We will hear exclusively from the economy minister in japan. Betty just moments ago, breaking news out of europe, germanys chancellor Angela Merkel, her push to unite for parties together into a Coalition Government seems to have collapsed. They were just running up against that deadline. This is going to put germany into uncharted territory. And really puts Angela Merkels job on the line. You can see there is immediate Market Reaction already in the currency markets in particular, the euro dropping right as the news broke about the talks. It was already uncertain if Angela Merkel could pull this off and it looks like at least for now, the answer is no. We talked about how intense these negotiations have been come and they were in deliberations for 12 hours on sunday. It seems like there is more uncertainty, we could possibly see another election triggered. Merkels job could be on the line. Atre was a lot of doubt even the beginning after the election earlier this year that they would
Is anyone actually listening in asian . In beijing . Ramy a very good morning to you. It is great to be with you on this morning in asia, sunday evening in the United States, take a look at what happened on the markets on friday. In the United States, like a roller coaster after Michael Flynn said he was going to plead guilty after lying to officials. We saw the markets up and down. Hot on the bloomberg terminal, btv 4046. The s p 500, we saw it when the news broke, that fell, but not only that, we saw the highest taxed companies in white, were rising inexorably in anticipation of the tax reform plan. Those fell, as well. David, we know what happened saturday morning here, it did we are looking, ahead to markets opening in the United States as well as where you are, to see what reaction there is. David absolutely. When you look across what is , apening over the fx markets lot of what is going to happen comes down to the dollar, when you look at the majors, decent pickup across a lot of
Oil producers hit and at extended curbs. They tell us the strategy is working. Ramy good morning, david, and good morning to our viewers across the asiapacific and around the world. What were talking about this whole weekend, the Government Shutdown. Right now, partial, but how total will it get . Looking at markets on friday, equity markets closed at record highs for the s p 500 and nasdaq , but we were talking in the past hour about whether it could hit gdp. It depends on how long it lasts. The longer it goes, the more pain we might see. David certainly. Will it affect risk sentiment . Maybe not, we look at indicators. By the looks of it, we might continue the run. Running,nd is up and have a look at the markets there, a jump up there. 8334 right now. The dollar is down again. We are moving slightly into earnings season. Look at australia, coming off a 40 skid for that market. Cents on the currency there. 288 on the yield, approaching the10year approaching gap for the aussie 10 year
Bishops plans to take on local rivals have stalled in shanghai. Asiagood morning to our asiapacific viewers. Upside, four the for four days in a row. Yvonne, it is valentines day so investors were feeling the love. Have my pink and red valentines day tie in gettingion as youre ready for the year of the dog in china. Interesting what happened. 2. 12 is where it came in. When s pxpecting 1. 9 cominget numbers were in. We ended up near session highs. Vonne despite how we see yields heading higher, it seems were shrugging off inflation print and adding to risk. The interesting to see s p 500 reverse and gain back the losses from this year already. Ramy lets get more into this yvonne, because the s p 500 advancing four days in a solidifying the rebound despite the higherthanexpected set by a decline in retail sales. Down, su keenan is here with more. It seems the bulls were ready to run. Su it seems were getting two stories, perhaps the economy not as strong as we thought with the decline i
It is just past 7 00 p. M. Sunday. Janet yellen defending her time in office as the race narrows to three. Messagenistration has a to those who trade with iran, you do so at your own risk. No surprises. We tend to think japanese elections are a snooze fest, but marketse year and the get it right this time. Pretty much what we would expect. The yen weakening, down. 3 , continuing on with easy Monetary Policy through abenomics. We will take a look at the knock on effect for the next 34 years. Time to bringect in our next guest. She is a former boj policy board member and voted against the negative Interest Rate policy back in 2016. Thank you so much. Your initial reaction to this election . Some were saying this was a victory by default. A lot of divisive issues leading up to sunday. Was this election about nothing . It was already anticipated and no surprise, but this abeumption tax hike, decided to do it has scheduled, but will change the allocation to children and education. This timi