The german lenders rating cut as it struggles through another strategic overhaul. The stoxx start trading in about 30 minutes time. Matt take a look at what we see on futures, equity Index Futures are up. Yesterday we saw the cash trade closed up across the board with the exception of the ftse. Take a look at the moon to trade in the bond trade. We are trading around 48. We had gone up through 50 yesterday. You saw real jump in yields, around the world yesterday, but also here in germany. Now we are back into that range where we have been sitting. Guy . Reachedterday, equities their bid. This morning you have the yen down against the dollar, the kiwi down against the dollar, the swiss franc down against the dollar. You need to take a look at yesterday. You can see on the bbdxy. Today we are coming in and sitting at the backend of that process. We will figure out whether this is monthend listening to whether there is more to it. It is coarser but lets talk about the things we need to fo
Anna a very warm welcome to bloomberg daybreak. From here in the city of london, i am anna edwards. Manus i am manus cranny. Brace for volatility. The euro has [inaudible] against currencies. Iscks are up 2 but this volatility in the fx market and we are getting back to the levels we saw in brexit. Anna this is the volatility we saw spiking ahead of the ecb meeting. The expectation is there will be an extension to quantitative easing but by extending it, you invite the conversation about when it ends. Manus is it longer and thinner . Eurodollar according to ubs, they say the dollar rally is going to peter out next year. They want to be long the euro, they favor being overvalued the euro against the dollar. 112 in the next three months or you anna [inaudible] journalists are mentioning it. Will mario draghi use that word . Here is where we are. 1. 0772. They are likely done with rate cuts. Manus in the past month, a great number, go to your search for trump on your bloomberg and 2 trill
Monte paschi get more time to complete its Capital Increase . And finally, when court and Qatar Sovereign Wealth Fund join forces to purchase an 11 billion stake in rosnet. Is Ivan Glasenberg back in deal mode, matt . Matt absolutely fascinating story, that. Of course, Global Markets are going to be captivated by mario draghi, but it what deals are going on in oil. At 1 45 p. M. Local time in frank for and at 2 30, when he holds his press conference. The three main things to Pay Attention to from draghi will be number one, how long does he qe program and how much will he spend . Will the hold out 80 billion euros a month . How will he buy bonds in countries where he has already reached the limit . He will hit the limit in germany by midsummer at this pace, which he will if he extends at the rate he has been buying so far. Number three will be, how will he taper . When is it going to start . How will the pasth be, shallow or steep . Investors will be looking at all of that very closely.
The open. Stocks surge and as bloomberg reports the boj may help banks offer negative rates on some loans. Good morning to you, caroline. We got a whole bunch of really cool stories doing the rounds. We are watching what is happening with this brexit story. Obama intervention could change the terms. Does this convince britons that maybe the u. K. Should stay in . Cars are in focus as well. Caroline they are. The british pound getting a bit of a pop on the back of that, with the u. S. President saying the u. K. Is better off in the European Union. In berlin, im seeing mercedes on every high street, and daimler once again being embroiled. Tore seems to be no end where the scandal starts and lies. Weve had mitsubishi, now time for, the u. S. Wanting investigation. Already trading on the futures market down 7. 7 according to trade gate. Could see some big moves lower from daimler. Mention of that story we saw last night in the numbers. Going to be interesting. We will find out, as you say,
German business morale stagnated in May, a survey showed on Monday, falling short of a forecast improvement and suggesting the recovery of Germany's economy this year will be slow progress. The Ifo institute said its business climate index remained constant in May at 89.3, compared with a reading of 90.4…