Region. Where mark mobius is putting his money. In stocks, and by the way, gold. Think about it. If you are not getting anything in the bank at these low rates, it makes sense to have gold in your portfolio. Anna missing out on the everything rally. Boil weakens and iron ore slumps as much as 4 in singapore amid supply concerns. Watch miners at the start of european trade. We are less than half an hour from the start. Welcome to the market open. We are without the u. S. Today, independence today. Lets look at where futures put markets on european trade. Lackluster in comparison to stateside yesterday but we joined in with some of the rally in europe yesterday. Cac futures, ftse futures, dax in the green but not by much. Be aware of low volume. Happens with lowvolume. In the Asian Session on the bloomberg, giving us a picture on the gmm function. Volume pretty low, investors thinking about the record highs we have seen on stocks in the united dates. Also thinking about the b readth of the rally, defensive sectors doing well as well as others. A lot of focus on fx markets. Movement in emerging markets this hour but the dollar, not moving all that much. President trump, lashing out at europe and china with regards to currency manipulation on twitter. Andhe other side of the gm come i want to show you the commodities picture. 4 inre, down as much as the session. Oil prices weaker. Iron ore has been a steady climb up and some analysts are saying wait a second, this is disconnected from the Global Growth story so that is part of the reason for a little pullback in todays session. Oil prices coming through weaker. We saw a drop in inventories you might have expected to push prices higher. The drop had been less than anticipated, syndicate bearish signal. Lets get a first word news update with debra mao in hong kong. President trump has warned iran against stepping up uranium enrichment. Ofis the latest escalation the Nuclear Program carried it says it will start a mothballed reactor if europe fails to meet a july 7 relief deadline. The u. S. Is hitting back at a laws challenge to prohibiting it from selling to federal agencies. The government says the move serves to protect the national interest. They say it is designed to prevent china gaining a strategic foothold in the networks of federal agencies. China has accused the British Government of interference in the affairs of hong kong. Beijing reminded the u. K. That the territory is not what it used to be a co this escalates the war of used to be. Prime minister theresa may said she was shocked by scenes of violence as protesters stormed hong kongs legislature. A familiar face is the race to replace Christine Lagarde. Mark carney is at 72 to take the top job according to an online oddsmaker. Is due to leave his current post in january. Switzerland has not singapore ranking theh, best pace to live and work. 27th, citings political instability due to brexit. Global news 24 hours a day, onair and tictoc on twitter, powered by more than 2700 journalists and analysts in more. Han 120 countries this is bloomberg. Anna debra mao in hong kong. Lets get to the market conversation this fourth of july. Mark cudmore joins us on set in london. We talked a lot about the rally in everything. I was drawn to some of the reporting around the breadth of the stockmarket rally in the United States and wonder what you make of that. I know you are not a fan of the rally in the sense you dont think it will last but some point to the breadth of the rally and that is a positive. Others point out that there are Early Warning signs. Mark i dont think it is positive or negative a sign, but it makes sense. We know that growth is slowing rapidly. As a result, Central Banks are making clear they will pump more liquidity into the system. Act more perhaps an extraordinary forms of Monetary Policy easing and therefore, reaction change in bond yields, seeing yields come down lower and it is the extra promise of liquidity that means there is money in the system and it needs to chase yields and assets. Into assets credit, but it doesnt meet the growth picture will improve. At some point, earnings will fall and equities will come down later on. This is the temporary last two hoorah. We saw it in 2007. Anna the s p 500 and this is the weighted cuousin underlining the breadth of the rally in the u. S. I wonder if what we are seeing in commodities makes sense to you. The question of the day is about why commodities are not playing a part in the rally of everything . We see stocks and bonds going higher, but commodities are the laggard. Mark it puts the narratives fits the narrative. There is not real growth there, or demand. Commodities may be the first part of the chain. They are not going up because there is not Economic Growth. That is why we see yields come lower and we see equity and credit do well at the last stage of the cycle. To me, this dichotomy makes complete sense. Anna what about the war of words over the dollar . Weve got President Trump lashing out at europe and china. Plenty of measures we can look at, we dont. Many metrics show dollar strength. Mark from his right, the dollar is strong. Whether other countries are manipulating, i dont know but the dollar is strong and it is holding back the u. S. Economy. I can understand why trump is upset, even if he is blaming the wrong reasons perhaps. I think the tail risk of trump even getting more proactive in the Currency Fund is something to beware of the next six months. Is not shown barriers before on what he is willing to tackle. It is not out of the question he may drive something try something. Anna what tools could be used . Does this mean President Trump wants to go just beyond words and do something . Years sincea few the treasury intervened to weaken the currency due to extraordinary events, the tsunami in japan. Are we talking about a world where he uses the treasury to actively the value the u. S. Dollar and can he be successful in a globalized currency world . Mark we are in a world where we have to have that discussion about what is possible. And itme was 2011 wasnt unilateral. There is an idea that the u. S. Wouldnt be successful intervening unilaterally. Im not sure im convinced by that story. If it became clear that treasuries can enact idea to weaken the dollar, just signaling at that would be incredibly powerful. Anna a colleague is writing this, isnt he . It iscy investors know not all in the treasurys control. You are doubtful. Mark i dont think it does need that cooperation, at least at the first stage. They might not get sustained weakness, but the treasury saying we will try actively weakening the dollar, we will sell dollars and do what we can e it, that signaling would be massive. You would get an incredible move over weeks or months. Weve seen Central Banks can struggle to control currencies over a longer time frame but in the shortterm, it would be very powerful. Anna mark cudmore Bloomberg Markets live managing editor. You can join the debate and get involved in the question of the day. Why are commodities not joining the everything rally party . Ib tv is the function to use on your bloomberg. Coming up, more on fx. President trump accusing the eu and china of currency manipulation but will the u. S. Ever intervene . That is next, and Bloomberg Radio is live on your mobile device or dab digital in the london area. This is bloomberg. Anna welcome back to the European Market open. 17 minutes until we get to the start of european cash equities trade. The u. S. Is closed today. It is the fourth of july. European markets will be open but could see lower volumes. Futures suggest a modestly higher move. Speaking at the st. Petersburg forum now, getting a few comments about russia. Better secured against risks and volatility, she says. The pace of Economic Growth in russia is rather low but she then says we cant blame the low gdp growth on external factors only. We will see what else she suggests about what will bring up russian growth. Oil price topical in the russian conversation. Watch the rest of the speech on ive lets get numbersgo. First word business flash. Debra deutsche banks overhaul could cost as much as 5 billion euros. The Financial Times reporting it could hit the german lender into a loss this year. The chief executive may unveil the new restructuring strategy as soon as this week. Boeing is offering 100 million to the families of victims of the two crashes of its 737 max 8. The incidents killed 346 people and have led to scores of lawsuits. The money will go toward education, hardship, and living expenses. American plane maker, committing these funds over multiple years. Sharply forfalling a second day on news its founder has been detained in shanghai. Is inmpany says he criminal custody for what it calls personal reasons. Triggered an investor exodus, erasing more than 4 billion of market value. The cusp ofon securing Justice Department approval for its merger with sprint. The deal is worth over 26 billion. Thebile reportedly agreed asset sales to dish network. Regulators hoping dish can become a strong fourth competitor in the u. S. Ireland wireless market. Anna debra mao in hong kong for us. President trump has leveled accusations of currency manipulation of china and the andtweeting beijing brussels are manipulating their currencies and pumping money into their systems, adding the u. S. Should match them. Fund manager mark mobius told bloomberg perhaps china has been allowing the yuan to strengthen ahead of trade meetings. The currency weapon has been on the table for a long time and the chinese have used that weapon. It is interesting that maybe in preparation for this recent meeting, the chinese allowed to their currency to get stronger against u. S. Dollar. That eased tensions somewhat. Anna joining us, our markets live editor in europe. Great to have you with us. I was talking to mark cudmore, your colleague and we were talking about whether the u. S. Would actually press the button on doing something about this and whether this would be restricted to twitter and jawboning about dollar strength. What are you hearing in the markets that investors are increasingly waking up to . Maybe the treasury could intervene . Christine before there is treasury intervention, there is the option of Monetary Policy. When it comes to Monetary Policy comparisons, the fed is miles ahead of the ecb in terms of its ability to conduct outright rate cuts and that in itself is supportive of the u. S. In this currency war ergo dollar weakness because there is a lot of room for the dollar to weaken because there is room for the fed to cut rates compared to the ecb. Ofa is this the path President Trumps efforts to get jay powell and the fed to bring down Interest Rates rather than the precursor to the treasury actively intervening in the markets weakening the dollar . Kristine the timing is certainly interesting. We can probably conclude there is some sort of correlation between his tweets now and the impending fed meeting this month, which is gearing up to be a big event for a lot of market watchers and something we will be seeing whether the fed will be cutting, how much they will be cutting, and it seems like the debate over the fed at the moment is easing is a matter of how much at this point . Meanwhile in the ecb, weve had perhaps there is hesitation at the ecb to act as soon as july and they are even having to figure out whether it is plausible to reopen the quantitative easing program. What with the mechanics of that look like . There are discussions to be had over issuer limits. There is a lot to figure out at this juncture. They have signaled they may be leaning that way eventually but in terms of the mechanics, we are a long way from that whereas the debate in the fed seems to be how much will we ease . Does its 25 or 50 basis points . Anna the market expects july. Eurodollar trading just under 1. 13. It is interesting the president focus is so much on currency manipulation, the chinese wanting to maintain currency stabilization stability. Weve heard be moaning a lack of volatility in fx markets. Do we see a pickup and that at any point . Do we see increased volatility because of this intervention from the president . Kristine the prospect of treasury intervention is a black swan event that can spur volatility in such a low vol environment. Asset volatility has been absent even with all the things going on globally. Weve had trade war, weakness, but not much volatility in the fx space and this could spur that. Eurodollar is vulnerable just because it has had such a tight range and an absence of movement. This years range yeartodate will be the tightest it ever has in the last two decades. It is really gearing up for some kind of movement and even the prospect of treasury intervention in the dollar could be something that wakes it up a little bit. Anna worth lingering on the story around what the treasure could do. Kristine aquino. Minutes away from the open of european equities session. Text, stocks to watch including the german lighting company, confirming a bid from dana carlyle. Rallies on expectations on this. It could be more in it today after the confirmation of the deal after the close. This is bloomberg. Anna good morning, this is Bloomberg Markets the european open. Seven minutes till the start of the cash Equities Trading day this Independence Day. Lets find out what the team is tracking. Dani burger is looking at osram, joe easton is covering baby foods and Annmarie Hordern is focused on banking i bnp paribas. This is a bank cutting back on research. Annmarie they are getting ready to rid of their Asia Equity Research in hong kong and relying on morningstar. A dozen jobs will be lost. It goes to show how tough the industry is becoming and how that is affecting the banks globally and their decisions. Anna they be foods, the name a little misleading. It is not just about food. Thats right, the main thing is the primark numbers, up around 4 for the year. They expected good profit return in the fullyear. May was although impacted by poor weather, it improved in june. That is notable given analysts said in june was quite bad and they expect in primark. Be beneficialuld for peers. On the sugar part of the business, theyve seen improvement there after there was historically low sugar prices in europe. That improved in the thirdquarter versus the first half. This is a positive report from a ods and wed ab fo could see upside. Anna lets come to you on osram. There could be more in it . The movement yesterday was because reuters reported they are in talks with bain and carlyle for a buyout. Confirmedclose, osram 3. 8 billion buyout offer. This is not final, but they are offering 35 euros a share, in 8. 5 premium from yesterdays close. A bigger game adding to that 11 gain that we saw yesterday. Anna if you want the stock stories, first go is the function on your bloomberg or the mobile app. We will be back with the start of the equity trading day in europe or july 4. You wont get this stateside later on as it will be closed. This is bloomberg. Were the slowskys. We like drip coffee, layovers and waiting on hold. What we dont like is relying on fancy technology for help. Snail mail we were invited to a y2k party. Uh, didnt that happen, like, 20 years ago . Oh, look, karolyn, weve got a mathematician on our hands check it out now you can schedule a callback or reschedule an appointment, even on nights and weekends. Todays xfinity service. Simple. Easy. Awesome. Id rather not. Hey i live on my own now ive got xfinity, because i like to live life in the fast lane. Unlike my parents. You rambling about xfinity again . Youre so cute when you get excited. Anyways. Ive got their app right here, i can troubleshoot. I can schedule a time for them to call me back, its great you have our number programmed in . Ya i dont even know your phone anymore. Excuse me . what . I dont know your phone number. Aw well. He doesnt know our phone number you have our fax number, obviously. Todays xfinity service. Simple. Easy. Awesome. Ill pass. Anna a minutes until the start of cash Equities Trading. Welcome back to the market open. Lets look at where markets are positioned into the thursday session. We will probably be without the volume we normally get in the european session because it is july 4, Independence Day which means no cash trading in equities or bonds. Asian session, up. 4 , mutated gains lower than usual. F fx focus on the markets. We had a fairly flat dollar. President trumps moaning about the strength of the dollar and what he sees as manipulation by the europeans and chinese. Wti crude a little weaker. Commodities not joining with the everything rally, it would appear. Debtseen german yields being brought up like other debt in conjunction with stocks yesterday. We continue to see the rally in everything. That could lift european equities a little higher this morning. Some futures not expected higher at the start of the trading day. European equity markets opening for thursday morning. Futures stood out as a potential area of outperformance. A little m a to talk about in germany. Story, that stocks substantially on the rise yesterday on reports the deal coming. N was come an early mover to the downside on the European Equity markets, down. 3 . The German Market outperforms, up. 2 . Julystoxx fairly flat on 4. Diminished volumes probably as we look at futures, which are open. U. S. Catch futures cash futures are open. On the fx markets, pretty flat on the euro, dollar, and yen. From a sector perspective, European Equity markets looking broadly positive from a sector viewpoint. Weve got a lot of the sectors in green. The red buts in other than that, many sectors pointing higher. Lower, telecoms pointing lower, staples and industrials to the upside, Consumer Discretionary<