The volatility continues to come down. 40 whenearly breaking it comes to the vstoxx. Monitor what is happening around the world. We are headed toward the european close. It looks more positive than it did earlier under the big story continues to be the efforts being made by governments to reopen markets, the effort being made by governments around the world to support Small Businesses and the everett for central bank to support the credit market. Lets get more insight into the bond and credit space. The fed and other Central Banks continue to make significant efforts. The fed is buying commercial paper today. Nice to have you on the show. We are in a situation where Central Banks are buying aggressively. Spacere buying in the bbb and the highyield space. What you make of price discovery right now . How realistic are these markets . Its a good question. You have had a huge bid to the market in the investment credit space and that has extended down the capital structure into highyield bo
Treasury, the efforts to stimulate an economy in free fall jim, you got off a call or an interview it was a call as well with secretary mnuchin what stood out to you . That you shouldnt lay people off. I want to point out i got a correction, he said on Small Business payroll, two weeks, he meant two months two months means you do not lay people off without, i think im not saying its irresponsible but everything is being done to keep businesses open Small Businesses open. David, with the fed, i think theyve taken off to me anything involving credit the secretary talked about anything involving liquidity we cant produce demand. You keep people around for two months, but they wont be able to produce demand. There will still be a burden on Small Business not sure how that will be resolved thats an interesting point jim, we did we were watching the futures, which appeared to be limited down at different points in it the evening last night after japan opened as well then we got a fed announc
Merited in several countries talking about public debt positions being manageable despite deteriorating macroenvironment growth is expected to remain subdued longer than expected remaining muted in a low rate environment supports Economic Activity signs of risk takes need monitoring and indeed action banks in the euro area are all trading negatively there, the swiss banks having resisted. Banks renewed cyclical head winds and reviewed progress. Euro area banks are adequately capitalized, despite the fact, a lot of those european banks trading lower. My colleague is outside the bank now, what isdifferent about this report than the one we saw back in may . Reporter a little more gloomy, i would say. Also the comments on the economic down turn are a little more pronounced also those negative rates to have side effects. I think it is a bit more pronounced than previously it is happening. We are seeing it in certain markets like real estate markets. It will be interesting to see what the Vi
Qualcomm up 8. 5 on a better earning quarter. Down 26 . No improvements throughout the session. Whoalked to the ceo earlier seems to not be worried but analysts on the street are calling out the unit. Airbnb, google not placing it as high in the search results and saying there is a lot of uncertainty ahead for expedia. Year is up by30 nine basis points right now. Were seeing a similar move over in the United States as these are substantial moves in the back end of the bond market. We are also getting several moves of the 10 year. The 30 year, absolutely i watering. As you can see, a nine basis points selloff here in europe in germany. The pound has been under pressure as well, two members of the governing council in the United Kingdom voting for a rate cut. Trading higher. We await news from the white house, confirmation possibly that we do have the potential for a rollback of tariffs if we do get this deal done. Nothing yet. Lets talk about what has been happening in the u k. Governor
Loses another vote on an early election. And citigroup warns over trading revenue in the Third Quarter as the bank of america exec it if says his traders are doing ok. How is Morgan Stanley holding up . We speak with the ceo later today. Welcome to daybreak europe. I have three words for you. Need for adjustment. That is the tone coming from the germans. And it was the bone that whacked the bond tail. Interesting to see the global picture around bond markets being transformed by the trade narrative last week and also the hawkish talk we are getting from the ecb. Particularly northern europeans. Yes. Big move on 10 year notes over the past four days. 19 basis points. Guest post andr get a Quick Response in terms of what he thinks. Just having some difficulty hearing you. Lets turn our attention to the germans. I mentioned those three little words. Germany plans to run a balanced budget and it could be viewed as a case of an economic slump. Letterng to a finance obtained by bloomberg. So