Pound nowing the euro the highs of the session. The cable rate coming in a little bit weaker. Joining me now, Stephanie Flanders here on set with me, and from london, guy johnson. Usst blush for you, walk through some of the results. Guy this is pretty much exactly as expected. The pound is barely budging on the news. The market is pricing and very little action from the boe going forward. It is very hard to call exactly what the outcome of brexit is going to be. I think weve got 10 basis points priced in on the downside by next march. Just 17 by the end of 2020. The market doesnt know which way to call this one. The bank of england is indicating that the risk of a no deal brexit has declined. When a new deal brexit happens, the risk to the economy will be lester medic than having been be lessd for, but dramatic than having been perceived before. The market finds it hard to find credibility. Alix particularly if they go the way of norway. You have to wonder how that works. Talking abou
111 points the s p 500 up slightly, 0. 24 financials lead the charge up 1. 1 joining us for the full hour to break down the Market Action is jim lecamp lets start with the g20 meeting. You think the market could pull back 20 if trade breaks down . I think the market is not prepared for that at all and weve got a lot of complacency in the market. The markets are trading not far from alltime highs now. We dont have one reason to think a deal is going to be done or be real over the weekend. The good news is that china might have better impetus to do a deal now that they have these problems with their food chain they have problems with the port they have capital outflow that is are accelerating in their country. They have some Serious Problems and they do want to do a deal. A lot of people think theyre going to wait until trump is out of office, try to negotiate with the next one i dont think they have the time to do that i do think a time will get done. If it doesnt i think the market is
Of that. Marriott and hilton is down on a downgrade. The 10 year yield is backup to 2. 06 before the powell testimony tomorrow and plenty of fed speakers today and later in the week. Guy absolutely a firm focus on the fed. European stocks are down again. Stoxx 600 down by 1 . Cable is breaking lower again today. The reason for that the politics, probably more importantly core retail data out of the u. K. Today ahead of gdp tomorrow. Looks like the u. K. Economy hit a brick wall in the second quarter. The market is pricing and more rate cuts from the bank of england. By anothernk down 2. 32 . It was a little worse earlier on. It rallied a little bit, but down hard since that plan was announced. Vonnie fed chair Jerome Powell delivering the opening remarks on the recent Bank Stress Tests at the boston fed conference earlier today. His remarks come a day before his today testimony to congress, with investors expecting powell to pave the way for a socalled insurance cut. Here to discuss no
Francine welcome to bloomberg surveillance. These are the markets. The stoxx 600 gaining a touch. The u. S. 10 year yields going to around 2 . Deutsche bank after the massive overhaul gained one point 7 . We did have a little news out of the german Industrial Production data. Bit of gaining a little temper on some of these markets. The market is going toward 2 . Coming up, we heard from the associate general chairman, what he had to say about the fed, ecb, and more. Lets get to the bloomberg first word news. The lira swamping after president erdogans decision to replace the countrys central bank chief. The dismissal has fueling concerns over the regulators independence. In a meeting, erdogan reportedly told policymakers to get behind his conviction that higher Interest Rates cause inflation. This morning, greece has a new Prime Minister from the right Democracy Party. The election handed him a mandate to tackle the nations chronic woes. New democracy is set to get a perlman treat major
To run another step closer to being able to build an atomic bomb. Ran closer to being able to build an atomic bomb. The turkish lira falls after the Prime Minister fires a central bank governor. Bloomberg has learned erdogan told lawmakers they need to get behind his delete that high rates causes inflation. Global news 24 hours a day, onair, and tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Im renita young. This is bloomberg. It is 1 00 p. M. In new york, 6 00 p. M. In london, 1 00 a. M. In hong kong. Im vonnie quinn. Welcome to bloomberg markets. From bloomberg World Headquarters in new york, here are the top stories on the bloomberg and around the world we are following. Radical surgery for Deutsche Bank. A massive revamp of the german bank, closing its equity business, cutting a fifth of its workforce and scrapping its dividend. Sees theays he still need for a lot of things to go right. Powell in the line of fire. President trump k