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This is this Imus in the morning.
On the part of the.
-- every well let's take a look at global markets now what are all reaction to a decision by the Chinese Central Bank to cut.
It's basic interest rate taking a look at US because they were apparently sharply after we announced the news you can -- -- it is now up.
Yes and he's up by ten points the -- up by seventeen again China cut it interest rates.
By point 25 percentage points.
Over in -- you can see that -- also had stocks up the Bank of England is staying the course on interest rates unlike the Chinese bank keeping them unchanged.
And half of 1% -- markets there are paying closer attention to that news out of China now.
Again London Paris and Frankfurt all up.
For more on that Chinese rate cut now and the rest of the Asian markets let's go over -- -- on Mars.
Who joins us live now from Beijing -- -- And -- and not -- bad news about interest rate cut -- just an hour ago.
-- -- they would have big surprise because although there was speculation earlier this week that the Chinese Government would cut interest rate.
Most analysts actually didn't think that an interest rate cut would happen this year they thought a triple are -- with more likely because they -- -- -- says.
More liquidity into the economy the diet isn't like pretty big and then of the biggest move yet by Chinese policy -- to call back as blowing it.
Bought me a slowing economy the world's big -- world's second largest one that.
There's a lot of concern that rising up about so yeah this is a very big move edit -- the timing evidence pretty kissing diet because it comes just two days before the weekend and on Saturday morning -- we get the inflation -- -- which is expected to come in at about 3.2 percent.
Most analysts had that it would need to drop below the 3% before we could get an interest rate public -- -- -- -- other data out on Saturday morning.
Including factory output growth and retail sales.
So do you what do you think the morning right now Diane is how does not data gonna look at that they.
Policy makers here in the mainland cut interest rate.
How to do that so will -- wait and Steve but -- optimism that global equities around the world are seeing from -- -- backseat and.
-- -- injuries fairly well and we're -- we'll have all the details that's on those numbers.
When you come back after the weekend thanks so much.
Now let's sit back over -- you're at and see how markets there are reacting to all this markets dot com chief economist bill -- -- Over lending is joining us now with his analysis and bill I wanna get to the Chinese rate at.
First I want capital -- that Germany U officials.
Yeah do you work now what sounds like a battle out for Spain's banking sector but.
They say unlike the Greek and Portuguese bailouts this one won't be loaded with conditions what are the chances they go through with this in isn't a good idea.
Well I have no choice -- I mean let's go back 75 years ago when John Kenneth Gilbert made that comment.
If you borrow a dollar from the bank the bank -- -- you borrow a million dollars from the bank.
If you own the bank and as we see right now we've all -- Greece was -- -- differently than Spain or Italy and they ought to.
Launched a fail so it's quite -- think the market positive feeling that.
Angela Merkel now it's starting to come off for -- -- would see it there will be a bailout and the key thing here it has to be done within the Euro zone because.
External factors to US Russia China Japan they do not monetary.
Come through the IMS.
But -- the bank lends you money bill that money comes with conditions this whole idea of trying to boost confidence by not putting conditions on its money.
-- about that.
Well I think there will be some conditions but as we saw with you know Greece we -- with.
Portugal we saw with Alan it was -- it was and interest rates situation but as we saw with Spain it wasn't a question of what the interest rate was they will quote.
Closed out of the financial market there will be some kind of conditions on this because it's not gonna be free money but the key thing -- he has.
That the Germans are willing to realize this is extremely important for the life.
And endurance of the euros -- All right -- now quickly I wanna touch on this interest rates decision out of China.
How do you think investors should be playing that we see -- up in the US and in Europe are they being too optimistic about this.
Not at all because I was expecting this 25 basis point cut my only surprise is I was expecting it over the weekend rather than today but I mean it's just a situation where we've seen from the Chinese we've probably gonna get a Zardari -- comment out of Bernanke this afternoon I think the ECB yesterday -- would again.
I am expecting the bank -- that.
Probably in the -- -- you go -- the inflation report probably -- as much as 50 1000000000 and I am expecting the ECB possibly right after the Greek elections probably to drop rates another 25 basis.
It's our right many predictions there from bill my -- if you're right thanks so much for being on.
The figure could look at commodities now oil and -- to -- -- -- gold is down and I -- is coming up right now.
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