It would be inconceivable that you would be forced to leave london. I would say to you if you are in london, and you are originate from the eu that youre welcome here. Anna very warm welcome to bloomberg daybreak gear. Our flagship show here in london. Let us talk about what we have seen in the banking stocks. Theerday, the focus was on banking sector. Investorsking many risk off in the asian section. The italian stocks are underperforming the rest of europe. Yousef a lovely charts here you can pull up on bloomberg. The brunt of the selling has been felt by rank stocks. Leastally vulnerable, at as a proxy to overall sentiment. We are seeing some of the fiveyear credit default widening against it to date highs. In the spread between italian and german 10 year paper as well. Anna we need to bear in mind the context. If you take the same spread between italy and germany, and go back to 2012, we are nowhere near those levels. We are not talking about levels we saw even in february. While t
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
The british to make that decision. You can read about the frustration of having ceded to bureaucrats in brussels so much authority. You know, you see the same thing here. We have had a regulatory rampage over the last six years. A lot of people the president has put on these boards and commissions in his government are pursuing policies that we have not passed in congress. Senator mcconnell also praised the relationship with the u. K. , saying the only one comparable is americas relationship with israel. The Brexit Campaign leader Boris Johnson will launch his bid to replace David Cameron as conservative leader. Johnson is gathering the names of lawmakers who will back him. Lie isve campaign out being urged to challenge johnson, though he has not said he wants the job. 15 Somali People killed when islam it extremists islamic extremists stormed and mogadishu hotel. Security forces pursuit of the attackers to the hotel fell top assault. Hours long donald trump says he would not character
30 minutes into the trading day in the u. S. Thatmuch awaited data julie hyman is back. Julie in terms of that data, the nonmanufacturing composite index coming in with a reading of 51. 4, that is below the 54. 9 that was estimated. Above 50 is still expansion. The weakest pace in six years. We seen a slowdown in manufacturing as well. Softening in the economic numbers that weve gotten recently. We are seeing stocks hold up relatively well. The nasdaq still hanging onto a gain of. 25 . One thing that may be chipping away at the early gains today come energy prices. We are seeing oil come down after seeing a gain in the past several days. Over speculation of some kind of opec production agreement. Some disappointment being reflected in the outright freeze not being talked about. Down. 75 . We had some energy deal activity to talk about. And bridge will be buying the largestgy Energy Pipeline and Storage Company in north america. The largest foreign purchase ever by a canadian company. 1
6 00 this tuesday morning. Vw is that the center of emisin missions scandalsion. Anna now they say they will investigate. Guy the share price is heading down. That has been the last year, you can see how their share prices come down. It is here the damage has been done. If you look at the stock today,ay compared to moving down into the one 30s 100 30s. Anna addressing to see where this goes next. Affect them. This ons hasstion of emissi been around for a long time. Guy lets wrap up the overnight news from the u. S. , including a tweet from Hillary Clinton. Of theor the release apple car certainly making headlines. Ie has always the details all of the details. Julie u. S. Stocks finished mixed. Health care shares held back the averages overall. The dow and s p finishing higher, the nasdaq could not quite make it better. 18 of the past 23 sessions we have seen triple digit moves on the dow. This new normal of volatility or in back in the u. S. Stocks. Technology and financial stocks doin