Bloomberg discussed on Bloomberg Daybreak: Europe


This Bloomberg business flashed a European and U. S. equity futures in the red this morning coronavirus cases and the death toll continuing to rise globally and that's weighing on investors that are now looking polished they still miss packages we get sick from governments in recent days it follows a down day in Asian trading what Japanese equities led declines the Nikkei closing down four and a half percent still trading the hang Seng is down six tenths of a percent in similarly so for Chinese equities in Shanghai now the delays we could put that day in a row the Bloomberg dollar spot index down one tenth of a percent the end meanwhile beat up six tenths of percent a hundred and ten point five against the greenback if we take a look at standing it's a bit weaker today at one eight seed bearing in mind that cable is very near multi decade lows so currently down one tenth of a percent the euro however gaining up three tenths at one nine commodity currencies already feeling the brunt of losses today always in kiwi dollars both we could all be down four tenths of a percent at the moment over in government bonds we are seeing the game today fresh haven flows really pushing yields even lower with the ten year treasury yield down six basis points eighty basis points ten year bond yield opening down as well now at negative twenty eight ten year BTP yields also sleeping six basis points now to one forty eight income already markets oil is slipping off to three days of gains WTI now below twenty four dollars a barrel sliding three percent gold also retracing currently at one thousand six hundred and one dollars a Troy ounce that's a pretty big business blasting his grandparents with more on what's going on around the world Sandra thank you China's restarting transport services and he paid the province with a grain of virus was first reported Brandon break thanks all coming back a day after the government announced the lifting of the lockdown you know but the epicenter city Wuhan which must wait two more weeks long distance buses all back on the roads taking migrant workers to their jobs north Korean officials are seeking help from international contacts to increase coronavirus testing according to the Financial Times reported by China Russia and South Korea which has been among the hardest hit North Korea claims it has new cases of the virus in January leader Kim Jong moon boot has already only selected country to a near standstill by sealing the borders to indeed stop the spread and over in the US McDonald's will temporarily take off some items from its menu in an effort to simplify its operations and with the corona virus outbreak that's according to Reuters however the report didn't say which items would be removed from menus label needs twenty four hours a day on it and a quick take on Bloomberg now it's by more than twenty seven hundred journalists and analysts symbol the one hundred and twenty countries I'm Dan Karen's this is Bloomberg Caroline thank you so much that goes with the world news now I want to talk about stock markets this morning so it features a pointing lower today but following a couple of days of gains investors basically have begun to hunt for bargains to that end value says in a posting that best run of the century from all this which IP Baghdadi burger we get to speak to you to perhaps a surprise given that the U. S. stock six hundred has dropped a whopping thirty eight percent but will it have value stocks in particular being doing and why is it important a value stock they've actually been around for the past five days and this is based on a basket of a long short very pure value exposure our value these are stocks that trade with cheap discount are they generally have been pretty needed by the market they're very risky stocks but in this case they started the rally before the two day rally we saw from the stock market anyone who looks at these factor strategies at the beach for risk sentiment it's a really positive development because in order for the very cheap stocks to do well there needs to be some sort of economic growth there has to be something there that allows their earnings outperformed so according to seven investment management who invest in this type of strategy they think this is a positive because it means that investors are looking beyond the current short term and in the future when the stimulus from the US and other countries it's finally starting to pay off one thing though to keep in mind it could just be a dead cow back dead cat bounce we do see this during bear markets for you to get a mean reversion for a couple days and goes back the warning warning today look out for value crap but we just take the snapshot of the past five days it certainly is a welcome development for market for ten counts in Baz abound at the moment but I mean what about people's ability to pick stocks in the sort of environment well even if the idea that their value talking about it for five days and they could fall again and they were down massively before I mean it just shows you how difficult this environment is to get things right and we and unfortunately for the active managers to build equity stock pickers they haven't been able to keep up with the benchmark so bursting researchers they said that European manager think down the worst they've underperformed the benchmark three point three percent since the end of February we have a lot of exposure to dividend yielding stocks which didn't do very well US managers been politely better down one point three percent versus the benchmark but of course that still works the benchmark and a lot of these active managers had argued we need to see a downturn one will outperform the passengers asking will show our words well unfortunately again for them haven't happened in investors are voting with their feet they continue to put money into passive equity funds as they pour money from these active managers during the downturn so then why do you think it is because of the the argument is familiar isn't it why do you think it is so difficult for active managers right now to out before I mean surely must have to do with just the volatility and the the all out not because the global economy certainly I mean but in one hand I talked to a lot of active managers when there was no volatility were saying to me I can't wait until their volatility I'll make my money that's when I can find undervalued asset that will outperform but the issue at the moment is that correlation in stock is very high in other words Dr all moving the same so you can't really sort through the market when everything is moving in exactly the same direction so that's certainly one issue another asset manager but I was sort of pressing him saying okay are you gonna outperform what's happening here his argument with saying that it's on the way up active managers well actually outperform because again they're bargain hunting to find the good deals at the bottom and when we found that when those who want me to be kicking the can down the road a little bit we'll see what happens all right thanks very much of a big study book of that so he about the ways in which stocks are moving at the moment and that coming up on Bloomberg daybreak Europe decision day for the bank of England but offered virgin see rate cuts in the barrel G. Q. E. there's much more they can do we'll be talking to Danielle Russell head of U. K. rate strategy at H. S. B. C. that's coming up next on daybreak Europe this is this the following is a message from the law offices of Franken Verity do you have a service animal like an emotional support pig if so aw also you might be able to use taxact deduct as.

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