stock market reaction to that, which was not great, if you want to see the market going up. talk to us about these concerns that powell raised and the double reasons, the double-barrelled response from the market because it s not just omicron. it s also what he said about inflation, right? yeah, omicron really is secondary. the real thing that turned the market today is when we saw jerome powell pivot. now, whether it s the fed or this administration, they ve been talking about inflation, which is directly tied to covid, as transitory, short-term. this is the first time we ve heard the fed chair say the words, it s time to retire the word transitory. inflation is the fed s top concern. and the real reason that the market is going down, yes, it s omicron. it s that the fed is going to taper their conducive monetary policy, all the support that they ve been giving sooner. and likely we re going to see interest rates start to go up sooner rather than later, which isn t good for the stoc
a fifty fifty bet that this is going to end badly and now the odds seem to have risen to at these so it s sixty or seventy percent that we are all headed for hard for exit baba these are reporting from brussels thank you so very much and now let s see how markets have reacted to the political turmoil unfolding in britain funny and i thank you very much indeed news of course johnson s resignation has sent the pound citing more than half a percentage point against your old stock market reaction has remained muted british food small come the industry from the plans for breakfast it may had outlined last week the prospect of a softer exit to the u.k. maintaining close trading ties to the you seem to meet the demands pull clarity from businesses among them or boss but rather those plans seeking to inflict minimal economic damage can stay on the table is very much up in the air again now . and shortly after the news of johnson s resignation broke off financial
in opposition to him and making the kinds of warning issuing the kinds of warnings that senator johnson is across the board. everyone except pretty much for free trade vice president mike pence is being openly critical in the party of this. and i think they have to use the spectre to get the president to listen. the fact that the white house was considering, is still considering, may consider, and of course at the last minute pull out, exemptions for our allies, canada and mechanics co, is a sign that the president has been spooked a little bit about their reaction, the stock market reaction, cohn resignation, et cetera, and is realizing across the board exemption-free tear would be a mistake. until we see what the
could be a step towards a trade war t w correspondent reporting from brussels care thank you the stock market reaction to the news from washington has been overwhelmingly negative the dow dropped one point seven percent yesterday japan s nikkei down more than two percent this morning let s cross over to our correspondent in frankfurt daniel cole put daniel the picture or the mood rather on european trading floors is also rather sour. yeah very bad mood here at the trading floor even though at this point it s not even clear how for example european companies could f.t. and stuff for their reaction here at the frankfurt stock exchange is even worse than expected the blue chip index dax for the first time since august fell under the magical power mark off twelve thousand points losing more than two hundred and fifty point this is a big issue we have to remember that in january investors celebrated here
to strike back with counter measures. on stock market reaction has been overwhelmingly negative the dollar dropped one point seven percent yesterday asian markets also trading substantially lower this morning that s close over to our correspondent in frankfurt then you know how are european markets reacting to the news from washington. well course of not positive at all even though at this point it s not even clear how for example european companies could suffer at the end but i guess there is this fear off a possible trade war we heard the e.u. already last night but also china this morning both very loud talking now also bought tears at the trading day here in frankfurt started also with losses we are down right now with a one point four percent and shares of steel companies in asia were already down and now we are seeing a similar situation here again shares of tristen corp sides get the other two big german steer companies are both down the picture could not even be different when