he also expects further pboc action. one.flation is the key the pboc is interested in the inflation rate because that tries their interest rate policy. they are looking for cuts. with that is probably right. looking at an inflation rate between 1.5 percent-2%. shery: on the latest trade data out of china. rishaad: chinese stocks at an 11 week high. confidence from mainland markets and indeed, we're live from shanghai. a bit of optimism here. >> that is right. offeringson to resume was unexpected. a lot of analysts expected it to happen next year. it shows that the government is more confident in the stock market. after we hit the market last week, not just that. it shows that the government is taking steps to make the ipo system more market-oriented. his reforming the way the ipo system is currently conducted by ending the -- standard, removing some speculative excess of the stop arcade and diverting the cash crunch to offer the companies the ipos. here then,e question who wins and who loses from reforms? like today the

dash cam the pboc follow? can the pboc follow? >> they have not really been effective.have this great unintentional consequence of consumption because through research we have found that they spent about 10.8% of household expenditure on educating one child. when you have two children, a ghost 18%. -- it goes to 18%. i think that rate will fall, so other than making people have more kids, it will be a huge stimulus and consumption and stocks will do well with choice toys and children's books. francine: is it two years, four or five years? >> i think it will take place at about five to 10 years. my generation having their kids right now, it will take a few years. but some people think that it is not going to reach two. i think still people will want to have two children. it will be an effective consumption booster. francine: overall, what should the message be from president xi to the community worldwide? he said -- you can't get used to this kind of growth. does he need to readjust his figures, given below 6.5%? >> i think china's government is now much more relaxed abo

and the pboc's fat finger? sparks aentral bank stock market surge by publishing five-month-old comments. vw scandal widens. the carmaker says an extra 800,000 vehicles may be involved in another a emissions scandal. the crisis had so far centered on diesel engines. hans nichols has been in berlin. an incredibly busy man. who made this latest revelation? and the price tag that can be attached to it. nejra: hans: volkswagen came up with this last night. they put together a press release saying they discovered emissions regularities with carbon dioxide. up to this point, we have been talking nitrogen oxide. you did mention that the petrol- gasoline engines are affected, but a spokesman says this is a small number. we are basically talking and 1.4 liter engine. leader --.8, and to 2.0 liter engines are also affected, but we don't know how many are affected on the petrol side and the diesel side. we have the volkswagen polo, the a3f, the audi, the a1, hatchback. here is what muller said last night, when he was basic

if you read the third quarter pboc monetary report, it was a beat.it was a surprise given the trade numbers. mark: the trade numbers were ok p rich i has been running a pretty good trade surplus number for quite some time. -- the trade numbers were ok. china has been running a pretty good trade surplus number for quite some time. rishaad: looking ahead this week, it's going to be about this blowout number, the jobs in the u.s. mark: it was quite a shocker, 71,000.0 -- 2 it changed a lot of people's expectations. rishaad: should we begin questioning data in the u.s. given all we saw in october and september? mark: i'm not sure you question the data as much as the fed. i think the fed has been downright confusing. rishaad: well, the market seems to think, they are going to go in december. mark: the market is put in 65% on overnight interest rate swaps, the expectation for a rate hike in september. we still think january or february is more likely. you have seen the fed vacillate before, so if you get the market selling off this week and next week, a po

period we in a hiatus before we see any action from the pboc?here is a base effect in all of this. the big fall in the oil prices a year ago will eventually washed through the system. on the other side of that, we're seeing some stabilization and data, such as lending and credit data. data will pickr up further. it will self correct. if it doesn't, then yes, the is they hadproblem not been getting any traction. take largest us to rev up demand. at the very least, i don't think pboc inan rollout the the near-term just yet. medical they are the -- manus: and the current, numbers chief -- bloombergs chief. without it slightly better reading. -- we got a slightly better reading. to break the they down, let's bring in david crawl. david, when we look at the they have to do a lot more structural reform. they are delivering better than estimated and manufacturing on the month. they be on industrial production. >> the month over month was better than expected. it did not contract. if you take a step back and look at relative to the previous quarter, red

maybe that pboc policies are working in one part of the economy? uncharted territory for the pboc as it tries to push on monetary policy when the u.s. federal reserve is looking to tighten. in thembers are noisy world. there was a big miss on credit this month. -- previous months credit has been improving. conversation great about the transportation transmission mechanism, basically what we are talking about. how does it come down to the real economy? scarlet: the reaction function, how about that? alix: you like that. i don't know why they have to use reaction function when they can say "what happened." we will be back with more. ♪ scarlet: i am scarlet fu. "what'd you miss?" portugal faces a critical credit review tomorrow. it is still considered investment grade. portugal loses this last rating, it would no longer be eligible for the ecb's qe. alix: that would be huge. j.c. penney reporting tomorrow. after macy's and nordstrom's, can j.c. penney hold up? joe: something else to check out. the new redesigned bloomberg markets website at bloomberg.

pboc?d: what about the how are they looking at all this ?ad all of these rate cuts and the rrr cuts as well. enda: they are not getting much bang for their buck. they are not getting the traction. up, it mays to pick keep the central banks on the sidelines. if it does not happen, economists say the banks may yet step into the market. the government has a lot of work to do and they are spending on infrastructure as well. this is something which is really getting a bit of traction when it comes to social media as well. let's have a look at chinese social media. zeb: we are taking a look at some of these comments. one user saying no rate cut in november. bloomberg andy at what it is saying is the pboc is expected not to cut anymore when it comes to the interest rates. they might have to keep borrowing costs at these levels. another user says china's economy is hitting a dead-end. and that manufacturing will be in big trouble if china does not let the yuan come down. think the comment here, not doing very well in terms of manufacturing. let's le

we have to send them a fax, the pboc. they replied with a text to clarify.f you didn't know before, it is not the federal reserve. the pboc is another -- tom: it is bizarre. you have a good morning must-read? jon: it is the financial times and is critical. he writes america's labor market is not working. the relentless decline in prime age u.s. adults in the labor market indicates a significant dysfunction that deserves attention, analysis, and action. luckily i have professor christopher pissarides. i can ask him. the participation rate, long-term unemployed, is it cyclical? has. pissarides: the debate shifted in america. it is the first time we are seeing this in the united states. we saw it in europe starting in the 1980's. through hard work and government departments, we know how to deal with the problem in europe. went past americans. they thought it was a european problem, they don't have to think about it, and they didn't. they are now facing the same problem. you ask if it is cyclical or structural. it starts cyclical and then become structural. that

can we look forward to more rate cuts from the pboc? china's government has injected a huge amount of stimulus. we've had six rate cuts in the last 12 months. -- policymakers are already giving in to demand. if you do the credit data, starting in june or july, we are seeing those rate cuts passed through it to stabilization. even a moderate re-examination of loan growth. with signst together of slight improvement in the factory sector that we are saying -- that we are seeing in today's pmi data. factory sector could start to save a lot. they can be enough to keep the pbc -- the pboc on hold. jonathan: tom orlik joining us from beijing. let's bring in alberto got the. old engines to new growth engines, that is owners. industrial overcapacity, shadow banking, that continues to grow. when do we get a real credit crunch in china? alberto: the authorities are try to manage a slow-motion crunch. we note that is low. rabid that has stumbled -- private debt has stumbled. china continued to borrow. lower public state, the government. what they a

yvonne: some are worried is a conditional yes and the pboc was the fourth to try to relax controls. are they going to be widening that trading band by 3%-4%. we've also seen it coming in the past few months over how it ranks in terms of its share as an official reserve currency. it is ranked seventh among the official reserve currencies of the imf. that is a long -- that is with members along with the aussie dollar in the canadian dollar. the internationalization of the yuan as well. some say this is more heavily focused toward trade instead of an investment currency. rishaad: if it is put into the basket, what is the kind of waiting people are -- what is the kind of weighting? yvonne: imf staff had suggested 14-16%.hting would be there were concerned about the smaller wieght. 2% is priced at about 10%-1 right now. some analysts say anything less than that would lead the yuan to fall. we also saw the offshore yuan rising this morning. some suspected that there is some intervention involved this morning had of this division. symbolically, this change is overdue. we have been asking o

i guess the ability will boil down to whether the pboc is able to manage it.e are not sure of that. michael: i think you raise all the good points with respect to what is going on in terms of the negative side. the flipside of that is that the pboc is going to do with the leaders tell them to do, and what they are going to do is keep people employed. that is the most important thing for them. so there will be a slowdown. they have had it for two years. they have to keep the people employed. the bad moments are going to be there, but the pboc, we have trillions of dollars worth of savings. arrows, to lot more use a cliche, then -- than any other large company -- than any other large country. tom: coming up roger lowenstein with us. always good. this book is nothing short of phenomenal. a superb one volume on america's federal reserve. that coming up. stay with us. ♪ francine: welcome back. this is "bloomberg surveillance ." i am francine lacqua in london. tom keene is in new york. here is vonnie quinn. say 11 published reports pfizer shares will be included for

this does lift the case for more pboc easing, but we have had six rate cuts over the past year. that has done little to help the exports sector. a good thing for some of these companies, but it doesn't do much to help export demand. this is on -- this is a global issue as opposed to a china issue. taking a look at the numbers for the first 10 months, japanese exports to japan, fell 10%. 12%.kong off the reaction on the australian markets we are expecting, exports down by over 25% over the first 10 months out of, from australia rather, for imports. take a look at the import numbers. a decline of 18.8%. the industry of finance warns we are expecting a sharp decline for chinese imports. that affects the major trading partners, the top 10 are seeing declines. the start of a big week or china data. we are expecting a fuller picture later in the week with a mastic data -- the mastic data. shery: it was a better picture of what the global demand is like, especially in china. >> at least the flow of money out of china seems to be eased. we had a massive slump after august. take a look a

maybe that was a warning shot from the pboc overnight. this may have a lot to do. glen core finally fought heavily 2.1% as well. >> let's have an outlook at some of the other sectors in european trade. all of those declines weighing on the ftse 100 which given those declines in fact is holding up relatively well. it could be worse, of course. let's look at europe. germany, that's just below flat. relative for the broader markets today given that pmis were so strong. french pmis less strong. italy managing to eke out a slight gain. let's also just check in on the trade in asia today. sri is standing by for an update with us in singapore. sri. >> will, good to see you. fairly flat session all in all in asia. the trade volumes, let me remind you, not much more on the ground. you're not seeing any quotes for nikkei. that is because there is a national holiday in japan. so it's reducing liquidity, reducing volumes but the main drag really stronger dollar. and also its impact on the commodities. let me pick up the e.u. and how we're discussing. strangely enough, you woul

that factor with the pboc -- not pboc, bcom, i think that's why we still aren't seeing a positive reaction in the share prices. despite this underlying beat, the fact that the shares are down highlights exactly the point where this beat really came because of a lack of one off costs, fines and so forth. >> under performance down 17% of the year where it's been pretty much flat for european banks. >> right. this has really hit the bank going forward. i think, you know, this aspect that there's a $1.4 billion drop in fines, that's a big drop in fines. i think investors don't believe that whole culture of banks being more under the regulation spotlight, more under the potential to pay the fines has passed. maybe it's passed for the time being. investors are concerned that it will come back. >> makes for an easier comp for last year for hsbc. the speed is not surprising. people should be surprised about the 4% decline in revenue. when you're not bringing in as much money as you did about a year ago, that says something about what's going on in china as well. why not give us some more clarity o

scarlett: a conundrum for pboc.: coming up on bloomberg markets, startups are staying private for longer. how are companies a caught -- accommodating employees who want to cash out early? ♪ scarlett: a beautiful day in san francisco. welcome back to bloomberg markets. speaking of san francisco, silicon valley startups are staying private for longer. investors, company executives, employees are becoming more eager to cash out early. late when they cash out, stage investors can buy in. this chart shows a lot of late stageng into funding for private tech companies. for west coast wake up, join from san francisco bite bloomberg technology reporter adam who wrote this story. this trend is nothing new. people who want to cash out of the privately held shares. talk about the demand on the other side. back to when facebook, before he became a public company, the secondary market exploded. employees and investors looking for opportunities to cash out. it was much more ad hoc. there were brokers who facilitated those deals. n

. >> how was the credibility of the pboc looking?: central banks around the world are losing their credibility because the policies are trying to pump more and more money into the economy through various forms of qe, cutting interest rates to zero. look at japan, it has not had the desired effect. we now have the second recession in two years, investment is slowing down, inflation is nowhere in your the target anywhere in the world. the response to that is let's do more of the same thing that did not work last time. people are starting to say, are the central banks getting it right? boj andelse can the promised her -- prime minister abe do? governmentink the can do more. the growth potential is very low. the bank of japan estimates its growth potential i just half a percent now. -- at just half a percent now. it needs a restructuring of the economy. it needs things like changes in employment to allow people, to allow women to enter the workforce, immigration law needs but it has been distracted by the defense issues, beefing up secur

any further action expected from the pboc? enda: that's right.y've cut six times this year, often late on a friday night. i think economists think they will still come back in. we will have to see if there's a pickup in demand for new loans. also, don't forget the fiscal side. the government pumping money in to try and get some new projects with otherund measures to get spending going amongst consumers. economists say the central bank may not be quite done. also, keep an eye on the other authorities. anna: thank you, enda curran. guy: what we see this morning is a very large surge in the turkish lira, which is continuing to strengthen. istanbul has just opened up. the banks are leaving quite a significant upside charge. we are getting a very strong reaction both in terms of what's happening with the fixed income story, the fx story, and now the equity story in the mix as well. we are up 5.6% at the moment. anna: let's get back to hermes. we just had a report on the chinese data. if you are looking to make a case that the manufacturing data has bo

but at this stage it looks like it might be a rounding -- a resounding victory for the pboc and those agenda. if they do get across the line now, it is a big ticket for them. elements are really -- it will not turn around the debt story or the gdp growth, but it is a victory for reformers. presuming any last-minute conditionality, it is a good victory for the imf. enda curran from hong kong this morning. this is, of course, the photo opportunity. help me out here, francine lacqua. live.ne: it is i have never seen a live photo opportunity. this is rather exciting. moon witheban kin francois hollande. this is the biggest gathering of world leaders in france. since 1948, in france. i believe, jonathan fenby, this is the largest photo op i have ever seen. jonathan: they need a very wide lens here. tom: it is so telling, the pakistan minister, meeting with the afghanistan minister. francine: there are sideshows at the same time. tom: jonathan fenby, what is the -- tell us your knowledge of china's military might. movingn: china has been up with its military power. he is rightly say, pursui

the pboc published about opening up chinese financial markets. the article were comments about the stock connect from the governor. markets reacted. towards the lunch break, the pboc came out in said, those comments are from a speech in may. following that, we had a clarification from the hong kong exchange operator saying new agreement had been made. a racing most of the gain. let's put this into context. there is a year to date chart. the hope was we would see the same amount of volume that drove the stock up this much. the is where we are at moment. broadly speaking, a good day across the asia-pacific. positive news flow. that is how we are essentially ending. a few markets left open with the exception of the philippines. there we go. that is a perfect session for you. i think we are adding about 150 billion, 160 billion in fresh capital. takingavid liberties with the map of asia. guy: recently positive start. let's get back to our conversation with nigel wilson. nigel, you mention some of the strengths around the u.k. economy during let's tal

pboc will be easing, federal reserve will be lifting off.that will be the dominant impact on the exchange rate -- not any flows from the fdr. guy: excellent analysis. . thank you very much tom orlik. patrick armstrong is still with us. there have been times when people have talked about the death of the dollar -- is this one of those moments? >> the death of the dollar has been so strong. and its rates this month will be the beginning of a gradual progression. that creates dollar strength you have every other central bank being very accommodative,, enhancing and extending. that leads to dollar strength. guy: let's talk about this chart here. this is the u.s. two-year. see, huge frame widening, that is what we are looking at. the market is anticipating a loss here. its divergence trade is consensus trade. can either yellen or draghi disappoint? >> all the rhetoric, every statement since october has been completely consistent, that, the fed is desperate to increase rates and everything coming out loosen,cb, we need to we need to extend, we nee

the pboc unintentionally starts a spike in asian stock markets by publishing five-month-old comments

the pboc says aggregate financing was 476 billion yuan in october. highlighting the consent about the slowdown in the economy. burberry is expecting a very merry christmas. we ask why the luxury brand is so confident about its time several holiday plants. rolls-royce pitch shares plunge as a company issues a profit warning. ♪ manus: let's take a look at some of our top stories today. the job cuts come through at bae. while burberry shines. let's start with rolls-royce, the worst performance on the stoxx 600, down 22%. hitting its lowest since 2010. biggest drop in the stock since 2000. after the company issued a profit warning. thet said this year profit will be at the lower end of the range. it faces headwinds and aerospace and marine markets. and weaker demand is forecast for next year. next year's earnings rolls-royce says will be hurt by a 650 million pound headwind. they are moving on to bae systems. we are seeing shares move higher after the company announced job cuts. 371 jobs to go, in fact. that is jobs tied to the euro fighter typhoon. it w

i think the pboc cut rates yet again. goldman sachs was out with a note yesterday saying they expect another cut of at least 25 basis points. the rate at a record low right , butistorically speaking quite high still and they say more cuts are needed. the chinese government is trying to shift away from manufacturing, going into services. this nonmanufacturing pmi includes banking, telcos, construction. it was an expansion but the weakest pace of expansion since december of 2008. rishaad: steve engle. the state of the factory floor in china has been high for our guests this morning. >> this is one of the biggest release of the month. a lot of the chinese data, you can't trust it that much. influencing potential u.s. policy as well. it shows a distinct improvement from the past couple of months. support of the policies being put through in china is beginning to get a little bit of traction. i think it is quite encouraging that you are getting signs of stability, moderate improvement in these numbers. yvonne: what do these nu

that's what the market and the shanghai is factoring more policy support from the pboc and also on the physical side as well. the apple component makers, they were a drag on the index. we saw five week lows for taiwan and we didn't get much overnight. >> let's give you a run down on this trading day. we hit the midweek there. no economic data points today as the bond markets are closed for veteran's day that includes macys before the opening bell t. chinese internet giant and fast food chain pop eeyes after the close. still to come on the program, the gop presidential candidates square off in milwaukee wisconsin firing shots at hillary clinton and taking a firm stance against increasing the minimum wage. >> if i thought that raising the minimum wage was the best way to help people increase their pay i would be all for it but it isn't. in the 21st century, it's a disaster. >>> alibaba sells $1 million in merchandise in 8 minutes. the biggest shopping event of the year. the euro slipping against the u.s. dollar ahead of a speech by mario draghi and mcdonald's won't spin off it's properti

now the pboc in beijing announced after the close that they're going to turn on the easing taps once again cutting the rate it charges to the banks for overnight lending as well as the 7-day bank loan rate. this is in order to add more liquidity into the system. the big push is to try to get lending out to more of the small and medium sized businesses. we saw the china indices react there. the nikkei was in negative territory during this friday but it was the last hour where traders decided to buy and they were able to help the nikkei ek out a small gain. now the big drag today was the strengthening yen against the us. dollar so that weighed on japanese exporters there. it had the best week in about a month up 4% as energy companies were able to rebound this week compared to the 8% loss from last week with the asx 200 up by about .25%. as well as gold miners because gold was trading up during asian trading today. >> thank you very much. now just continuing on with regards to the latest out of mali. the operator of the radisson blu hotel confirmed that two gunmen have taken 170 people

this is off the back of news from the pboc that announced it was cutting interest rates to lending to. mainly the overnight rate in order to get more liquidity into the system and to get banks lending more to smaller and medium sized business there is with the backdrop of deflation nary pressu deflationary pressures there. it was really in the last hour where traders were in a buying mood and that allowed the nikkei to end in positive territory. just get out a gain and louisa was mentions yen strengthening. that was the case. they turned out to have the best week in about a month. up 2% for the weekending friday's session up by .25%. they were able to stage a rebound this week up by 6% after that 8% tumble from last week. banks financials as well as gold minors as gold traded higher in the asian trading session. >> thank you for that a group of men arrived at a vehicle with diplomatic registration. 170 hostages being held at this hotel in the capital of mali. >> now moving on, vw is likely to incur a much lower cost than expected in it's recall of 2.4 cars. banking analysts outlined c

there's even pessimism to the inclusion of the sdr that the pboc will start to devalue the currency after they have been basically awarded with the inclusion into the sdr. >> it's more of a symbolic, very historical day. it will be important and meaningful because china has a reserve currency state. >> i want to get out to unit. some say the inclusion of the yuan is over hyped, some say it's a sign of over confidence. some say it's a sign of devaluation. what's your take? >> i think it's all of the above. it's not necessarily mutually exclusive. you do see from a long-term basis, this is a badge of honor for beijing. it's a milestone. they've been pushing for the yuan to have a reserve currency status and an acknowledgment on their part that the economy is important to the world and has arrived. it's also important for the imf because the imf has been criticized for not being inclusive enough of the emerging world. the other points you had made about the impact on the yuan, whether or not this is over behind, and that is very much up for debate because on the one hand in theory what shoul

pboc to imf asked the stop intervening in the market?action from washington another world leaders. importantly, this definition of being usable and widely accepted. it can mean a lot of things. if you want to put numbers to it, based on this report, the yuan was only seven behind the four already there and also behind the australian dollar and the canadian dollar. the egg. chicken and issue.gs you to another for these holders to be able to hedge their exposure. if it does get included, how large of a weighting could it get? dollar, the euro, and the yen. the euro is 37.5. the yen is somewhere in between the pound and the euro. that.ave to justify david, thank you for outlining all of that for us. korea.ead over to kakao and kt are searching in trading. spurovernment has moved to innovation in the financial sector and it could lead to unexpected winners. ry: we are talking about these chinese internet giants, alipay which and could be giving a boost from their korean partners. kakaoy, we have seen surged today for as much as 13%. also sur

yvonne: what does this mean for the pboc index?'s a feeling among economists that it may come back again. we have to look at lending data. there will be a pickup and loans, credit demand. they're getting traction. that might keep them on the sidelines. if not, they will come in-- the forget, the government is also they're pushing infrastructure spending. they're working together. thank you so mucmuch. let's look at the top corporate stories. >> reports from japan say volkswagen sales are lower than a year ago. 2400ehicle sales slowed to following the emissions scandal. in japan, andfect the controversy has affected its image. they have lost the global sales lead to toyota. the commonwealth ceo has decided he will step down. he was given the option to extend his contract between -- contract to october 2016 and has decided not to. he is the fourth european banking ceo to announce he is going to leave his role in the last year. ipo is said to have raised $811 million. other financial firms in china have helped boost hong kong's ipo vo

pboc to abandon the trading rings that it restricts the yuan to. important thing is what weightage. according to trade data, it should be about 14% to 16%. anything lower than that would spark some concern in the market. rishaad: does it change anything? >> it is a pretty symbolic mode. i know they're $1 trillion of inflows but that is over five years. $3.51 trillionas , by far the world's largest. efforts to fight against the dollar's hegemony in the world market. what effect, i'm not quite sure at the moment. rishaad: thank you very much. they are gaining in seoul trading after the government gave approval to set up the first internet only bank. some think it can also lead to some unexpected winners. shery ahn is here. 10cente talking about which could be getting the approval for the first internet only banks and south korea. ao, theyready seen kak surged as much as 13% this morning. that is the biggest intraday gain. their gains coming down a little bit, but still you could get an idea of how much expectation there is out there. 10cent, a source

we do not yet know how the pboc will manage that because they do still decide that.ad: heidi, thank you very much indeed. ofwill continue our coverage terror in paris. that will continue after this break. we will see what happens next and what will be the french governments response in the longer-term. we have already heard them launching attacks on the i.s. capital. images -- the skyline of new york and people around the world are coming out andupport of the parisians the french people. ♪ rishaad: getting back to the market, it continues sluggish. thank you very much indeed for joining us. exactly a power performing economy in the first place. the attacks in paris can only have negative implications in the short-term. >> in the short-term, yes. these attacks in paris are negative however fundamentally, nothing has changed. i.s. is a known threat. this is an escalation but fundamentally, the threat remains and i think the solution needs to be found, not in europe and in the middle east. from an investor's point of view, i think there are other notably, the softness i

francine: do we think the pboc will push for reform or do what andfed has drafted, qe getting interestthe zero bound? jane: if they were to allow more folks building in the currency, that is what they did in august. this isn't linked with the imf, the imf allowing it to be within to the imf, the imf allowing it to be within a reserve currency status. the imf wants china to be more flexible. moreng it lower would give stimulus to china but it would be detrimental to some of the trading partners of china, who would feel on the other side of that. not an easy balance for china. francine: as a final thought, fxt is your favorite pairing? jane: probably euro-sterling. a big story. francine: linked to brexit? jane: boe and ecb. francine: what is your call? jane: i think it will go lower, mark carney does not want it to sink too far, too fast. francine: a high pound is probably his biggest headache at the moment. jane foley from rabobank. i don't know how the diversions between the ecb and fx pairing? jane: probably euro-sterling. a big story. francine: linked to boe is playing out in the sta

there is more news continues on the pboc front. now switching focus, there is another pain point in europe where a leftist socialist party in portugal forced the current government to resign as leader antonio costa gains popularity for the anti-austerity pledge. expected to become the next prime minister f that happens, intelligence says the minority government will push for reduced austerity. the worry is this could hinder portugal's economic reform. and this uncertainty around portugal and dovish commentary if from policymakers is sending urt yoe lower. goldman sachs may be projecting the euro to hit parody against the dollar by year end. so that talk is heating up here. >> we heard the parody talk a lot of times. >> it can really happen. >> get party hat ready. thank you very much. tyler? >> folks, major investor in snap chat writes down the value of the stake in the company. what does it mean for the evaluations for deck companies? julia boorstin is all over it for us. >> it's certainly not good. snapchat's valuation was $16 bi

the pboc had just devalued their currency so if you look at the dixie, the dollar index, it's up a coupleercent. cisco gets more than 50% of their sales from outside the u.s., china is a big gross area. the whole fear about waning global growth and the currency war that we are in and the dollar there is no other way for it in the near term to go up this is going to weigh on u.s. multi-nationals. a stock like cisco has been trading between 25 and 29 bucks basically for the last six months i expect it probably finds its way back to the midpoint somewhere in the mid 20s but remember -- >> go ahead. i'm sorry. >> this is a cheap stock, a 3% dividend yield and i just don't expect this thing to get absolutely trashed. >> lindsay. >> i was just going to say that this company hasn't missed earnings since the second quarter of 2001. the current quarter beat is not a surprise. >> the second quarter of 2001. >> 2001, yeah. >> they know how to communicate pretty effectively. wow. >> stephanie, mike. >> so this has been a safe haven. i think if you wanted to talk to other pms, i know ourselves at kref

why china cut rates, two nights go zi said things getting slower extended slowdown i have friends in pboc are setting up to devalue guys are running out of time. >> why market rally yesterday after fed minutes looks like fed is going to raise. >> so why does -- just saying, you swrust said investors. >> no two things, two things, there is -- markets very good sniffing out what this guy got sniffed out of his hole in france that is a very bullish data markets very good at discounting good news the best news i have seen in a month. >> discounted yesterday they expected the -- abaooud, killed. >> if you look at market going up it kas because of dollar weaker everybody has been so worried, about -- and corporations, so pull up a chart you can see, as weakerer markets stronger that is what is happening because everyone is anticipating through the fed that this is going to be a one and done situation. >> a i got you -- >> one and done that is it dollar -- >> great hypocrisy if we raise a good sign of the economy that is that is -- i can't use the word. >> i have said it what are you say being m