mark cranfield from bloomberg's mliv team joins us with the market reaction. what does this mean, they offshore yuan under pressure, chinese assets in focus, just a fiscal response from beijing offset pressure on chinese assets? the market reaction to this move? >> i think you have an interesting situation here. on the one hand, traders will believe there is no incentive for china to allow the yuan to get stronger. as long as it remains on a gradual weakening path, that will be where investors expected to go given the amount of uncertainty, whether the united states will retaliate more, for china will do more, the net result will be the yuan could stay on a weakening path. in the background you have a different scenario for chinese equities. there is already some differentiation going on where people are picking up on the fact that the progress china has made on a i, particularly related to deepseek, looks as though it will benefit some chinese companies regardless of what the u.s. does. you have all the publishers doing extremely well. they have results out l

let's bring in mliv strategist mark cranfield. give us the deep dive in terms of market reaction in mainland china on the reopening after that lunar new year holiday to the second round, in terms of the trade war of the u.s.? >> as avril was saying, on the surface, it looks as though chinese equities are not doing great. if you look at the major indices, csi 300, shanghai composite, they have been choppy all day. under the hood it is a very different story. it is becoming a stock ticker's market. target gains for software developers, particularly those in the artificial intelligence base, people benefiting from the deepseek narrative. there is gains for metal companies like tungsten-related companies because china will put tariffs on the u.s. in that sector. you have the e-commerce sector not doing well because u.s. post have put restrictions on packages coming from hong kong and china into the united states. it looks as though amid the fog of the tariff situation between the u.s. and china, what stays and does not say what invest

let's check in with mark cranfield. i know you have been monitoring the impact across the treasury curve. it's difficult to know which asset classes to zoom in on. what stands out to you in terms of how the markets are adjusting to this news? >> it's the macro traders in control so far today and that's not too surprising because we have the cash markets that have not opened so we have to take into account what we have seen. the dollar is strong across the board. suspension of stealth intervention already to try and keep them stable and that certainly the genesis of an article suggesting they are preparing talks with the u.s. but what's interesting is that the short end is looking at the inflation impact from tariffs and higher yields, especially the two year. that's where the dollar bid is coming from but if you look at the long end we are seeing much more demand, particularly around the 30 year sector and that suggests people think the growth factor will be a factor. we predict more than 1% will be shaved off this year

we can get more with mark cranfield. i have to wonder if jay powell is heaving a sigh of relief. what does it mean for investors that bessent is focused on the 10 year? >> bond traders are taking this with a pinch of salt, because which president would not want lower yields, but what drove you will send yesterday is that the treasury quarterly refunding announcement. in that the treasury committed themselves to not increasing long term issuance of bonds for quite a long time, probably throughout the rest of this year at least. that is significant, because it was clear trump would become president it was clear deficit would grow in they would use long-term borrowing to up with finance. that will be shifted toward the shorter end of the yield curve, and that is why yields are coming down. also expectations that inflation will not be hit as much as initially thought. what we have seen happen in the past couple of weeks is insignificant flattening of the yield curve driven by the long and -- end coming down faster than the short end. it has nothing to do whether you were talking abou

mark cranfield from our evelyn -- mliv team as we lead up to the job sprint out of the u.s. today and inflation data arguably more important next week. besson says he personally vetted the treasury employees on elon musk government efficiency team. the treasury secretary says those members will have limited access to federal payment data. >> there's no tinkering with the system. they are on read-only. they are booking. they can make no changes. it's an operational program to suggest improvements. we make 1.3 billion payments a year. this is to employees who are working with a group of long-standing employees. tom: from the u.s. treasury secretary to the bank of england right now which has warned that inflation will rise sharply this year and has downgraded its u.k. growth forecast. the bank cut rates by another 25 basis points, as expected. yesterday, to mpc members voting for a bumper cut. that was not expected. it also added the word careful to describe its approach to future cuts. governor andrew bailey warned against reading too much into that. >> it's meant to say, ther