Ande are very determined ouritted in implementing capital return policies. Been flashing our intentions to have a good, solid Cash Dividend but also complemented with share buyback. Welcome to surveillance. It is all about the u. S. Fiscal stimulus and the possibility of another Coronavirus Relief package may be before the election. They are making progress but still disagreements and that is weighing on the market uncertainty, especially in the european space. European stocks down for the second day. U. S. Equity futures pointed higher. Leading the decline by region. Tech outperforming. Energy is the laggard. The yield in the u. S. , they move down even amid some of the stronger risk off shifts we have seen. Strong three to six month treasury yields. Aussie dollar is a standout in the fx space. Central Bank Official said shortterm rates may fall 20. What happened is the rba unsettled investors who counted on the cash rate reaching a genuine lower bound, quite a sizable move. Brent cru
A very warm welcome to bloomberg daybreak europe. This is the focus of markets. Much of it has come through better than what was expected by economists. That has highlighted the stabilization of the chinese economy. On your bloomberg, you can pull this chart. Figures year on year numbers coming through, the constant price year on year in green showing the stabilization, in the words of chief economist ,eport china at citigroup saying this is an economy that has stabilized. Away from the growth data, the wobbling in some of the equity markets is the impact we have seen from a closeddoor meeting that took place over the weekend. The smallit have over caps in china . That is something we will discuss later in the program. Lets showed where we are on the Global Equity markets. The msci index is up for a seventh day. We also have a soft sales day, which suggests a study gradual pace from the fed. The japan is closed. The new Zealand Dollar falling. A lower new Zealand Dollar will rebound as
Economic forum in davos. Yousef it is eight a. M. In dubai, 5 00 a. M. In london. I am yousef gamal eldin. I am Tracy Alloway. Theres a lot going on. What are you looking at, yousef . I am looking at indicators for this massive week ahead with the inauguration of donald trump and much, much more. We are looking at the 10year for the yield climbing fourth straight week. It could possibly be telling us a bigger story. This is the chart you should be on yourup pulling up bloomberg heard this is the correlation between the 10your paper and the s p 500 going back over a decade. Paulsen, the chief investment strategist at Wells Capital management cited the 52week relation on the top panel between the s p 500 and the treasury yield and the correlation in the past month that stocks and bonds started falling together. T has happened three times that is in those boxes since 1990 nine. That could be a key indicator of what is to come in the u. S. Stock market. What are you watching . Yousef, i lo
Tracy im tracy alloway. Riyadh. You are in that is not your normal place. What are you doing here . Are not here to look for oil barrels. The story here is about the Stock Exchange. They have the biggest Stock Exchange and they are pushing ahead wiith the series of reforms. Part of it is to make it deeper. Part of it is to perhaps repair as well for the delisting of saudi aramco, but also to diversify away from its dependence on oil. The new parallel market they are is arabichere, tracy, for growth. It requires a market value of at riyals. Million saudi and they are offering a percentage of at least 20 . Of course, all of this again part of the broader efforts to try to prepare the market for the emerging market inclusion. It shows regulators are serious with moving ahead with bold, constructive reforms. The realtors have not really bought into the stock market story. Yousef, one reason they are not buying the story may be oil. Take a look at the chart i have prepared for you. I know i
Geopolitical tensions weigh on markets. The u. S. Reviews its plans for north korea after a pyongyang show of force. Calm. G version for Chinese Investment picking up. Lets check the markets. Those trading figures out of china are being felt across the markets. The Australian Dollar is mostly affected by chinese tray numbers. The china gdp figure pretty good. The Australian Dollars saw a jump. It is up 0. 1 . If you look at the function on bloomberg, the south korean won is spiking 3 10 of 1 . We are seeing iron ore feeling the pressure, pressured since entering a bear market. The sovereign bonds, mixed a little bit. We are seeing the u. S. Treasury yields continuing to slump. The australian markets are closed for the holiday. Gdp numbers, china but also geopolitical tensions. North korea and turkey. Plenty to digest. If you look at what happened to the turkish rea, the first gauge of their result and what a rally we saw, as much as 2. 4 strengthening. Vote. Ere seeking a yes we are ju