Money market mutual funds. Welcome to daybreak europe. Extraordinary action as usurps theagarde Bond Buying Program with a pandemic Bond Buying Program and considering raising selfimposed qb limits. You wonder if omp is in the cards. We are still seeing this Dollar Strength as if these centralinary times for bankers also in markets with all people wanting to get their hands on dollars, seeing almost indiscriminate selling across assets as everyone just wants to hold cash. Tosef extraordinary times say the least. At the end of the day, this greenback strength is now getting to a stage where it is causing major dislocations and other key crosses in terms of the fx space, but also we have this mountain of dollardenominated debt in the emerging market space. Seven point 8 trillion globally. Thats going to be an issue in terms of interest payments. Raises the stakes for further coordinated responses in terms of Central Banks sitting together and to come up with a plaza cord. You do wonder w
Citing alibaba to cut prices by as much as 55 for more than 100 products. Alibaba currently trading down 0. 6 . In the markets it is trepidation. Investors waiting for that crucial pce data out of the u. S. On thursday after a hotter than expected cpi data, prompting questions about perhaps what signs may be gleaned from the data to suggest what the fed might do with rate cuts. Bear in mind, Market Expectations now coming to about an 80 basis point car from the year, down from that 150 basis point level. In the broad market in terms of the Chinese Market, inching higher at this point in time. Csi 300 index up by 1. 6 . Still, there are concerns despite more Foreign Investors pouring money into the Chinese Markets, concerns about the clampdown prompting the expectations of more meddling by china. Gains due for the philippines and malaysia. The nikkei 225 currently consolidating, down 0. 6 after reaching new record highs. In terms of the fx space we have the yen trading at 149. 78, below
All the way back to 2010. Trace for you to indicate what levels we are watching. Peak to bottom, 65. 80 for the price of brent is what we are seeing. That is essentially the look at brent price. The other thing i want to point out is yes, we are seeing this ems. Oss gx at what point does this start to hurt . Oilnt expensive threatening the emerging markets rally. Collation will hold, but at some point, that will get too expensive. Is it that 80, maybe. Your 20 year average on your corelation, we are above that level,. 23. Of things to talk about, oil, equity, pullback across the asian pacific. Lets get you your first word news with paul allen. Paul irans political guard says the antiestablishment protests across the country are all but over. State news showed progovernment rallies saying sedition is ended. They gave no evidence to support the claim. At least 20 have been killed in protests over the past week and almost 1000 arrested. Further signsng of strength as the latest reading of
Intel discloses this week that most of the processes running the World Computers and smartphones have a feature that makes them vulnerable to attacks. As the largest chip acre in the world, the impact is farreaching. The next coming over few weeks and it sees no Material Impact to its business. Google says the issue affects other Semi Conductor firms. Microsoft, apple, and google says what we need to know. Outoogle researchers found that this might be a problem going back to the middle of last year. The idea was we get together, find a fix for this, then we put that fix in place, then we go and say, look, this is what happened. We sorted it out. Dont worry. Unfortunately, news intervened. People found up. They are now in a scramble mode. Found out. They are now in scramble mode. We dont know the impact they will have on computers. Are there any legal issues . Regulators might look at this and say, hold on, you have one or two companies where everything depends upon. Why are we giving t
Anna very good morning. 6 00 here in london. 7 00 if you are joining from paris or berlin. Not a lot of movement in the bull market. 2018 a seen so far in surge in risk assets. Morgan stanley talks about euphoria. Others talk about a melt in equity markets. Equity markets in asia in the wake of the bull markets, msci asiapacific down. Perhaps taking a breather. Speed anddo with the pace of that move. We will talk about that more as we go through the program. Lets talk about what is going on in currency markets. The yen is on the move. For ase currency is up second day. It was described by many strategists and economists as a small tweak to boj policy, not it not a change in their qe strategy. We do see a second day of moves for the japanese currency. Crude oil up. Of thellows a strong set moves for energy markets. We see 2. 5 gains. This all comes on the back of u. S. Industry data which signals that crude straps and dropped for an eight week. That may be the biggest decline since 1999