Word of the day for traders. Chinese stocks extended the worst fiveday drop since 1996. The marx apparently unconvinced by the peoples bank of china decision to cut markets rate the apparently unconvinced. Stoxx 60019 indices are down here lets cross to our chief asia correspondent. Enda, a very good day to you. Markets simply unconvinced is the word. Enda unconvinced is exactly right. What the Global Markets wanted out of china was a Circuit Breaker. There is a feeling this crisis began in china. Dona needed to intervene, to something. It does not look like what they have done has been enough. The central bank will need to cut rates further. That the government will need to do more to shore up the chinese economy and turn sentiment around. The positive thing is that china has monday of more ammunition in its arsenal if needed china has plenty more ammunition in its arsenal if needed. Francine what is next . I guess the question is how much will they intervene . Enda well, so this is o
Selloff coming out of the united states. This mixill throw into as well what has come out and the last hour from carl icahn. Interesting to see him backing trump. Inis a guy well followed terms of his views around the markets and have Central Banks and governments influence those markets. This is what he had to say in the video he released about the low rate environment. Why should they raise rates . It is almost a rhetorical question. There are so many reasons. Low rates are almost by definition building bubbles. Real estate bubbles. Guy one of the stories riling the asia markets right now is glencore. I want to show you one chart. I want to show you this one here. It highlights what is happening with glencores debt and equity. The market capitalization is in yellow. The total debt is in green. You have yellow above green, yellow above green for the last four years. The problem is we are now down here. This is the current equity valuation of glencore. This is the debt story. That is s
Coming out against the dollar at the moment. Meanwhile, money coming out of rout, they, the concern about a glut in supply. Meanwhile, questions about china sends copper up. What does that do to the miner . Th eminers . U. S. Bombs are rallying, yields coming down. Yesterday, germany yields also traded lower, money moving into the havens. Meanwhile, lets check in on glencore. Brutal move yesterday, of third of its market being wiped off. We are seeing it rebounding, up 6 . Record lows couldnt be sustained that much longer as people are trying to understand how big their debt mountain is. Once upon a time to worth now, 10 million. We saw mining lower trading in asia, now in the u. K. Meanwhile, some other stock 3 ,s, vw is continuing down but still negative headlines coming out. The nikkei is reporting that sales are falling through september, canceling sales of cars in spain. Legal fees are also being orted, nestle up 9 10 of nestle down 9 10 of a percent. Up. Andle, boohoo is adding c
Lets get straight to our top story this morning. Angloamerican shares sinking as dividend suspended its about the 4. 7 billion. Miners are among the biggest losers on the ftse this year. For more, lets bring in our mining analyst and jodie lynch from schroders. Great to have you with us. The worst kept secret in the city was Anglo American. The other news is the disposals. There is a lot of it is outside the actual dividend story, isnt there . In this environment, youre always going to see a reorganization of these kinds of companies. It will just be anglos, it will be rio, php. Bhp. No surprise that the dividend is cut, and that goes for a different dividend policy going forward. Jonathan heres a diversified miner. On the other side, you have the bhp, withio and th much lower cash cost. Went to we get to a point, where is the line in the sand for the bhp . Dend at rio and th i think rio will hang on. They will want to set themselves apart. They are a lowercost producer and better focu
There are nonperforming loans within the banking sector. It was only five days ago that october 2014o an low. You one stock, the second worst in europe today. Diy kingfisher, the biggest retailer. Theprofits will come at expense of shorterterm earnings. Impacting to negatively profit by 50 million in the first year and 100 million following year. They are trying to unify an operation. Kingfisher, oil stocks, banks, those are the big decliners today. Betty what is that doing to german Business Confidence . Mark german Business Confidence has been dented i this selloff, this turbulence we witnessed at the start of 2016. We did see a second monthly decline in german Business Confidence. The decline was bigger than analysts thought. Be affected by the chinese slowdown. The bank does remain confident that stocks will rise. Low Interest Rates and falling unemployment will continue to support domestic demand. Domestic demand is strong. Its interesting to see citigroups index for the eurozone.