china concerns, after the biggest drop in six months, signs of an oversupply sin stock lower in asia. financialr london's sector as may faces revolt over plans to write the brexit date into law. beating boeing, airbus is said to be nearing its biggest deal ever with the $40 billion jets sale to indigo partners. an armed forces see our in zimbabwe.

a warm welcome to "bloomberg daybreak: europe." i'm anna edwards. matt: and i'm matt miller. there's a lot going on today, especially in the markets. a lot of times we have these big news stories that don't really affect asset classes. today there's a lot of movement in markets, so it will be an exciting open. anna: let's get straight to some of that movement we've seen, focusing on the commodity market. i pulled up the bloomberg commodity index, stating its biggest drop in six months. we had seen the commodities tumbling after erasing 2017 gains last week. yet we continue to go weaker on the commodities index. a number of things in here to do have trouble convincing russia they'd to extend the production cuts we've seen from that grouping, or is it to do with commodities

concerning china and the reorientation of chinese growth for quality growth? all the commodities coming under pressure. and not even the strength of seven quarters in japan seem able to pick up the asian equity session. and the warning that demand will be lower than previously thought and oil will be out of balance is a real problem for u.s. traders for brent as well. a big drop in brent and wti. japanese stocks are interesting because not only did the topix streake longest losing this year, the nikkei fell for the six day in a row and its longest losing streak since may of last year. the nikkei 225, the age-old benchmark for japan, down 1.6%, six days in row because

yesterday, although set up near the close, it finished with a little red arrow down one point, so today is the sixth day in a row, the longest losing streak since may of last year. 1.25%, and a 10-year gilts, the green arrow, the yield is down which means people are buying the debt. it will be interesting to see where people go on if they go into gold or bitcoin, which is gaining again today. if they go into the yen, all of those are rising but the 10 year yield i thought would be most interesting, down at 2.36. let's get the bloomberg first word news now with ed ludlow. >> in zimbabwe, the armed forces have seized power after week of confrontation with president robert got his government. does them bob wade defense forces said the action was need to stave off violent conflict in the southern african nation.

is only quote, targeting criminals around him. the u.s. senate tax-writing committee has hammered out the details of it tax cut proposal while the house may vote on a bill as soon as tomorrow. senator orrin hatch released his modified tax proposal that would make middle-class breaks and other provisions temporary in a bid to comply with the original this -- rigid rules. u.s. attorney general jeff sessions has denied lying or misleading congress about during theth russia presidential campaign. unpaid advisor george papadopoulos said he could arrange a meeting between donald trump and vladimir putin. u.k. prime minister theresa may

heading for a showdown with their own tory party over what one member called her mad plan to write the date of brexit into british law. cheered as he said he would vote to stop her proposal it in statutes. australia set to legalize same-sex marriage before the end of the year. speaking in canberra, prime minister said we must respect the voice of the people. global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. you can find more stories on the bloomberg at top . let's check in on the markets will in asia with sophie. >> it stalling asian stocks for

fourth straight session. seeing its longest losing streak this year. even amid the selloff, there remains a course of optimism. stayn stanley saying overweight equities because they can still get richer. living the board to show you one of those big energy movers, that's petrochina. a's fallen by the most in year, falling in hong kong as well as shanghai. shares living for seven day to a june low in taipei after profits slumped by the most since 2008 .n iphone x production delays tencent sliding after a two day rise ahead of its earnings report do after the market closed today. the global equity selloff has deepened a on signs of an oversupply and commodities, concerns at fox have become too

.xpensive and uncertain the bloomberg commodities index dropped the most in six months and crude is falling after u.s. stockpiles unexpectedly rose last week and uncertainty surrounds russia's support for opec's agreement over output cuts. nowef gamal el-din joins us to put it all in perspective. talk us through is going on in the commodities market this morning. yousef: we are seeing a lot of these commodities drop, you look at what's happening with rubber, zinc, iron ore, steel rebar, copper, the list goes on and on. it is a broad-based selloff and thethe most part, it's off back of concerns that china will focus on the quality of domestic extension rather than quantity of that growth. quoting from a note, china trimming all the capacity upstream, higher value export oriented indexes are running

hot. given europe's growth it should pick up u.s. strength, and demand for raw materials will be robust. the argument being this could be an excuse for some profit to lock in some of those gains but a lot of commodities had a tremendous rally over the last two or three months. this could be some of the traders taking a breather. iea: i wonder about the report, demand will be weaker than expected. let's drill down into the oil market. what is behind these moves? it's fascinating, the energy complex was driven by a few specific events. on one hand we had concerns over demand but the possible surprise in u.s. crude inventory. a report suggesting a built in crude inventories that would suggest u.s. oil industry is able to read -- redeployed capacity to adjust to higher oil price. that's why we saw the selloff

and that was exacerbated when we understood from our reporting and our research through our sources that russia was not yet convinced, not fully on board about extending the production cut agreement and how long a production cut agreement should last. what happens after march? you extend three months, six months? not really clear at this point. we'll get inventory eight outlet -- data out later in the day to see if the selloff was really justified. we had a conversation yesterday talking about to what extent it was already baked into markets, the expansion of the cuts by markets. much, our markets middle east correspondent joining us with the latest on the commodities space. let's talk to our guest for the hour, vincent juvyns joins us on set here in london.

good morning to you. let's talk about commodities. i started talking about the bloomberg commodities index. seen some ofhad back and being brought we continue to see that in the commodities space. does it have bigger significance? to you is it about chinese growth are just a momentary blip? vincent: i have some concerns as the firste and speaker also said, commodities have increased quite substantially this year versus your today. also we blame china for this recent move, but china really help commodities to grind higher this year overcapacity in several commodities this year.

so it's temporary profit-taking in many areas from a demand perspective. we continue to see healthy global growth and growth is picking up as we enter 2018. for many commodities i would not be so concerned. you -- i'mnt, do thinking about oil, because it seems that if this is definitely a dip, some hedge funds are getting bullish and getting into. in the: not necessarily dip, but keeping the investment strategy and change, meaning we are long risk in the portfolio at the moment, and terms of oil especially, it's probably more toply driven, as you alluded , the demand forecast for 2018. a discussion with russia at the moment is key because of the announcement back last year on

the cuts. we know that our economies every year of getting less oil intensive, so supply is really key. there is a political will globally to maintaining oil price around $50 per barrel. probably what we will have in 2018 again. not so concerned, it doesn't change our mind about the health of the global economy that we see picking up in 2018. it's thethe fact that best place to be globally. anna: so this doesn't call into question your appetite for global stocks. a record number of investors in a recent survey of global money managers say that stocks are arevalued, divided up -- you concerned about over valuation with global perspective? theent: the one place in

markets i'm not so concerned about valuation is the equity market. frankly, this year has been a year where active managers have been able to value and it's deathly time to be active on the market, in the u.s., the market is expensive, i'm not contesting that. you can either go long on the , and there are a lot of good stories when you look at the earnings season for the first order globally, it has been quite strong. and the indications for next year remain quite strong as well. we have at our disposal equities to meet the best proposal and also from an income perspective. for the investor perspective, this is the most rewarding asset class at the moment. concernedou were about a choppy market in stocks, where would you go?

is? bonds the place to go do you like gold in this market? but you think is attracting the most attention? bondslike equities, but still deserve a part in the investment portfolio. there is still good money to do in bonds as long as you approach the bond market and effective way. is doingthis year well. when you look at the credit side isthe market, definitely it still good value in segments like high-yield, for example. there are still many opportunities in the bond market as well. definitely there is still good value in the fixed income market and i'm thinking of emerging markets which may be under pressure now with the commodity

move, but also when you look at global currency markets for example, markets are expensive, but it still has value to be found. anna: thank you very much, vincent juvyns stays with us on the program. there's always bloomberg radio at your disposal and live on your mobile device. ,hey'll be talking about airbus said to be your a deal. more and that story coming up on bloomberg television as well. matt: the airbus story absolutely fascinating. up, debate over the date of brexit. the british prime minister faces a rebellion as members of her own party criticize her plan to write the day and time into law. the conversation next. plus, last hurt in zimbabwe as the military there seizes power, threatening the bobby rule. although they say they are there to protect him.

what is behind the rule? we're live in neighboring south africa for the details. this is bloomberg. ♪ is this a phone?

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