Anna a very warm welcome to bloomberg daybreak europe, our flagship morning show in the city of london. Im anna edwards. Manus and im manus cranny. So you go away for a weekend ball euphoria donald trump didnt get his health care through the squabbling. The impact on markets is immediate. This is the dollar. The rise of the dollar on the accession of trump into the white house and his promised policies, and there, down, down, down. You seem the dollar touch a fourmonth low. The 200day moving average could be breached. Thisof America Merrill say is still one of the most crowded trades out there even though 32 of their survey say the dollar is overvalued. Buoydata isnt going to the dollar. Manus anna interesting to see just how far the dollar has retreated, almost erasing the gains it has made. Putting up the risk radar takes is a bit further into that dollar story. Weve got dollaryen in there for you. It is 110. 40. Will it go below 110 . Does that trigger some stop orders . We will keep an eye on how that trades. S p futures, looks as if we need another day to factor in that , orat for the republicans disunity among the republicans on capitol hill. Volatility does seem to be increasing. This perhaps a silver lining. The vix, that measure of volatility, staging its biggest weekly increase yeartodate, the highest level since december. Manus theres your australian close, 57 45. That is really a mirror image, s p futures down last week. Were going to go to kuwait. Nymex crude is down. The rig count keeps going up. Hence ringing that big discussion. Can opec and nonopec go for another six months . Interesting to see some of the minors under pressure in australia on the back of those more general move lower. And gold stocks on the rise in australia because theres more output of gold. Lets get the bloomberg first word news. In germany, Angela Merkels election victory has delivered a reality check in this years contest for the chancellery. Energized by the candidacy of martin schultz, the spd headed into the ballot with a paul vance. Merkels cdu posted its biggest win in the state in 13 years, taking 40. 7 of the vote. The you ks Prime Minister will follow her initiation of the Brexit Process by setting out how she plans to bring thousands of regulations under british control. Theresa may is due to send a letter to the e. U. On wednesday, announcing the start of departure negotiations. Her government will publish detailed plans for its great repeal bill. Portugals economy minister told bloomberg negotiations must not weigh on the rest of the block. In the next two years or five years, we have to focus on having good results of negotiations. We also have to focus on moving forward. I think the u. K. Cannot be tracked to that. Debra french president ial hopeful Marine Le Pen has tried to reassure voters about her ability to achieve a smooth exit from the euro as rival Emmanuel Macron is an bond in the polls. The National Front candidate said leaving the single currency, needs to be done carefully. She added that reinstating border controls and keeping factory jobs in france would be her priority if she wins power. 48 asl is trading near some opec members backed an extension of the deal to cut output. Five opec producers joined with oman to voice support for extending the supply curbs past june. Russia said it needs more time before making a decision. We have decided that in order to make any decisions like this, there needs to be a ministerial meeting. We have asked the opec secretary to prepare more materials on the current state of the markets and for this material to the computed to members. In south korea, prosecutors are seeking a warrant for the arrest of ousted president park. She was questioned last week about the undue influence scandal that forced her from office. Shes accused of pressuring businesses to donate millions of dollars to a confidant in return for government favors. The scandal has embroiled some big names including the de facto samsung heir apparent. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. You can find more stories on the bloomberg at top. Im debra mao. Manus thanks very much for the roundup. Lets get into these markets. Juliette saly is standing by. We checked on the aussie market. I suppose the question for everybody in the market is, will the grand old party event and focus on tax now since i couldnt get health care . That was the plank of their plan, wasnt it . Juliette it was. We saw that shockwave coming through in u. S. Markets on friday. The s p 500 futures tracking lower. We have taken that lead and gone with it in asia. Youve got dollar weakness, which means yen strength. The nikkei had a bad day. Australia closing down about 0. 2 . Volatility is definitely back in these markets. The index of volatility in japan at the highest reading weve seen in two months. Certainly i guess a little bit of investor unease weighing into the asian markets. Looking at some of the stocks, sinopec china coming through. We certainly saw hong kong stocks coming through. It said it forecast net income of 150 year on year. Focus, southern also in confirming it is in talks about selling a potential stake to american air. Kaiser group is a real estate listed company in hong kong. It has been suspended from trade for two years. It finally came through with results over the weekend, sending its share price up almost 64 . Shares dropped about 50 in march 2015 when it last traded. Talking about the yen, this is one to watch. Analysts are saying 110 is the key resistance for dollar bears that are loving the yen. They are seeking resistance at 108. 25. In terms ofto watch this gauge of volatility across asian markets. Anna thank you very much. Juliette saly with the markets in hong kong. The dollar has slumped to a fourmonth low and u. S. Equities are extending on it increased skepticism of president Donald Trumps ability to implement his agenda after last weeks failed u. S. Health care deal. Manus former atlanta fed president told bloombergs yvonne man that the rate is on track. I dont think the fed is behind the curve. Thatnk the satisfaction the numbers are still a little below 2 , but moving in the right direction, that is the key at the moment. London,ining us now in head of fx strategy, jeremy stretch. Give us your thoughts. Give us your thoughts on where the dollar heads from here. Dollar weakness is a result of the defeat for the republicans in the vote that never happened in the u. S. How much read across is there from what happened on friday into other areas of policy . That is what i suppose markets want to know. Jeremy indeed. Last week was essentially a litmus test of the ability of the Trump Administration to push its legislative agenda. That first test has been failed. What does that apply for the rest of the agenda . Also you have to remember the health care process was an aim to reduce budgetary spending to create room for additional stimulus elsewhere. There are two obvious headwinds in the ability to push through legislation and the cost implications. Both of those arent particularly persuasive in terms of arguing that Dollar Strength story or the trump reflation trade, which has been underlining and dominating markets. The fed shifting gears dramatically to get us ready for the last hike. We heard from dennis lockhart. He would have adjusted his outlook to three moves. Do you think this moment of uncertainty around politics and policy perhaps slows the rhetoric down from the fed . Selloff is nowe done in the dollar . Have seen aink we substantive correction and i think the fed is going to be integral here. We maybe almost in a vacuum type scenario. The data has been remarkably consistent. You can argue about the growth story in q1. Theres headwinds which generally resolve themselves overtime. When you look at the labor market, we start to see some wage increases, i think that be asuggest the fed could little more vociferous in saying, we are close enough to our target to continue to push towards some degree of coordinated moves, and it may be the case the market is forced to bring that hike back to june and that is the one catalyst which could imply this Dollar Correction has largely run its course in the shortterm. Anna to bring forward the hike from the fed, does that require any further signs of trump can get his stimulus policies through capitol hill, or can that happen just on the basis of the data we know about . Jeremy i think that can happen on the basis of the data. I dont think we need to expect politics to be a key or integral part. I think we are back to monitoring the data. Central banks should be datadependent. If we are going to see the labor remaining solid, some signs of Earnings Growth coming through, inflationary pressure, trains remaining supportive in terms of being back on target, then i think you can argue that , currently in the third longest economic expansion in history as far as the u. S. Is concerned, and at this point in the cycle, a moderate ramping up is appropriate. Not necessarily saying we need more hikes, but getting a little ahead of the curve and saying the fed have done their work and then we can focus more on capitol hill later in the year. Manus there was a note from the director of oxford economics. It said, and overload of expectations and rich valuations amid global reflation mean that the dollar wont benefit much from positive surprises. The faded move on the dollar is done, but this would suggest that even if you get good data, it is going to be hard for the dollar to reassert itself. Jeremy what i would consider is i think we need to split it into two parts. Weve seen substantive Dollar Correction. I think there is scope for a small rebound in that. I think that is the way we characterize it. If we go back to november and say, if trump hadnt happened and we hadnt seen the reflation building through the course of last year, this year, then i think the Dollar Correction would have happened much earlier. We are in a very mature phase. Were almost six years into a dollar bull phase. That traditionally is getting to a pretty much or process. We are seeing one final leg of that. Liftnk we will see one then we are back in two a correction phase and the dollar will cheapen and we will see other currencies reassert themselves. Anna so we need to take a longerterm perspective. Jeremy it is very easy to be myopic, to worry about today and tomorrow. If we can take a step back and look at longer trends, then i think as we go through this year and next year, we will see a cheaper dollar. Anna jeremy, thank you very much. Jeremy stretch stays with us here on the program. We have a host of exclusive interviews this week. Today it is charles evans. On wednesday, we speak to erin rosengren. On friday, jim bowler. Manus up next, cuts, compliance. Opec leaders find consensus on extending the oil output cut. We are live to kuwait with the latest. This is bloomberg. Anna welcome back. Bloomberg daybreak europe, 1 17 in the afternoon if you are in hong kong. They didnt change their clocks, but we did here in europe, which has moved that buffer between the two of us. You are busyhat if in the asian region or in europe. Here are some highlights. The bank of england publishes the scenario for the bank stress tests. Even i on that. The u. K. Parliament get an update on coalition talks. Set toesday, the u. K. Is officially trigger brexit. Anna we get a Rate Decision from mexico and on friday the Spanish Government is due to announce its budget. Manus lets get a business flash now. Deborah mao is standing by. Debra thanks, manus. Zurich insurance is reportedly taking steps that could lead to a Capital Increase of as much as 8 billion euros. According to an italian newspaper, switzerlands largest insurer could consider issuing new shares that would not exceed 20 of its current capitalization. The Investor Relationship says there are no plans to seek capital. Suspended itself driving car program after one of its vehicles was involved in a high impact crash in arizona. Police say the other vehicle fared to yield and the company is not responsible for the accident. No one was hurt in the crash. Uebr says it is pausing autonomous tests in verizon and pittsburgh until it completes an investigation. That is your Bloomberg Business flash. Anna thank you very much. And independent Oil Producers are to consider extending curbs on output, saying more time is needed to drain the global oil glut. Secretarygeneral sees a high level of compliance with the cuts. I think we are all moving in the same direction from the discussions that have been taking place since yesterday, that we need to build on the momentum that has been gathered in the last two months. From all indications, we expect to see very high levels of conformity in the subsequent months. Decision onform the the duration of this decision. Manus the secretarygeneral of opec. Joining us now is yousef gamal eldin. He is in kuwait. Great work this weekend, chasing everybody. What we really want to know is the extension of the cuts. Could they be extended . Yousef they discussed the possibility. This was never going to be a meeting about extending the cuts. This was a meeting about compliance. They are impressed with the levels of compliance. They are calling it conformity. What they are looking at is 106 from february, so going beyond the call of duty. For nonopec, which includes russia, still 64 . They think that is going to come up very quickly. They did cite some of the challenges. They are not immune to the reality of Global Energy markets. Demand,ot low seasonal refinery maintenance, and rising nonopec supply clouding the outlook and efforts of opec. Theyve called for recommendations in terms of what to do Going Forward. Opec members have been vocal. They have said, we need to extend this agreement. We heard from the Algerian Energy minister. He said this needs to go on for three to four months more. What we havent heard is any flexibility in terms of perhaps taking more oil out of this market to adjust the market conditions. You are freezing in the quota even though you have an evolving market. There is a lot of oil out there and the latest figures in terms of the rigs really underscore that once again. Anna we will get to that in a moment with our guest in studio. You are there with opec and nonopec members. What has russia been saying about any possibility of an extension of cuts . Yousef the Russian Energy minister, i spoke to him in a very candid chat on the sidelines of this event, and he made it clear that he was very up eight about the numbers and where all this is going. Said, dont read too much into the inventory data. He stands by his initial promise, that, wait until we see the data before we make a call on that. There was a lot of skepticism around russia. They havent had a track record of living up to their promises. They are saying they are abiding by it. They got a green light from opec. Heres what he had to say. At the moment, in russia, among our corporates, we seeing that all companies are conforming with the obligations which they bestowed upon themselves. It looks like all the countries want to show commitment and they dont want to stand out among the full group which is conforming. Yousef Alexander Novak there. Back to you. Manus thank you very much. Great reporting. Yousef gamal eldin, our Bloomberg Markets middle east editor. Jeremy stretch are here with us. Rick counts are going up. The russians are a little bit more skeptical about what they are basing their base price is down to 40 for oil the rest of the year. There is a consensus and it is moving lower on oil. Jeremy there are obvious headwinds. The rising nonopec supply, which was just highlighted in the weekend meetings in kuwait, is an obvious concern. Counts, as we watch those continue to move higher, does suggest there is more supply coming back onto the market. Without a substantive uptick in demand, we already have a large inventory overhang which we are not working through. That implies the topside risks her contained. It seems likely the softening could head further. I dont think were going to see capitulation, but i think prices will remain subdued. I think that is the new world order, continuing to see prices sagging until we see better Global Demand data. That is still a very longlasting process. Particularly when we have this nonopec supply offsetting demand. Anna how much of this is a driver for your universe of fx . Function,f the wcrs it doesnt suggest that commodities is writ large across this. Jeremy that is true. The commodities story was much more relevant in terms of the way markets were reacting. If you look at the relations of some of those commodity oriented currencies, those correlations were substantially higher a year ago compared to now. Why the difference . Weve seen the impact on the industry playing out over the previous 12 months. Weve seen the employment reductions. Weve seen Business Investment cut dramatically. Newindustry has cut to a lower paradigm, or has become more accustomed to that. I think the commodity story is not the most important driver. Were in a world where until volatility has started to pick up again, investors are looking for higher returns outside of traditional markets. There has been some influence with carryback. Manus we just had a look at this. This is the correlation between the ruble and oil. The russians are expecting 40 by the end of 2017. Out of the commoditybased currencies, it is the fed rather than oil that perhaps drives 2017. Jeremy i think it probably is. We do see it sagging. We do have this myopia about where we go on a daily basis. But were not going to see wti sub 40 for example. That sort of scenario suggests correlations will be limited and it is going to be the Bigger Picture about what is happening in the u. S. , the reflation trade. Anna we will watch emerging markets. Jeremy, thank you very much. Jeremy stretch stays with us. We talk about Angela Merkel and her election boost in germany. Everybody. Back down on the dollar and we are getting some interest in the wake of that defeat for donald trump. Actionheck in on the now. We are looking at the equity markets and the equity and there is a lot of evidence in the dollar trade since donald trump. The lowest since november it has it the highest on the dollaryen right now. Yield and there is reasons to be seen on this chart. Called a technical selloff and is that where we will see the dollaryen going . We have been stuck in this range , which is what i have tracked with this line. And testing me low in the shortterm. Hike and have the rate it is hard to see will will. Week we decline lower. Ures are pointing trendline looks to be holding. Daybreak onition of your terminal. This. Take a look at we are talking about the dollar and donalding ground trump has defeated the health is it all stimulus . A connolly cover story. No comment. The u. K. Is looking to trigger a deal within 48 hours. Other states may not agree to talk until june. Of testifying powers and the rules will be brought back. Koch andy, david other Oil Producers are looking to extend a deal. Is some members and russia they arebulwark and the ones who are underdelivering and you must do better and do more. Lots to talk about with european politics. The Democratic Union scored a big win. A reelection fight with the chancellorship. It did not go well. Achieved our goal , but it does not mean we will not. Andgoal is to receive this there has been a message and not a sprint. Miller fort to matt more. Good morning to you. And abouthey tell us the core. Let me set the stage for you poorly inhave done the past election cycles and there has been an increase in the pop clarity with martin merkel. Ack to challenge its really raised hopes for they started and hurt. G and the hopes were strong move and a loss for scholz. Stabilitysents more Going Forward and we know what to expect from her as a chancellor. The day to you. Met and whaters remainingcus for the effort . Front and i got a message from the pope that they were under pressure to deliver. Is that defense central to the message. They have had Free Movement of and they haveds folk missed on defense and forming a core with the cooperation and that has stopped short of the european army. Very interesting. Topics seem like that hastens the ability to enact this. Thank you very much. Marine le pen tries to ensure voters. We made a mistake and we must admit it needs to be done carefully. Had this still with us. Talking about the le pen promise and it will be done carefully will stop it is right. Control an oxymoron to it needs to be done carefully. This is a risk we are trying to assess. She is trying to talk to the thetorate and assure them process will be carefully managed. We will look at those statements and think that you cant just be a little pregnant. It doesnt really work like that. It is not going to the a nice move. There is a great deal of instability and we have to remember constituents this. Is the front runner in the first one. There are problems you numbers haveulling a distinctive proposal. So, are we nervous . Was one out of the even if we saw the victory, she would be facing the struggle. There are parliamentary elections. Even if le pen works, she was to win that. Happened withwhat it is atical risk and classic case of once bit in twice shy. Reticentemain a little of the euro story. To get through this the frenchge and election. Held back been politics. And youollar we this look at the funds. Have up toanagers their game. And why are wed on thisggressively hire end of the election . There is a trend towards the euro that will continue. The in thise rule context . And we arenvironment Monetary Policy in this and we are starting to assess and ipe during process think that this is the final stage. Little you need to see a judicious today with the Political Risk that could come back. Word. Icious is a good there was a lot of talk about data. Rket and the missing a big uptick and we are pointing ahead to data and suggesting a lot of it has been improving. Sense andrue, in a some of these she references are there areg and circumstances that underlie the target. Case they can rollback on this and move away from the rate. Nonetheless, i think there will reflecting and we will get inflation running end of at the hotter expectations. Where do you want to be the i think it comes and io the euro story think selling goes higher. Negotiations will keep falling. It is the trainer. Euroat is more in the dollar. We remain judicious. Strategy. For the use the, you can function. You have video that we have been looted using and you can talk to the show producer. There is one degree of separation around us. Up, theresa may and we will talk about the road ahead and what that could mean for investors. Welcome back. We are talking a lot about the president ial election. A Group Holding surge this is the First ChineseProperty Developer to default on debt. Looking to raise through the hong kong listing. According to the terms of the deal, looking to offer one billion shares at a fixed price. Investorsstone include private equity firms and facebook should open up being corruption of whatsapp. The man who killed four people will through Parliament Last year and they home secretary said that it is unacceptable that messages cant be open. Bloomberg business blast. Theresa may will visit scotland today. Thaturgeon is arguing brexit is a justification and it is something this may should watch. Speaking to bloomberg, she said nation make a talks successful and move on. We have to focus on having good results from negotiations and moving lower. Withe cannot be dragged the only agenda team that. Jeremy is still with anna. K. Is is a countdown to 2y this is the negotiating tactics ministeraffairs morning about the union enmity. Do ultimatums backfire . Relationshipen the going back and they have not always been successful. Were goingo, they and, from arms u. K. Strategy the and it will bese we will have the unanimous and cohesive strategy. Monthshe weeks and eight ahead, there is gets and spikes that lead to currency. It depends on how much the spikes become. The currencym for markets is a headline risk at the initial stages. Investors and the realities of the political dynamics. There is the inevitable headline risk and there will be on the euroamage there is the Bigger Picture from the u. K. Perspective and the upgraded growth forecast here. Optimistic. Ic into is part of the missing jigsaw in the u. K. To what extent does this matter with Bloomberg Intelligence saying this could the on hold for two years. . In the context of earnings, we have seen two or three years weh this is positive and and these gross surprises we are seeing these earnings. They outlook and it is the negative. With the tapers and it could really puncture the you that they are on hold. I would not just they are on hold. In certain instances, they may argue this is true been to be unnecessary and it created and it is depending on how the negotiations go. Thank you very much for joining us. We will talk about health care and the agenda. Trump trade fades. Will the president be able to get his agenda through. The chancellor teachers biggest victory in 13 years. Scotland calls for unity and triggers article 50 on wednesday. Considering output cuts for another six months. Welcome to the flagship show. At theeed to have a look equities. Is they surround the news flow. Donald trump and his team failed to get support. What read into other areas of policy is there. You are hearing more noises about the radical shakeup of there is a risk they could occur down. Of down atl opening the equity trade. The dollar is lower. We are talking about currencies and the dollar selling. Are about going below 110 and that was their view. The dollar is close to you racing all of the gains. Topics close up for the session. The commodity and real estate side. The question is if the republicans can galvanize and the biggest weekly jump with the highest level since december. That may carry through. They are considering the pack to limit supply and making progress, despite the u. S. 1 on the oil price. A reality check and the with 13 years taking 40. 7 . Sitting out how she plans to bring regulations under control. Wednesday, announcing the negotiations. Detailed plans for the bill. The negotiations must not be allowed to weigh on the brexit lock. In the next five years, we have to focus on good results and on moving forward. Agenda is not tracked with that. The pen has tried to reassure voters about her exitsy to ensure a smooth from the euro. The National Front candidate said that leaving this currency had to be done carefully and she said that keeping jobs in france would be the priority. At 48. Is trading five producers joined to voice this additional six months. Order to do this, there has to be a meeting and we have materiald to prepare for the numbers. Are looking for awards. Donatingcused to millions of dollars to a government confidant. News 24 hours a day is powered by 2600 journalists and analysts. Have had a little bit more uncertainty and volatility we have seen this down with a stronger yen. This down and seeing some easing in the market this year. Y of 11 and they forecast a rise in spending for the first time in confirmed and they they are in talks. For the last two been as high as 85 during this session and we are talking about the dollaryen weakness and there does seem to the resistance with analysts saying dont pay too much attention. For more strength with caution coming back into the market. Thank you. Dollar withbout the withes extending declines increased skepticism about the trump ability to implement the economic agenda. The fed president said the failed Health Care Bill will boom will take longer to materialize. The outcome of the situation suggested that the reality may take a little more time and will to thee difficult to get with thepact assumed optimism after the election. Thank you for joining us. You agree that it will take longer to get this fiscal plan in place . Callu have such a close you can expect some noise and some volatility. And they understand that blocking parts of this trade with the Freedom Caucus who just wanted to repeal and didnt want to replace. The blocking element wants tax reform and i dont think that this will precipitate a crash. Ofthere is not a direct read what is getting blocked and that is the implication. Towill take longer to get the positive tax reforms. This has been think it is funded by deficits. The markets have more positively ed and it doesnt look like trump has a political capital. Gets a sensearket of the lack of the hand on the volatility and you it ist call options and almost as high as it was with markets getting spooked. Are you . Always. Dislocation and i am not discounting that point you are making. This has been going along with not much. Up comes that call option. No doubt. Euphoria andump can rally with political events coming up that will fuel the volatility and i think the underlying facts is the governments are not really in shiftusiness of a policy to really send markets sharply lower or higher. You said that you remained cowardly in the face of the dollar accident. What happened . We have seen this with the dollar. The dollar is selling in the stimulus andfiscal the fed not moving. Wants tax cuts and the Corporate Tax rate, they may tax on thatrder thee that would enhance dollar. You may see a move in the dollar. Case scenariobase and you prefer of the small capitalization rather than the large. We are very careful not to get caught in a narrative. Believe theret we is value with growth coming through. Is the u. S. Growth and and you think about the direct correlation of the yield curve. It will give you a forecast with the results. Quality of the business, they are internationally based and effective tax rates are from multijurisdictional revenue and the rates are low. Gains are not great. Stay with us. Up next, a pledge of a pulling out of the euro that will not lead to chaos. We will discuss. You are looking at a live and ahe eurodollar dead double punch. The merkel election victory and that is pretty strong, but is a beautiful day. Stepsnding by also to the Capital Increase. The largest insurer and could consider issuing new shares. The Investor Relations chief says that there are no plans to seek capital. Was suspendedm after a high impact crash in arizona where the other car failed to yield and of uber is not risk odds of will. Halting the will be tests until they complete investigation. Facebook should open up encryption of whatsapp to security services. The service was used before he was the bbc said that it is not acceptable the messages cannot reopened. That is your is this flesh. Thing to very much. Lets talk about the christianDemocratic Union getting big wins. Fight laterction this year. The far right president ial hopeful try to reassure her voters that her plans to pull france out of the euro will not tose chaos stop the king he said the euro is the head ofus research. When you look at the elections haved european assets, you her saying that she will not ause chaos and there is such presence within the euro zone economy and it seems difficult to imagine a smooth way to come out of this. Agree that she can andact france from the euro to not getare going too cute with the political forecast. The expectation is that presidency. Stage, the polling can be inaccurate, but there is something stark when the second round comes. There is too much to overcome more value could be realized. A couple of lines are coming through from Marine Le Pen and she said that she would discuss fighting terrorism and that she has no funding from russia or the russian banks. That is the risk with the breakup. The pope had a message about the act. One thing moving is the bond market and the italian reliefent bonds with a that there was a political weekend and the Marine Le Pen arriving in power seems to add the fear away. Ecb,is in the light of the with a lot of tasks. Rally endsstatus quo good will like the consistency of merck. Phile. Euro fil i think there was an oped europend nation of more meeting to be set aside or diluted. It is a complex matter. This is much more of a federalist edition and there will be resistance with the framework and merkel, if you can think about the happy medium, i as happydescribe it medium, but the merkel having a positive impact. There is an effort to focus on defense and that story. We will watch it with interest. In terms of european stocks, you are neutral, but are positive. Andhis is having an impact lose and weis to expect this to be positive for the equities with better growth data coming and the inflation number is lacking. Could removee ecb or take away the negativity on the rates with financials being thought about again. Appetiteseems to be an by members to extend these cuts. The question for markets is if we have reached the top of trade. Oil never got up of 65 and i reflationut that momentum. There is certainly volatility and it is being recognized with markets and i think there are reasons to believe the oil prices can come back and we had the initiations of the cut oversupplylevels of should fade. Demand andsonal low it has been down because of capacity oil in the recent months. So, there are reasons for these prices to come back and it will lead into trade and yield curves. Thank you for joining us this early with the clock change. We are appreciated that you got up with us. That will wrap up daybreak. Momentum is foggy. It wasnt like that yesterday. We are seeing this lower. This is bloomberg. Guy welcome. This is the european open. Your first trade of the cash session coming up shortly. An interesting week ahead. Im guy johnson in london. Matt miller is in frankfurt. What are we watching . Faltering after the Health Care Deal flops. Will the president be able to enact his agenda . The dollar and u. S. Equity futures are down, the yen and gold gaining. The brexit countdown. U. K. Prime minister visiting scotland today to call for