Lets get you up to speed. Heres caroline hyde. Caroline good morning. Stocks have soared in tokyo, with the topix posting its biggest gain in six years as Investors Show that japans economy trying less than expected last year. Chinas trade numbers for january underline challenges facing the economy. Exports fell and imports declined after a trade surplus of more than 63 million, the biggest on record. The figures suggest that the currencys depreciation has yet to boost competitiveness of chinese industry. It is president s day in the u. S. Stocks and bonds markets are closed. President obama will be at work, greeting leaders from Southeast Asian nations for their first u. S. Summit in california. Hsbc has decided to keep its Global Headquarters in london, claiming u. K. Is an important and globally connected economy. Hsbc has been based in the u. K. For 23 years and said remaining there is the best option for both customers and shareholders. Get world news 24 hours a day. Guy thank you very, caroline. Markets, monday morning may actually feel ok for you. Lets look at where we think the markets are going to open. This is what you get, a lot of green for the main markets in europe. It has been a wild market for a while. Risk on, risk off, a big feature of it. Today, if you are long equities, risk on does seem to be the theme. Ill show you what is going on around the world. You have seen a big move in the onshore rmb versus the u. S. Dollar, biggest move since 2005. The asian markets have been searching in terms of equities. Lets show you what your week ahead looks like. Today, president s day in the states. Stocks and bonds are closed. Later, ecb president mario draghi speaks to the European ParliamentEconomic Committee in brussels. Is he just going to reflect the speech he gave at the bundesbank on the fourth, i. E. , we cant be in a position where we do not take action will he and that up . Wait and see. Federal reserve releases minutes from the january fomc meeting. How much concern was there about market volatility . An awful lot to be decided for the fed this year. On thursday, leaders of the eu governments begin a summit in brussels where the negotiation of britains commercial terms and the refugee crisis are set to dominate. Biggest move since 2005, chinas yuan surging. You have to put these big moves into context. A huge move. This probably is what has predated this. The Central Bank Governor speaking. You dont often see these interviews. Voicing support for the Exchange Rate against the dollar. Lets go to bloombergs china market editor in shanghai. Week traden the data, will the strength of the yuan be shortlived . Chinese authorities watching this one very carefully. Allen exactly. Speaking to trade data, it is very hard to see any good from todays numbers. Maybe the positive we can take from todays data is maybe more monetary and fiscal stimulus in the offing, as well as more steps to boost domestic consumption. In terms of the currency, today was a oneoff. A lot of investors were reassured that there will be a stir a stable currency. Todays trading volumes will be thin as well. We are to have to wait a little while. Maybe when the u. S. Markets come back from holiday. Guy thank you very much indeed. Ofen wan joining us out shanghai. Lets bring in our guests now, jean medecin. Manages 52 billion euros. Good morning to you. Lets talk about what has happened in asia overnight. It is setting the tone in europe. The biggest move for the onshore you want since 2005. The chinese are back off their lunar holiday. What message are they sending . Jean it might be too strong. We had in japan the same kind of shock movement a couple of weeks ago, when we had this negative Interest Rate policy coming so shortly after the bank of japan actually denied implementing such a policy. With china, what is quite interesting is the communication has been made on the fixing of the yuan versus the dollar. So, there is probably a lot of february among Central Banks. It is quite successful today. I would be very surprised if actually starting a new trend of strengthening chinese currency. Guy if that doesnt happen, and we listen to the interview delivered over the weekend from the central bank, talk to me about what the next policy move is going to be. Central banks around the world trying to amp up what they are doing, trying to make moves to help their regions. What are we going to hear from the chinese . Jean i think youre going to hear more and more from Central Banks and have some big talks in terms of what they want to do. If they are not out of ammunition, their capacity to have an impact on inflation is actually quite diminished. Can you expect more negative Interest Rate policy . Probably, you might expect. Can you expect more liquidity injections . Yes, you can expect. Can you expect some more guidance from the Chinese Central Bank . Yes, you can expect. The real question is not what you can expect in terms of communication, but what will be the impact of those measures. It is puzzling for me that today, on the day when we have some dreadful numbers for japanese gdp, we have such a bounce after japanese markets, just on this kind of risk on trend you were describing, which is in my view a very treacherous trend. Guy would you sell todays rally . Jean absolutely. Guy so any rally, you want to get in there . Jean i dont think we have any kind of inflection in terms of the economic fundamentals which is justifying if you want to really try to capture the rally and stay invested. The underlying macro picture is not very supportive. The earnings picture for corporations around the world is pretty gloomy. Definitely, i dont think any reason if you want to be a lot more conservative. We have to take into account that even though the markets have dropped 10 to 15 depending on the regions, when you see where weve been coming from, when you see what has been the very sluggish earnings underlying outlook of the past years, we cant say the markets have become cheap all of a sudden. Guy hold that thought. Lindsey moore still with jean as we go through the day. We going to speak to hamiltons chief executive following fullyear profit. That story next here on on the move. Guy welcome back. Hamilton has reported its fullyear income that rose 4. 3 and the company is confident the business will continue to deliver. I suspect that a few investors are breathing a sigh of relief. To discuss this, we are joined by david atkins from the london stock exchange. The beginning of this year, the back end of last year, really driven by market turbulence. You are a longterm investor. Does it change the way you look at your business and the opportunities we see in front of us . David as you say, we are a longterm investor. Our business with 98 occupancy is backed by longterm leases. On average, we are signing 10year leases. On the face of it, from a revenue point of view, no impact whatsoever. Clearly, we are not immune from the volatility. But i still think, when you think of real estate, yielding a real cash return of 4 to 5 ,ersus longterm debt rates 2 benchmark rates effectively at zero, i think really trade real estate looks attractive and well priced. May be aarea that factor, given the volatility, is up 38 to 40 . Do you think the market is tolerant and that may inhibit you . It has gone up, but it is well within our internal guideline. We have been selling assets. Above bookund 10 value. There is very good demand out there. We will be selling around 300 Million Pounds of assets this year. Down tol bring our ltv the mid 30s. Even at 38 , that is low by historical comparisons. Guy lets get back to this issue of hard assets versus other assets. You think there is going to be greater demand for the kind of assets you hold going forward, given the volatility we are seeing elsewhere. Does it make those assets more attractive . David i think they are attractive. It is relative versus other investment medium. The real income stream backed by longterm leases, and our retail offer is where people want to shop, where retailers want space, then i think Global Investment demand into the u. K. As a safe haven in difficult times, assetbacked Companies Must be attractive. Guy you talked about yields. Do you see those yields going lower . Do you have an expectation of where you see the cycle going . Where do yields bottom out . David i think we are about there now, in a period where Interest Rates stay lower for longer. I think real estate looks wellpriced. Catalystee what is the to move them out. I think were in a period of stability, equilibrium, and on retail, which is a later cycle play, doesnt suffer from any oversupply issue, then i think the prospects for retail look good. Guy just a quick question on brexit. You know the u. K. Market. Plenty of people will not have the knowledge that you had. Given that we are likely to see some volatility, do you think that gives you an edge in terms of the opportunity to look through brexit, analyze brexit, understand brexit, and make smarter acquisitions . How do you see the next few months . Opportunity or threat . David we see it from both ends of the telescope. 30 of our assets are held in continental europe, so we are for the u. K. Being in europe. It is part of our business. For me, the next two or three months will create uncertainty and doubt in investors minds. I think there may be a pause. Looking beyond that, i think the u. K. With its growing economy, the prospects look good. How good will depend on the outcome of the referendum. Probablyneutral and cautious in the next couple months, but neutral thereafter. Guy great to speak with you. David atkins, ceo of hammerson. Jean medecin still with us. Talking about yields, in terms of the property sector, yields in office space come down quite a lot. 5 s talking about 4 to being the range he sees himself in. Where do you see those assets right now . Jean i think the comments were very sensible, but i have two caveats. When we talk about commercial real estate, this is something ultimately linked to the business cycle. There is an element you need to factor, which is vacancy. That is one thing, if you want to have a little more balanced view on the attractive eddie of the assets. It is very different from real estate for housing. I would also say that we should not forget that ultimately, its not a very liquid asset class. The idea that you are paying a premium in terms of yield for these assets compared to u. S. Treasuries guy some people like that they dont get the volatility. Jean but it is more like a kind of accounting mirror or smokescreen. It is just because you value those assets on a regular basis based on what you estimate at lower volatility. When you look at the sharp rise, it is quite volatile. If you are looking for real ,ields and a kind of safe haven look for u. S. Treasuries. 1. 7 10 years yield. In the context of deflationary pressure, the ultimate safe haven is probably the best place to hide if you want to line. Guy thank you very much indeed. We are minutes away from the open. We are going to look at the potential corporate moves. That is next, here on on the move. Guy welcome back. Lets look at futures. We are looking for a balance on the london market. European equities bouncing. How long does it last . Lets talk about some of the stocks we need to be watching. Heres caroline hyde. Caroline one that is driving the ftse higher, they come out with numbers better than expected. This has been a volatile trading session. You know what it makes, painkillers. A whole wealth of products that the consumer buys into in the supermarket. They are showing fourthquarter sales beating. They are up some 7 . We are likely to see like for like sales grow in 2016. Watch reckitt benckiser. Management changes in another stock. Bae systems, this is the management function you can use. Today, we have Charles Woodburn out as coo. Hes only 46 years old. King,e soon replace ian the chief executive . That is according to people familiar. Charles woodburn coming over from another u. K. Company. Hes now moving into bae systems. Keep an eye on that management changeup. Meanwhile, the two german utilities are likely to spike as well on the open. Look at the erosion in valuation in these stocks. The reason they can jump, speculation that the German Government could help the taxpayer take some of that burden of winding out nuclear assets. Eon both having to pay for the shunning and cleaning up of nuclear reactors. Back to you. Guy thank you very much indeed, caroline. How do you play this week tactically . Walk me through the week. Jean we tactically increased our exposure to equity last week. We are now at eight. It is not going to be a major Inflection Point in our very conservative position, which we have kept in september of last year. We think that probably we come to the end of monetary illusion. We have this very strong market reaction. Until we have more confidence on the underlying economic strength, which is definitely not our best scenario, we dont see any reason to change the market. Guy the market open is next. We think we are going to see a significant bounce in europe. A lot opportunity this year. That is the story we think is going to be up, 1. 9 on the ftse 100. Over 2 . Ould be up the open is next. Guy good morning and welcome to on the move. I am guy johnson here in the city of london. Moments away from the start of european trading. The yuan surges. Chinas currency the most since 2005. The Exchange Rate and critically strengthened the reference rate. Stocks soaring in tokyo. 8 , the most in seven years. Investors anticipate more stimulus from the doj did this after disappointing gop data. Guy ok, lets talk about the equity markets. As we get down to the getgo, lets talk about what were expecting. 2 . To tokyo to get away overnight. Lets look for the cash over. Here is caroline hyde. Caroline a phenomenal move we saw in asia here it is have a look at what went down in asia. We saw spikes, the biggest hop in japanese stocks since 2008. Brushing up concerns about the japanese economy. Is gdp worse than expected echo is chinese imports and exports worse than expected . The pboc stepping in looking for support looking to support their own currency. You see a rocket in the nikkei, up 7 . What moves we saw over in asia. As we do overall as we open up, we see bigger jumps than that. Markets start to get going. 1. 5 up 1. 5 we are up on the ftse. Miners and metals start to search up. Gold on the lower side. Look at metals. Despite data come from china, were seeing a 2. 5 pick up. Money moving into what has been deemed some of the riskier areas. Money coming out of that risk aversion. Go down by 2 . We are not going to be seeing much in a move in oil, we are down. 3 . Supply issues once again good concerns iran about to send that oil over to europe. The first time weve seen europe weve seen those oils it on those boats. Were seeing money move into the likes of the riskier debt. Were seeing foreign costs going down for italy, portugal. 20 basis points if youre looking at debt today. That Risk Appetite showing in the bond market. Lets have a look at the equities. President s day, we get plenty of action in europe. You were just speaking to the company. It has been doing better than expected. Keep an eye on president ial. E. On, where likely to see a spike. Utilities getting help in germany because you can see the taxpayer start to pay for some of the bill when it comes to cleaning up their reactors. They are getting out of nuclear. Theyre going to be closing most of their plants by 2022. This is as we see numbers better than expected. Sales up 7 . Back to you. Guy carillon, thank you very much. Let me show you a few others. This is a Bloomberg Imap of the stoxx 600 did two is the leader this morning. Financials bouncing. Technology also one of the massive underperformers. As caroline said, it is the underperformers that is bouncing back today. Whethernes point or not you want to chase this market. Asia had an interesting session. Lets find a what happened in hong kong. A rally is underway in asia. We are seeing shares in japan rising about 7 of the nikkei 225. The broader topic index indicating 8 . As chairs come up, a sevenyear low in tokyo. China returns to business. The shanghai composite in the red for most of the session. Banks and financials in a month of leaning decliners. Sharesal and oil related among the best performers. Lets take a look at some of the movers across the region. The nikkei 225 higher in the session. Insurance did particularly well. Up 12 . Insurers and the hong kong session have been rallying as well. This is what we had in australia. You are up by seeing some resourceful shares inclining about 7 for beaches resources. Lets take a look at some of the stocks that have been moving elsewhere in the region. As we said, Oil Producers and telecom shares, financials among those the movers. Taking a look at some of the leading moves among financial shares. This is what we have. Across the region, banks up 4 . These are your key advancing stocks, seven day moving to the upside, seven declining. A is a laura in japan. Those japanese financials, strong game today. Last week selling pressure permeated investor sentiment. Guy lets talk about the Banking Sector in a little more detail. Thanks soaring this morning youd thanks soaring this morning. Focus, deciding to keep its Global Headquarters in london. Following months of debate. Stephen morris joins us now. Medicine still with us jean medicine still with us. Walk us through the implications of what they decided. Stephen really the big winner osborne s so much is george osborne. Get a lot riding on this. Regulation and taxation and also making the right noises. Showing the music has changed and from the perspective of the u. K. Government. They are trying to keep big business here. Guy 8 it is not really a brexit. Stephen at the moment, osborne must be very happy he has managed to keep tens of thousands of employees and aliens of taxation revenue in the u. K. , as opposed to moving to hong kong. Guy what is next . Now that they have made this decision, does the bank change in any way echo stephen last tactic, unveiled a new meaning they were going to relocate millions of assets into china. The equity is not doing so well at the moment. It has a lot to do to get the bank on track again. Guy ste