The strategy update. Is he going to have issues . Will he have to sell the crown jewels . The market is looking for answers, and we will put those questions to him. Lets get you up to speed with Caroline Hyde. Caroline thank you. Brent oil has advanced about 35 per barrel amid speculation that some of the worlds biggest crude producers will cooperate to reduce output. Bloomberg still says saudi arabias oil minister plans to be with his russian counterpart later today to discuss the oil market. Venezuela may also attend. The era of easy gains the japanese stock market fueled by abenomics is over, according to one management company. It says that as markets become more volatile, people will pull their money. Goldman sachs Asset Management says the worst of the credit market selloff is probably over. It is now waiting for a sign that the situation has stabilized so it can plow cash back into u. S. Junk bonds. Goldman says that once sentiment becomes less negative, the magnetism of yields will draw investors back. Guy . Guy thank you. 28 minutes to go until the european cash open. Lets show you what is happening. Let me take it to the bloomberg terminal and show you where we are. Wti kick the futures box taht settled us, looking for half a percent gain. The cac up over 3 , dax up. We are adding to those gains. Let me show you some of the other assets you need to be aware of and put some numbers on those stories. Brent nearly 6 higher, the shanghai composite rallying hard. It is pricing in negativity and surging today. Look at where we stand on the u. S. 10 year right now. 178, a key metric, eurodollar 111. The draghi effect drag to the euro lower. The only thing about to show you is this chart here, back to bloomberg. This is chinese aggregate financing, credit, absolutely surging right now. That is the story there, driving what is happening in shanghai and on the other metrics over in china. In terms of the credit story in china, it doesnt seem to have that much of a problem. There is a seasonal effect in all of this. Lets return to the Central Banks. Yesterday it was Mario Draghis turn. The European Banks as he will take measures to ensure Monetary Policy reaches the real economy if bad translation mechanisms appear to stress Financial Markets. The euro fell following his speech yesterday, anticipation of a widening of the ecb stimulus. Heres a recap of what he had to say. In recent weeks, we have witnessed increasing concerns about the prospects for the Global Economy. Activity and trade data have been weaker than expected. Turbulence and Financial Markets has intensified. Commodity prices have declined further. In light of the recent financial turmoil, we will analyze the state of transmission of our Monetary Policy impulses by the financial system, and in particular, by the banks. Factorsr of these two contained downward risk to price stability, we will not hesitate to act. The following bank equity prices was amplified by my perceptions of the banks, which may have to do more to adjust their Business Models to the lower growth, lower Interest Rate environment and to the strength and International Regulatory framework that has been put in place since the crisis. Guy mario draghi. Lets welcome the chief Investment Officer at rathbone. Good morning. Good morning. Guy are they beginning to have an effect on these markets, and if so, how should we be positioning ourselves . I think it is fair to say that last thursday we hit panic levels. People were talking about the complete loss of faith in the central bankers. I think the events over the last 4872 hours have steady nerves, in particular in general banking fraternities. Overall, the market was heavily oversold. We had a strong bounce. I suspect we will go a little further, and people will reassess where we are. Key data looking ahead will be and i thinkch, people will be watching very closely the pmi coming out this week to see whether or not economies are actually bottoming out. We are going to see a bit of an improvement. Guy should we be selling into this rally . Or should i be buying into this rally . As you know, we have a much longer time scale. Guy this could be one of those and a number of structures have adjusted that this is a technical bounce. I would say to you that i think the whole of 2016 made the same point, that it is going to be very volatile. We will get through periods of strong bounces and selloff bounces, and i could see the market yoyoing around for a while. Guy are there any assets that will take the volatility out of my portfolio . Obviously, people have been speculating about gold. I, personally, wouldnt go for gold, but other diversified macro hedge funds may be a possibility. I also think that, in this sort of volatility, you want to be in highquality sovereigns and decent corporates as well. A bit of a spread. Guy the fed is up with the minutes. What does the fed need to communicate . What do we need to learn about the future . I think the dot plots are getting pretty will discredited. I think the fed a message will be that they are not going in march, that they will look at the numbers, as they always say, and my inkling is that if things come down, we may see a rate rise sometime across the summer or autumn, but that may be in for the year. Guy i look at the volatility we experienced thus far you talk of volatility continuing. Is the amplitude of what will see in these Financial Markets represented by the first couple of months in the year, or do we get into a more calm a volatile, but calmer situation . I think we will ebb and flow. You get to a panic level, you come back, that is human nature. What i would say guy the market is not particularly fundamentally driven right now. I dont think so, no. We have had a number of people come out, and people saying that there isnt a liquidity crisis in the European Banking. It is all about perception. It is about peoples concern about whether the Deutsche BankBusiness Model is broken or not and how much it will cost to repair that. I think it is more about the fear factor than actual hard facts. Guy there is a sense that Central Banks are getting to the end of their ability to do anything else. T may harm the economy their more be more qe, but we dont understand. Are we reaching the end of it . Well, i would coin the old phrase never say never. Lets see what draghi has to say in march. He is pretty inventive. Guy thanks very much. We are back with him in a few. Up next, the aircraft industry. We are live at the air show where we will speak to the ceo of airbus about demands from china. Thats coming up next. Guy welcome back. I want to take you to singapore airshow, to stephen engle, who is standing by with the ceo of airbus. Stephen . Stephen our ongoing coverage continues with the ceo of airbus. Thank you. We just also revised numbers for 2015, another 44 added to the tally. Where is this coming from, and how are the conditions changing . It is very simple. At the beginning of the year, we are audited, and there were some contracts with condition precedents which were lifted. We decided to include them in the backlog. I think it is good news. It increases our market share. We enjoy 58 in 2050. Simontephen and how is 2016 looking . I think we are firm. It means that we will continue to consolidate the backlog of 6800 aircrafts. Stepehen we are seeing the possibility of more deferrals in low class air carriers. What are you seeing . Many people talk about it, but boeing doesnt see it. The reality is that we have never had to have customers so profitable. It is true as well that the lowcost is very dynamic. As a result of growth, there is a big fight among some competitors. All in all, i can confirm that we see the growth, and for a simple reason asiapacific accounts for now 40 of our oth er books. This is the area of growth, and we will continue but this sis up the tradition. Stephen i just came off one of your brandnew a350s. Qatar is a bit upset about his a320 neos, that he wants compensation. Does that come from you . He is right. We will not disclose the commercial discussion, but what 50 ts is that it delivers reduction, and we have delivered those who look under the weeks. Its a slower start at what we expected, but we will catch up in the second half of the week, and qatar, like every customer, will be pleased. Stepehen are used stephen are you seeing any indication no. It is clear that we have to look at that, but the projections of our customers are not current. Barrel, at 50, 60 per i can tell you that these new aircrafts make the difference. So, no, we still see airlines looking for the new generation. Stephen where are you going to find to customers for the a380 . There have been a few new orders, but aside from singapore airlines, asian customers have go back to the table yet. Had aah, but we commitment from iran for 12. The market doubles in size of every 15 years, but we will need more and more big aircrafts from big cities like singapore, like hong kong, like london. In london, there are 50 for every eight years. Travel ne e stephen where or are you going to fill the gap of the a360 and the boeing the new 777 9x . We are very pleased with the production. 777,places oneforone the with a small exception. It reduces fuel burned by 29 . It is much more economic. Can we have a bigger one . Is there a market there . Its not so obvious. Stephen thank you so much for your time. Ok, guy, back to you. Guy great stuff. Stephen engle talking to the airbus operating company ceo. One of the things those guys were just talking about, the oil price. Brent advancing above 34 per barrel. Saudi arabia is set to be meeting with russia tuesday today. Futures have been climbing. We are up very strongly on the price of crude right now. Were now at 35 per barrel on brent. Lets welcome back into the conversation the chief o advisor at rathbone. With correlation to brent and wti oneforone, that is no breaking down. Why is the market not looking at oil in the way it did a few weeks back, and what do you think oil is signaling . Obviously, is important to keep a very close eye on the oil price and what effect that will the wealth funds and whether they will be disposing of further assets, to the low end i suspect you could well see more selling. I think the reason it has broken down is that the market has moved on, and it demonstrates the schizophrenic nature of the market, when we are talking about panic and fear, and it is now focusing on the banking sector, and perhaps all along there has been this nagging fear about europe in the banking sector. That is now the epicenter of peoples faults and concerns. two things correlated you talked about sovereign wealth fund. They are huge holders of European Bank stocks, global bank stocks. And if Oil Prices Start to come up, they decide theyre going to sell so many assets, less worried about the impact on their own budgets. As a result, they need to start selling socks. These are all intertwined, but walk me through very much so. We saw that connection with the highyield senior debt and the pressure that came on. Sovereign wealth funds were selling highyield debt, unable to get liquidity in that area. They looked around for what else they could sell. They then reverted to selling financial equities and also japanese equities. They were looking for liquidity that put pressure, and then we have the concerns about profitability for the banking industry. Those things were concerns going around the financial system, and it unsettled people generally. Guy it always comes back to oil. We will be back with julian in a few minutes. We will take a break, but we are 10 minutes away from the open. When we come back, the potential moves. S a dutch tie up with Liberty Global. Guy welcome back. It looks like the market is going to continue to rally. Futures over half a percent higher, miners very much in focus. Oil is trading up 5 this morning, and we could see integrators and focus as well. Heres Caroline Hyde with the stocks to watch. Caroline we are talking about only traded here in u. K. But in johannesburg Anglo American. We have been breaking down the numbers coming out of this particular miner. Revenue is a bit dull, beating analyst forecasts. This is the share price in johannesburg. We are seeing it gaining overall. We are seeing revenue if you look at what the numbers are they paint a. Sorry picture revenue down 26 , the lost doubling, five points explain dollars for the fourth Straight Year of losses. But they are promising big. If you really delve into what has happened to the share price, and indeed the bets against the share price remember this is a stock that has rallied so far year to date. They have come down significantly over the past 12 months. We have seen a bit of a pickup in the last month or so in the u. K. Stock price, but you have also seen the bearish bets against Anglo American, the we see a bets rising as bc bit of a reprieve at the beginning of this year. We saw them start to pick up. Even though we start of thsee it, we see the bets starting to hedge up. Anglo american is posting a 5. 6 billion loss, that they are raising their target for assets to dispose of and raising the overall savings target. Lets have a look at vodafone and Liberty Global. Theyre at last doing their deal, a joint venture for the netherlands. Vodafone is worth less than Liberty Global, so we could see a little bit of a one billion euro payment going from vodafone to Liberty Global, but we will likely see the stock up 2 on the open. Were watching that on the back of that joint venture. Guy thank you very much, indeed. European equity markets up nearly 1 this morning, 8 10 of 1 for the footsie. Is the Mining Sector investable at this stage . Realistically, its difficult to make a longterm Investment Case until you see a lot of production shut in, rationalization taking place. Consequently, i think those are the only places for longterm investors they need. Guy weve only back in a few minutes. Also coming up, the cash open here in europe. We will be speaking to anglos ceo. Looking forward to that conversation. Butight, chilly morning, european equities look like they will rise. The fairhe ftse on value calculation up by 9 10 of 1 . Guy we are moments away from the start of european trading. Climbs and brent soars about 35 per barrel. A bloomberg source says that the Saudi Oil Minister plans to meet his russian counterpart today. And the commodity class. Anglo american say the 5. 6 billion loss of 2013. The stock jumps 7 in johannesburg. I will speak to the ceo in 15 minutes time. European stocks closed around 1 higher. Oil and mining stocks caroline Risk Appetite keeps going when it comes to the stock market. We are getting expectations for another rebound. Up about 2 yesterday. Reason, policymakers to the rescue. Were hearing dovish tones coming from mario draghi to the ecb. To the rescue. We are seeing a significant rebound in russia and saudi arabia. Are they likely to talk or likely to cut supply. The ftse 100 up 0. 8 . Exposed the most beaten up stocks of the past few months. By 0. 25 as they make that deal with Liberty Global. We open up generally 0. 8 higher across the board. Look what is happening to oil. We are up some 5. 6 . 35. 27. Would russia commit to scale back . Would they want to . With gold we are seeing the risk aversion play out. Down 1 . Asuries this number could go all the way down to 1100 in three months time, by the middle of may. They say it is time to get out and go short over all. Mainly the biggest thing to fear is the fear itself. The president ial quote we are using on president s day. U. S. Treasury sell off up some three basis points and meanwhile, money moves into the riskier debt and italy. Lets have a look at some of the stocks on the move today. Anglo american opens up and they are up in johannesburg. Dispose ofking to assets. Have four Straight Years of losses for this particular minor. They are trying to take some brutal medicine to fix it. Meanwhile, vodafone just trading flat after we get the news they will be doing a joint venture with Liberty Global and john malone within the netherlands. One billion euros from vodafone. It will be a joint venture and they are taking on tps and telekom. Their numbers beat expectations for the third biggest cement maker in the world. Thank you indeed, caroline. S is the Bloomberg Energy energy stock to lead the charge this morning. You have material stocks strongly as well. Very similar picture to what we saw yesterday. The whole wheel and the whole map in green this morning. Asia leading the charge lets find out what happened with zeb eckert in hong kong. Meeting a critical that could move the oil markets in chinas latest report on credit growth. Those twin factors led to gains today across the asiapacific and the Chinese Markets powered ahead. Nice performance for shares in shanghai. 3 advance your leading the way among markets in the asiapacific and Energy Related markets moving particularly well. The nikkei twoof to five in tokyo and in solar the bank of commit bank of korea kept rates on hold. A look at Industry Groups and how they moved across the region today. Financials as well as oil and Energy Related shares are clearly the biggest movers here. The oil and greg oil and gas subgroup clearly leading the way here and as you look at across the region, 25 advancing and petrodeclining all stop china among the chinese names. All of the chinese oil majors had a bad recession in anticipation of that meeting between saudi arab