Frankly, earnings season has been good maybe better than in the last couple of years, so to blame it on earnings is looking for a scapegoat. I think most, if not all this move to the downside, has to do with the rhetoric were hearing and pete and dan can speak to this a lot better than i can when you see the vix up 44 and for the first time in a long time, not giving any back during the day, that leads me to believe that people are more concerned about geo Political Risk they are about earnings risk so, you have a vix up 44 and it hasnt happened a lot the fact that the s p was only down 1. 5 was a little curious it also speaks to what you just said the way lot of funds have been b trading volatility. Helping fund other bets hee, so this is a bit of an unwind and investors caught off guard the s p 500 three days ago was making new all time highs. Its down about 2 from those levels obviously, theres things that guy has been watching. Small caps, russell is down about 5. 5 transports roll
To very warm welcome bloomberg day break. Im anna edwards. Lets talk about some of the extraordinary price action that were seeing in this environment with regard to the euro this morning or in the middle of the trading day in asia. Extraordinary is the key word in all of this. You would have missed out on a 1. 6 spike on the dollar. Take a look at what were seeing here. Even pulled it back on four trade full trading days. 1. 6 . We spoke to some of the Foreign Exchange traders out there. They said you have algo rhythmic letters snow building a. That snapped out the liquidity that was there around the turn of the year. Bear in mind some of the traders had to move in there and take losses to cover the positions. We saw a spike in the euro swiss. Move saw this specific against the dollar. A bit of a weaker dollar but in the scheme of things in the scheme of the eurodollar trade, this was a big move, anna. Algorithms being mentioned as is the norm. As we bridge this period between christm
And Islamic State reportedly claims responsibility for the new years eve attack in istanbul new years eve night and the manhunt for the gunman still continues. Good morning everyone. Happy new year. Lets kick everyone off with economic data. 54. 9 versus the forecast of 4. 9. And entering 2017 in a pretty good shape. New orders accelerating despite rising prices in manufacturing growth was the strongest since april 20, 2011. For the euro zone and this follows a pretty good state of numbers. The french manufacturing number was the strongest since 2011. The german manufacturing print saw a threeyear high and for italy, a six month high. Were seeing a reversal in the first hour of trade here. The markets started off slightly in the red now were seeing the German Market pick up higher by 0. 7 overall. Weve seen strength throughout the morning now topping the index higherer by 3 . Utilities are on the rise as well. Were also seeing strength in eonafter discussing cost cutting plans. Higher
And breakup paints. A hard brexit could hit manufacturers profits i is much as 30 . We will speak to the author of that report. Matt let us take a look at futures. A half hour of a halfhour to go and we are seeing a mixed trade. Ftse futures pointing down all morning long. Up now withopening a fluid mix. 0. 2 . Tures up and you see euro stocks unchanged. I am looking at toyota motor. Just coming across with earnings. 4834. Ing profit at theymates at profit are lifting their operating 1. 7ook for the year from trillion yen. A miss on the quarter that we had but a boost in the outlook looking forward. We will see how traders deal with this when u. S. Opens. When u. S. Trading opens. Japanese trading is already closed. It will be fascinating to see what they say about the yen Going Forward from here because as we know what is happening in the autos hector is becoming increasing in the auto sector is becoming increasingly political. The euro is down 0. 3 . Which may cheer up wolfgang short
Medical leave is weighing on stocks. Beatingand properties expectations, the largest stock showing that resilience despite weaker earnings. It is 4 00 a. M. In london. Bloombergcome to markets middle east. You mentioned those earnings in asia. We are seeing not just earnings, but what has happened in the u. S. The dollarmy index was a gaining before. It is sharing those gains in the asian session. We are seeing others gain as well. Crude losing 7 10 of 1 . U. S. Is showing expanding stockpiles. Treasuries in sovereign debt markets in asia following u. S. Treasuries lower come as saying singapore and new zealand, rising there. Yousef, we are bracing for round two of janet yellen on capitol hill. Yousef absolutely. We are seeing interesting movement in terms of expectations for Interest Rate entries. Lets show you our favorite function, which shall use those you thosehows expectations for a march hike. We were 24 . Now were at 34 . We will continue to carve out this fascinating conversat