Develop quite nicely in Second Quarter have been helped by nice weather in europe indeed and the time for talk is over u. S. Calls on china to impose sanctions on north korea as President Trump and the japanese Prime Minister shinzo abe agree on action after the latest missile test good morning, everyone, brand new edition of street signs. It is monday, final trading day of july. Fairly positive start here doing well on the manufacturing data coming out of china show you what the european markets are doing. Ftse 100 up. 4 after dax is higher. Lets come back to the sectors i mentioned minors, theyre doing very well among top formers following Australian Shares and manufacturing data. Stable under lying growth despite coming in under expectations basic resources up by 1. 3 banks are doing pretty well this morning. Look at that sector. Up by. 05 beating expectations europes biggest bank announced 2 billion Share Buy Back. Third move in a year should be completed before 2017 and will take
Welcome to bloomberg daybreak europe. Im anna edwards. Manus cranny. A couple of push and pull factors in the market. Last week volatility was surging. Anna i noticed. Manus was that your opportunity, maybe, to sell volatility . Yes, we flagged those massive warns, its game on as north korea strikes guam. What does that mean . We had the biggest jump in volatility in three years. And they piled into an Exchange Rated fund that shorts volatility. The fund gains if the markets get coma. Anna investors are aware of the fact that when the vix rises, it typically falls afterward. That is reflected in the appetite. Lets look at the risk radar and show investors had that translate into headline stories around north korea how this translates into a risk on atmosphere. Asian equities, up by 0. 5 . On the one hand, you have these comments coming through from jim mattis, who says it is game on. But the wall street journal cites north korean media, saying kim jong un wants to watch the u. S. A lit
Group says no decision has been made. This as toshiba slumps again. A very warm welcome to bloomberg daybreak europe. , our flagship morning show. Overd morning to you yusuf in dubai yusuf , to you, yusuf. We have to talk about the alltime record high for wednesday. I have the chart here for you, 16 higher than it was the day after the brexit vote. Mining stocks, one of the big drivers of the search. Story a big part of the and thats why got on this chart, the ftse 100 and white and expressed in dollars in the light blue and in euros in purple. You can see its not quite such an impressive performance when you translated into other currencies. Yusuf you are speaking of currencies that are taking a little bit of a breather, but its been an interesting run. 23 out of 26 trading sessions of gains for the greenback. That weighing in at the moment on the dollar in crosshairs as well. If you look at what is happening in terms of expectations for 2017, citigroup is saying the rally is going to
For regular rate hikes. Toa a very warm welcome bloomberg daybreak europe. I am manus cranny. China has gone from being the global deflator to potentially the exporter of inflation. 5. 5 busting through expectations. And that is what is driving markets. Negative real rates. What we have done is track profits of Chinese Companies with those inflationdeflation numbers. Down goes inflation and the prophets. Profits in china have risen by or 2. 5 in november. Is there more to come . Have we reset the gears . Anna there is a domestic implication. To what extent does it reset the inflation rate are globally. Big debate in china as to what these numbers mean for the pboc. Indid not see a big uptick cpi. Let us check the risk radar. A 14ollar index hitting year high on january the third. Things have looked differently, more sluggish in the last few years. Manus there does not seem to be an appetite in the market to build the dollar long. Yellen will be speaking later this week. Build the dolla
Japan. He pulled out of the Transpacific Partnership deal to pursue biliteral negotiations with countries. Hes been critical of japans auto market, calling it unfair and has suggested the country is trying to weaken the yen. Donald trump has once again slammed his countrys courts, calling them too political. It comes after the american president s officials argued to judges in favor of his controversial ban on travelers from seven mainly muslim nations. Trump spoke to Police Chiefs and sheriffs on wednesday, and criticized the federal Appeals Court session the day before. He said he heard things he couldnt believe. You can suspend, you can put restrictions, you can do whatever you want, and this is for the security of the country. A bad High School Student would understand this. Anybody would understand this. A court in Washington State blocked the order nationwide last friday, prompting the Trump Administration to take the case to the Appeals Court. The threejudge panel is expected to