6 00 in the morning in london. A lot of the focus today still in tokyo. We will get to what is happening in the Asian Session right now. And tell you what the boj has been doing. No change to the negative Interest Rate policy, 0. 1 . But the reorientation of the policy is moving to target yield curves, away from setting specific monetary stimulus per year. This is the impact on the market, if we can throw the risk radar, you will see the monetary stimulus may now fluctuate in the shortterm, as they seek to control the yield curve. Inflation about 2 . There are the headlines. This is reactionary the 10 year did actually get to zero. If you can call zero positive territory, just got there, falling away since. The japanese yen at 102. 69. Shy of 1 by just against the dollar. Perhaps that would make governor boj, pleased at least in the short term. And a reorientation the policy on buying, to ron the spectrum of the buying. ,inked to the topics outperforming the nikkei. Because we said ear
Countdown, everybody. I am anna edwards. Manus i am manus cranny. Stanley fischer talking yesterday about are we more than one and done . Anna a big question, really fascinated about negative Interest Rates as well, such a profile internationally in central banking circles talking about how negative rates seem to be working elsewhere, even know theyre not on the table in the u. S. Pointing out that that will be of interest, but what is of interest to the treasury market in particular is the hawkish commentary we have seen. Manus and it is just a flow, the middle of the curve has had the worst month since last year. We should look at the very short end, twoyear Government Bond yields in the red, never far from the work function is anna edwards. What you have here is the probability of a rate hike, twoyear bond yield in the red, twoyear yields are having the worst august since last november. The yield curve itself, two years versus 30 is the narrowest since 2008, and this part of the yie
Thisfficial chinese pmi, is where the distinction is drawn. We can consider it grateful for a little bit of calm. Anna a little bit of stabilization preg20, better than estimates, better than the july number, but not convincing everybody. Manus it has not. Let us take it off. What we have here is the insurance against default. Every single month, every single month for the past five months the market has been adding 2 billion over the past five months, the biggest increase in 59 countries throughout the world. You can say to me , just around 152 basis points, still only 8 probability that china will default. What im trying to say there is momentum. A carriage of travel for default insurance. Anna not the people expecting the Chinese Government to default, but is very few ways to hedge chinese exposure, and if this is on the rise that is of interest to the markets, especially ahead of the g20. The risk radar, positive data that we have had out of china, released the official reading boo
A very warm welcome to countdown everybody. I am anna edwards. Manus i am manus cranny. Volatility, talking about the dollar, talking the biggest slide in five weeks. Have a look in this chart for our viewers. The dollar index is the white line. And economic surprises are the blue dots. The trifecta, my word of the day the trifecta of doubt,. Talking about services expanding the weakest in six years, manufacturing contract ing, and a lackluster jobs report. That is changing the work function. The probability of the rate hike drops to 24 from 34 . The dollar is under pressure, and volatility, that is spiking higher. What is next . Anna as you say as that data increasingly, disappoints, let us bring up the risk radar and show you how the rest of the Asset Classes have been reacting u. S. T weak data in the theback of that week data, korean wine up as you see. Up to the strong as in the year, oil up by half a percent, the road to algeria paved with a lot of talk about a freeze, a lot of c
Inflation. Welcome to countdown. Happy friday. Nejra im nejra cehic. Manus and i manus cranny. We will get to the geopolitics of north korea and south korea at the moment. But have a look at the bond markets. Are we reaching a capitulation point for building up to one in the bond market . By 2 . Ond yields, up we want to look at the japanese bond yields for capitulation. Here of the global bond yields. Cracks are beginning to appear. Draghi, did not even discussed quantitive easing. Mark carney says the bank of england is not triggerhappy. You can see the beginning of a movement. What are we focusing on the jgb market . Because of the correlation. The correlation between the jgb market and the rest of the market. I think the other thing you can see as well, the 30 year spread. We will hear more from Jeffrey Gundlach later in the show, saying, this is a warning. More on that i look of it later. Nejra that is a great chart. The question is, is japans bond route going to seep into the wor