clark fenton, cio, agili investment management is still with us. short bond a position, do you want to put it back on? clark: i am tempted. we covered it because economic data was getting worse, and with lyrical risk in europe, it is a natural thing for people to go to in terms of a flight to quality. with yields where they are today, i am tempted. i think fiscal stimulus is probably on the horizon for europe more broadly. manus: the consequence of shifts in bunds is about the linkage to banks. we have this divergent performance, it is between the bank index which is battered and bruised versus the barclays financial bond index. where are you tempted in europe? equities, bonds? how would you touch or play banks at all in the european region? clark: i think not at all is the short answer. on valuation grounds, they are becoming more interesting. what i worry about is the interest rate situation in europe, and i wonder if the ecb will have a chance to hike rates before the next recession is on us, and that will be brutal for banks. nejra: you said cre

me joining me now is clark fenton, cio, agili investment management.s not make a rebound. we saw it in asia, and we see the selloff in the u.s. could geopolitics pull the markets out of the slump? clark: i think we are in a period of great volatility. it does not take much in the short time to create strong market rallies. we will still be in this corrective phase for a while. snippets of positive news can get the market moving, but we think the trend for the near-term is down. manus: good morning to you, clark. it is amazing how these markets react to one line, one sentence in a fox news chitchat. it turns these markets around for the moment. on the yuan, everybody has an opinion, it does not matter until we get to 7:30. the pboc did not draw a line in the sand today. do you think this is giving more of a signal about intent and direction from pboc? clark: yes, i do. f thatk the lack o line in the sand is significant. i think we will continue to see weakness. part of this is trade negotiation posturing, despite their insistence that it is not. we need