Morning. Let us get straight to the markets. We have equity markets around the world under pressure. The shanghai composite is lower this morning. Going for the worst rate we have seen in china since the slump of last year. The biggest twoday loss since last year. Is view from the market critical levels, that would be a 50 retracement from that magical high that we saw two years ago. China stocks headed for the biggest twodate loss, margin traders have cut for the 18th straight day. They are getting out of this market. Back to give you a basis. Let us get to the recording season. It is really kicking in. Let us deal with santander, spains biggest bank. In terms of capital, that is the critical issue for the marketplace. Core equity fully loaded, 10. 05 . The mention is to raise the capital level quite aggressively to match her peers in the marketplace for 2015. They made a profit, a net profit of 6 billion euros. That is the santander capital position. That is the santander net profit
Highgrowth names got nailed today, facebook, amazon, google, starbucks falling hard. What is it about the high Growth Stocks getting punished . What does this mean for the broader markets, if anything . B. K. , what do you say. For the high Growth Stocks we know that this has been the quote, up quote crowded trade. Look what happened today in multiple markets. A lot of people ask me what happened with the dollar today. One of the big trades out there was to be long european equities and short of euro, but when the dollar started to fall that meant that people had to unwind that trade which then also led to taking risk off in other areas so you started that happening early in the morning. Bled over to facebook, amazon, the fang names and people are just getting risk off at this point selling what they can and questioning whether or not that greet is there. Then you had the turnaround in the banks and that was the sector just yesterday i mean, today, still underperforming, but we had a n
Now i would finish by saying a couple of words about banking unions. This is for the 18 countries in the euro zone. Weve made the European Central bank as the supervisor. It will directly supervise the largest 130 banks and then it can call up any of the other 6,000 or so if it suspects there is a problem. The whole of the eu that is all 28 Member States have the same regulations and rules for the Bank Supervision from the european supervisory agencies but the euro zone will make a further detailed supervision of its own but one suspects the Banking Authority is also charged with looking at that book to make sure they are coherent so we dont have Different Things going on whether you are inside or outside of the banking union. All the countries have their own Deposit Guarantee Scheme and we have the intensity mutual lies that in the zone that has failed at the moment. It doesnt conclude that hasnt at her because we have a common level of insurance and common system of rules and its all
Welcome to countdown. Show asn the shoe oil extends its losses, Jack Osbourne says the move is welcome. The fall and oil prices is very basically a good thing for the u. K. , u. S. And europe. Up itsia is ramping economic defenses in the biggest hike since 1998, after the lostl lost 10 ruble 10 of its value in one day alone. Give us the scale here. There are rate hikes and there are rate hikes. The benchmark was 10. 5 and it is now 17 . Thursday we heard the governor of the central bank said it would raise rates from nine point i percent to 10 . Many said that wasnt enough. Itmany when im expecting and looks like she change strategy and nelly got 600 and 50 basis point and now we got a 650 basis point rate hike. You to go back to october of 1998 to find that kind of oneday slide in the ruvell. Ruble. In two dozen 15 the joke was circulating hooton will turn 63, oil will hit 63 and the ruble will be 63 to the dollar. It looks like oil and the ruble got ahead of themselves. 62, and the r
Despite a lack of progress on the deal. Its a mixed bag of European Bank earnings. Setting aside further provisions to cover u. S. Legal issues but puts its troubles behind. Strong european deliveries turbo charge european profits. Also pledging to boost earnings going forward. Youre watching world wide exchange. Bringing you Business News from around the globe. The roubl serks trading lower against the dollar. Prorussian separatists are refusing to end the conflict in ukraine. Meanwhile russia is demanding unacceptable terms. In the last 30 minutes imf managing director pledged for them. We asked if it would effect the ability to reform the country. The program is not without risk. We believe it is realistic and we are reinforced in our assessment by the determination, appetite for reform by the authorities and by the various stake holders in this dialogue that weve had. You know they have demonstrated their appetite for reform. They had a fiscal policy that was better than expected.