Priorities. Manus welcome to bloomberg daybreak europe. China has fined fords joint venture for antitrust violations. This marks the latest action against a u. S. Company. Tensions escalate. Ours get straight to james, beijing Deputy Bureau chief. Here we are. This is not so much about the size of the monetary fine, but the principle of it. What does it say to you . we seen a number of actions recently veiled threats against u. S. Companies , anfedex is undergoing it investigation for rerouting packages. How links this is. An isolated case, but when it comes after these warnings the Chinese Government has put out, this list of ,ompanies that are unreliable the idea that these are all part of a concerted effort to push back on the u. S. Because of huawei but also more broadly in the trade war. Nejra good to see you. What is the effect going to be on the trade dispute if that is the case and more broadly, chinau. S. Relations . James the big problem now is the result a lot of uncertainty
Its treasuries. And doing more in china. We believe we can take care system na echo ecosystem. We need to look at the entire picture. Nejra and heightened tensions. President trump sends another 1000 troops to the middle east. Nancy pelosi calls the move deeply concerning. Nejra welcome to daybreak era. It has just gone 6 00 a. M. In london. Looks like the equity markets are in weight and see mode. Killing time until we hear from jay powell tomorrow. We closed flat on the s p 500 yesterday. The 10 year yield goes down to basis points. We are not seeing any curve flattening or steepening. On a back foot. One at the aussie, that is that has been underperforming. As the r. B. I. Signals another rate cut. Bouncing back after a few days of losses. Two weeks of off gains for global stocks and Credit Suisse says we could see a markup. Let us check in on the markets in asia. Juliette saly has more from hong kong. We are seeing the msci asiapacific index in the green for the first time in five
Leadership shakeup. Nejra welcome to daybreak europe. Just after 6 00 in london. Did powell deliver . The bond market seems to think so. We close tire on the s p 500 in yesterdays session. We are on the front foot with futures. We will get to that in todays session. Yield dipping below 2 for the First Time Since 2016. Down another four basis points. Curve flattening. The dollarr and weakened. Down for a three day. That following u. S. Yield lower. Gold jumping to a fiveyear high. Is it overboard . Uti firmly on the front foot. 44. Pot lets get a check on the markets in asia with Juliette Saly in singapore. Great to have you with us. The divergence between the bond and equity Market Reaction was intruding interesting in the u. S. I we seeing a similar thing in asia . Juliet bonds moving higher. Yes, yields are dropping here. Equities also moving higher. We have seen that big money going into gold, holding at its highest level since 2013. Gold miners in australia rally. Nikkei up. You ar
Street warnings. Citigroup joins jpmorgan in slacking a downturn as Global Sentiment takes a hit. Manus are we all on our way to 2 . Its a most like a shakespearean drama. We cant turn back. 2. 75 . Ld retrace the we have priced ourselves on most oblivion on the probability of a rate cut. The didnt show up last night for the sevenyear option which could be the bond market sending the signal back to the market. A lousy bond auction was almost a welcome reprieve. James gorman says he will meet hard data, hard facts for the fed to move. Lets have a look at some of the other at risk markets. , 25 basis point cut on that market next week. The dollar is slipping this morning. They cut their target on the aussie to 65 from 70. You will see 1 by the end of the year. The dollar index, we are off of a fivemonth high. The risk is a major escalation. We could trip over ourselves between china and the u. S. Into a real escalation. That is the risk we must fend off. Nejra theres a fair amount of glo
Nejra good morning. Welcome to daybreak europe. Lets take a look at how the u. S. Equity market might look. Futures pretty much flat after the may benchmark closed flat yesterday. The 10 year yield slipped a little. Taking a look at how European Equity markets might open in just under two hours. Three days of gains for european equities. We are slipping on futures after the swiss market index hit a record in yesterdays session. Oil on the back foot, plunging a bit after we got some signals on rises in inventories from the api data. The turkish lira slipping a touch of ahead of a Rate Decision today. Bloomberg economics expects no change to that benchmark rate. Lets get a check on the markets in asia. Juliette saly has more. We are seeing red on the msci asiapacific index. Whats going on below the surface. Surface . Juliette the stock rally fizzled followed what we saw on wall street. Have a look at hong kong. These protests continuing. Down by 1. 7 in the afternoon session. The hong ko