joining us now, michael metcalf. good morning.e have the capacity to do more and we get a triple are cut -- a rrr cut. the interesting thing, we panicked about china for much of this year isn't it interesting? is a bad number. the market reaction has been modest. that tells me that markets are beginning to regain some faith in policy because the lending numbers in china are much stronger. rrr cut yesterday. it is interesting that we are not reacting in the same way to negative news. morningcame in monday and chinese markets were down heavily because they listen to what chinese authorities said over the weekend and thought we would get something. they did not announce it over the meat -- over the weekend and the market goes down. now we have got that and we are much more towards the economic story coming out of the pboc then the data coming out of the wider economy. yes.el: quite often, this is the case. the economy it's a soft patch and markets react until policymakers respond. we have reached that point where policymakers are cle

microstrategyof michael metcalf is still with us.f you look at the major central banks deciding this week, the fed is the most difficult one. there is so much qe out there from the boe and the boj, it pressure on the dollar. michael: i think it's interesting. there are moments where the dollar strength has been seen as restraining the fed. the dollar appreciation has unwound a little bit. that's because there are doubts about the ecb and the doj. -- boj. across the credit risk and that kind of stuff, some of the reasons why the fed should not have been tightening have gone. --ncing: if you look at francine: they want to normalize. the markets just don't want to believe it. the dollar rally gave a little bit of relief. michael: that makes the decision easier. core inflation is above 2%. the labor market has improved. ande excuses for delaying the debate that they had about the lane, i almost think the difficulty they had in the communication is they need to warn the market. the market is heading there. it's clear they won't shock the

and equities, as i said to michael metcalf, the u.k.t is one of the best equity markets and western europe. take me through the high yield. take me to the bond market perspective. it is the differential on which we benchmark all of these bonds. it has seen very little movement. with that.ld agree that is the case. mainly confined to the fx in terms of individual bond movement. sterling bond on the accounts for about 3.5% of the global yield market. some technical weakness, but not the kind we have in the fx market. not the kind we would expect if we do good on the path and that uncertainty increases. the one thing that fear brings is uncertainty, and that will eventually lead to further weakness. we have been reducing our sterling exposure. as we move closer to the referendum they we believe these risks will be expanding into sterling asset weaken us. -- weakness. manus: this reach for yield and negative rates, how is that going to rebalance itself? jeff: this is the sort of thing we are concerned about our global mandates. what we need