Boost as shares jump more than 10 in their debut waking up europes dor mont ipo market President Trump threatens to call in the National Guard as violence erupts in minneapolis for a third night. With protesters setting fire to the Police Station over the death of george floyd. Asian equities and the week mostly lower as President Trump talks tough on china saying he will issue the white house response to the hong kong moves later today. We are not happy with china we are not happy with whats happened all over the world, people are suffering. 186 countries, all over the world they are suffering we are not happy a very warm welcome to street signs. I want to kick off with fresh data just crossing the wires in italy. The final print, it has been revised lower. We are seeing 5. 3 , thats the quarter on quarter contraction in italy in q1 thats against a preliminary 4. 7 contraction year on year. The contraction stands at minus 5. 4 compared to 5. 8 initially redibted we are seeing worse nu
Nejra welcome. If you are a little bloated after all the christmas cheer, it is a little quiet in the moment. Under the surface you are seeing strength and china, weakness in japan. S p futures not giving us much of a direction. It has been a good month for equities. 3 . S p 500 gaining both benchmarks with double digit gains for 2019. Index onberg dollar its third day of decline. The pound is one of the best performers. Oil holding there a three month high. Lets turn to china. A senior chinese diplomat has suggested the u. S. Should honor its commitment to the one china policy as part of a phase i deal. Always the nation will implement what has been promised. The comments come as beijing and washington are working on the final details of the deal. China central bank is shifting to a march it marketbased system. Great to have you with us, christopher. I hope you had a good christmas. Turning to the low crime rate that is china now implementing. It is a sign of a liberalization of a sys
Welcome to bloomberg daybreak europe. Risk off in todays session and red on the screen. Below the surface, most of the indices are in the red after President Trump signs the bill supporting hong kong processors. The question is if this will impact on the market. It yesterday we saw the s p 500, dow, and nasdaq hit a record high for a Third Straight day. We saw a little bit of a decline in personal spending. Gdp Growth Holding up. Foot,utures on the back but expected liquidity in stock and bond markets. We did see the 10 year treasury yield up yesterday, and the dollar strengthened for a seventh straight session, hitting a sixweek high. The yen unchanged at the moment, but we have seen the yen balance back as a safe haven bid because of concerns around u. S. And china trade. Hitting a oneweek high after a key poll in the u. K. , very good at predicting the 2017 election, showing the conservative Party Heading for a majority. Oil, a little soft. To the hong kong story, President Trump ha
Manus 6 00 a. M. In london. I want to bring your mind back to 2018. Exuberance after the g20. Then we faded to black. Im talking about the drop in the s p 500. Is it deja vu . From the did hear global times yesterday saying there is a will to make a deal. Then in bloombergs reporting, we are talking about the fact china wants december tariffs to be lifted. We are still waiting. Also looking ahead to bank earnings. Big questions over what we are going to see in terms of costcutting. The one positive is the u. S. Consumer. Low rates certainly not helping. Manus let us talk about the various political markets and how they are affecting currencies. The lira, first of all. Battered and bruised. 50 on steel. Three ministers have been sanctioned by the u. S. On turkey. If you wanted a reason to sell the lira, you have it now aplenty. Despite the pushback, defensive play by the local banks, a billion dollars of fx. There is this deep misgiving in the treasury market. Yields popping by 20 basis
Manus warm welcome to daybreak europe. Erdoganng rebuke for and his party in istanbul. The lira rallied as much as 1. 5 . Weve given a little bit of that back. The second worst emergingmarket currency of 2019. If the politics get a little change in turkey, do you want to be long turkish lira, or do you believe the threat of sanctions will weigh on the currency and put on a cap in . If the market moving story of the morning its the market moving story of the morning. These are the two dominant forces on markets. To the gold market, above 1400. We havent broken this since 2013. Up over 1400. More to come, according to citigroup. Its a portfolio diversifier. The money just flowed in. 3 billion flowed in the etfs last week into etfs last week. Hedge funds are the most bullish since 2018. Crude, the most stunning line in the commentary over the weekend from the president of the United States, who says he doesnt care about the closure of the strait of hormuz, because he has oil. That is feel