Very good morning, everybody. Warm welcome to daybreak europe. Lets check out the markets. Picking up where we left off. The mse i asiapacific eating out further gains. We touched alltime highs in the United States in fridays session. We did have some action to talk about. , a yen is steadier now little bit weaker against the u. S. Dollar. We have seen a move higher in the japanese currency. Had the bank of japans governor corona guided the market higher, when he was at demos, apparently not. He was not changing his stance, changing his forecast. Busy one. It will be a we have a dollar a little bit stronger, which makes a change after seven weeks of losses. It will be a busy week. Yellen is in her last week of the fed. Lots of data including jobs data and a state of the Union Address i President Trump. The metal price for you, this is zinc. We could have shown you others, the zinc is up 2. 3 . Because of the weeks dollar affect, lme inventories coming down and thats something that is f
The last three months. We see volumes about a third lower than usual, so take it as you will. Past a 200 Day Moving Average . Will we see the selloff, particularly in the auto sector, the export sector . Bmw is saying that it has been hit by the terrible explosion we saw in china. . Italy is opening up 3 10 of a percent lower. There is a risk of the selloff even as we get toward that deal with greece. The finance minister of germany is saying they will back the greek deal, but its not giving much appetite for buying equities, or with the euro which is coming off session lows. Seeing the euro lower and a commodities base continuing to feel the pain. You are seeing a lot of concern about asia and the emerging a continuousontinuous selloff adding to the pressure in terms of thailands economy. 50 billion or so in terms of tourism. We could see the selloff and commodities, with oil up by a tenths of a percent. Trade at the moment and that is feeding into european equities. This is an Oil Se
Anna a very warm welcome everybody. This wednesday morning. I am anna and words. Edwards. Moving the markets, two of them, San Francisco John Williams and the conclusion being that at least two Interest Rate hikes may be warranted in 2016 because of the expansion in the economy. And inflation increasing. Over a goldman sachs, there is a chart over the twoyear spread in the u. S. On the bloomberg. Theyre warning Bond Investors that they need be more prepared for the fed to increase Interest Rates. Bill gross of course did something similar earlier on shouldnth, markets not count the fed out. What were seeing here is the increased demand for longterm debt, at least seeing a decrease over the two year yield. That spread is the smallest since 2007. It seems that in some senses, markets are not repairing a big difference between what we are seeing in the rhetoric from the fed. Not all of the assets have been reacting a great deal to what we heard from the fed, i should say. The dollar index
prevails. And when push comes to shove people realize there would be an enormous damage, to both europe and Great Britain, should britain walk away. A warm welcome to countdown. I am an edward. Just past 6 00 in london. Manus will be joining us from dubai. Let us talk about what is happening in oil and stocks, a chart next to me that really encapsulates the relationship between these two asset classes, if you go back to the middle of last year. They have moved very much in synchrony. And of the oil price tending to move in lockstep, or least in the same step. Oil prices over 50 a barrel or the first time in six months. A oneweeks hitting high. But i should say that old has actually snapped its sixday losing streak. Not all good in the overnight trading environment. Lets talk about the risk radar. We have to feature the price of oil because we have gone on the brent price over 60, up high 7 10 of a percent. Theda, venezuela, nigeria disruption playing in here, as well as the drop we saw
Of the year until now, it is an uproar. Anna and we are live in paris at the annual forum, where we speak to the organizations secretary general, angel gurria. Here, on bloomberg. A very warm welcome. I am anna edwards in london. Manus good morning. I am manus cranny, in dubai. The china danger, should be drawn into the moment of calm . What is really going on. Dollaryuan,w you near a five year low, the title of this chart is yuan on the brink. This is january time. That is the fiveyear low. Alone,back 1. 5 in may the biggest loss since the devaluation last year, which was back here when you saw that ratcheting spiked. But this is really the interesting part. The fx reserves in china, they are building a lot, 17 billion in march and april. Are they really that volatile about defending the yuan . Capital outflows are getting less and less. Low,ollaryuan, fiveyear do we just drift that lower on the back of that data . There is many more questions than our answers in terms of manufacturin