A warm welcome to Worldwide Exchange on cnbc. Im wilfred frost. Im seema m infa for sara eisen. Good morning. Good morning to you great to have you with us lets get to the Global Market picture. Its an encouraging one. Yesterday, record closes note just for all three main indices that youre looking at, but for the russell, for thel transpor as well. The nasdaq up 0. 8 the s p and dow up about 0. 6 . The year for the w3ow thats roughly one every four trading sessions. E extraordinary statistics rp r yesterday. Utilities the worst. Could be another positive set of record closes. The dow higher by 72 points, nasdaq by 10 s p by 5 it was a riskon day for the bond xdarket. We saw selling of bonds. Yields rising. The tenyear pushed up to 2. 39 , where it sits this morning as well global stocks have had an encouraging start to the week. Letse1 look at how asia perford overnight. Mostly tof4npside. C the shanghai upqnearly 1 , hang seng up about 0. 7 one event to watch this week will be
And some data just came out on german business climate. The ifo german bit climate coming in at the estimate 104. 5. The number coming in at 105. 5. Slightly higher than what we saw in november and in line with estimates. The German Ifo Business sentiment came in at 105. 5. Why do we care about this . Germany, of course, is europes largest economy. Given its high exposure to russia, German Economy has been showing signs of weakness over the past couple of months. The recent zew survey did come in higher than expected indicating a improvement in Business Sentiment. Were looking at the euro slightly higher trading at 1. 2332. Lets bring in simon, who is joining us now to get your reaction to this german ifo number. Does this surprise you . We see this, the zew and the pmi data lately. I think mainly the main surprise is that theyre shrugging off the surprise coming out of europe. The most open economy, 35 export to gdp ratio. Thats a little bit of a surprise. And is this one reason, give
We have also got the overall number at 108. 6. That was forecast at 108. 4. Thats the Business Sentiment index and the Business Expectations. Lets have a look for that has come in at 103. 5. The forecast was 104. 4. So lets just have a look. Overall the expectations just below forecast the Business Sentiment and Current Conditions just ahead of forecasts. Of course this follows yesterdays pmi where germanys came in at 41. 9 down from 52. 8. So mixed set of data coming out of germany over the last couple of days. We saw the euro dollar there bouncing in fact in todays session. Lets get a comment. He is chief economist. Good morning to you. So slight contrast to yesterdays data but still mixed this morning. This ifo sentiment. A bit mixed but not very much. If you look at it the key thing is that Current Conditions have improved a lot and then of course expectations where people are asked whether it can get much better than what the currency is are no longer as stellar as they used to be
Concerned. German september ifo, 100. 7. The current condition is 111. 4. The expectation is 104. 2. So not quite as a small jump in ifo. And they said the august Business Climate was revised to 107. 6. So not quite as big a jump as we might have expected. Lets get Immediate Reaction to that. Miles bradshaw is Portfolio Manager at pimco and joins us right now. Miles, a small bones in ifo. Whats your assessment of what that means and of the German Economy . I think it underwrites the other data that suggests the european economy is slowly recovering. Germany is leading the charge. You know, the ifo on has been stronger, the pmis have been stronger. But its a subdued recovery and its a recovery that isnt going to cause the ecb to be tightening policy anytime soon. Whats more important in terms of the ifo is the expectations data in terms of having an assessment about where gdp is going to be going forward. I think that was a bit more than expected. But i think the key theme is its a very
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