we bring in michael hewson from cnc markets. nk this is what markets are currently fixated on and you may be surprised that investors are takin taking it fairly calmn the expectation that the president will call for five star and the democrats to try and put together a temporary arrangement. it's not in the interest to hold a new election given the lead if the opinion polls. they'll try to come up with an alternative government to try and replace the current government. they spent the last two years basically criticizing each other. they will be uneasy bed fellows laugh thi.lauren: this happenie budget is due to be submitted this fall. in the u.k., boris johnson will meet with angela merkel. after the eu shot down johnson's idea of scrapping that irish backstop in brexit. so what are the chances that merkel would actually side with johnson here? >> at the moment, between slim and none. i think the eu is still holding out the prospect there will be some caucus in the u.k. parliament that will block brexit or try and force an exten

but opting out of what is still one of the world's most important markets seems ill advised to michael hewson chief market analyst at c.m.c. markets has been following brags that impact on business closely businesses need to take a pragmatic approach and i think they need to plan for the most probable outcome and not the actual outcome businesses can't stop growing and can't stop innovating they still need to be able to move their business model forward now obviously the current impasse doesn't help with respect to that but what the what business is can't do is stop innovating stop creating new products stop planning the new markets what do you think is the best government make up possible in the u k. not the current set up that's for sure we want some form of government that can actually govern the key decisions in opening night you know there is no room for anything else policy was apart from bricks so i think at some point between now and the end of the year we'll get a general election the hope is that general election will bring about a pro-business new government how the government look

let's get rid of the very latest on the story we have michael hewson the chief market analyst for c.m.c. markets in london and our financial correspondent and then to buy stock in frankfurt good to see you both anetta let's start with you let's get the very latest what is the picture there in frankfurt this morning well actually after a sort of stable start to the trading session we now see losses of up to one percent when it comes to their backs so it's mainly cyclical stocks but also banks direct low or low for tons as one of the biggest losers so all those companies who are mainly good or it's an open trade friendly environment losing the most and that what is the mood there or do investors seem to think that this volatility will continue. yes that's pretty much so i mean where headed towards a very adverse scenario when it comes to the economy but then we have also breakfasted looming over europe we have to trade war it's a nobody really knows what's going to happen during the course of the next quarter but one thing is clear there was a lot of optimism that the 2nd half will look b

joining us is michael hewson from cmc markets we've dragged you away from the trading floor.yesterday afternoon for us in europe, give us your take on all these different stories, hong kong, argentina etc.|j all these different stories, hong kong, argentina etc. i think one of the things that struck me yesterday was the fact european markets were trading in positive territory, we've had to absorb an awful lot of news flow over the course of the past 2—3 years, trump becoming president, brexit, north korea china trade. us china trade, now the prospect of political uncertainty across europe, italian elections, i think the thing that struck me more than anything else, all of these on their own probably could be containable and manageable but we are getting to a point where there'sjust manageable but we are getting to a point where there's just so much risk, such a big cocktail of risk, that you are seeing investors increasingly concerned about investing in equity markets, we are still at fairly elevated levels considering where we were ten years ago but what we are starting to s

but opting out of what is still one of the world's most important markets seems ill advised to michael hewson chief market analyst at c.m.c. markets has been following brags that impact on business closely business is need to take a pragmatic approach and i think they need to plan for the most probable outcome and not the actual outcome businesses can stop growing and can't stop innovating they still need to be able to move their business model forward now obviously the current impasse doesn't help with respect to that but what the what business is can't do is stop innovating stop creating new products stop planning the new markets what do you think is the best government make up possible in the u k. not the current set up that's for sure we want some form of government that can actually govern the key decisions in opening night you know there is no room for anything else policy wise apart from bricks so i think at some point between now and the end of the year we'll get a general election the hope is that general election will bring about a pro-business new government how the government look

michael hewson is chief market analyst at cmc markets.us dollar but gold is at record highs against the euro and the pound and the swiss franc and this is on the back of falling yields. yields in switzerland and europe are in negative territory and union maker switzerland has started to charge wealthy clients with deposits of over 500,000 euros no .6% perannum and deposits of over 500,000 euros no .6% per annum and so how long does that take before that if x starts to trickle down and you get banks starting to charge deposits for putting money on deposit —— before that effect starts to trickle down. here we have inflation at 2%. what you make of the situation with thomas cook? it has come up with a way to raise money but that dilutes shareholders existing stakes and they have given it the thumbs down. at one point it was almost down 20%. not so much the fact it was the dilation, it was a month ago that it we nt dilation, it was a month ago that it went into discussions which is with the 18% stakeholder with thomas cook, which went into di