it is because it is within the eurozone. >> i know simon derrick has thoughts.ut we have run out of time. chief currency strategist at bny mellon and senior economist at berenberg stay with us. coming up we will talk more about the italy and the eu program -- problem. later we will talk to the danish prime minister. ♪ >> still with us, simon derrick, chief currency strategist at bny mellon and senior economist at berenberg. cellini says we will go forward. he also has excellent ties with cabinet ministers. the standoff continues between the eu and italy. have been talking in your research about the correlation between the euro and spread.bund what does that mean for potential downside in the euro if the correlation is as strong as you say? >> i think we are going to see more euro weakness in the next six weeks or so. it feels very much like political theater we have seen before in europe from 1992 onward. this is hardly fresh territory. do i think we're going to see a further widening of the spread, yes. we were there at this time in 2011. ultimately this will b

simon derrick is back from his market slot. he has had a cup of coffee, i hope!in terms of the reduction, by which i mean the number of stores that they will close. pretty drastic action. we have seen stories like this happening across the world, notjust the uk and debenhams? that's the point to make. the most recent news is that we heard sears was falling, and another big department store in the us, a common feature of this shopping more out there. they are struggling to get the cash to keep them going through the christmas period. clearly, there is something far more than simply about debenhams but the changing face of retail. it is supposed to be about how far in we are, the economy has been growing for 9.5 years now, it's a very mature stage but the pressure on companies at that late stage in the cycle becomes more intense. that is an element of it but there's a in retail too. like we change how we shop. it's no longer that we want to go an anonymous high street, or shopping online. do you rent anything out like a car sparking. -- it is —— it is quite interes

with me is simon derrick from bny melon.et's talk about the moves this morning in the currency market dollar not doing too much. it was up a quarter percent yesterday. it is moving against the yen today. what's happening there >> it's fascinating watching dollar/yen over the last 48 hours. this is the class independentedy indicator of sentiment dollar/yen we're trading at the highs for the last couple of days 112.75, 112.80 that suggests maybe sentiment is turning a bit. >> from negative to positive >> absolutely. it did well during the asian session. like that rally you saw on the shanghai composite on the back of this talk of some support for the market from the securities regulator. that's interesting to me the bad news is coming in, it is not hitting the dollar, it's not helping the yen. it's not the only place you're seeing that shift in sentiment look at treasury yields. tresh treasury yields barely moved yesterday. so maybe we're getting early indication of after three, four weeks of incredibly bad news for markets, p

joining us now is simon derrick, chief markets strategist, bank of new york mellon.the economy, it is hard to say. good news for mike evans but not so great about the uk or global economy. aye evans were not looking too great in terms of financial help. you can buy lots of cycles online and that was biting a piece of the pie for them as well. let‘s move on to the pound which has been low today, even against the euro. you are absolutely right to highlight the issue about the bad numbers. we had third—quarter gdp numbers for the eurozone which were in bad shape. sterling continued to move low. easy to think that might be about the reaction to the budget yesterday. reality is that sterling has been moving steadily and lower. we feel what the market is saying is the uncertainty about the brexit outcome which is weighing on sentiment. here we are at the end of october and still no actual firm deal in sight. suddenly people are realising the clock is ticking down. it is that more than anything else which is starting to way. brexit overshadowing what has been called the giv