The devilish from the fed has dissipated. Futures in the u. S. Negative, dow futures off 75 points. That flat. Dead flast. T. Dollar yen bright red. Down 1. 3 1 , the japanese yen is stronger. Every single major currency. A weaker euro. Yields lower. That is her market wrap. Lets get first word news. Vonnie in syria, fighters backed by the u. S. And russia have been on Opposing Side and are zeroing in on islamic state, the russian supported syrian army is trying to cut off their main supply route between iraq and syria. Kurdish forces supported by the u. S. Are moving closer to the militant groups capital. In icelandic, a third day of antigovernment demonstrations. After leaked documents reveal the prime ministers the trimester had rhetoric heating up between Bernie Sanders and Hillary Clinton, Bernie Sanders said the front runner is not qualified to be president. His reason, sanders listed wall street donations to her super pac and support for the war in iraq. Clinton was asked if sanders was qualified to be president but she declined to answer. David. David the yen is surging. At its strongest level against the dollar in 1. 5 years. It gained even after a Government Official said they would take action on the currency if needed. As well asis here simon kennedy. Just when i think the yen is maxed out, it goes even further. 108. To what is causing this . Talk companies are repatriating earnings into yen. A move we have seen over several months. Dollar yen down 9. 94 year to date, a significant move. Easing, is that were looking at . That is the case, a worried that intervention is a false campaign. It has a limited effect. The agreement among the g20 officials not to do such things. The japanese are on their own. Vonnie japan hosting the next g7 meeting. What about the idea with exiting markets going down, people are hedging using yen . Yenhat is an issue and the is a safe haven given the amount of debt, in times of trouble the yen is often favored over other currencies and maybe you be are seeing a bit of that. Banksns that the central are not packing the punch they once did and the Global Economy is not doing well. David you are a student of how markets interrelate. One of the reasons i should be concerned is not so much the actual trading of the yen but about the japanese economy, the Third Largest economy in the world. If this will deter their ability to grow, thanks Global Growth effects Global Growth . About positioning of the markets, the fed has given a more dovish tone than the market was expecting and that will cause weakness in the dollar. Positioning and the Central Banks are playing by the same playbook to be on the dovish side. A matter of who will be more dovish than the other or who will be more dovish relative to expectations. With the Federal Reserve, we are seeing a more dovish stance in light of inflation statistics showing a pickup in the u. S. , the fed seems to be preoccupied with risk to the downside inflation. The chief cabinet secretary has come out twice and said that he is looking at the fx markets with vigilance. If a chinese policymaker came out and said those words, twice in a week, this market would fall out of bed if china were looking for a weaker a currency, why does japanese get away with that kind of rhetoric . I wish i knew the answer. Hang oncentral bankers every word and it used to be where we focused on more companies, not with his what is the central banker saying. David how can they get away with it. They want to talk it down and it looks like they cannot. The market based not believe them when they say they may intervene to get the yen down. They want to introduce twoway wrist into the tray or slowing if they feel the yen will keep going up. If it is a fundamental move and they feel intervention will not fx, jpmorgan talking about how much higher the yen can go. Vonnie shinzo abe has promised there will not be intervention, does he lose credibility or the central bank lose credibility if they do intervene . Yes, it seemed problems with that as g20 seven g20 hosts , you have to member that some suggestion that the currency wars which may have been overblown are no longer in place. The bank of japan perhaps not cutting more negatively as perhaps first hinted when it started. Probably because of the reaction of markets. The fed not raising as quickly. The ecb not using currency in the late it may have been in the past. But that together and you get a rise in the yen. David if you are shinzo abe, you are more concerned about the economy than anything else. This makes his job much more difficult. If he is trying to get inflation and growth going, a strong yen hurts them. Economythe japanese used to have lower Commodity Prices, will be good for the economy to import most of their goods. Getting back to the move in the end, you had a great chart earlier, it has been in a downtrend, we see big move but this move in the last several months is barely even a blip on the screen. The longterm trend of the yen has been weaker. The magnitude of some of the moves we are seeing in the japanese yen. Here is what it has done today. All of the major currencies that have a cross with the yen are seeing declines, the South African rand has consistently seen the deepest declines. You can flip this to look at year to date and you see similar movement, more magnitude in terms of movement but all of the major currencies falling versus the japanese yen. If you look at the base of the town falling the most. Thats the pound falling the most the town falling the most. This looks at forecast for various current sees, currencies, they are looking for weakening in the yen. Here is where the forwards are trading, what the markets are saying and what strategist are saying. Just wrapping this up. Traditionally, you look at a metrics in howt it was valued, the management, bigstrategy, looks like one fx trade, the research you are doing. Markets, itll these is a currency move. The fundamentals of the specific companies are taking a backseat. Is there a bazooka that kuroda can come out with like mario draghi did . A suggestion that negative rates were only the start of the campaign when he introduced those, they were surprised i the kickback they got from markets. He can continue to put negative rates more lower and continue to pursue that. That might be a surprise but what he needs to do. Thank you for joining us. I guess the takeaway is that the markets punish them. Bankxt, China Central reports an unexpected rise in their Foreign Exchange reserves, could the market be stabilizing and is it the winner of a weaker dollar world . A texase are your teenager has become the 10th american to die in a crash involved a ruptured check on airbag. The defect not had repaired. Samsung posted better than expected First Quarter profits, the Early Release of its has struck got a head start of apple and chinese competitors. It sold three times as fast in its first time Goldman Sachs is oil at 35 a barrel is just right to make shares of u. S. Explores worth buying. Oldman forecasting west texas intermediate will average 57 a barrel next year and that opec will increase production and set of freezing or cutting at. Thats cutting it. Chinas fxon reserves increased for the first time in five months, rose by 10 point 3 billion in the last month as the nations currency stabilized. My question is, is this a reflection of improving fundamentals in china or the reflection of what is happening with the dollar . This is the result of the efforts to stabilize expectations. You were on the story, the wild swings in january. They interfered in the market to punish speculators. , they caused severe doubt on the concept of a free inket, it has succeeded curbing depreciation expectations, easing capital outflow pressures and even the pressure of the Foreign Exchange reserve spends fewer dollars to support the one. Saying,s what you are because of what the pboc did, they send a message to people in china, they should hold their yuan rather than halve capital flow out of the country so they are more confident of keeping their money in china. The story behind the story behind the story is the they are following this dual policy of allowing appreciation against the dollar while helping by allowing depreciation of partners. How it is achieving those goals is by controlling the appreciation against the dollar as the dollar declines. The euro has risen about 5 against the greenback this year. This has increased activity is allowing them to weaken the currency against its trading partner, this is how its achieving this whole thing. That drives of sentiment and people say, they are not allowing a depreciation against the dollar, setting the whole sentiment. This is shortterm. I am not sure how long this can last, how long the trading partners will allow this appreciation to go on. Vonnie how is china looking at the appreciation of the japanese yen . Appreciating substantially versus the dollar. I am not sure the policymakers in china are concerned about things that are happening far outside their own borders. As a short in august, they shorted in january, they want to drive home a message, they are not concerned about what the yen is doing or what the dollar is doing. They are concerned when it suits them. For the moment, i am not sure the yens decline is a huge concern. Jon what we had at the thesons best epicenter is dollar, a Stable Currency in china, you see losers, japan, looking at asset classes, what is the biggest winning as a class from the week dollar story . Biggest winning as a class is gold. A strong rally in gold. As you see the dovish playbook employed by every central bank, gold continue should continue to do well. China, the week dollar plays and you have seen improved economic data, the manufacturings saw its biggest monthly increase in four years in march and the nonmanufacturing base increase in two years in march. Whether or not it is a one month blip remains to be seen but an improvement. The shanghai composite, that longterm downtrend from the middle of 2015 started to break that. , we broke about that, tested it and remain above that. As long as we can remain above that downturn for the shanghai, it shows better sentiment for the region. Jpmorgan ceo warns of emerging geopolitical risks to the details coming up. Jon this is bloomberg. Markets, two hours away from the open in new york, to just negative. Futures negative. Plenty going on elsewhere. Straight to the fx market, dollar yen, 10830 two, down by 1. 34 . Yen strength across the board. Treasuries down by two basis points to 1. 73 . Keep an eye on crude. So many interesting moves across asset classes. Announcing the big deal with the nfl, twitter, Morgan Stanley cutting its estimates, the target on the stock going from 16 to 18. Fewer minutes and at dollars plus more traffic acquisition costs equals less earnings power according to an analyst who sees declines in twitters engagement and user trends despite the deal with the nfl, twitter shares down about 25 this year and another 2. 5 this morning. , shares of win upgraded by 5 . Upgraded by 5 . And analyst raising his rating based on the stronger than expected outlook provided by the company and his confidence and his confidence in management even though shares fell on that outlook yesterday. About analyst estimates and down year over year, we saw pullback in the shares, bouncing back. Toid in his newsletter shareholder, jamie dimon warned of emerging geopolitical risks. The possibility of britain leaving European Union, the outcome is potentially large and unknown. Erik schatzker dug into the better. We have paul hickey. Lets talk about brexit. He said there are risks and said the best Case Scenario for britain if it were to lead the European Union is that hundreds of trade agreements that britain has with the eu we need to be renegotiated. Necessarilyio, not the worst Case Scenario is that the eu retaliates against britain. Also close to the worst Case Scenario, the European Union falls apart. Clearly a possibility. It is what jamie dimon did not say about brexit that is more newsworthy. Wisdom. Conventional he did not say stuart gulliver, if there were a brexit this is how many jobs we are going to have to pull out of london. Did not go as far as John Mcfarlane that said london would be significantly worse off in the event of brexit. Jon is that because they have more skin in the game . Erik yes but jamie dimon styles himself a spokesman for the Banking Industry and has often a claim within the industry and i think the point about brexit is made on page 48 of 50. Of how important this issue is to jpmorgan is and jamie dimon. He does run an american back. , he said heedged did not know whether it would make the European Union stronger or weaker. Brexit is one of the Major Concerns in the market, will it impact u. S. Equities . Paul the unintended consequences, you never know, about this letter, the commitment to brazil. You see that big money is made in their markets and the tendency is for companies to pack up and go home when things look bad. We saw that in the asia financial crisis, russia, brazil in 2000. That is when the money is made. Stick with it. Erik it is what People Choose to say is as important of what they choose not to say, he flags china and brazil and argentina as three other countries that they are mentioned in this report in addition to britain, and that is it. He said jpmorgan could lose 2 billion in brazil and they are still in. Talking about the Great Recession the front and center of peoples my comment increases their instincts to run for the exit and that is an issue, a sentiment in a lot of investors minds, when you see weakness in the market, it you think here is the big one and most of the time the big one never happens. Vonnie thank you to paul hickey at erik schatzker. Usgender inequality costing trillions, details coming up. David u. S. Equity futures are in the red as you can see here. S p down 79. Joining us from radio is tom king. Good morning. Good to have you here. Vonnie we will start with president obama taking his case for Supreme Court nominee Merrick Garland on the road today. The president will argue that Senate Republicans should reverse course and get garland a confirmation hearing. So far, the White House Campaign for garland has had little effect. The u. S. Will search for the Panama Papers for evidence of companies or people evading sanctions against russia. Show at least 2 billion in transactions involving individuals and businesses that have ties to vladimir putin. Russia has dismissed the report in attempts to destabilize the country. Merle haggard has died. Merle haggard came out of the music scene in the 1960s and ended up with 38 songs that reached number one in the charts. He is known at least four ok from muskogee among other songs. Merle haggard was 79 years old. Powered by tom king and john also. Jonathan tom king, whether you have . Tom it is on the yen, which is front and center right now. This is out of the telegraph, and this is a must read for everybody on wall street with some global chart as well. Global inflation is at a 15 year belief. Trary to popular this is one theory. A lot of people pushing back as well. Jonathan just want to get to this headline very quickly. A credit line amendment. Valley of getting lender consent for a credit line amendment. Maybe some of the pressure alleviated for valeant. Vonnie it is a comfortable current liquidity position. Out,ll see when that comes or back to toms morning mustread. One of the things you said is the global peace. The fed maybe it was extended cycle to 2017 but we are looking at a counter,. A downturn. Tom valeant at the remedy has all sorts of challenges, which im not expert on, but we know they are having massive placement issues. They cannot get the price they want. There is the disinflation trend that every scripture says may end at some point. David this is the point people are not power overpriced. Whether it is in the labor market or production market, price,ou get our over you have not use your capacity fully and you will not get growth and we dont find that almost anywhere. Tom when you look at that in london real estate, the basic idea here is Service Sector inflation is a similar beast from oil and selected good. Jon here is my single be really interesting. Economists have been very wrong about a series of things. Were worried we of lots of inflation. Now we are worried about disinflation. Thats right around the u. S. Is the labor market gets tighter. I have heard several talking about stagflation. No growth, inflation picking up. A high risk to inflation and downside to growth with no idea where to go. That could be a big thing. Tom we did a chart on surveillance a week or two ago. The cpi are like this. That is a fact. Are they at a worrying stage . I would suggest not. Janet yellen and others use the phrase overshoot. There is concerned it will be a recent of Market Pricing that will throw everything into upheaval, and that would include inflation expectation. Tom we got through this whole thing without talking about the japanese yen. Extraordinary. David your point, looking at the cbi numbers and projections of gdp growth that are very modest. We are talking like. 4 in the First Quarter. You will have to make up in the other three quarters to get back. Nominal as real gdp in this strange inflation dynamic, we are talking about we are repeating what we have seen, which is this desire of a massive catch up second, third, fourth qua