Rising supplies in the u. S. And libya. Matt welcome to bloomberg daybreak europe. Our flagship mornings show here in london. Im standing in for manus cranny. Anna todays the day of the queens speech. The name is a little misleading, is not written by the queen, but its delivered by the queen. Is the first glimpse of the legislative agenda that is over the intended next two years by theresa may and her minority government. How many domestic policies does she need . The voting takes place next week. Lots to talk about but more broadly, we need to talk talk about whats been happening in china. Take us through some of the market action. Said there was muted reaction in the market today with chinas msci inclusion, but of course its been long suspected, they tried three times already and failed. Here you can see over the last year a runoff of investors piling into a share etfs before the decision. We talk a lot about buy the rumor, sell the news. Today it was by the rumor and save the news
Names a new crown prince, replacing his cousin. What does this mean for reform, the region, and the markets . Speech. Queens u. K. Parliament opens with the monarch presenting theresa mays agenda. But where is the deal with the dnp . Take a look at pages across the board. You are looking at, as far as the futures go, you. 4 drop on the ftse index. Add ine bit more if you the peripherals. Take a look at funds bunds. A little bit more nds pushing down the yield. I know there are some green numbers there. Less yield. Investors kind of got a width of this and the drop in oil and already were hiding. Guy saudi arabia, fourth time in. Great stuff. The market was softer. Argentina, stays as a frontier market. Keep an eye on these two. They are fascinating. Peso, again,an similar sort of story. Move onto to the next animation and talk about what is happening. Argentinian bond market. This story, it is important. It is not just a china story, it is a whole bunch of other things. Story, the arge
Market territory. That means they are more than 20 below their most recent peak, which was reached in january, marking the lowest settlement price for oil this year. Domestic crude fell by 2 today closed around 43 a barrel. The reason for the decline is a familiar one. Theres simply too crude on the market and not enough demand. The Worlds Biggest Oil producers tried to fix the problem, but as jackie d the fg cracks. Crude oil lower again on concerns about oversupply, which is not what is supposed to be happening now. Opec is committed to cutting output this year, but some member countries like libya and nigeria, are cheating. I think theres a couple of Different Reasons for oil decline and they cant all cull min nate in the perfect storm. First, is that opec didnt have the control they once did, so when b they agreed to production cuts, they declined. Then i think the market believes opec members would become frustrated with the situation and that exacerbated the move lower. Weve talk
Be as markets are giving us a lot, a lot of news, just in themselves. There is a lot overall. Oil is still sliding. Global stocks are retreating and you can see that clearly in europe with the stoxx 600 down 0. 7 . The yen strengthening. We see a risk off mode with crude oil tumbling into a risk off mood. That will persist. We also want to look at the shanghai equities, and the chinese domestic stocks. I will show you that shortly and then the pound, of course, it is the cleans speech it is the queens speech today. Lets construed to the bloomberg first word news. Reporter saudi Arabias Deputy Crown Prince Mohammed bin Salman Al Saud has replaced his son as heir to the throne. The shocking announcement sonsidates the sokings power. Algian shoulders have shot suspected assailant from brussels. Had allin station wit tarins haulted. The interior Affairs Ministry confirms that military staff had intervened to neutralize an individual. Chinese stocks will be added to the msci indexes. While
Market where prices rose a lot last month. In fact, the median price of a home is now the highest its been, putting Home Ownership even further out of reach for some. Low inventory has helped propel prices and homes are going quick. The number of days houses are on the market hit a new low. Diana oleic reports the divide between homeowners and renters is widening. Home sales have been seesawing a few months now. The headline here is really in home prices. The median price of a home sold cheaper, half more 00. Expensive. It says more higher priced home rs sele 100,000 dropped 7 from a year ago. Even those between sells of homes priced half a million were up over 20 and Million Dollar home sales were up nearly 30 . If you run up the home price, it make it more difficult for renters. We are essentially stuck at a 50 or lower Home Ownership rate and this is the current of a time where overall. Howard ing equity has doubled. Wealth. Hose who can the problem is largely the weak supply, espec