Welcome to daybreak europe. Started the year risk on. That has taken ahead after reports u. S. Airstrikes have killed the top iranian commander. You are seeing red on the screen for the msci asia asiapacific index, excluding japan. Japanese equity markets still closed for the holiday. Yesterday we saw the essence 500, nasdaq, and the dow hit records led by mega caps. Futures taking a big hit as well. S p futures down 0. 8 . Money moving into treasury futures as well. Japan closed the 10 year yield flipping yesterday dropping back below 190. The yen hitting a two month high. Gold at a fourmonth high. Oil rallied strongly as well. Brent and wti approaching 17 a barrel, hitting its highest since the attacks on saudi arabia and infrastructure in september. Our top story, irans Supreme Leader has about super severe retaliation after the United States killed one of the islamic republics most powerful generals. Great to have you with us. What do we know so far . What we know is the strike and
At the ecb, Christine Lagarde says the central bank will be resolute on inflation. Manus we kick off bloomberg daybreak europe, waiting to hear exactly what the list of unreliable entities are from the chinese back to the u. S. Alive and well against argentina, brazil, france. That is the market angst in global trade. It is not going down. If anything, we are ratcheting higher. Man back at it, and this is the first time President Trump has explicitly tied tariffs to currency issues. We sigh risk on session yesterday and that started to sour in the u. S. On the terrace risk and on the factory data out of the u. S. After optimism around china. Manus of course, you are quite right. Interesting how his view on currencies the bloomberg john, crazy from like a fox in terms of understanding how currency markets move. The backs rose on a of issues. Socgen says the fed will cut 100 basis points year and the u. S. Faces Recession Risk, and you may see yields drop to 1. 2 . Bloomberg say if you s
We are live on the ground. Matt welcome to bloomberg daybreak europe. We are looking at possibly the end of a global drop in equities. If you take a look at ftse futures, for example, they are still being sold. The open now slated to selloff across europe. However, the u. S. Futures dont look quite as bad. A big selloff we saw yesterday. The pound had rallied on hopes that the eu was considering helping Boris Johnson by limiting the time the backstop is in place. The pound fell. Right now we are at 12283 against the dollar is no deal brexit is back on the table in a substantial way. You see yields now rising as investors are selling debt. They did buy it yesterday on concern about the manufacturing numbers that disappointed the market. Thosere now selling treasuries and pushing the yield up to 1. 66 . Speaking of manufacturing, the u. S. Economy is losing speed. Economists are wondering how slow it can go without dipping into a recession. Growth below 2 would have almost guaranteed a c
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
With hundreds of job cuts in its trading division. Banks either trading revenue slump. Banks see they are trading revenue slump. Matt we have breaking news out of the financial industry. Profitpany sees pretax materially below 2018. 2019 will be a big drop in pretax profit. The first half net fee and Commission Income was 171 million francs. Pretax profit was 2. 1 million swiss francs. Just. E money it has named a new ceo, Peter Sanderson will be the new ceo of gam. They are also lending a new chairman of the board, david jacob. Gam has assets under management 6. 1 billion swiss francs. It will have a pretax profit materially below that published in 2018. Nejra i am looking at the i. T. Services Company Gemini seeing in operating margin of 12. 3 to 12. 6 and the revenue change up 5. 5 to 8 . Second Quarter Sales up 5. 7 , first half revenue at seven. 01 billion euros. Cash flow over 1. 1 billion euros from cap gemini. , youll speak to the ceo can catch that interview at 9 30 london tim