Manus 6 00 a. M. In london. I want to bring your mind back to 2018. Exuberance after the g20. Then we faded to black. Im talking about the drop in the s p 500. Is it deja vu . From the did hear global times yesterday saying there is a will to make a deal. Then in bloombergs reporting, we are talking about the fact china wants december tariffs to be lifted. We are still waiting. Also looking ahead to bank earnings. Big questions over what we are going to see in terms of costcutting. The one positive is the u. S. Consumer. Low rates certainly not helping. Manus let us talk about the various political markets and how they are affecting currencies. The lira, first of all. Battered and bruised. 50 on steel. Three ministers have been sanctioned by the u. S. On turkey. If you wanted a reason to sell the lira, you have it now aplenty. Despite the pushback, defensive play by the local banks, a billion dollars of fx. There is this deep misgiving in the treasury market. Yields popping by 20 basis
Testify very soon. And boris and settle. U. K. Leader plans to lay out his brexit vision at the conservative conference is overshadowed by his past. Were live in manchester. Manus a very warm welcome to daybreak europe. We are all over the global stories. From the markets, we had the bloomberg scoop, and the United States was considering invoking legislation that would block china from accessing u. S. Equity markets, and that they would stymie the flow of u. S. Capitol china, the pathway, the capital, the keys to growth, the very essence of this story could be a new fork in the road for, lets say, discontent in the trade wars. It would involve 1979 legislation, which jimmy carter used in regard to iran. We will discuss. Weve recouped some of those losses. To the local markets now, the rba. And then new zealand. Defined by steven major, who is out ahead of the two. Is it new zealand or is it australia . The kiwi drops. What you can see is the bid, the kiwi drops, the lowest confidence i
The french president tells Boris Johnson a new brexit deal is not likely and italy has a few more days to cobble together a coalition. We are live from g7. Week japanese inflation stokes talks of further boj easing. Meanwhile, the rbnz governor tells bloomberg it can afford to be in wait and see mode. We can afford to watch and observe what is happening. We have taken a preemptive double cut. Matt good morning. Matt here in berlin. We had a slew of fed speakers yesterday that pulled back expectations for a big rate cut, if any at all. That really changes things in markets. Nejra you saw adjustment in pricing in terms of futures. Have we just heard from the hawks . What is jay powell going to do . Is he going to push back from we know historically jackson hole speeches can give signals of Monetary Policy in the future. Matt interesting we continued to see gains in u. S. Stocks. The s p 500 closed down a little bit, but it was not too bad. Now we see futures pointing to gains at the open
The r. B. I. Says they are ready to slash rates further. And not finding drivers. Disappointing sales growth sends uber stocks plunging in after hours trading. They report their biggest net loss ever. Matt good morning. Lets check out some of the data points you want to watch today. First off is the yen, continuing to gain strength against the dollar. The stock traded 106 earlier, now at 105. 98. A new handle on the yen as trade tensions simmer and cause investors to reach for safe haven assets. Also, europound is headed for its strongest level since the financial crisis. Pence almost there, at 98 for a euro. The pound continues to weaken against the shared currency. The u. S. 10 year yield down two basis points at 1. 70. s had been down in the 1. 60 earlier as they reach for safe haven assets. Lets check in on the markets in asia. We go to Juliette Saly in singapore. Juliette mostly positive here. Asian stocks higher for a third session. We had a pretty good beat in terms of Second Qu
German defense minister steps down as defense minister ahead of a secret ballot that could cement her as the first female European Commission president. Manus warm welcome to your biggest concern to daybreak europe, and what is your biggest concern, a meltdown or a meltup . This is the msci world index. To bail on stocks. Central banks are giving you a gift, that is their message. More of a risk as equity markets go up, and people dont appreciate that. The question is, do you believe that going into earnings season . The least attractive market for them, the usa, their top calls australia and japan. A couple more markets, even i cant make wti more exciting than it is. Downgraded, what will the inventory tell us . And gold, it was red, i do promise you, ahead of retail sales. The point, if you want to protect yourself as yields go back up, do you want a little gold for protection . That is a question for markets. You have the glorious s p. [laughter] nejra it wasnt so glorious yesterday