Contraction. Oil pushes higher as russia says it is willing to cooperate on the cuts. Brussels watch. Turkey triggers fears of an eu border kiesels crisis amid growing military escalation in the u. K. And eu trade talks begin amid fears of a breakdown. Welcome to daybreak europe. Kuroda has spoken. The central bank puts are alive and effective. Dollaryen, look at the past five days. On friday evening, so the powell put was activated on friday. Likewise from the bank of japan. The firepower within g7, g20 from the monetary and fiscal point of view. Dollaryen was rolling over. Appropriate support, ample liquidity from the boj, appropriate action in terms of qe. Appropriate seems to be the byword central bankers are latching to. And valueon of wealth last week in the s p 500 so i will not get that excited about a. 5 rally, but it has turned around. Injected liquidity, three rate cuts talked about. You have the beginning of a perception of what is the yield on the s p 500 relative to a bond yield . We will discuss that with my guest in a moment. Oil, if you are staring down the byss, you could sniff out a 30 barrel of oil. Objectorsost defiant to a cut at the table. Pressure filing up on the fed and a Central Banks around the world to respond to the coronavirus outbreak. Jerome powell says the virus proposes evolving risks, u. S. Growth. He says he is prepared to cut rates if necessary. Goldman goes for a 50 basis point cut this month. Japan, the boj offered to buy 4. 6 billion of sovereign debt. More, lets get to sophie kamaruddin. She is in hong kong. Get me up to speed on the numbers, the liquidity, and the rhetoric. Sophie we have authorities under pressure to provide relief, given the number of cases around the world climbing. China, infections rising with total cases topping 80,000 as the economy in china looks set for a First Quarter contraction. Activity, shrinking to a record that isebruary and helping drive a rally in chinese stocks, the 300 jumping as much as 3. 5 . Won, strengthening above 1200, even as south korea climbed past 4200. Shares under pressure as the country has confirmed its first two cases and the Central Bank Governor of indonesia is holding a press briefing later. Are building bets the rba will cut rates tuesday after the country reported its first fatality linked to the virus. In iran, infections have doubled. The who will be going to iran and infections are climbing in north africa and egypt and algeria. In europe, italys case count jumped by 50 . The government, hoping to widen the fiscal deficit to provide for 4 billion in relief measures and elsewhere, france adding 30. In the u. S. , cases have been identified in california and washington state, as well as new york city. Concerns of the virus spreading in the u. S. , President Trump is meeting with pharma executives this afternoon. Manus sophie, thank you. It is about the response mechanisms. My guest host this morning is at barclays investment solutions. Good to see you this morning. Withent into this route underweight developed equities, overweight em. You shifted friday night. What was the moment, or what was the spark to shift your positioning and what is it now . Manus good morning, manus. Not a pretense that we have better view than anyone else. There is evolving size coming down the pipeline. There is one part of our Asset Allocation hinging on the sentiment indicator. In the extreme positive or negative, you act in the opposite way. The odds of winning from that trade tend to be greater than 50 and given how extended sentiment was on friday night on a three to six month view, many more times than not, you find equity returns are positive over cash over that timeframe. That is the basis of the decision. So if that is the basis of the trade, to the director, i will take the charts on my screen. We are five kilometers give or take, but that cant stop us from talking about a chart. This is Global Financial conditions. A lot of people are saying to me we dont want central bank cutting rates, thats not the right response. I put it to you they dont know what they are talking about because the purpose isnt necessarily it will get me to do something magnificent on the spending point, but to bolster this squeezing of financial conditions. Oste . At a friend rip will financial conditions have loosened up a little. Stocks have done worst. Make on thepoint to authorities actions, they will find in terms of the actual impact on the economy, they tend implementation on fiscal policy but nothing will come to the rescue straight away but what you are doing to an extent is supercharging the eventual rebound from this economic we are of the view of many others on the street. A recession can be avoided. Of robust Economic Health the keystone of the global economy, the u. S. Private sector and the u. S. Consumer remain sufficient for us to bet that this is a digestible blow. Obviously have it is an uncertain path and we dont know what will happen next and there are bad headlines that will squeeze markets in the meantime. I dont want to be flippant about this, but we want to be wary of the scarier stories of the moment. Although this is more faithful than seasonal flu on many accounts comic it is three to nine deaths in 1000 versus one death in 1000 and the reproduction rate doesnt look dissimilar. We want to be wary of doomsday scenarios. This is survivable and economically, we think the economic cycles continue. Manus i love your phraseology this morning. And youour point reflect what the World Health Organization was saying to us. Financial markets need to calm down. A couple of phrases you used, the potential for a supercharged rebound. Be careful what you say to me while i am on my own. Supercharged rebound and a digestible. In a supercharged rebound, how do i position for that . I look at bonds and i just want to get a sense. Ive been sniffing around 1 , give or take. Futures, we traded sub 1 on the yield analysis. On a supercharged recovery, have very less could the unwinding of the long bond position be . William it has got to be quite extreme. I think youve hit the nail on the head. If you look at the 10 year, and people are arguing now that it is a probabilitybased bet. Youve got potential outcomes. The treasury market is reflecting the lower end or the worst cases of those. For us in six months time, if you have not found the World Economy is in a severe recession, then treasuries look incredibly expensive. Bonds lookment incredibly expensive and that will have ripples across the asset class framework. Parts of the stock market which have leaned on those you low yields, they will be hurt too. Be, six months down the line, people are looking at the extremes of the value growth story and wondering whether this is something that unpacks that story a little. He other interesting thing and we dont know what will happen to inflation in the next couple of months, but you are starting to see signs of some nascent pickup in inflation. Core inflation in the u. S. To 2. 3, so that recovery in. Nflation has been delayed strongmoment, we are views of the enemy here. You want to stay as close to benchmark as possible, but from the valuation perspective, you would certainly say core government bonds are something we are leaning against and we would recommend others do too. Manus i want a glass of whatever they are having down but it isanary wharf, a measured response and to that end, the csi 100 csi 300 respond as well as reprieve being offered. The csi 300, let me pull up my markets board. 40. 83. 3 at we will return to the conversation a moment. U. S. Equity futures are trending higher up. 5 . Your first word news flow this monday morning. In the u. S. , the former Vice President joe biden has won the South Carolina primary, moving him closer to the front runner sanders. Pete buttigieg pulled out of the race, despite early win in iowa. He joins Billionaire Tom Steyer who suspended his campaign. Ext, super tuesday 13 states, hundreds of delegates up for grabs. South korea says the north has launched two unidentified projectiles off the east coast in a move coming just after the First Anniversary of the failed hanoi summit with the u. S. It is the first provocation since north Korean Leader has said he was no longer bound by a selfimposed freeze on weapons tests. Oil freeforall has been halted by expectations opec and allies will deepen their output cuts. Resident Vladimir Putin has said russia is ready to support the worlds oil market, even though with currentable prices. A growing minority are thinking that only for the fourth time in about 40 years, Oil Consumption may not grow at all in 2020. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Coming up, greece declares a state of emergency as turkey opens its borders to migrants wanting to travel to europe. How will the eu respond . We are live to brussels. And the oil market rebound, russia says it is ready to talk. More on the chart that matters. Thats next. This is bloomberg. Manus it is bloomberg daybreak europe. Im manus cranny in dubai. Rebound, russia is ready to support the global oil market, even though it is comfortable with current prices. S p futures rallying one third of 1 . Euro stocks up 1. 3 . Markets are repricing. President Vladimir Putin is ready to act after last weeks 16 implosion in the market over coronavirus. Annmarie hordern joins me with a chart that matters. Annmarie we are seeing a rebound in oil, but for context, down 21 on brent and wti since the outbreak. Rsi, moving into oversold territory which signals this is a buying opportunity which could. Be why we are seeing a rebound. We heard from the world energy czar, president putin ready and willing to act with opec but he says russia is content with prices. Russia can balance their books at 40 a barrel on brent. Many in the street think opec needs to act in a big way. Many say the cut on top of what they have our to cut might not be enough, especially when you look at what many say is deep demand destruction and zero Growth Potential in the oil market for 2020. Breaking be news on the telecom space. Naming the new ceo. The ceo joined in 2014 and i can tell you in terms of and youve got to move quick. In terms of delivery to his peers, negative return of under 4 . His peers delivered a return of 20. 65 . Lundmarks name ceo. Suri is to exit. More on the oil story. Anthony the apollo depaulo. An abyss. What is it . It is the demand. It is vanishing. We know where it is going but not when it is coming back. This flips the market on its head. We were looking at excess supply this new year and opec was able to control that by taking off. Rug pulledeen the out as coronavirus takes away demand because people arent traveling, so that is hitting the market and we dont have yet an idea of when that virus will peak, as it were, and some of the Economic Activity will come back. You are looking at that decline in Economic Activity that is hitting the oil demand in a market that was already looking to be weaker than last year. Are looking ate even the worst Case Scenarios of zero demand growth. Still modeling around several hundred thousand barrels a day but with the risk we get nothing. Manus look, all of this is galvanizing russia. , russia coming at it and saudi arabia, from different vantage points. Anthony if you are making a deal, why at the beginning . Drag it out. How dare you call it horse trading. Anthony there you go, skilled negotiation. Assuming they still have it, so far, the selling is still on. They didnt meet last month when the saudis wanted to meet in an early meeting. Things have gotten worse on the virus front since then. Oil has dipped lower, and we see the specter of 30 and Analyst Reports coming out. Manus that is what freak everybody out. Anthony that is focusing peoples minds, yeah. That skilled negotiation is coming through as partners look to find where the Common Ground is and look to find a level of production they think they can do something to this market to arrest that decline in prices. Manus anthony, thank you very much. Anthony dipaola with the latest context as we get ready to go to the airport today, in theory. We will see whether that changes. William hobbs is the cio at barclays. With lots of numbers bandied about, the specter of 30 oil. How do you look at oil relative to your very stoic view on the equity market . Know, thes you problem for oil is it has to digest current demand first, unlike stocks which can look through and set a value of future cash flows that come about, so oil is in for a rocky ride and that is one of the things we have been seeing from the chinese economy. From the highfrequency data, which gives narrow shafts of elimination, the pmis have augmented that in recent days and they tell us the chinese economy is in large parts come to a standstill in large chunks. That has been incredibly destructive, demand of oil. Are looking at, if you are seeing a significant , thirdmonetary reaction and Fourth Quarter for oil look more appealing, but it is brave to step in and always calling spot prices is dangerous anyway, but we would say the future or the little brighter, third and Fourth Quarter look brighter than what you are seeing right now. Manus can i pivot to gold . Of hypothesis about why gold imploded in the last report of last week. Some said to me it was to cover your margin calls. It was portfolio constructs of being forced to liquidate all assets. You still would maintain that gold might leave me a better optionality as a hedge rather than treasuries. Why . William well, nowilliam . As ae not using gold reliable safe haven. When you look to a safe haven, what you want is something that reliably goes the other way when stocks plunge. If you look over time, there is only really a few of those. Threecash really or months reliable over time, you do not find gold provides that reliable role. However, with yields on your traditional safe havens so low, government bonds, core government bonds, you could argue and some are arguing it is about a tailwind hedge. End of lastat the week, i cant say but it has risen quickly. Ofh, i would be careful claims that gold is a reliable safe haven. I dont think it has proved that over time. If you do find that real yields they shouldto where be in positive territory, obviously gold is a yieldless asset, a bird without wings. Manus thank you very much and if i misrepresented your position on gold, i apologize. Stays with me from barclays investment solutions. That is the state of play on the market. Chan joins bloomberg today on bloomberg tv. This is bloomberg. Manus this is bloomberg daybreak europe. Im manus cranny in dubai. My guest is William Hobbs of barclays investment solutions. The bottom line for you is your glass is halffull. Therefore, the expansion in highyield, quite a ripper last week in a blowout on the spreads. Does that have more mileage to go or is that an opportunity to pick up highyield at distressed levels . Excuse the pun. William i wouldnt say it is distressed yet. Was coming from expensive territory and across the credit spectrum, it has been equities that have borne the selloff so we are leaning against credit high quality and lower quality in the developed world, anyway. Could go further for us. , in the short run, theres got to be significant uncertainty about your first half of the year. We are only just seeing the start of the outbreak in the developed world and we dont know how far that will go. If it does extend, you will see a lot of stress on certain parts of the economy. Think tourism. Some Small Businesses are going to suffer the next couple of quarters. Manus well, thank you. Phrase of the day, hobbs. Supercharged rebound. Is the financial secretary. The interview of the day. [ fastpaced drumming ] [ fastpaced drumming ] manus good morning. This is daybreak europe. These are your top stories. Pricing and stimulus, the boj buys to maintain stability amid the coronavirus outbreak. From gives lenders reliefs bad loans. New york city reports its first case of the virus. Global deaths break 3000. Halting the free fall, the fed singles signals openness. Goldman sees rate cuts amid a shortlived global contraction. On the commodities front oil pushes higher. Russia is ready to cooperate on cuts. E. U. Y triggers fears of an border crisis amid growing military escalation in syria. This as the u. K. In the e. U. Trade talks begin amid fears of a breakdown. And the e. U. Trade talks again amid fears of a writedown. Amid fears of a breakdown. Riseorst stock market Global Financial crisis showing signs of at least a moment of pause this morning. Is that what Global Markets are telling us as yields, banks and equities manage to get a rally . From singapore, mumbai and new york, lets get to it. We have our reporters here. Annmarie hordern has got the air miles. Lets get to a reporter how are you doing . You have got pmis. Take it away. Good morning. It is turning out to be a good morning. It is surprising because it has been it started off well and cooled off. Some shortening which is very large but at the current part of climate you look at the major indian indexes are trading with impressive gains. This is despite banks not participating as strongly. They are 38 waited on the index. They are not participating but the larger indices are doing well. The midcaps are doing well. So in sync with what the World Markets are doing. No surprises through the question is how long will this last. Back to you. Manus juliette. We have had a heck of a bump in china. It has been everybody to the pumps from rhetoric in Central Banks to state actors maybe. Give us your thoughts. Itit was interesting today was not about liquidity because the pboc refrained from putting money into the system you can besthe csi 100 with his onn since march, up 3. 7 expectations you will see stimulus. You are seeing a lot of the industrial players looking good after the shocker pmi numbers from the weekend. The shanghai comp with its best gains since february last year. The korean won is moving extraordinarily. The biggest move since symptom or 2011. We have been talking about the dollar weakness since september 2011. We have been talking about the dollar weakness. Manus lets get to annmarie hordern. Europe was not spared any of the pressure on the equity market story. Annmarie hordern. We are seeing European Equity futures higher as well as europe. The morning after the week that was. This epidemic now outweighs the weekly selloff that cyclical events like the amen brother collapse, Lehman Brothers collapse and others. Hosting the worst week since the 2008 financial crisis. This is something to keep in mind even if we see european equities rally. Hosting the worstmanus thank y. Juliette saly giving us abreast on the asia session and nourish in mumbai. The Team Standing by with the market wraps. That measure is piling up on the fed. Other Central Banks having to respond in a variety of ways. Jerome powell said the virus poses evolving risks to u. S. Growth and signaled he is going to cut rates if necessary you Goldman Sachs expects 50 basis points this month. The possibility of corrugated action by other Central Banks, the bank of japan offering to buy 4. 6 billion worth of sovereign debt. Here is what our guest said. Possibly the worst thing i have ever seen in my career. From the feds point of view, a red a rate cut is on the table. The fed will respond to the threat of the coronavirus by lowering rates. They realize whatever they do, they will be shown to be ineffective. The fed is impotent in this environment. The policymakers will do Everything Possible to prevent the u. S. From going into recession. Lowering Interest Rates will not they will deliver even if they dont see a hard evidence. I have no doubt Central Banks are going to be cutting rates. Because the markets are going to start to have dysfunction. Rental markets have dysfunction but they will not deliver a better economic outcome. Manus impotency of central bankers. Street joinsstate us. Powell was activated friday evening before the close. The kuroda foot was activated. Are Central Banks impotent to charge ofe coronavirus . Probably. We know the economic effects are going to be bad. The fed especially charge of coronavirus . In recent years has responded to financial conditions in both directions when both easy. It allowed them to tighten but we have had them tightening financial conditions markets telling the fed they need to act. The fed has listened. I dont see reason to doubt why that is not the case. Context. Ts trained in we have got Goldman Sachs try and get context. We have got Goldman Sachs saying 50, bank of america saying 50 to put a floor under it. I want to get your opinion. I saw one eurodollar option go through. It was 0 from the fed by his by june. What does it take to get the fed at zero by jim . June. Adam probably takes a massive outbreak in the u. S. , continued a couple more months of clear evidence any recovery we have hit, the trough will not have been put in. I suspect the probability of getting there is close to zero by june is also quite low. If you look at the delta, it probably is still low. But we are now in an environment where we dont know how bad this will become. We dont know what the shock to growth will be. We are trying to see the bottom coming in. China was on lockdown or has 23 for thejanuary most part. Will the u. S. Respond with similar measures in restricting travel and movement . It is hard to say. That is the bigger question rather than what the fed is going to do. Manus it is about the response mechanism from the potential outbreak in the United States of america. Can i throw something leftish field at you which is lets extrapolate there is a go with me on the journey, tim. Lets assume unfortunately from a human point of view it does extent in the u. S. Extend in the u. S. That could affect political gatherings, political rallying in this election, couldnt it . Tim absolutely. All sorts of questions about the campaign prices, the timing of the process, if you are restricting large gatherings as happened in places like switzerland last week, it throws a wrench into the entire cogs of the electoral machinery. I think we are a long ways away from having to worry about that. Nevertheless, it doesnt seem all of these Unanswered Questions are still there. Manus we will get to the glass halffull story in a moment. But do with me. Things here. Ent i like looking at volatility. , he puty guests earlier this to me. He said, what you want to look at is, if we get to this coordinated centralbank action from the boj and the fed and the bank of england, the ecb, 10 basis point cuts. That is your backdrop. Coordinated g7, lets leave it at that for the moment. You would want to be tim you certainly would want to fade the vix because when you get these spikes involved, there is a point at which it becomes profitable. That is when the policy response begins. Fx it is harder to see because fx has lagged most measures of all our not just for the last couple of weeks but for the last four or five years. Fx has not responded the way those two indices have because it is a relative game and Central Banks have not moved since the crisis in more corrugated fashion. Forward coordinated fashion. So fx volatility has moved in tandem or more than it would have prior to the crisis when Central Banks could differentiate themselves more. They have all eased together and become less easy together and now they are easing again together. Currency being relative gain, fx vol is going to lag relative to the other measures. Manus we are always trying to understand what provokes an outsized response or a coordinated response. I pulled up dollaryen going all the way back to 1971. We dont need to declare where we work. Where we were. M my screen to your view this is where i am. I am in 2011. This was when the last, as you know, concerted intervention moment took place from a Foreign Exchange point of view. We are so far away from that level on the yen. I know the world is different but this is why i wonder are we overly bearish and should we you,re as suggested before for a supercharged recovery . When you look at the dollaryen from, a country mile away fx intervention . Tim i would say so. Especially given the motivations for japan keeping the yen, trying to weaken it are very different. The yen is quite undervalued by most fair value estimates. The need to intervene is not really there in as much for economic reasons. Perhaps there is a centralbank confidence motion that can be put forward by intervention but that is not the tactic right now. It is the concept of repo operations, Forward Guidance come all of the things we have gotten used to, ramping them up for whatever good they will do. That is the more likely scenario as opposed to intervention. Manus we have some breaking lies from Bruno Le Maire. The French Economy will take a hit from the virus. He is speaking on france 2 television. Lines. E of other the French Economy will take a bad hit. This is about setting the stage for some kind of response. Isy are all beginning to it hold fire in terms of actually activating any corrugated cuts . Coordinated cuts . It is am guessing speaking towards a fiscal response as opposed to a monetary response. Y has been running that powerful policy response because that is especially in europe where markets were, european populists have been stimulus,r fiscal that is where you can move the dial as opposed to cutting from 50 basis points. It will do very little. Thes the fiscal side world bank, the European Development bank used these words. A variety of huge monolithic institutions that can invoke the spirit of you are the only guest on this show. Grease a clear of emergency as turkey opens the borders to migrants wanting to travel to europe. How will the e. U. Respond . This is bloomberg. Manus it is daybreak europe. Here is what you need to know as you start off the trading week. Greece has declared a state of emergency as turkey has opened exporters to migrants wanting to travel to europe. The e. U. Has maintained a guarded approach. The crisis five years ago tested its frontiers. Antiimmigration populism from italy to germany. Ur reporter is in brussels how close to a 2015 migration crisis rerun are we . The numbers are staggering. That is right. The European Union is hoping, as you can imagine, that this will not be a repeat of the 2019 2015 crisis. We were looking at huge things that became a crisis and had an impact on Angela Merkel and did trigger a lot of pushback from european states. At this point, the e. U. Does believe this is more of a powerplay by her to one. President erdogan. He is unhappy with the reaction he has gotten. He wanted some support and didnt get it last week. Last week was a bad week or him. He suffered a military loss. The e. U. Believes this has more to do with that than an actual migration crisis. When you look at the numbers, and there is this interesting degree. The focus point has taken us tough stance over the weekend. Actually this is an empty threat from earlier one from president. No one is going to enter greece and they say the numbers the president is putting on the table, hundreds of thousands have entered europe through greece are false, that president aragon is lying there is already a debate in europe as to whether we should be tougher on order checks and border controls because of the coronavirus. Manus and in terms of brexit, it kicks off today. It is subsumed by Everything Else but this will be the first meeting. It is and we are being told expect too much to come out of the meeting. We know the red lines have been well documented are the Prime Minister is not going to ask for more time. He wants a canadian deal but he will not be able take her. He says it is a big package. We need to get access to fish and waters and need guaranteed guidance the u. K. Will be a fair competitor. We always believed the deadline would be in june. Now that could be april because the Prime Minister wants to make good on his word he could walk out by june if there is no deal on the table. Manus it will be an interesting day of news. Now my guest, the head of microstrategy at state street. I look at the cost for the 4 billion stimulus package on my left. At the right hand i look at the ramping and reraising of the rates market to attend basis point cut. Which comes to bear more . Tim ultimately it will be the you will getat some sense of this volatility finally slowing down. I dont know when that is. It will happen. What you are left with is the world start regrowth and yield. Starved for growth and yield. Any fiscal concern you might have about budget deficits being introduced in response is assuaged by that. They are deficits introduced to stall a clear growth problem where one of the hot spots for the virus is in italy. I dont know the timing, but i know yields have repriced enough that people will be drawn in. If not the Monetary Policy response that moves the dial but the calming of volatility. Manus stay with me. Head of macro strategy for state street Global Markets. Staying with the debris team. Forcing the feds hands. The coronavirus continues to spread create economists expect action. This is bloomberg. Manus this is bloomberg daybreak europe. We had the first confirmation from the g7 finance ministers to speak, Bruno Le Maire in france. There will be a coordinator response. You have had the rhetoric from jay powell, from garuda governor kuroda, the words being used by those institutions is about ample liquidity and appropriate support and appropriate response. Who else has got the firepower to deliver . The fed of course. The coronavirus has spread around the world. It is shifting gears from Goldman Sachs. It will force the feds hand. The morning call. Goldman sachs, one of the most aggressive in terms of what they expect from the fed, they revise their forecast after jay powell put out that statement friday. They see a 50 basis point cut this month and 100 from the key Interest Rate by the first half of the year. One of the most aggressive calls we are seeing from the street, after powell friday suggested global central bankers are intensely focused on the downside risk, what they are also noting is they can say we could see coordinated responses from around the world. Something we havent seen since the Global Financial crisis. Feds lets see whether the meats up to them markets pressure. Tim graph from state street. Goldmans saying you have got 100 basis points what i want to know is when you look at credit markets, they are not shuddering. Triple triple duty and this is not a credit event yet. Tim i suspect not. It is not a forced deleveraging event, the style of prices. You would barely know anything is going on i suspect. Not to say it is completely benign and the longer the scenario plays out, the longer the uncertainty plays out, it does become more likely. But as was noted if there is an aggressive monetary response, financing conditions will get easier. They are already easy. The cost of finance for households, corporate has never been lower. Debt servicing ratios are healthy after the deleveraging we saw 10, 12 years ago. That is not the primary worry for me. Finish. Ery quickly to king dollar. We havent seen that since new years eve. Blip . Momentary tim i dont think so. We were bearish to start the year on the dollar because of valuation concerns, and potential for the rest of the world to start to catch up. There were the post trade war green shoots. With the fed easing, it becomes difficult. Manus thank you very much. Great response. My guest host. This is bloomberg. Good morning very welcome to bloomberg markets. I am anna edwards alongside matt miller. Tothe markets so yes stimulus, the worst since the financial crisis is saying from to buy optimism the Central Banks will save the day. U. S. And European Equity futures are pointing higher. The cash trade is one hour away