Lets get straight to the pound story. We have seen a great deal of volatility which we need to communicate to you. One month volatility getting a sevenweek high. The panel itself hitting a threeweek low. ,his is implied volatility bracing for the Eu Referendum which will take place on june 23. We have had a couple of polls over the weekend that seem to have put some moves into currency markets. 45 leave, 41 remain. Poll, 41 believe, 41 remain. We have to be a bit careful of the polls were the field work was done during periods of school holidays. Thought people who were younger and more affluent could be away during that period. It doesnt change the fact that the currency markets have been reacting to these polls. Lets move on to all risk radar. The nonfarm payrolls number the lowest in almost six years. We have got the Malaysian Ringgit surging the most in nine weeks. A move of more than 1 against the u. S. Dollar. Have the dollar against the chinese currency as well. Jack lew is in china. 6. 56 is where we are for the chinese yuan. Dollar at the lowest it has since 2013 versus a basket of peers. We will talk about the conversations between the u. S. And china in a moment. Crude. Saying macys 60 it jumped 2. 7 . Stocks continue to move gently away from their loads. Lets get our first look news. Debate is heating up with the former mayor of london they are johnson london Boris Johnson. Said there was something worryingly undemocratic about the eu. They both spoke to bbc. They have begun campaigning and tried to feed out to the british people a whole galaxy of inaccurate and frankly untrue information. Is telly have not done us what would be the position if we were to vote to leave. I think it would be chaotic and damaging and the people who would suffer the most would be the ordinary everyday man and woman in the street. Lives arepects of our now controlled through the eu from brussels in a way that i think is antidemocratic. For me, this is a question of democracy. It is about public consent and explaining to people. The moment we dont have at the moment, we dont have any power to control our immigration. Germany takes on an increasingly large role in the communicatet policies. The jack lew added that chinas economy is in a much better place than what it appears to be. Robust andcrude is stateowned saudi aramco has raised prices to asia and the u. S. Prices could hit 60 per barrel. Todayelieve the oil price i think 60 could happen but it will all depend on going forward. Rosalind Hillary Clinton has won puerto ricos democratic primary. Few votes short of achieving the nomination, something she could achieve tomorrow when voters go to the polls. The chinese retail giant expected to announce later today that it is buying Italian Football Club into a line. Has scheduledpany a soccer related announcement. They have been moving closer to buying between 60 and 70 of the club, value madea q 700 million euros. Global news 24 hours a day, powered by 2400 journalists around the world. You can find more stories on the. Manus, you are with us this morning. Little bit ofa extra heat at the beginning of ramadan. You have a volatility chart. Have a look at this. , the themend coin for the next week next three weeks. We have the pound, the you want of the issuesall around foreign exchange. Anna lets see him and times we can use it between now and june 23. Manus lets get out to david english. He has the asian market reaction. David today is one of those days were the bond and currency markets are very much in focus. The picture across asia, much better when it comes down to this rally. Japan still leaving the losses, down. 7 . A better graphic that i think sums up better what were seeing across the region. This is asiapacific. You take japan out and things look much better. They tend to do better than developed markets. Shockingly low. It begs the question, is this trade still alive and kicking. Answer, a resounding yes. Emerging across markets in Southeast Asia. ,ustralian goldmining stocks gold obviously leaving the game across the entire space. With that being said, doubledigit percentage gains. Just to show you how extreme these moves are. Let me move on to currency. Rupiah, have a look at this extreme move. Againstn, the dollar the indonesian currency. It is also reflective of the extreme moves were seeing, especially across Southeast Asia , like the Malaysian Ringgit. Let me just wrapped things up with a quick look at the bond markets. Australia, 2. 16 . David, thank you. As we have heard, markets have been hit by fridays nonfarm payrolls. It added a few is johns last month it almost six years. Hadmberg economists surveyed 160,000 as we discussed on friday. The data all but eliminated the possibility that fed officials will raise Interest Rates this month, with futures pricing in the chance of a hike. Now doesnt only get above now dont get above 50 until december. Simon french joins us on set. Good morning to you. Recalibrating at warp speed it seems. We had a quick read think of where we go this summer. Simon those had rebounded the previous week following comments from fed members, all pointing to a rate rise. The caveat to all of that was that the fed remains in data dependent mode. Fridays data was sufficient, i think, certainly to put june off the table. July looks deeply uncertain, especially with the rising of a brexit vote, or the remain vote, the opportunity for a lot of turbulence. I think there is no real reason. Think,a was, i fascinating from the perspective that it came after the beige book data. Increase in the amount of people who are parttime workers. Simon, a very good morning to you. Global bond markets are reaching record lows. The word is nervous. When i look at this, there are a lot of dollar traders who are very nervous. We were so ready for this june and july hike. If the dollar rally in tatters . Surely, that is good news for the fed, because they were preoccupied by a strong dollar. You look at the u. S. Dollar. In a way, it has been locked up following comments from fed members. It almost becomes selffulfilling in doing exactly the opposite. It will provide some relief to those people who are on the wrong side of that dollar trade, but i dont think it is the end upwards trajectory. It is the u. S. Economy in the context of a World Economy that remains weaker than the u. S. Underlying resilience rather than strength of the u. S. Economy that i think will push the dollar higher. Anna janet yellen set to speak later today. What are we looking for . What can she tell us . First, the information from fed officials and now this week data on the jobless front. What can she say to explain all of this . Simon i expected janet yellen to look through fridays data and look through something that doesnt fit their core narrative. Probably improving over the last 30 days. Fly in thehe ointment was the nonfarm payroll numbers. I think she would still want to keep consistent with previous comments. Just over 10 days ago about something being eminent. Anna even before the jobs report, the beige book was moderate. The language wasnt about an economy that was really inflating. Simon the challenge of the is on the was that it basis of rate rises in the u. S. Economy. She rolled a long way back, trying to recalibrate expectations. Lews funny to hear jack talking about the chinese being sort of more transparent with their forward guidance. I think there are a lot of chinese commentators who would look with a raised eyebrow. We are going to talk a little bit more about china later on. The bloomberg sovereign bond index record low. Japan is at a record low. How close are we . One more bad set of farm payrolls, how close are we to quantitative easing from the u. S. Or a recession from the u. S. . Are perhapsnk you searching the headlines at the moment. Qed, we know when there is a developing consensus that we are reaching the extent of qe. In those jockeys were qe is going and only the game in town, i think the u. S. Is not going to add to there is a problem with lack of confidence in growth. If wek what we will see saw a response to a market payrolls,in nonfarm lets say julys are poor, we would get those noises we have heard from draghi, from janet yellen about the role of fiscal policy, they will just be ramped up a couple of notches. That will have to be the response. Anna simon, thank you. Here are some highlights for your week ahead. Fed chair janet yellen addresses the World Affairs council of philadelphia. There are primaries tomorrow in new jersey, new mexico, south dakota. Thursday, ecb president mario draghi opens the brussels economic forum. We round off the week with german chancellor Angela Merkel speaking in berlin on the eu future. ,anus up next on countdown jack lew says the pboc needs to be clearer. Talk kick off in beijing. Manus you are looking at a little bit of a gray skies line across pictorial harbor in hong kong. Harbour. Victoria lets talk about chinas president , she jinping. He said the country and the u. S. Should talk more often in order to reduce tensions and build trust. Being at the opening of the annual meeting of top officials of the worlds two biggest economies, he went on to say that the pacific should not be a battlefield. Tom mackenzie is at the talks. Many positive messages from the president. Tom it was conciliatory words xim she jinping from jinping. Obviously, there are some big Economic Issues that the u. S. And china want to address. The tension in the South China Sea and some of their most heightened levels we have seen in many years. Paying changing president xi saying that Peaceful Development was key for him. China and the u. S. Need to increase communication and cooperation over the asiapacific. The vast pacific should be a stage for inclusive cooperation, not an arena for competition. The tone of president xi jinpings speech will be welcomed by the u. S. And allies in the region. Some close calls in may. Chinese fighter jets came close to a u. S. Surveillance plane. Over the weekend, u. S. Defense secretary Ashton Carter said that china risked erecting a great wall with the South China Sea policies. They hope the focus will shift to some of the Economic Issues on the table. Anna that really underlines the u. S. Priorities here, i suppose. We heard from jack lew about what china needs to do in terms of communicating economic policy. Tom we had a fascinating conversation with the u. S. Treasury secretary yesterday, laying out u. S. Priorities during this talks. Mitigation is key. He said that back in august, he was on location, and he picked up his phone to his chinese counterpart asking what happened with the depreciation of the renminbi. That shows the closed as the relationship to some degree. Other priorities of the u. S. Are opening Chinese Markets to u. S. Firms who are very much closed off in areas like finance, telecoms, logistics. He wants some answers from the chinese as to the progress of the reform agenda. Particularly concerned about overcapacity in Industries Like steel and aluminium. A distortedays that Global Market would erode chinas future growth potential. In thent some terrorists u. S. Imposed on their steel exports remove. They also want the market economy status they think they owed. Are that is some progress that the chinese are looking for. Anna Tom Mackenzie joining us from beijing. Lets get simon french back into the conversation. Lots of themes coming out of china this week. Jack lew said the focus steeltedly will be on industry but also on the currency market. What are you expecting to be the take away from these meetings . Simon cooperation or attempted cooperation regarding the path of the u. S. Dollar and the yuan. What you are looking for is some guidance toward a strategy which markets can be confident on. You have the weakness of the yuan against a broader basket of currencies, but it doesnt always move the u. S. Dollar. I think the key take away from this will be whether the political tensions in the South China Sea can be put to one side , the issues of the steel side, and ifo one they can come up with something more workable. To reflectst want back on the chart that and has on her touchscreen and i have here. This is the basket of currencies we have. The market was hysterical in january when the renminbi moved. There was this real sense of global concern. Here we are. Near that level, the lowest level since 2014, and there is no sense of panic or urgency or global concern. What has changed . Simon i think very little has fatigue with than current competitive devaluations going on. The people who will be most concerned by that chart, they will be sitting in tokyo, they will be sitting in frankfurt, they will be worried about the implications a week or a has, which is an export related recovery. Goes againstan other baskets and maintain strength against the dollar, that just tightens the vices. Anna how weak or strong is it . Jack lew suggesting that the lack of communication last year led people to conclude that the chinese growth picture was actually weaker than it was. We had those moments of markets associated with china. Of conclusivece data on the strength of the chinese economy led to speculation which isnt really matched by the underlying data regarding world trade volumes, that in termsnk of the underlying performance of the chinese economy, significantly weaker than what we got. But of course, there is big stimulus going into the economy. Manus we have a lot more to get through. Simon french, chief economist at penn your gordon. Are seen, u. K. Voters favoring leaving the eu. What does it mean for markets . . C sv anna welcome back. Jack lew is over in china right now. Hes in a zheng speaking at the strategic and economic dialogue. Hes the u. S. Treasury secretary commitmentsna has to its important economic reform. For in this this is wonder if they are welcome in china and he calls on china to liberalize their investment rules. Keeping an eye on everything thats coming out of the conversations between china and the u. S. To bring the latest to you. More from jack lew. On an increasingly large role in the global economy. He told bloomberg that the attempt to devalue the yen was confusing and not well communicated. There are fears that chinas than whatis worse economists perceived to be. Hillary clinton has a one a democratic primary just a few short of clinching the president ial nomination, if each she could get tomorrow as voters go to the polls in california, new mexico. On track to become the first female mayor of rome. She is part of the antiestablishment fivestar movement. Her win would be a blow to the Prime Minister trying to convince italians he can make making an end of stagnation. Expecting to announce today that they are buying into milan. It they has scheduled a briefing at their headquarters. Been close to between buying 60 70 of the club. Global news 24 hours a day powered by our 2400 journalists in 150 news bureaus around the world. Rosalind chin with the very latest thank you with the global headlines. Disappointing number with the jobs report, how are the markets absorbing this . Caroline hyde has the 40 eightour response. Where will begin with bonds, fx, equities 48hour response . The japanese stock market is feeling the pain up 0. 7 after the tremendous rally we saw on the yen from the back of the numbers coming from the United States. Down goes the dollar, up goes the yen. Today, a little bit of a recovery with the dollar index up about 0. 25 . Commodities a little bit higher. 5 but giving up in the United States on the twoyear. Lets dig into this particular move. The british pound not so great today off by 0. 9 , the worst performer on the currency index. Keep an eye on wcrf. Clearly, money coming out of the pound. Anna has a great chart on volatility sparking spiking the most since 2009 on the back of new polls. Choosing to leave them those who remain. Lets look at the onslaught after the u. S. Jobs number. A 38,000 a painful number. Michael saying there is no Silver Lining to this number. Usuallythe number the see in july, the probability we will see a rate hike tumbling to 27 . It was above 50 before the jobs number came out. 4 is the likelihood of a move in june a. This is the Bloomberg Globally index. Ed a sovereign yields are tumbling to a record low since the records began in 2010. The search for safety and mid the u. S. With the jobs number looming. Rexit saudi arabia has a raised pricing on oil grades to sale after saying that demand was robust. They stuck to the policy at opec as the price rally supported optimism that they are improving and that is the subject of our chart of the hour. Manus, you have more details for us . That they are all playing for market share and the share of rent and wci, up. Abu dhabi has 6 of the overall global out to and they are output and they are a prominent member. You have to question whether they are talking about their own but the global surface will contract. The global surface will drop to faster than the market has expected. I sat down with a guest yesterday and we talked oil. Todayelieve the oil price 55 think a range between dollars 60 can happen but it depends on the Economic Outlook going forward. Manus lets bring in tracy from a abu dhabi. 60 as theeking price on the table. What are the real headwinds . Theyre going after market share and positioning. What are the biggest headwinds . Addendum to your fantastic interview, manus, i would add one of the big ones in the reason region has to be iran. Theyve risen a lot more than people have anticipated at the highest level since 2011 producing Something Like 2 Million Barrels per day now that the sanctions have been lifted. They are aiming to lift that almost 5n quota up to Million Barrels per day over the next five years. That in itself is a huge regional tailwind. Manus talk to me about the share producers. 60 per share the riskreport is shale comes back on board. Is there a shift in the index . A shift in what we are seeing in the