Us here on set for a talk about the boe, brexit, and his outlook for global rates continuing to grind lower. Global strategist will join us with his outlook for european banks in the second half of 2016. Again, the story is global yields. Jonathan record lows and its a remarkable story that we will continue to talk about. Lets check in with a Bloomberg Team with indepth coverage of our top stories. Guy johnson joins us on the bank of englands News Conference in the last 90 minutes or so. And the latest on the votes of the uks next Prime Minister. And if possible capital injection into italian financials. In new york, the latest on treasury rates hitting new record lows. Paul allen joins us on this weekends election. I want to bring in guy johnson the bank of englands new policy response. The significance . Guy he is essentially signaling a recession and this is giving the tools by the chancellor and he is now putting that into reverse. Saying tougher times are ahead for the k economy.
Matt yeah, i am actually going to try to pull off bunds, as i suspect you will see an impact. Not as much of an impact, but it could be that we are currently finished with trading. Right now, obviously, 5 00 here in london, 6 00 on the continent they do not open until 8 00 p. M. It looks like they have finished trading for now. For the day, a drop to negative 0. 145. Oliver we can scarlet we can track the yield on the 10year. It is at session lows, dipping to 1. 4612 percent. We are at session lows. However, you are looking at the s p. Oliver the s p got a little bit of a pop in the last 10 minutes. We are at a bit of a rally this morning, but you can see this kind of pop. This will potentially bring more loose money into the equation. We have seen that with fed funds going to zero following brexit. Were back to the situation where, guess what, maybe this is in a perverse way good for equity markets and good for people that want to see continued accommodation from Central Banks around
Cut Interest Rates after the uks shocking brexit vote. He definitely said that there needed to be more stimulus. But look at that. Despite that, still at 1. 32 when it comes to the british pound. Almost went down to 131. But Still Holding on to that level. The british tenyear guilt at 0. 863 . Compare that to the u. S. Twoyear. And the tenyear note is 1. 495. Bob pisani is here with me at the nyse on this last trading day of quarter. And the six months, bob, the one major european average thats in positive territory, london ftse 100. The 250 Broader Market is not in positive territory. Everyone loves easing. Carney hints at easing. Says Economic Conditions are deteriorating. The markets start moving to the upside. Take a look at the s p 500 and the important thing today, the rally continues. Even after carney was making his marks about Economic Conditions deteriorating, the markets helicoptered to move to the Positive Side. Were at highs of the day here. Lets take a look at the markets
The dow and s p essentially erased about 80 of the losses incured after the brexit vote of last thursday when the uk voted to leave the eu and bank of England Governor Mark carney hinted that more stimulus is coming. Listen. In my view, and im not prejudging the views of other independent members of the mpc, the Economic Outlook deteriorated and some Monetary Policy easing will likely be required over the summer. What selloff . A little quantitative cant take care of. Just wipe it all away with easy money. Hershey rejecting the 23 bid and hershey shares are still higher. The market seems to think mondelez comes back with another offer. Trading above where it was before they rejected the offer. Netflix known for keeping the ratings under wraps and nielsen says it has numbers for some of the streaming services most popular shows, including season premier of orange is the new black. Those details coming up. Hef hertz signed new deals with uber and lyft. The stock is down more than 20 this
In the equity markets on this side of the ocean, you can see the european markets as well have steadied to say the least but thats about it. After again a nice twoday rally there, although that ftse, a lot of people saying thats not the one to look at. Yeah, its back to where it was before brexit but thats because most of it is international exposure, not necessarily exposure to domestic uk. Lets get to our road map this morning. It does start with a big day on wall street. Its the end of the first half of the year. Weve got a look at the winners and losers and whos poised for perhaps a pop in the second half of the year. Lions gate buys starz, 4. 4 billion in cash and stock. I will give you the detailtss on how the deal came down and what it means for the companies and industry overall. The results are in, we will have a look at the Bank Stress Tests and what it tells us about the strength of the sector. We are heading into the final trading day of the Second Quarter and the first hal