 brought to bring in Jonathan Sheridan. He's joining us from fake security. So let's talk about this global rates environment. Good afternoon to you by the way. Good afternoon Nadine. I guess we could start by talking about the Bank of England. Surprise many in the marketplace by not cutting rates. Obviously it's a judgment call at the end, but the BOE clearly sees the risks to the downside, to the economy in the wake of this British exit from the European Union. So was it just a matter of them waiting to see more economic data before that August meeting that kept them on the sidelines? Look I think that as you say it was a surprise and I do agree with you that they see downside to the economy, but the positive thing about the announcement was that in the Bank of England's opinion that markets are functioning normally so there was no liquidity crunch. You know the currency performed as expected when you know it's sold off about 10% and then it's come back a little bit since then. So you know that financial stability is one of the key things that central banks look at and when markets are functioning efficiently then you know outside of the broader economic effects that they like then they're obviously in this case in particular not keen to change policy settings when markets are functioning as they expect. And then you have what's happening in the US. It seems as if the US Federal Reserve can always find a reason to hold. Perhaps some would say there will always be something out in the marketplace to keep you on the sidelines you know to say don't do it don't do it just yet. But when you look at what's happening in the US in terms of economic data and now if we can go by Alcoa and JP Morgan company profits it certainly seems as if the reasons for waiting are decreasing in the US. Is that how you see that equation? Yeah look I mean the earning season is interesting. The actual consensus expectations have been managed down very successfully by the companies and then you know they're all attempting to beat that. JP Morgan for example did beat expectations by recording only a 1.8% fall in earnings. You know so it's the seventh consecutive earnings season where average earnings have fallen and yet we're seeing stock prices at record highs. So there's this interesting divergence in markets at the moment where bond markets are making record lows in yields and stock markets are making record highs. One of them's got to be wrong and you know given earnings are falling we're not seeing inflation pressures you know even in the really strong payrolls number we had last week there was no real wage growth and that translates into no real inflation. I think that the bond markets are going to be proved correct in this instance. Yeah interesting. So all of this hunt for yield I mentioned the German the Japan situation when it comes to yields is pushing a lot of people into perhaps more riskier corporate debt. Now we continue to see strong flow into Newcastle Coal I believe for example could you give us the details on that one tell us how much it's paying and structurally I guess where the risks are. Yeah absolutely. So particularly with the currency at elevated levels against the US dollar this is a good bond for our clients it seems they are continuing as you say to chase yield. It's the Newcastle Coal Terminal so you know Coal's been back in favour in the last month or so we had a Morgan Stanley report saying that at least in the near term the future of coal looks pretty bright with supply and weather curtailments coming from China in their domestic coal production so this bond it yields 11.3% over the next 11 years to the first call. It's a typically longer dated bond from an infrastructure asset although your security position is not fantastic you are what's called structurally subordinated so we're lending to the holding company of the group. That's partly what the reason for that extraordinarily high yield. I think what's attracting our clients to it is that even if there was an issue and they would be in a relatively low recovery position that's a very good equity kind of return in something that is obligated to pay you a coupon. So you know your returns are not variable they're locked in and you know if things go well then 11.3 is an exceptionally strong return in this environment. Oh certainly is double digit that's pretty exceptional in this environment and we're told it's going to be remaining that way for some time. What else are you watching as we head toward the close of the session and we go closer to the start of the UK and the US sessions just briefly. Yeah look I mean your point about the currency was interesting it's you know it's popped up on some good Chinese data. I think our view on the currency is that as you mentioned you know our 10 year bond for example is yielding nearly 50 basis points more than the US 10 year bond really we're just you know if you've got global capital flows we're just a spread to everything else and that spread is positively in our favor at the moment so there's a huge weight of money coming into our bond market to pick up that extra 50 basis points compared to the US and you know almost nearly 2% compared to those other negative yielding bond markets so I think that's pushing our currency higher and it'll be interesting to see how high it does go. Yeah absolutely okay interesting times Jonathan Sheridan pleasure to have you here for them. Jonathan is joining us from fake securities and it's time.