Message because it will have an application on markets. Tom not a usual summer friday, folks. The news flow is absolutely extraordinary. We are going to get ourselves around what we are going to be doing with the democrats now moving to the republicans and the president , the usual convention cadence of august in an election year. But that is not the headline item today. The headline item is 13 consecutive hours in our thon. Llance francine will be with us through the morning and through our simulcast as well. I really look forward to it. This news with the slowdown in france and Emmanuel Macron is not a small item, francine. Francine im also looking forward to our tv and radio marathon. Surveillancethon. Francine i dont know if we will have to file for atv divorce after that. Tom we have already done that. I would not know anything about that. Francine which is why we get along, right, tom . Here is ritika gupta. Ritika joe biden slimes president as a National Embarrassment and vowed
Talking about what he sees happening in the economy. Tom it is an extra ordinary hour, folks, particularly looking at the fabric of europe and the european model. The disinflation dynamics has dramatically rolled over in the last 48 hours, clearly somewhat off the german ruling. There is no question about that. You see it expressed right now with ever stronger yen versus euro. Disinflation wins, just extraordinary. Yeah, on the u. K. , and i would mention the chancellor yesterday suggested it would end sooner rather than later because people become addicted to it. Lets get to bloomberg first word news in new york city with ritika gupta. Ritika President Trump is wrapping up his push to reopen the country. He says americans should begin returning to their everyday lives even if that leads to more sickness and death from the pandemic. The president spoke in phoenix. Made the announcement with the task force. Toll. K. Coronavirus death has now surpassed italy, making it the worst hit coun
Staples doing not as well. Industrials and energy are leading the advance. W. T. I. Gained more than 2 on the day. Weve definitely come off the highs of the day. At one point the s p over 2100. Still up on the day but not quite where we were earlier on. We definitely saw the yen start to rally at the end of the day, too. Overall the rally did wind up starting in asia, the nikkei, hang seng were up. It spread over to europe. The ftse actually had its biggest rally since february. It did spread here to the u. S. Check out the vix. It measures fear in the market. This is a fiveday chart. Look what happened there. One point near 23 last wednesday and then now back down to 17. To show the wild ride were seeing in the market. One thing i wanted to point out, marathon oil was up by over 10 . It is buying pay Rock Energy Holdings for 888 million. It gives them exposure to oklahoma where the shale now lives but also speaks that m. A is starting to happen but on a smaller scale. Of course the oi
About brexitrelated stuff, but one interesting thing, because less solar city, investors giving that a thumbs down. Solar city only ending 3 . Looking at tesla, down 10 . Pretty negative reactions so far. Alix pretty ugly for tesla. In terms of what i want to focus etf herea look at the in the u. S. That tracks u. K. Stocks three this is a five day chart three we have actually seen a rally up 6 , despite the fact we are heading into this vote. With the volatility, the five year high, shows a swing. Vix index in a lot of crises we have had over the last eight years, the chinese devaluation of the one they are passing the volatility we see now. Volatility heading into this u. K. Boat. Joe is it complacently about the results . Alix i do not know, it is fascinating, though. And lets take a look at u. K. Yield, they have been rising a little bit, the same story as equities. This is a oneyear chart, a bit of an increase in yields is a sign of optimism, because it means people are coming out
Im talking about falling prices. Ofs underlying story disinflation tells you the challenge the ecb has got, the dilemma they face. You have the likes of france, could be falling into recession. We are not just talking about this rift anymore. The ecb needs to do more. You look at all of these kind of numbers, they are not painting a positive picture. If the ecbs mandate is inflation, than it needs to take further policy action. Lets talk about a forecast. Next year, inflation running at 4. 1 . That is well below their 2. 1 inflation target. 2015 forecast, that is important. Everyone response to that is, what is an extended period of time . You have to look at the forecast to gauge. They tell us there is no north south divide. You only have to listen to the do voices coming out of the ecb right now. They all have a different view. The likes of the german central , they seem to be a theirre hawkish because respective countries are doing a lot better than the likes of the greeses and cypr