Very warm welcome to our flagship morning show in london. Manus a little bit of breaking news coming through on the corporate side. Third largest Mortgage Lender in sweden to deliver numbers. Nice, comfortable feet. The market had penciled in 4. 4, so things are getting better. This runs with the theme from seb, when it comes to you have to go nordic to get it. 24. 6 tier one, well in excess of the market expectation of 24. 3 . Strong capitalization performance. This is an environment you have negative rate but it looks as if the economy is sporting the banking industry. Anna thats get a little more breaking news on the earnings. Other news breaking this hour as well. Capital levels you described in the banking sector, lets talk about asml. Secondquarter numbers coming through. Whats interesting about this chip equipment manufacturer is the outlook for the third order that investors seem to focus on. Were hearing that recorder 2017 net sales are acted to come in at 2. 2 billion euros.
Happy president s day if you are joining us from the United States. Good afternoon. Anna edwards, good afternoon. There you go. Stoxx 600 up for a second consecutive day, the highest level since december. It will be a quieter day today because of the president s day holiday. No chart shows a better story, no two day chart shows a better. Tory 143 billion, that was the bid put on the table for unilver from kraft heinz. The shares surged 13 on friday. The biggest gain ever, a record. Or unilver today, shares fell 9 . Kraft heinz walking away. Sixceo of unilver had months to put his ship in order because takeovers to debate that kraft cannot come back for six months. s defenses were not formidable, such as low Stock Ownership by management. Credibility may take a hit Going Forward. That is an interesting angle. Rbs shares up to a oneyear high after it said it would scrap its planned sale of its Consumer Banking division. Investors are optimistic today. The rbs is closer to resolving these
And president xi jinping having dinner. Herearkets reacted to take us through the market reaction, Michael Mckee. What is at the fed had to say that got the attention of the market . Mike they did talk about the market. They are watching valuations. The feds job is to keep Financial Markets stable. They are a little concerned at the way things are going. There isnt much they can do about it at this point. This may just be a verbal warning shot to wall street. Aboutd went into detail its Balance Sheet program and where they will start reinvesting. By the end of the year, they want to get a couple more rate increases in and then the open question is how they do it once they start going. David nobody quite knows the answer to that. Rate hikes on the one hand and rolling off the Balance Sheet on the other. Mike there was not a tied to that in the minutes, but there was the interview with bill dudley. Qe lowered Interest Rates. If you start removing it, you will start raising Interest Rates
Anna a very warm welcome everybody. This wednesday morning. I am anna and words. Edwards. Moving the markets, two of them, San Francisco John Williams and the conclusion being that at least two Interest Rate hikes may be warranted in 2016 because of the expansion in the economy. And inflation increasing. Over a goldman sachs, there is a chart over the twoyear spread in the u. S. On the bloomberg. Theyre warning Bond Investors that they need be more prepared for the fed to increase Interest Rates. Bill gross of course did something similar earlier on shouldnth, markets not count the fed out. What were seeing here is the increased demand for longterm debt, at least seeing a decrease over the two year yield. That spread is the smallest since 2007. It seems that in some senses, markets are not repairing a big difference between what we are seeing in the rhetoric from the fed. Not all of the assets have been reacting a great deal to what we heard from the fed, i should say. The dollar index
There is too much towards the top of the market and not towards what some people call the real economy. Anna a very warm welcome to countdown everybody. I am anna edwards. Manus i am manus cranny. You had in the headline. Over they in the u. S. Past five days up by 50 . In europe, up 19 . A wonderful story on the bloomberg. It is called misery, not talking about me. [laughter] misery loves a companion. Have a look at this. It really does tell i suppose a phenomenal story about asset class correlation. Lets have a look at the full screen, dollar for us. Oil a big culprit. Gold down 22 out of 24 of the developed markets. They are indeed done, in terms of the equity market. There is the risk radar in terms of our perspective this morning. Anna msci emerging markets down 3 , misery loves company. Nowhere to hide. But how you like. Manus i love that. Anna are things turning around . Do things look different as we go towards todays trading day u. S. Future pointing . To a stronger opening. A