The dollar down is dead, people are beginning to upgrade their forecast on the dollar. The german 10year yeilds are unchanged. A lot of volatility in the equity markets and the foreign exchange. Bond markets are remaining repressed but the Central Banks are doing what they are doing and that is no surprise. Alix a few weeks ago we are talking about 120 for the year. Let us get the latest on the virus resurgence. The french government expected to announce new measures including restrictions on alcohol sales plus public gatherings. Joining us now is maria. Dig into what we can Pay Attention to. We know that the Health Minister will give a press conference and we know that there will be more restrictions, and this is the thing to highlight, this is not for the entire country, but for the region and city of paris, because the population density is high and that is where cases are spreading fats. What they are going to say is you have to scale back social contacts with other people and when
30, which is interesting and worth bearing in mind we have not traveled that far. The bank of england stepping up preparations for negative rates. You can see quite facing the repricing at the front end of the u. K. Curve as we see the two moving as twoyear prospects of negative rates appear to become greater. Alix more on that boe decision with paul dale, capital economic chief u. K. Economist. Negative rates when, where, the future, how do they do it, when do they do it . I think the answer is probably not for a while, if they even do it at all, which suggests to me that the markets have got a bit too excited. We know that the bank of england has been thinking about negative Interest Rates for some time and said in august for the first time that it is part of the target. And today, the minutes revealed that they have started to make preparations so if they didnt want to use them, they could use them. Now i think that is very different to actually wanting to use them. Back in august,
Move we had early in the week and post thanksgiving. We are right back to where we were in yields, with the 10 year at 1. 83 percent. The dollar index strengthened poste jobs report. That said, it is still below 98. 2. 75 onachs is up news it may be close to settling with the Justice Department and other agencies on that probe into its dealings with 1mdb, the malaysian state Investment Fund. Nothing has been decided, and it may stretch into january, but low 2 billion would be considered a win for goldman. Guy i am being told the week Inflation Expectations component in the michigan data is the reason why bonds on yields have rolled over. We are back to 30 on the german tenyear. In terms of stoxx, we continue to be relatively strong. The other point is that at this point, it doesnt look at the fed is going to have to raise again next year. There might be diminished expectations for how high rates can actually go, and that could be putting a cap on rates here. Guy definitely a possibilit
seventh month low. and the manufacturing pmi 45 again weaker than the forecast 46. this comes after disappointing pmis for both germany and france, as well. and remember the german number manufacturing 45 versus 47, new orders index, the 11th month in a row that we have contracted. we also have the ifo number. and the news isn t much better. you can see the reaction in the euro. down at fresh lows against the dollar. business climate index 106.9 compared to a forecast of 109.5. so again, three full points lower. a key index watched to confidence. it is also i believe the lowest in quite some time. joining us is global head of foreign exchange at morgan stanley. welcome. initial reaction. no surprise. when you look at the weakness in the german data, german exports are about 55% outside the eurozone. and what we discovered recently, weakness in it brazil and china. and when you look into some of the economies, you can see that this there are some similarities to the develo