night. This is bloomberg. Guy from london, im guy johnson. Vonnie from new york, im vonnie quinn. This is bloomberg markets. The road to success for the u. S. In the u. S. china trade war, and just how far away are we from recession . Those are just some of the questions i put to a panel yesterday gathered for the be capital agm. Take a listen. I think the reason the president retweeted my comments is because i basically said that what we are doing now we should have done 20 years ago, and that weve allowed china an that weable advantage are going to spend the rest of our life trying to catch up to. I dont necessarily endorse exactly the way the president did things. The essence of my comments this morning were somebody needed to do something, and do something significantly. I think weve achieved that objective. Vonnie given that we are here and now, how would you move things forward . First of all, i dont know where we are now, so it is hard for me to anticipate how we are going to move things forward. I dontink that think we have a choice. I think it is really interesting that the country is very polarized, and the democrats are critical of the president and everything the president does, except china. Schumer, no elizabeth, nobody yelling about what we are doing with china because it is so obvious weve been taken from for a long time, and weve got to stand up and deal with it. Vonnie steve, let me bring you in here. Do you see something similar arising . Can we avert recession on this course . I think its a complicated question because we not only have china, we have brexit, we ,ave the situation with boeing so there are a lot of issues we are facing. We probably have not had thoughtful trade agreements for 30 years. This all started right after world war ii. I think the right thing to do was rebuild europe and japan, but it went on far too long where there was an imbalance. Trade, but not fair trade. Im hoping, like david, that the pressure to solve this on both sides, because this affects the chinese economy and Global Economy. Weve been the winners of globalization for the past years. It is goodeconomy. For everybody as long as theres a level playing field. Key is getting that level playing field. I think both sides have a lot of economic interest in making that happen. Vonnie you do a lot of deals in asia, india, japan for example. Are you seann impact over there are you seeing an impact over there . We are trying to stay away from Companies Directly influenced by the trade war. Many of our companies in china are services companies. Right now it is very dangerous to be dependent on the company that depends a global trade. Up given the tariffs coming on board. Trait haso say been a great driver of the Global Economy the past when he five years. Guy . E guy nice interview. Another big name coming up on bloomberg television, starbucks Ceo Kevin Johnson will be speaking at 2 30 in new york, 7 30 here in london. This is bloomberg. Vonnie live from new york, im vonnie quinn. Guy from london, im guy johnson. This is bloomberg markets. Vonnie its time for our stock of the hour. Shares of slacked trading at the lowest since the ipo after forecasts created concern about the communication companys growth. For more, we are joined by Abigail Doolittle. Abigail what goes up must come down. This company did a direct listing back in june, and shares did skyrocket higher, even though one reason for the direct listing was to prevent that. They put up a great third quarter, but the second quarter, i should say, but the growth in the second half not quite as strong. If we put this in the context of what they have recently been putting up, just two years ago or so, 89 sales growth. That went to 78 in the Fourth Quarter of that same year. This last report, 58 growth. That is true medicine growth, but into the next two quarters, 47 , 41 . People wondering if the growth is falling nothing cliff, but again, pretty is falling off a cliff, but again, but he strong. Guy why the big draw in the growth story . What is going on . Abigail its not entirely clear what is behind this. Some analysts are making the point that this is a public company, so the street doesnt know slack, and slack management is learning to be a public company. Until it is known, maybe this guidance is conservative. If they come out and beat in a big way for a few quarters, may be will know they were the company that will know they are a company that guides and a conservative manner. Maybe these details will be ironed out as the Company Builds more of a track record. The key level to watch is probably 26. Back inwhere they ipod june. You can see significant selling if some early investors potentially get out of the shares of slack. Vonnie so interesting watching all of these companies go public. Abigail lots of highprofile ones this year, for sure. Vonnie Abigail Doolittle there with our stock of the hour. Guy time now for a Bloomberg Business flash, a look at some of the biggest this miss stories in the news right now. Lets kick off with danske. The danish bank is shaking up its management in the wake of that Money Laundering scandal. A new cfo is coming from commerzbank. Danske also named a new head of wealth management. The chief operating officer will now leave the bank. There are reportedly some exits at Goldman Sachs come up to a dozen partners negotiating their departures, and will probably leave by the end of the year. Others have already left. David solomon is said to be culling partnership he sees as bloated. Last year the number of goldman partners peaked at almost 500. That is your Bloomberg Business flash. Time now for futures in focus. Joining us from the cme, bill ba ruch, blue line futures. Two way price action back. A big selloff taking place. Bill we are seeing a lot of pressure here. Risk sentiment getting a huge boost overnight. But it is not just the news itself. Theres a lot of technicals getting triggered here. The bonds come in. This is a muchneeded sort of cleansing in the bond market from where weve been. There was a trendline in the 30 around 1. 65 . E we are coming down to 1. 6 3 . I think we see the thirtyyear make a move back. We are seeing this consolidate down. I think it is just Getting Started in the nearterm. Down as long as equities consolidate, if you start to see some of the trade headwinds revisited and equities start to selloff, the bonds are going to be right back up. Guy in the near term, im curious about the positioning. I imagine theres some gamma selling taking place. Thats kind of self reinforcing. Take us through the to mimic that is moving the market is much is through the dynamic that is moving the market as much as it is. Bill the positions that have been in there have been quietly building, so you are seeing a shift that is forcing selling as we broke through key technical levels, but also seeing readjustment to portfolios in the larger scale of things as well. This has room to go to the downside quite a bit. We can see a lot of followthrough just as long as the risk sentiment stay positive. We start to see risk sentiment turned down south, and we leave the tail end of the week here on the s p, we will lose all of the positive moves we had over today. Guy great to see you. Thanks for the insight. Bill baruch joining us from the cme. Global coming up, hsbcs head of fx strategy david bloom is on the program. That is coming up at the top of the hour. Markets higher today. Treasury yields higher, as well. This is bloomberg. Guy 30 minutes left in the european trading day. From london, im guy johnson. Vonnie from new york, im vonnie quinn. This is the european close on bloomberg markets. Guy equities bid. The bond market is paying attention as well. Nearlyxx 600 is up by 0. 7 5 . We are seeing the pound rally as well. Thats putting a little bit of a cap on the ftse 100 today. I think this is where the real move is happening. We are seeing a breakdown in equities, but the bond market is worth paying attention to. Asht basis points, as high 11 basis points, earlier on. Bond yields going up. This is a chunky move. Two way action being reinduced being reintroduced for the bond market. Vonnie crude Oil Inventories coming in now from the department of energy. We are gettin