10ly plans on spending billion euros a month. Biden uses his first call with Boris Johnson to reaffirm his support for the good friday agreements. A lot to talk about this morning. Under one hour until the start of the European Equity trading session, futures look flat. Ftse futures, dax futures, a bit of a mix. Yesterday europe was up strongly 1. 5 or more on the major markets by the close. We come into today with a continuation of themes of the previous day, selling out on tech, getting back to value. Lets get to u. S. Futures, looking more buoyant and having to do with what we did not see in the u. S. Session yesterday. Things are not as strong across the board. Nasdaq down by 0. 3 . U. S. Futures looking have we seen that rotation playing out in terms of the tech versus value story . It is in play in asia. It is inch deceit a japanese equity market doing well. See the interesting to japanese equity market doing well. Part of this has to do with what is going on in tech, a crackdown
Brussels summit in after concerns grow. Leaders are there to discuss china and belarus. The Fourth Quarter starts with a after its worst ever outage. It says a hardware breakdown is to blame. Good morning, everybody. Some breaking news coming through at the 7 00 hour. Lets go to the closing space and h m. We had these numbers in the middle of september. Pretax profit numbers from the business. Further detail here. 48. 9 . Liquidity remains good according to the Closing Company and they say september sales decreased by 5 in local currency. Many stores have local restrictions limiting opening hours. They currently have 166 stores that are still closed. Given the global stretch of the business, perhaps that is something of an achievement. That is the latest from h m. Get to rollsroyce. We have some breaking news coming through. Proposing a recapitalization to start with a bond offering. One billion pounds bond offering. Be 200 pounds. Ll proceeds. Raise growth they are getting support fro
Cash trade. Here are your top headlines from the bloomberg terminal. Trumpa on the defensive. The president stands by his handling of the coronavirus on day one of the Republican National convention. Says democrats are still blaming America First Nikki Haley Says democrats are still blaming America First. The chinese arrives in europe today. Demandsla merkel answers from russia after it was putin critict the was likely poisoned. We have figures crossing the wire right now. The German Economy shrank 9. 7 in the second quarter. The initial estimate was for a drop of 10 point 1 . This is a second look here, and so it looks like it is a little better than expected. Still, of course, a massive drop , the quarter over quarter figure. The yearoveryear figure is a drop of 11. 3 , so a big drop in the german gdp. That the bloomberg economists expect a rebound in the second half, and of fullyear drop of about 6 for 2020. Lets take a look at what futures are telling us after the new record highs
He shanghai composite up asx 200 picking up where it left off on wednesday. That was shrugging off the dreadful gdp numbers. Looking at the foreign exchanges, dollar weakness is being snapped, the dollar coming back against a popular currency. The bloomberg dollar index is moving higher. Seeing more yuan strength, the yen weakness has been pronounced and the euro is in the crosshairs of where currency traders are. There we go. Joining us now, trade j. P. Morgan Asset Management global strategist marcelo chow. Give us an idea where we are with the rally. It is looking toppy at the moment, but i have been saying that for a while. Good morning and thank you for having me back here. Index has record high been phenomenal so far. I think this reflects and factors expectations for 2021 andto recovery in 2022. As you mentioned, the recovery so far has been quite uneven. The Technology Sector is responsible for a significant share of the rebound. It seemed like there has been some good news val
Buying longer on that curve . If so, that will keep rates lower. The path we are leading down is not a good one. What the fed is trying to do is what every central bank is trying to do, which is engineer growth. Tyler george bory is with us now. Talk to me about what you have been noticing, your take on the big reflationary trade yesterday but then a little bit of a comedown in yields again today. George thank you for having me on, always great to be on the show. Powelll question is, is seismic shift, or more of the same . The reality is there are some significant factors here. The biggest is the acknowledgment that there has been a Material Change in the economy. Unemployment can go lower than policy makers expect without causing inflation. They have issue is, also kind of acknowledged there is a limitation of Monetary Policy. Those two factors we view as material. Shift,terms of a policy what they are likely to do going forward, it feels like it is very much same game. The way we are