Far as 1. 69 . It is now 1. 71 percent. Dell are index is weak. Just one stock i am wanting out here, fitbit, trading up 15 . Google is buying fitbit. The offer price is 7. 35, trading right below where google offered. Guy lets talk about what the situation looks like here in europe. The stoxx 600 got within shouting distance of the 400 line. This after the payroll number came out. It then fell back. Maybe getting another jab at that this week. Lets take a look at the Bigger Picture numbers. 399. 3. 00, we have seen a slightly stronger pound. Pay attention to what is happening in south africa this evening. Moodys potentially looking to downgrade south africa. That would take south africa into junk status. That would have a meaningful impact for the rum oppose a ramaphosa decision. A wto decision now. The wto has approved sanctions from china on the u. S. , this coming before the trade dispute. In chinese trade sanctions on the United States. It could add a layer of tension to the ongoi
The outperformance versus small caps. More than 1 on the day. You have the russell 2000 above its 100 day moving average. That 1600 level, very important. What really stands out, the russell 2000, at about levels seen this time last year during all that volatility. The rising rsi and bullish momentum is suggesting we could see the russell 2000 in the near term climb again to that 1600 level. Should that happen, we will see whether the resistance can be broken through. I am looking at the yield curve. The threemonth 10 year is steepening. It is positive for a fifth straight session. You can see how it folds into the banks. There is commentary that says profitability they can be profitable in a flat or inverted yield curve. It does not cause a recession because it discourages bank lending. Instead, Interest Rates versus the shape of the yield curve is what matters to lenders. We can see big gains from the big financials. Morgan stanley leading the gains of 1. 5 . Up ing revenue is going
On rising asset prices. Spurring a little of a stock selloff. Well this worry the fed . Share buybackhe days after dan lopes hedge fund bought a big stake in the business. Will this keep the activist investor at bay or spur him on . Hour less than half an away from the start of cash trading. Lets take a look at what the bloomberg is telling us about where we sit right now. At the moment and looks like we are starting off on a negative story. Feeding off what we saw yesterday. I will show you an interesting [inaudible] is outperforming. Uropean forces are down we will see a continuation of what we saw a little bit of yesterday. That was the equity market selloff. Lets move to the gmm. Heres what we can see happening around the world and dress in lines around some of these Asset Classes. The s p 500 down and the dax down. 8 of 1 . That is the bank drop to what we are seeing today. Interestingg some stories developing particularly in the commodities currencies, what is happening with chin
Even though officials did not exclude the bond buying thing extended. That is what you need to know. David continuing on the top story about the ecb. A many tempora cant a mini tenter hampshire a mini temper tantrum. Gradually tapering away from quantitative easing. We are joined by paul gordon, our editor responsible for covering Central Banks, and guy johnson in our European Headquarters in london. Paul guy, im sorry. I want to go to you. Tell us what the reaction was in the markets over there. Guy the Market Reaction was fairly fierce, to the honest. May of 2013. Be of the market was spooked by thats would have a ecb taper when the Current Program winds down. But the rational heads are working their way through this. Of course the ecb is thinking about a plan for when he needs to wind down, but if you took a look at the latest data, the expectations, in the ecb, the ecb downgrading its projections. The eurodollar rate, but it did not pick up inflation. It is not expecting to meet it
Guy good morning. You are watching the pulse. We are right here in london. Im guy johnson. Europes Biggest Investment Bank, germanys biggest bank is racing for its biggest loss and a decade. Deutsche bank could scrap its dividend. Its boosting reserves for legal costs. Sounds like a bad thing. Ryan chilcote here with the details. We got a lot of bad news. It sounds really terrible. But stock is up. What is going on . Ryan the Immediate Reaction was negative. The stock is up. There is a giant competition going on. The balls the balls on the up. K the stock now why . A lot of people saying we thought when they did this announcement we were going to get a Capital Increase. The fact that the dividend is going to take a hit, is a do it is a positive. It increases the likelihood of a Capital Increase down the road. Analysts whonty of think a Capital Increase could happen here it happen. Ryan the second issue is take everything that was happening in the statement to the side, look at pretax p