when the rba less cut -- monday -- when the rba is inflationhe rba targeting the central bank and theelt they had to act. that is the reason why many economists feel august will be the next waypoint. how -- you can tell how they are feeling that is probably going to go. the parliamentary situation is in a complete state of flux. we cannot see any meaningful economic reform. more it is likely to fall to the reserve bank of australia to provide any theomic stimulus, despite governor glenn stevens saying that there is limits to what monetary policy can achieve. angie: we also have the cliffhanger election. the counting resumes today. we areication of where going to be in a couple of days? who is going to hold power? paul: i am not sure anyone knows. it is exciting to find out. the accounting has resumed today. 1.1 million postal votes have arrived as the australian six into commission the elect -- sits into the electorate first. don't expect a result in the next two hours. perhaps a clearer picture will emerge by the evening or possibly toward the end of the week. we must have some idea

we're betting the rba will ease in august.rgest property developer has slumped for yet another day, the second straight. they resumed trade for the first time this year on monday following a six-month halt, its two biggest shareholders fighting for control. the company announced in your $7 billion share in metro group ina a bid to end the battle. --arket check with david it's all about currencies and commodities so far today. david: absolutely. when you look at how price actions form, when you look at these currencies and commodities, seeing the dollar strengthen, the yen strengthen, it gives you an indication of what we are looking at. in the order of 6/10 of 1%. we have consolidated at this level on the last hour or so. a day of risk aversion after a 45-day rally. ta the dollar-yen has been at a session low. that is perhaps why we touched near those levels. have a look at euro and sterling -- we are seeing declines against the dollar, and you are also seen yen strength. long story short, that's risk aversion. the market is z

the rba calls that "unattractive" because of the risks.at they call pure helicopter money. it has it's a damages, what are the dissipated to his -- it has its advantages, one of the disadvantages is that it can become addictive. be onehyperinflation to of them, and it could get out of control. are things that bad in australia, that the rba might actually deploy some of these measures? reporter: the assistant governor says the likelihood of the use of these measures will be very remote. got an, we've interesting situation, because things look good on the surface, three point 1% year on year growth, very strong in the weeloped world will stop as saw on thursday, unemployment is still under control at 520%. -- 5.8%. the wage growth and inflation is very low. we get our next read on that on july 22. if we have another deflationary quarter, analysts say the rba might cut again. they point out that as the cash rate creeps lower, the cash rate becomes less effective. angie: that's right, and that's when you have to do a lot more. paul allen, like

rba sets the the cash rate later today with no change expected. for more, let's get to paul allen in sydney. paul, the economists were pretty much unanimous on no cut, but it's a different story for august, right? paul: that's right. it is 100% in favor of the rba staying today, but fast to august and those positions reversed. reason for this, aside from the political turmoil, it's all about the cpi in australia. it was back in may that we had our first deflationary fall in seven years, quarterly data due out on july 27. the rba meets again a week after that. they're going to do it then. he did have interesting piece of data, the trade balance blowing up. $2.2 billion deficit, up 2%. the aussie dollar was down. this is all part of a trend in australia of ever widening structural deficits, and it looks like we are set for a hung parliament, so don't expect policymakers to do anything about it. the onus will be firmly on the reserve bank to continue doing what they can to stimulate growth. yvonne: talk about that hung parliament, paul. the counting

pretty flat in australia, but the chance of an rba rate cut possible. iphone suppliers are rallying up. on the markets shortly. with apple here, this is the world's most valuable company. it released earnings after markets closed in the u.s. shares rose post-post-release, and post market -- of both post-release and post market. numbers are falling. unit look at revenue and thatts, profits were not good. several billion yet less than last year. iphone t means that the model, peoplest were doubting whether it was a little too expensive for but it pickedts, up traction. that seems to be what is saving apples numbers, especially when you look at projections. 45 point $5 billion -- $45.5 billion. that is the bottom end of the target range for apple, if you look at the projections. as far as that is concerned, it seems to be over growth. sales are falling. another thing to mention, the cfo basically said at the start of this, for the past quarter, they were not able to keep up with demand.now they have put in the necessary capacity to meet back up -- demand,

the rba's have studied corporate bonds as well.r foreign assets, there is the view that that would be perceived internationally as exchange rate-targeting. those are keywords, extreme scenario. lotbank uses those words a when talking about this study, and would not use them in circumstances anything other than extreme. yvonne: and while there were the rbaential measures said they would not be so keen on. what would baby avoiding? reporter: negative rates. the reserve bank is not so keen on that option. the other is helicopter money, as it has become known. they are saying it can't have a negative impact, particularly governments funding the policy rather indicative. definitely a hot topic. are things really that bad of australia, that the rba might actually have to deploy some of these measures? it is an interesting picture, because no they are not on the surface. we have year on year growth of at 3.1%. as we saw yesterday, unemployment is still good at 5.8%. on the other hand, there is low wage growth and low inflation, and that i

the rba policy makers have been holding on rates as the world falls apart around them. we go live to sydney, next. ♪ caroline: welcome back to bloomberg. "on the move." a weak day in the start of trading; let's get you caught up with the bloomberg business flash. suspending trading in its 2.9 billion pound u.k. real estate fund. it is the strongest signal yet that the turmoil from the brexit vote will probably have the property market. the suspension of the fund, prime commercial real estate assets, will be reviewed every 28 days. standard life adjusted the value of the underlying efforts last week. e italian government is reportedly studying a capital plan for multitasking without saying where it got the information. the move could include new convertible bonds and support from other funds. theyding to the paper, could do worse by at least 3 billion euros. goldman sachs has told asset management staff to tighten belts amid poor performance, according to a report. it says executives have issued a needed that to thousand employees must curtail spending, with a ban on tra

the rba is an inflation-targeting bank and they felt they had to act. on july 27. the next r.b.i. meeting is august. that is why economists think if we see a cut, that will be when it is. yvonne: thank you so much. menacing maneuvers in the south china sea. vinam objects to beijing's latest military exercises in the region's disputed water. ♪ --nne: china and vietnam naval drills will take place in territorial waters and they want beijing to cancel them. china flexing his muscles again. muscles: flexing its and making tensions up. the drills start today and and on the 11th and that is the eve of the ruling in the hague. tribunalnow how the sees the spat in the south china sea. we know though that whatever the outcome, beijing has said it will not recognize it. talk about flexing its muscles. conductedregularly exercises in the area, part of exerting its claims which override those by several other brunei,s like malaysia, and thailand. they are the parasail islands. vietnam has called foul and said china is infringing vietnam's sovereignty which goes aga

this is why the rba is holding the situation. later,ll use these rates when we know exactly what is going on. manus: clarity, there is a very important word. if we had a little bit of clarity, we would all be a lot richer. political risk is something everybody in the world now needs to measure more aggressively. paribas'np political interest. spiking less of member. september. it is all of these various factors going in. how are you modeling for political risk? is the next big political risk on the horizon trump or is it a frexit? >> we are definitely in a new situation of political risk. the global outlook has been very weak since the global crisis. wages for skilled labor has been falling. so, in many countries, what seems to be the majority now of people, are voting for anything but the establishment. this could lead to good outcomes if it leads to new governments, but it can also lead to better outcomes because the could give the power to the populace. but definitely, the protest vote is something markets have to take into ac

we will take a more detailed look at the rba's decision later in the show. we want your opinion so please tweet us your thoughts. we can check it out and share. take a look at some of the other stories we are watching. here is heidi. the u.k.'s ruling conservative party takes the next that towards finding a new prime minister today. all 330 tory members will be balloted to the five contenders hoping to succeed david cameron. each have outlined different ways to manage withdrawing from the eu. secretary may has received the

although the rba says it would be backing work to get on that path. foreign assets, internationally that could be viewed as exchange rate targeting. they would not relent intervention in an extreme scenario. it is important to stress that all the scenarios would be extreme. there are also some extreme measures they say they will not do, right? yeah, they are not a fan of negative rates. seemspter money as well to have a line drawn trade. the rba says that governments find in vindictive. yvonne: a bit of a lesson you can take. that bad, that the rba might actually have to deploy some of these measures? reporter: the mixed picture here, because we had good growth at 3.1%, unemployment is under control, but on the other hand there is low wage growth, and another concern is low inflation. just 30 minutes ago, we had a survey of economists saying they expect the cash rate to be at 1.5% by the end of next month, yvonne. yvonne: paul joining us live from sydney. let's take a look at how things are doing in the asia-pacific. we are seeing the gdp figure out o

the risk for rba is to cut more. yvonne: stick with us. next, hedge funds love -- everything has changed. we will have more about that. this is bloomberg. ♪ yvonne: two years ago china's online car marketplace was attracting support from hedge funds. but now, that is against the ..s. traded stock this one-time darling -- it seems like investors feel underwhelmed by this. >> this was one of the tech darlings of the internet boom in china. , this greater exposure to international investors. just a couple of years ago, the -- thatrged from 120% is when tiger management made a wager for a 15% stake in the company. that was in late 2014. within a year, it has unloaded all of its shares in the company. investor interest taking on a different nature altogether. shows the interest has reached record highs. despite shares having lost half of the value last year. it is down about 45% over the past 12 months. been spending more to compete with its major chinese rival. this is a company that has been called the chinese craigslist, the chinese cars.com

. >> the rba is waiting for the next consumer price inflation, the next cpi number which comes out onhe 27th of july and that will be critical in terms of determining whether the rba will cut further and when. ,ur own view is after the cpi the inflation number will be on the low side and the iba will probably -- rba will cut rates and august. we are waiting on more information on prices to determine what we might do next. told us markmorris carney is facing a tough tax with brexit and can only do so much. >> we are likely to see more support in economy, quantitative easing, funding for banks to lend. the central banks can only do so much. we will support, but we cannot change the end lined trajectory of the economy. angie: it seems like there is no end in site for the falling pound. sterling trading at its weakest in more than three decades. is the us for more strategist with cibc. i know you hate forecasts. everyone is doing it. below one dollar 30. how can -- how low can ago? >> we said $1.20 was possible. shoot ist an over possible. he uncertainty is too great. patrick: no one know

pretty flat in australia, but the chance of an rba rate cut possible.ppliers are rallying up. on the markets shortly.

i think the rba will move in august after that information is released. for that inflation data. rishaad: multibillion dollar fast rail work already underway in indonesia and india. they are trying to modernize their transport systems. this singapore bullet train, will it be the game changer people are saying it will be? >> it is expected to be. malaysia says it will transform the way the neighbors do business. singapore says it will boost connectivity, strengthen economic ties. the senses it will give -- the give the twoill countries some opportunities. expected to be 300 kilometers long estimated to cost between $10 billion and $15 billion. it will cut the journey to 90 minutes. it is five hours on the road right now. japan and china jostling for the project. japan once -- trickling infrastructure exports by 20 20. china has identified high-speed rail as one of 10 focused industries for economic development. some suggesting china is already flexing its political muscle. china's deepd, in securing the train project so what does look like everyone is inte

on the subject of data, before the rba decision, the trade deficit widened again to $1.7 billion, worsen expected. with a hung parliament after last weekend's election, meaningful economic reform will not be expected by whoever takes government, so the job of keeping the economy stimulated looks to fall continually to the rba. just under one hour left in tuesday's trading session here in europe. take a look at how equities are faring. a second day of climbs for the stoxx 600. the ftse is up today. more declines in germany and france, 1.8%. take a look in the currency market. sterling continues to hit new record lows against the dollar. lowest since september 11, 1985. the euro, highest since october, 2013, against the dollar. sterling continues its plunge against the yen. it is down by 18%. now at its lowest level, the pound, since december, 2012. take a look at the bond market. new record lows for the german 10-year, european 10-year. records in london and germany today. vonnie: records here as well. 10-year, 1.38%. earlier touched a low of 1.35%. there you can see the safety trade in

, if you lookrket for theutures market rba interest rate curve, it is split right down the middle onba will cut in august, so pretty much hanging on to how low this cpi might be, particularly the statistically modified underlying rate. the potential for the aussie dollar to move two ways. if they do end up cutting, the market will be thinking whether it is the last one or more beyond that. number, theigher aussie given the current mood would power on. that is 10 days from now. dollarok, but the aussie , as he gets higher, that has to bring some risks to the austrian economic outlook overall? is a long game, isn't it? at the are looking aussie dollar and its affect on the economy, it happens over time. we have seen a push up in the aussie, but can't forget that the commodity price story has been a little bit more supportive, very recently, to, so i would be more interested in the base metals complex, particularly iron or prices, pushing up toward $60 a time. -- a time. on. gold prices have seemed more stable as of late as well. that is suggesting that downside risks in terms of trade.

i doubt the rba will act tomorrow. is suggesting there is no need to act anytime soon, but it has to be a possibility. i guess they would like to see some clarity on how the politics is going to look before they decide on any subsequent policy moves. last question for you, china, china banks, we did a bloomberg survey of economists, not sure if we included you, but nine of 15 economist we surveyed expect some sort of bailout. what you think about the possibility? to me it has been clear for years that the chinese banks have a massive nonperforming loan problem. the bailout has already started. the local government debt swap last year effectively was recapitalization of the banks by taking off future bad loans and swapping them for government bonds, so you can see the government is well aware they have a problem and they are already taking measures to solve the problem. yes, you might get a former bailout at some point in the future, but to make him the bailout began last year. angie: are you seeing liquidity seizing up

another week read today will prompt the rba to cut again when they next meet on tuesday.can see a bit of pressure either way with this figure drops. just to be clear, the market is mainly due ton fuel prices recovering. yvonne: we will see with the numbers come through. coming up, history is made at the democratic national convention. ♪ yvonne: half and our away from the open of trading in singapore. you are watching daybreak asia. >> after three days of losses, the materials and consumer stocks leading the way. consistently high stockpiles. it serves back expectations. the finance minister said the size of a fiscal stimulus package wasn't yet decided. central bank makes a policy announcement on friday. revenue fell less projected and forecast exceeded some estimates. eased, aimed at china and other emerging regions. twitter went the other way after revenue fell short. suggesting it is struggling to win more advertising dollars. global news powered by more than 2600 journalists and analysts. back to the markets, the yen is getting a boost to japanese equities early in the

this is after the rba.p law will take over the rba indicating lowering the rate comingose effectiveness under a little bit of pressure. >> let's bring us the latest. francois hollande will hold a security and defense counsel at 9:00 a.m.. presidentan council stands united with france and his fight against terrorism. that truck rolls into a late-night crowd in the mediterranean coast. they have called a terrorist attack. we have learned donald trump says he is postponing his running mate after the attack in france. he is watching all of this for us. it appeared we were closing in a we will have to wait longer now. >> he was postponing the announcement tomorrow because of the attacks. he went on live television and said he had not made a final decision. those are his words. they suggested a sunday interview that was expected with the vp candidate may not do it because of these events. all of which is rather remarkable given that there are reports he has flown to new york for tomorrow's announcement. >> we hav

betty: let's look ahead to the rba. we did get that latest 1%.ation percent -- print, i think it will be a close decision, but there are a number of things and play. activity is mixed, inflation ,ill stay lower and for longer and the reserve bank is likely to update its growth and inflation forecast in friday's statement of monetary policy. as a result of that, we think it will be a close decision, but the bank will cut interest rates to a record low of 1.5%. betty: do they have time to wait? yvonne: the australian dollar k12 below the level we saw during may, which did dropped that rate cut, still up 10% from january, but it seems more improvement in terms of the labor market as well. look, i think there is a little bit of concern on the australian dollar, and that will factor into the central bank's decision. look at that when we the trade deficit, and it is expected to deteriorate, when we look at the australian dollar, it is probably still more towards the higher in of rba expectations at this time. an additional cu

rba due toth the meet tomorrow to make its latest rate decision.en ways on exporters, opix jumped 4% last week. will receive a government bailout within two years, economists predict. and commonwealth of china art nine among 15 respondents to say they expect the move. believerity of those the constant recapitalization will exceed half $1 billion. chinese lenders are grappling with a growing mountain of bad debt after years of funding the market with cheap credit. global news 24 hours a day powered by over 2600 journalists and analysts in 120 countries around the world. this is bloomberg news. markets trading in the asia pacific today, a bit of a pullback in stocks today. the nikkei 225 down. we are seeing the yen stabilizing, but analyst can't quite forecast and catch up with this yen surged. . kospi up a fifth of 1%. the countrydown as is still an election limbo. online car marketplace two years ago was attracting support from hedge funds, but now that's against the u.s. traded stock have hit a record. this one time tech darling has seem to have t

that is shared by the rba's next governor.rgelydollar irrelevant and a global context, so devaluing it would not stir opposition. positiveors turn more about the outlook for the world economy if gold is anything to go by. hedge funds and other speculators cut their bets on a gold rally for the first time in six weeks from a record high position last week. concerns over the brexit vote have ease while the u.s. economy has stayed strong, curbing the need for the refuge. >> time for a look at what is happening in asia. on tuesday, the imf releases its latest nap shot of how they think the economy will perform. earlier this year, forecast of to 3.5% andh rising 2017 and 3.2% this year. the new development bank is due to hold its meeting in shanghai on wednesday. it was established by the brics countries and is expected to contribute to infrastructure development. >> macau's latest visitor numbers on friday, gambling revenue hit a new low in the second quarter, but the mass-market segment remained steady and is positioned to grow w

the rba keeps the options open.erated their concerned about the currency and weak inflation. the new zealand dollar, down 40%. that leaves the door open. anna: both dollars increased speculation that interest -- that central banks could cut interest rates. we got the oil price in at $45. u.s. equities expected to show stockpiles dropping. with that morgan stanley talking about 10 year u.s. treasury yield could go to 1% of the third quarter of next year. just a reminder of the negative yields in germany and japan. manus: you look at the board and you look at you have a return of 1.5%, that is almost a high-yield return. u.s.ould've thought that treasury bond yields could appeal that much. >> 30 central bank will slow the pace of interest rates. that is according to economists surveyed by bloomberg after a failed coup attempt triggered a selloff in the europe -- selloff in the lira and debt. in an interview with bloomberg, sayshief christine lagarde the response by turkey ministers help kong investors here it does hel

devaluing the aussie dollar could be the rba's best option.believes rate cuts will have limited effects as australia's benchmark rate heads toward 1%. aussie is largely irrelevant in a global context. positive for the outlook of the world economy. hedge funds and speculators cut their bets on the gold rally for the first time in six weeks from a record high position last week. concerns over the brexit vote has -- have eased. markets are more attractive right now for our next guest. joining us is sean taylor. great to have you. , butng about gold retracement -- a retracement in precious metals recently. do you think we could regain some ground question mark >> it is a risk on rally. currencies have been devalued a lot. data stabilizing, commodities stabilizing. to say weey continue have a u.s. election and that is just getting started, low interest rates, and we also have the boe who did nothing last week. we do not see a looming recession. >> the u.k. delayed it by a month. in august, we will probably get 25 basis points and's potentially more

that view is shared by the rba governor.tors have turned more positive about the outlook for the world economy. hedge funds and other speculators cut their bets on a gold rally for the first time in six weeks from a record high position last week. concerns over the brexit vote has eased while the u.s. economy has stayed strong. coupy's failed military has shaken foreign investors grappling with the brexit fallout. the lira bouncing back somewhat. joining us is you bps chief economist for asia and the middle east. b's chief economist for asia and the middle east. the policy stimulus everyone is expecting is the reason why you see markets trading through recent highs. what's happening in turkey is quite disturbing. there has been increasing ,olitical risks recently china's maritime city limits, other decisions around the world upwell, so there is a creep in political risk, but that expected stimulus driving markets higher. foreign investors look to turkey as part of the emerging markets story. you're getting a percent yield an

mentioned, as traders start of that perhaps we will not see an interest rate cut next week from the rba big jump in the aussie and most equity markets tracking higher, comeugh shanghai has online flat. there is news the beijing housing commission could raise the down payment for second home buyers, so we will be watching property and develop and stocks in china and hong kong today. hang saying up 4/10 of 1% on the open. still seeing good moves from the south of china, up 2%. petro china coming back as we see an uptick coming through in the crude price. japan is the front runner at 1.4%. we are seeing the weaker yen play into sentiment there. japan actually snapping that three-day losing streak. some very solid buying in that equity market. australia had been awaiting the cpi numbers. it has pulled back, but we have seen that huge jump from fortescue metals and other minors. have a look at other apple suppliers in the region, rattling on the back of apple's better-than-expected numbers after the bell on wall street. sharp also looking good, and lg display up by 7/10 of 1%. this is how fo

rba did not move as widely expected. kept the main cash rates on hold. 1.75%. a lot of chatter in the market that they will have to ease at some point given the fact the global uncertainties are looking that much more series post-brexit and lower growth environment we all have though deal with now. that's where we stand. back to you. >> thanks so much. we are just admiring your outfit. you look great. >> i scrub up pretty well. >> you do. let's move on. richard still with us. talk to me about fsn. the number of articles i read over the week saying we see flows into markets. feds push back. resentment bolder. is that the case? what are we seeing. >> i think that's an aneck dotal story. we looked at the flows and came out in our flow report yesterday, but ultimately we saw flows from emerging markets last week. it was all three regions. that's not a type of behavior that we see where people are very risk seeking. people are reaching for yield. they want to grab return wherever they can find it, but the broad risk sentiment review is more cautious. >> people are p

remember, the rba just had a decision to leave the benchmark interest rate unchanged. factor from what west central banks are doing across the world. now let's check the headlines on bloomberg's first news. theresa may has won the initial round of voting to lead the u.k.'s conservative party. the 329ored 165 of votes cast by lawmakers. andrea lead some coming in second with 66. followed by stephen crowd and lee pimm fox. eliminated.s been in justve more on this a few moments. the fbi director says hillary clinton was extremely careless about handling classified asormation during her tenure secretary of state but in a news conference, they said no reasonable prosecutor would charge her for violating e-mail prodigal -- protocol. to justicexpressing our view that no charges are appropriate in this case. >> the recommendation goes to federal prosecutors that will make final decision about indictment. the national lead over donald trump narrowed according to a university poll, she leads 46 percent to 40%. the same coal showed an 11 point lead earlier. trying to keep the iss

how much of the rba being dependent on this as we get to an election that is inconclusive and a politicalll? >> it's hard to do the heavy lifting for the past five or six years. they have been front and center in terms of economic policy in australia. given the situation with the election just now to the point that will continue. on trillion treasurer says it's time for sobriety after s&p global ratings lower the outcome of the country's aaa credit rating. this is a sound warning coming from them. >> it is a warning. one suspects a cut. it is not beyond the realm of probability either. they've been try to put a positive spin on all of this. he said there is a one in three chance they can lower the rating within two years if the government is unable to legislate savings. he went on to point out the s&p report agrees that the us trophy and the banks are strong as well. the treasurer went on to say ratings hit stabilize if new budget measures to reduce deficits over the next few years are enacted. that's a clear signal that the political gain midship has are to become. weber runs the governm

rba suggesting all options in terms of future easing are on the table.ng coming through from southeast asia, the nikkei two to five in the afternoon session at the start up by 6/10 of 1%. regionally we are off by 1/4 of 1%, although ig is saying that they're likely to be shallow, and you should be buying because the rally still has legs, provided we get the onslaught of positive earnings. a quick look at the movers, nintendo continuing to search. this stock is up 106% over the past eight sessions, ever since pokemon go was released. it's now larger than sony. japan also getting a little bit of coco pokemania. it was up by 23%, the biggest surge since it listed back into thousand one. so far. emily: we are nearing the one-year mark since chuck robbins stepped in as ceo of cisco. the company has made 15 acquisitions and reorganized the management team. robbins promises he does not have his head stuck in the sand when it comes to new technology. we spoke with him in an interview in san jose and asked about his strategy for cisco on m and a. >> our strategy

we are leaving the rba on its own having to deal with any potential for the cyclical down turn.owever, that's a more longer term prospect. from the near term, i guess, investors are still coming from a fairly small p version. it is always good to earn some and it is among the more liquid high-yielding currencies out there. >> any surprises with the meeting? >> it is too early for them to respond to the outcome of the election but also to brexit. something we are going to see later in the week. it is too early for the central banks to do anything at this stage, specially given that the markets have seemingly stabilized. from that point of view, the australian dollar could remain more ground if you are bullish on the kiwi. aussie longs look attractive at this level. >> hang on for a second. keep your tweets coming through and your e-mails coming through. a lot of angry people as nigel farage steps down as head of the ukip party. >>> they plan to slash corporation taxes to help business frs leaving the uk. the initiative is part of the five-part plan. while refusing to retract his

on the aussie side, the rba minutes are very dovish.cern about jobs growth are easing, potentially setting us up for a rate cut. the reserve bank of new zealand has been a pioneer. at a time when rates are at a record low globally, how contain does how to contain the effects. something they are said to do now is tell property investors in new zealand if you want to buy property you will need to deposit 40%, up from 30%. what this is going to allow governor graham wheeler to do, he can cut rates again and cut them and not worry about a property market bubble because it has been a big concern. as soon as we learned this today, straightaway, fx market adjustment. what is interesting, while people experiment with low rates others are seeing what they can do with macro policy to contain the risks of the housing market and get the inflation back toward target. david: where do they have the political support? jonathan: exactly the same as the bank of england. on the other side on the mpc they can do things with monetary policy they would not o