The future of the italian leader emerges with a sticky point. And another election. Manus warm welcome to daybreak europe. The fx markets do not believe rhetoric. D in a lovely tweet from the chief Market Strategist increasingly, the markets are recognizing the alleged call from china. Is the u. S. Blinking because of the friday slide in markets . Do you believe the chinese really picked up the phone and said we want to get around the table . Nejra they say they did not and all we got was a slight shift in tone from President Trump. It does not mean his underlying strategy has changed at all. More there is a little risk on in the markets. If there is a shift in tone, maybe it will be followed by action. Certainly not thought of by the big companies. Tone. Is a shift in china badly wants a deal. There is certainly a shift along the as if you 500. By the diff by the way, the difference between u. S. Stocks in u. S. Futures dollaryen does not believe the mood music has shifted at all. The
Moment right now the dow is down by 33 points take a look at what happened to equity markets overnight in asia youll see that the nikkei was flat the hang seng was down by. 8 and the shanghai composite up by. 1 in europe theres active trading taking place in the markets. Youll see its a little bit of a mixed picture. Three major averages are weaker with the ftse down by. 5 . Italy and spain are seeing stocks higher and then finally check out the treasury market here in the United States. This has been the thing we started watching so closely yesterday. You did see an inversion of the yield curve with the ten year yield challenging the 2 year yield. Right nowits slightly above the 2year as it should be at least. That inverted slightly yesterday late in the session. Right now 10year is yielding 1. 581 the two year is yielding 1. 561 . Were getting close on that again. That and maybe this as well investors suffering a bit of whiplash this morning as President Trump changed his messaging o
Mattarella this afternoon, the president. He says elections are the way out of the current impasse. I wonder whether the president is entirely convinced. Vonnie you were alluding to it there, something happened the last few minutes, and it could have been a combination of things because we had a few negative catalysts, including theirtocks are up against 50 day moving average, and that may have triggered some selling. 210 turningthe negative, still negative at this point. That triggered a selloff. The s p is now down six tense of 1 . Nordstrom did beat, and is looking maybe even more attractive as a target. More attractive, as is target. It is up 15 . Some dismal data out of europe earlier on. Germany making the headlines when it comes to the pmi, manufacturing and Services Pmis dropping at the fastest rate in six years. It is a strong signal that europes biggest economy could be heading towards a recession. Negative. Ady had one at the same time, the german bund is bank the German Bun
We also had gains in yuan lifting currencies. You can see the u. S. 10 year yield at 1. 72. The fixing at 7. 04. We are getting breaking news out of the philippines, another central bank that needs to do something because of the world economy. 4. 25, cut the key rate to following india, new zealand, amongst others. Coming up, we hear from the chief executive of adidas about trade wars and global demand. Now, lets get straight to bloomberg first word news in new york city. This morning, oil is rebounding from a sevenmonth low. Looks tos saudi arabia stem the slide and processes in prices. Bloomberg learned react will not tolerate continued price weakness as oil has been driven down to the worsening trade work and a surprise increase in stockpiles. Pakistan suspended a trade with india and downgraded diplomatic relations after new delhi revoked decades of economy for the disputed region of kashmir. Islamabad says they will take the matter to the united nations. India says the issue is an
Yuan down 477. Beijing sites protectionism as agriculturallt imports. Asian equities down the most since october last year. European and u. S. Futures point to another day of heavy license heavy losses. Hsbcs ceo steps down. Good morning, matt. Matt good morning. Less than half an hour away from the start of european trading and it will be a negative session judging by futures. Gold surging again back to the highest level we have seen since 2013 as investors seek safe havens. Look at the futures trade across europe, a loss of more than 1 in ftse futures. We are dax futures down 1. 3 . It looks like it could be a very negative open. What are you seeing on the gmm . Anna a very negative session essentially through the asian markets as china hits back. The chinese currency being allowed to weekend weaken through seven. China asking importers not to buy u. S. Agricultural products. This is what we are seeing in the markets in the asian markets. You dont see china itself on the gmm, its not