welcome to bloomberg daybreak: europe. i m anna edwards. manus cranny. a couple of push and pull factors in the market. last week volatility was surging. anna: i noticed. manus: was that your opportunity, maybe, to sell volatility? yes, we flagged those massive warns, it s game on as north korea strikes guam. what does that mean? we had the biggest jump in volatility in three years. and they piled into an exchange rated fund that shorts volatility. the fund gains if the markets get coma. anna: investors are aware of the fact that when the vix rises, it typically falls afterward. that is reflected in the appetite. let s look at the risk radar and show investors had that translate into headline stories around north korea how this translates into a risk on atmosphere. asian equities, up by 0.5%. on the one hand, you have these comments coming through from jim mattis, who says it is game on. but the wall street journal cites north korean media, saying kim jong un wants to
it s 8:00 a.m. across the emirates, i m jc humphrey into by. angie: i m angie lau into by. welcome to bloomberg markets: middle east. there used to be a show in the u.s., let s make a deal, deal or no deal. what is behind door number one when it comes to opec? jc: great question. all will be revealed tomorrow but it is all about oil this the major opec and non-opec players set to meet tomorrow. i want to revisit the current state of play for the oil markets. purple and blue is where the current price of oil is at, and take a look at that white line are allalks in vienna .round lowering that output we will talk more opec in just a moment. angie: for now, let s do a quick check of the state of play in the markets right now. mumbai has been trading for almost 20 minutes, and we are seeing gains, although we are seeing a pullback when it comes to risk. we see it reflected in the hong thatand topix, thinking maybe today will not be lucky 13. in the middle east it is two hours away
doesn t have much room to rise. is the crude rally done? welcome to the program. half an hour until the market open. good morning, caroline. let s talk about what s going on in terms of the equity market. after the volatility of the last few days, today looks relatively benign. we are looking for a reasonably flat open, a little bit of the softer side. 1/10 ofutures, ftse 100 1% higher, everything else looking softer. caroline: yeah, and the ripples of the italian concerns seem to be failing as fast as asia. msci down, the first time we have seen a drop in that market in the week. we are seeking a move to new haven s. the dollar is trading lower, yen trading higher, yields really pushing lower. u.s. treasuries near a record low, aussie bond yields of 1.94%, crashing to new all-time lows as the rba holds fire for the interest rate changes and italy yields are just pushing up slightly. clearly, concerns once again about the banking system, the need for recapitalization and merk
wt eyedrops 22% from its june high. the economy stabilizes after running through $40. less than 30 minutes from the trading day. caroline, ticket away. caroline: take it away. play riskit is a down aversion. you will see we are down on the euro stoxx 50. we are lower on the dax as well. a significant drop in oil prices, concerns about the banks as well. shivers down the spines of investors yesterday. what about the potential for more nonperforming loans? japan, oil out have a look at the aussie dollar heard aussie dollar. stabilizing once again 10 the yen, money moving into the yen. get ¥7 trillion more in spending? are digging into that with our guests later today. the yield continuing to rise higher. have not seen much bond buying. still negative overall. it is all about oil. we are at the $40 mark. julie s: boilerplate is trading near $40 a barrel ahead of a weekly u.s. government stockpile do later. upsetting industry expectations. hong kong stock exchange has cance
i m anna edwards. i m rishaad salo. anna: fascinating markets this factor we increasingly in less chance of a fed interest rate hike in september, that seems to be many of the equity markets are basing their move on. on throughnvestors where we have been. the asian stock market picture. we have the hang seng up by 3/10 of 1%. the asia-pacific up by 3/10 of 1%. we have the aussie dollar up by half of a percent. the australian dollar increasing even before we got the interest rate decision, increasing for a sixth day. no change from the rba. we will discuss that a little later. 1.9% as markets weigh up this commentary and agreement of sorts between russia and saudi arabia. we heard about it in the middle of the european trading day, but markets talking about those efforts to stabilize oil prices. $1326.ice is stable at let s get the first news. the australia central bank has kept interest rates at hold as they await the u.s. federal reserve s next move. the board left the cash