Approach with Jeanclaude Juncker. We are in luxembourg. Manus a warm welcome to daybreak europe. We are waking up to 5 Million Barrels of oil being taken out of the system by saudi aramco. Is it a fourweek affair . How much of the 20 price rise that we saw at the open is geopolitics and how much of it is supply . Good morning. Nejra yes, the biggest sudden disruption ever is what we have been waking up to this weekend. We have certainly been mispricing oil markets up until now. We have indeed. Let me show you the single biggest daily move. I put it in the library. Here we go. This is the kind of size and scope move we have seen on the oil market. We opened up on the biggest move since 1988. Since 1990iggest when kuwait and iraq were at war. The question we must ask ourselves is how quickly can aramco get this oil back online . You need to speak to the market and make it very clear what is the damage, what is the damage limitation. Lets look at the rest of the implications. We are seein
Manus yesterday we broke the news that there was a ratcheting higher in the tariff wars wars. What are the implications . The economy is stable. They will adjust Economic Policy as is appropriate. It really is about the next response lever from china for me. Nejra questions are being asked about whether they need to do more to fuel credit and support the property sector, loosen some of the controls. Some of the reaction we are seeing is not because of pmi, because they show a little more pressure from trade, but more because of the response and the words weve had from authorities today. Manus lets talk about the rest of the response mechanism. Steven major said, im talking about ground zero for trade. The new Zealand Dollar. A lower move. The market believes you are going to see a much more aggressive repricing. Cutprobability of another from the kiwi. The shorts are the highest since november. Have a look at the yuan. What is the correlation between the negative yielding bonds and gol
In the media are trying to build up because they would love to see a recession. We are very far from a recession. Asus italian bonds rally the Prime Minister resigns, blaming matteo salvini. Boris johnson will talk brexit with Angela Merkel. We speak to the German Economy minister. So what is the big market event . It is the 30 year bond auction. 30 years the duration. Already trading at negative. What will the appetite be for 30 year paper . 2015, there was a buyers strike. That could be the risk. The reason i focus on the difference, last week with there was talk of fiscal stimulus. That backed up longer dated yields in the United States. It was the tail that whacked the dog. The german bond market move the u. S. Treasury market. We have had near record low rates of oversubscription in july. The past three options, feeling, feeling. We will bring you the data. Have a look at wti. What is the big driver of Market Sentiment donald trump talking about tax cuts, talking about tax cuts, n
As protesters moved to shut down hong kong. We are live on the ground. A public spending boost from Boris Johnson raises expectations he is playing for an early general election. Parliamentary majority hangs by a thread. Manus a warm welcome to the show. And raise your game the bet higher. That is the message from the chinese. The dam has been breached. The dogs have been unleashed by the pboc. They are letting the hounds run, even though they verbally intervened. Nejra i love your use of language. What a dramatic day of the markets. The question is where the next resistance level is for the yuan and whether the pboc is going to defend a certain level or whether it is just protecting against wild swings in volatility. Whether we now see the start of a currency war and weather will be more challenging for banks which have less room to ease, which means japan. Manus there are five emergingmarket Central Banks, five more to go this week. I think when it comes to pboc, you are seeing the s
Phone as china prepares tariff countermeasures. Investors bank in another quarterpoint reduction. Powell bow to the pressure . The u. S. Says it is disappointed with the u. K. Decision to release an iranian tanker. Penalties could be imposed on any company that does business take a look at the 10 year yield, coming back. We dipped below 1. 5 yesterday. This is a threeyear chart. Back to 1. 5 . Looking at decent gains across european futures. Dax futures. T the gains of 0. 6 . Across the board, really. Ftse futures up a little more. Wang. Get over to selina Chinese Paramilitary Police seen gathering near hong kong. Some are interpreting it as a sign beijing is ready to use increased force. Mirrors from the in comments yesterday. The hong kong situation is at a critical moment. We have full trust and if the situation deteriorates further, into i say our government, the Central Government will not sit back and watch. Is the special relationship in danger . The u. S. Says it is disappointe