Bloomberg, United States, China discussed on Bloomberg Daybreak: Europe
It's eight oh one here in London nine one. If you're listening in Frankfurt or Paris. We are indeed seeing Asian stocks coming under pressure led lower by China in particular European markets. Just getting out of the gates the stock six hundred lower by a quarter of a percentage point. We did see European stocks capping a second weekly loss on Friday. And that's where we're starting out this week as well, it seems that Saddam by almost four tenths of one percent. We're still waiting for that opening figure out of Germany the Footsie-100 trading. Little changed maps softening somewhat, but only marginally at this stage, the footsie MIB taking the biggest toll when it comes to European trading. So far inequities down by almost a percentage points when it comes to the handover, then we have been watching Asian stocks under pressure. The Shanghai composite index. Dropping the most since June now declining by as much as three point seven percent. Where seeing red arrows freely across the board with the hang sang down by one point three percent earlier. We saw the sixteen hundred shebek shop with a loss of almost one point four percent. So overall negative figures in Asia Japan spent shut for a holiday I just want to quickly add Colombo it's Columbus Day in the United States while we're on the topic of national holidays, which means that treasuries won't be trading. This this Monday when it comes to FX, the UN has weakened to below six point nine against the dollar when it comes to both the offshore as well. As the short version the on shore version now at six point eight nine ninety so it's capped some of its previous losses still down by about four tenths of one percent. But it to the commodity space metals are jumping with the Chinese markets aluminium prices down by let's see if I can get my global commodities screen up on my Bloomberg. Tom and all it is lower now by two point nine percent. And we're gonna be talking a little bit more about eliminating prices in just a moment. Use of actually we're going to do that right away. Because they're major implications for the moves that we're seeing in commodity prices. That's got more stocks to watch specifically Lindbergh's SAM's unsteady joins us in our London studio. Sam. Mean run us through then which which shares are going to be in focus off the back of these aluminum price moves north hydros want Rio Tinto, south thirty two. What's on the radar? Yes. No sky. Jerry is probably the most interesting. Last week Norsk Hydro said they were considering slide down or presence at the largest alumina plant in the world in Brazil that sent Norsk Hydro prices down. But it's an aluminum prices up say they fell a lot on Wednesday. Then they rose on Friday because they moved they had made a Wednesday Senate aluminum prices up and then over the weekend they've decided now that they're going to reverse that decision. And so limited prices are falling, but knows hydra rising because it's that plant. Okay. So we're expecting that negative correlation to continue well seventy for today. Anyway. So no sky drive opened up about six or seven percent this morning. So he said that the benefiting day, and then the question is in the second day aluminum prices continue the fully you just talking about. Will they continue to do that Rio? Tinto? No, huge reaction this yesterday. But south thirty two which is also tried in Australia. They fell in Australia, and they're doing the same thing in London. They're down about three and a half percent. We also need to look Schroeder's, pardon me. That was my you. Actually, I forgot the use of the kids the kicked it off show. It's closing in on a really big deal with with with Lloyds banking group. Yes. This is interesting shirt as if seemingly being the front runner for this. This is a very large investment mad about one hundred and nine billion pounds worth Bassett's to manage. So it's a very very big deal. Pretty the most coveted one is this going on the market at the moment. These statement they put out this morning is that they're looking I kind of more of a collaboration on wealth management with Louis banking group, which then raises some slightly different questions shares and Schroeder's they benefited the end of last week and they merged as front runner. They're doing the same thing today. They're up about one point two percent. I think once we actually get a sense of the shape of the deal. That's when we'll get to see how how much this will impact writers. And finally an analyst note on airlines from city in the sector in focus after recent warnings from Ryanair EasyJet Air, France traffic stats Dirac today. Lufthansa tomorrow. Yeah. That's right. So Ryan Aaron EasyJet have really crazy. This concern say Ryan had a big profit warning EasyJet just before that had cut guidance. The city news of gets across. I think what most people are feeling in the market at the moment. Which is the airlines are in a very precarious position to this huge capacity increase over the last few years. They've also fuel prices are now going higher, but along with this past increases, that's that's pressing margins and with the growth of low cost carriers as well that margin question becomes much more more important and the main change in that note this morning was I J. Downgraded that down about one and a half percent today. But actually, this is a note seems to speak to a much larger issue in airlines. Absolutely. I suppose they're the one of the few stocks holding up in this sector is f-. Ron's Kalem after September group passenger traffic rose by two point seven percent. Those FRANZ scale I'm shows sort of bucking the trend higher by six tenths of one percent. Some instead, I wanna thank you. That was Bloomberg Sam instead with the stocks to watch this morning. Yeah. Let's flesh out the story around China. I mean, the market just closed the biggest drop Marcus in more than two years. Three hundred four point three percent of central Bank has cut the amount of cash lenders were sold as reserves for the fourth time this year. Now, the People's Bank of China lowered the required reserve ratio for that is by one percentage point effective from next Monday. The cut will release a total of one hundred seventy five billion dollars. Bloomberg's Tom MacKenzie in Beijing calls the move stimulative to China's economy really should be in the context of what we're seeing in terms of monetary policy fiscal moves to ease the burden on the economy here, particularly amidst. A slowdown structurally for the Chinese. Of course, the US China trade war. Bloomberg's Tom MacKenzie in Beijing. We also need to talk about the Federal Reserve this morning, Saint Louis fed president James Bulat feels good about the level of rates and inflation in the US today. He spoke to Bloomberg TV earlier this morning, we're at a good level of rage today for our environment today. We don't have to be projecting planned rate hikes at this point. We can react to data as it comes in. We can feel our way and see where we wanna go. But I don't think. It's a situation where we need to get a lot higher with the policy rate in order to contain inflation. Because there just isn't that much inflation pressure in the US economy, not a lot of inflation pressure. That was James Bullard Saint Louis fed president he is not of voter this year on the setting FOMC. Yeah. In the meantime, Brazilian media are calling a runoff in the presidential election after right winger is bolsa narrow one the first round but failed to gain outright victory. Bloomberg's Bruce Douglass reports from Brasilia George Bush Royd former army captain doomed to a huge lead in the first round of Brazil's presidential elections on Sunday. The result the seven term congressman who grew or fires Brazil's period of military rule on track for victory in the second round on October twenty eighth then he will face leftist Workers Party candidate for Nando adagios in Brasilia bridge Darcus, Bloomberg daybreak Europe. Okay. That was Brazilian politics. Let's also talk a little bit about UK politics. Prime Minister Theresa may has a pile of work on our desk. Having put the conservative party conference behind her and dispelled any imminent threat to her leadership May's main task is happening behind the scenes after have Brexit blueprint did not get the positive feedback that she'd hoped for. The last summit of European leaders. She has very little time to turn things around. If a deal is to get done by November. And she's in a rush to get it through parliament, of course, world's going to be hearing from Michel Barnier, we hope later on this week as he's trying to set out essentially, his vision of the case relationship with the European Union going forward rolls seeing the Brexit secretary. Dominic Robb in Brussels this week four negotiations said this morning. We are seeing the cable rate under some pressure down by three tenths of one percents. Yousef on the corporate front. They've got Lloyds banking group and Schroeder's finally confirmed that they are in talks about working together, the wealth sector came in response to a report that they are planning to combine their wealth management units. According to Sky News to deal with see Loyd's owning fifty point one percent of the venture. Let's get you some more headlines from around the world. Here's Bloomberg's Leon GARRETT'S. Thank you Marcus Turkish authorities claim of. Prominent Saudi journalists has been killed in Istanbul. One. Turkish official is saying Jamal casualty was killed inside. Saudi Arabia's consulate follow is geez is a professor of international relations. He says there could be trouble ahead take salvia relations, which are under tremendous strains will likely be pushed to the breaking point as a result of the disappearance. Malka shook sheet poll says its general secretariat has received the resignation of Mung-hung we as the organizations president with immediate effect. He's been reported missing on a trip to China from France. Chinese authorities later said he'd been detained for violating the law. Interpol says South Korean Kim, Yong Yong's become its acting president as we heard earlier Italy's populist government is fighting the European Union over its fiscal plans. The greenberg's Joan Flaine says reinforcements are coming at an event in Rome on. Monday deputy premier Matteo Salvini will be flanked by marine Le Pen, the French nationalist leader, expect another attack against Brussels in the run-up to European parliamentary elections in may in Rome. John frame Gruenberg, daybreak Europe and US secretary of state Mike Pompeo has met North Korea's leader Kim Jong on NPR neon. Bloomberg's so bureau chief Peter says they renewed their discussion on denuclearization. US officials said the visit went better than Pompeo's previous trip conceded. There was long haul ahead. Meanwhile, North Korea's state media said Kim was satisfied with the productive and wonderful talk which included discussion options for the date for a second meeting between President Donald Trump and Kim this year in so Peter pay Bloomberg daybreak Europe cable news twenty four hours a day at at tick tock on Twitter, powered by more than twenty seven hundred journalists. Listen more than one hundred twenty countries. I'm Dan guarantee. This is played Markus. Thanks very much. Indeed Leon now with the European morning sports has Georgia Wasserman. John Carey says he's retiring from playing football after Twenty-three incredible years, the former Chelsea and England captain had been without a club since leaving Aston Villa at the end of season, Terry one five primarily titles, five FA cups. Three league cups as what is the Champions League and Europa league during his time at Stamford Bridge. Manchester City was pep Guardiola says he apologized to Gabrielle.