“,”elementId”:”4ea6941a-0952-47d3-9067-fd288ca9e994″},{“_type”:”model.dotcomrendering.pageElements.TweetBlockElement”,”html”:”
Big fall in gilt yields this morning when the market opened.
Implied interest rate on 10yr UK govt bond down from 4.1% to 3.8% pic.twitter.com/8JPycD3xob— Ed Conway (@EdConwaySky) October 24, 2022
n”,”url”:”https://twitter.com/EdConwaySky/status/1584442271172173826″,”id”:”1584442271172173826″,”hasMedia”:false,”role”:”inline”,”isThirdPartyTracking”:false,”source”:”Twitter”,”elementId”:”c8714c23-fdd0-49b0-a668-e3a8c94822d6″}],”attributes”:{“pinned”:false,”keyEvent”:true,”summary”:false},”blockCreatedOn”:1666595398000,”blockCreatedOnDisplay”:”03.09 EDT”,”blockLastUpdated”:1666595560000,”blockLastUpdatedDisplay”:”03.12 EDT”,”blockFirstPublished”:1666595560000,”blockFirstPublishedDisplay”:”03.12 EDT”,”blockFirstPublishedDisplayNoTimezone”:”03.12″,”title”:”UK bond yields fall further, falling below 4%”,”contributors”:[],”primaryDateLine”:”Mon 24 Oct 2022 03.29 EDT”,”secondaryDateLine”:”First published on Mon 24 Oct 2022 02.57 EDT”},{“id”:”6356381c8f08855c22ca5dce”,”elements”:[{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
UK stocks are following the pound’s lead.
“,”elementId”:”226acdae-14e6-4166-9ee4-ec577f72de66″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
The FTSE 100 is up 0.3% at 6995 points.
“,”elementId”:”aeb97d32-87ac-4d66-a942-83644512522b”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
The rise is being led by UK banks including Barclays, NatWest and Lloyds.
“,”elementId”:”cc6b94ae-42a2-455b-8eca-d9d47ead45a0″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
Shares in the lenders, which are all set to report third quarter results this week, have been falling in recent weeks amid fears over economic stability across the UK. It seems investors are taking comfort that the leadership race could turn a page and leave recent chaos behind.
“,”elementId”:”55a2b5de-1623-4b56-b301-da6545c15e1a”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
Probably doesn’t hurt that former banker Sunak is also well-known ally to the City.
“,”elementId”:”dea30861-2cd6-4f56-859f-b19801da8d51″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
Across Europe:
“,”elementId”:”cb513eca-8523-4352-b5c6-c4d54f9a4eaa”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
- n
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Germany’s Dax is up 1.1%
-
France’s Cac 40 is up 0.7%
-
Spain’s Ibex is up 1.1%
n
n
n
“,”elementId”:”4c128f1c-7201-4e8a-89d3-ab98ed786d8d”}],”attributes”:{“pinned”:false,”keyEvent”:true,”summary”:false},”blockCreatedOn”:1666594844000,”blockCreatedOnDisplay”:”03.00 EDT”,”blockLastUpdated”:1666595345000,”blockLastUpdatedDisplay”:”03.09 EDT”,”blockFirstPublished”:1666595345000,”blockFirstPublishedDisplay”:”03.09 EDT”,”blockFirstPublishedDisplayNoTimezone”:”03.09″,”title”:”UK stocks rise as markets open ahead of leadership race deadline”,”contributors”:[],”primaryDateLine”:”Mon 24 Oct 2022 03.29 EDT”,”secondaryDateLine”:”First published on Mon 24 Oct 2022 02.57 EDT”},{“id”:”635628fc8f08ff8bc54cf87f”,”elements”:[{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
Good morning, and welcome to our rolling coverage of business, the world economy and the financial markets.
“,”elementId”:”6243ba5c-4468-4e6d-b628-788416f3a9d0″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
The deadline for the Conservative leadership – and the UK’s next prime minister – are looming, and markets are taking note.
“,”elementId”:”f8db22b8-83a7-4d05-958c-acdfd415d711″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
With Boris Johnson pulling out of the race, and Penny Mordaunt still reportedly struggling to push past the nominations hurdle that requires the backing of 100 MPs, Sunak is said to be in pole position to take the top job at Number 10.
“,”elementId”:”2b4ce406-2ffa-408f-9666-36ae76f955dd”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
In fact, the prospect of former chancellor Rishi Sunak taking the reins is being welcomed by markets, pushing the pound up 0.4% against the US dollar to $1.13 and 0.6% against the euro to around €1.15.
“,”elementId”:”7130bd4f-ac1d-45b8-892e-4c52362e1890″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
As Naeem Aslam, chief market analyst of AvaTrade explains:
“,”elementId”:”37b95e22-847c-4ec3-91d7-871c0e789e7a”},{“_type”:”model.dotcomrendering.pageElements.BlockquoteBlockElement”,”html”:”
n
In the UK, the focus continues to remain on the chaos which is taking place in the UK’s government. Because Boris Johnson understood that his chances of winning the support of the Conservative Party were thin, Rishi Sunak became the favourite among bookies to lead the way out of its misery.
n
Sterling is likely to build more strength as Sunak is a person who comes from the finance department, and as an ex-finance minister, he knows what the country needs without harming its reputation in front of the IMF and others. All eyes are going to remain on sterling and gilts.
n
“,”elementId”:”20e40e4d-a800-4fcd-ba17-26b51429d901″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
UK bond markets have also calmed in recent days, and yields have cooled, sitting at around 4% for both 10-year and 30-year gilts.
“,”elementId”:”19a4c376-d1db-412d-9562-2907babacaa6″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
We’ll keep an eye on markets as the day unfolds, and as we head towards the 2pm deadline for leadership nominations.
“,”elementId”:”1ba8a462-b2ff-41f6-9912-98dfa261a6c6″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
Meanwhile, in China, third quarter GDP came in stronger than expected, with growth of 3.9% compared to a year earlier. The increase was down to more flexible Covid restrictions following a lengthy lockdown in Shanghai between March and May.
“,”elementId”:”a202fdc5-318e-4d8d-b810-6ac2d352100f”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
That GDP figure was better than expected, with economists forecasting 3.3% for the quarter. But it still fell short of official government targets of 5.5%, as the economy continued to battle disruption from local lockdowns linked to the country’s zero-Covid policy.
“,”elementId”:”8c10191a-0426-41e8-9944-a8bd95d2988b”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
More economic data to come, of course, but this time it’s PMIs from the Eurozone, UK and US today.
“,”elementId”:”f4b34311-5a39-46d2-af33-d92e9fc819a8″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
Stay tuned!
“,”elementId”:”29df8fd4-6fd3-4c71-8f80-7c895527edfc”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
The Agenda
“,”elementId”:”64005c31-7772-4f8a-81be-04e98af8623d”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
- n
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9am BST: Flash PMIs Eurozone manufacturing and services sectors
-
9:30am BST: Flash PMIs for UK’s manufacturing and services sectors
-
2:45pm BST: Flash PMIs for US manufacturing and services sectors
n
n
n
“,”elementId”:”e601b788-9b50-4e11-885f-2be223b422fb”}],”attributes”:{“pinned”:false,”keyEvent”:true,”summary”:false},”blockCreatedOn”:1666594664000,”blockCreatedOnDisplay”:”02.57 EDT”,”blockLastUpdated”:1666595750000,”blockLastUpdatedDisplay”:”03.15 EDT”,”blockFirstPublished”:1666594664000,”blockFirstPublishedDisplay”:”02.57 EDT”,”blockFirstPublishedDisplayNoTimezone”:”02.57″,”title”:”Introduction: Sterling on the rise as Sunak strides towards Number 10 Downing Street”,”contributors”:[],”primaryDateLine”:”Mon 24 Oct 2022 03.29 EDT”,”secondaryDateLine”:”First published on Mon 24 Oct 2022 02.57 EDT”}],”filterKeyEvents”:false,”format”:{“display”:0,”theme”:0,”design”:10},”id”:”key-events-carousel-mobile”}”>
important event
“,”elementId”:”4ea6941a-0952-47d3-9067-fd288ca9e994″},{“_type”:”model.dotcomrendering.pageElements.TweetBlockElement”,”html”:”
Big fall in gilt yields this morning when the market opened.
Implied interest rate on 10yr UK govt bond down from 4.1% to 3.8% pic.twitter.com/8JPycD3xob— Ed Conway (@EdConwaySky) October 24, 2022
n”,”url”:”https://twitter.com/EdConwaySky/status/1584442271172173826″,”id”:”1584442271172173826″,”hasMedia”:false,”role”:”inline”,”isThirdPartyTracking”:false,”source”:”Twitter”,”elementId”:”c8714c23-fdd0-49b0-a668-e3a8c94822d6″}],”attributes”:{“pinned”:false,”keyEvent”:true,”summary”:false},”blockCreatedOn”:1666595398000,”blockCreatedOnDisplay”:”03.09 EDT”,”blockLastUpdated”:1666595560000,”blockLastUpdatedDisplay”:”03.12 EDT”,”blockFirstPublished”:1666595560000,”blockFirstPublishedDisplay”:”03.12 EDT”,”blockFirstPublishedDisplayNoTimezone”:”03.12″,”title”:”UK bond yields fall further, falling below 4%”,”contributors”:[],”primaryDateLine”:”Mon 24 Oct 2022 03.29 EDT”,”secondaryDateLine”:”First published on Mon 24 Oct 2022 02.57 EDT”},{“id”:”6356381c8f08855c22ca5dce”,”elements”:[{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
UK stocks are following the pound’s lead.
“,”elementId”:”226acdae-14e6-4166-9ee4-ec577f72de66″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
The FTSE 100 is up 0.3% at 6995 points.
“,”elementId”:”aeb97d32-87ac-4d66-a942-83644512522b”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
The rise is being led by UK banks including Barclays, NatWest and Lloyds.
“,”elementId”:”cc6b94ae-42a2-455b-8eca-d9d47ead45a0″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
Shares in the lenders, which are all set to report third quarter results this week, have been falling in recent weeks amid fears over economic stability across the UK. It seems investors are taking comfort that the leadership race could turn a page and leave recent chaos behind.
“,”elementId”:”55a2b5de-1623-4b56-b301-da6545c15e1a”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
Probably doesn’t hurt that former banker Sunak is also well-known ally to the City.
“,”elementId”:”dea30861-2cd6-4f56-859f-b19801da8d51″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
Across Europe:
“,”elementId”:”cb513eca-8523-4352-b5c6-c4d54f9a4eaa”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
- n
-
Germany’s Dax is up 1.1%
-
France’s Cac 40 is up 0.7%
-
Spain’s Ibex is up 1.1%
n
n
n
“,”elementId”:”4c128f1c-7201-4e8a-89d3-ab98ed786d8d”}],”attributes”:{“pinned”:false,”keyEvent”:true,”summary”:false},”blockCreatedOn”:1666594844000,”blockCreatedOnDisplay”:”03.00 EDT”,”blockLastUpdated”:1666595345000,”blockLastUpdatedDisplay”:”03.09 EDT”,”blockFirstPublished”:1666595345000,”blockFirstPublishedDisplay”:”03.09 EDT”,”blockFirstPublishedDisplayNoTimezone”:”03.09″,”title”:”UK stocks rise as markets open ahead of leadership race deadline”,”contributors”:[],”primaryDateLine”:”Mon 24 Oct 2022 03.29 EDT”,”secondaryDateLine”:”First published on Mon 24 Oct 2022 02.57 EDT”},{“id”:”635628fc8f08ff8bc54cf87f”,”elements”:[{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
Good morning, and welcome to our rolling coverage of business, the world economy and the financial markets.
“,”elementId”:”6243ba5c-4468-4e6d-b628-788416f3a9d0″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
The deadline for the Conservative leadership – and the UK’s next prime minister – are looming, and markets are taking note.
“,”elementId”:”f8db22b8-83a7-4d05-958c-acdfd415d711″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
With Boris Johnson pulling out of the race, and Penny Mordaunt still reportedly struggling to push past the nominations hurdle that requires the backing of 100 MPs, Sunak is said to be in pole position to take the top job at Number 10.
“,”elementId”:”2b4ce406-2ffa-408f-9666-36ae76f955dd”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
In fact, the prospect of former chancellor Rishi Sunak taking the reins is being welcomed by markets, pushing the pound up 0.4% against the US dollar to $1.13 and 0.6% against the euro to around €1.15.
“,”elementId”:”7130bd4f-ac1d-45b8-892e-4c52362e1890″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
As Naeem Aslam, chief market analyst of AvaTrade explains:
“,”elementId”:”37b95e22-847c-4ec3-91d7-871c0e789e7a”},{“_type”:”model.dotcomrendering.pageElements.BlockquoteBlockElement”,”html”:”
n
In the UK, the focus continues to remain on the chaos which is taking place in the UK’s government. Because Boris Johnson understood that his chances of winning the support of the Conservative Party were thin, Rishi Sunak became the favourite among bookies to lead the way out of its misery.
n
Sterling is likely to build more strength as Sunak is a person who comes from the finance department, and as an ex-finance minister, he knows what the country needs without harming its reputation in front of the IMF and others. All eyes are going to remain on sterling and gilts.
n
“,”elementId”:”20e40e4d-a800-4fcd-ba17-26b51429d901″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
UK bond markets have also calmed in recent days, and yields have cooled, sitting at around 4% for both 10-year and 30-year gilts.
“,”elementId”:”19a4c376-d1db-412d-9562-2907babacaa6″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
We’ll keep an eye on markets as the day unfolds, and as we head towards the 2pm deadline for leadership nominations.
“,”elementId”:”1ba8a462-b2ff-41f6-9912-98dfa261a6c6″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
Meanwhile, in China, third quarter GDP came in stronger than expected, with growth of 3.9% compared to a year earlier. The increase was down to more flexible Covid restrictions following a lengthy lockdown in Shanghai between March and May.
“,”elementId”:”a202fdc5-318e-4d8d-b810-6ac2d352100f”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
That GDP figure was better than expected, with economists forecasting 3.3% for the quarter. But it still fell short of official government targets of 5.5%, as the economy continued to battle disruption from local lockdowns linked to the country’s zero-Covid policy.
“,”elementId”:”8c10191a-0426-41e8-9944-a8bd95d2988b”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
More economic data to come, of course, but this time it’s PMIs from the Eurozone, UK and US today.
“,”elementId”:”f4b34311-5a39-46d2-af33-d92e9fc819a8″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
Stay tuned!
“,”elementId”:”29df8fd4-6fd3-4c71-8f80-7c895527edfc”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
The Agenda
“,”elementId”:”64005c31-7772-4f8a-81be-04e98af8623d”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
- n
-
9am BST: Flash PMIs Eurozone manufacturing and services sectors
-
9:30am BST: Flash PMIs for UK’s manufacturing and services sectors
-
2:45pm BST: Flash PMIs for US manufacturing and services sectors
n
n
n
“,”elementId”:”e601b788-9b50-4e11-885f-2be223b422fb”}],”attributes”:{“pinned”:false,”keyEvent”:true,”summary”:false},”blockCreatedOn”:1666594664000,”blockCreatedOnDisplay”:”02.57 EDT”,”blockLastUpdated”:1666595750000,”blockLastUpdatedDisplay”:”03.15 EDT”,”blockFirstPublished”:1666594664000,”blockFirstPublishedDisplay”:”02.57 EDT”,”blockFirstPublishedDisplayNoTimezone”:”02.57″,”title”:”Introduction: Sterling on the rise as Sunak strides towards Number 10 Downing Street”,”contributors”:[],”primaryDateLine”:”Mon 24 Oct 2022 03.29 EDT”,”secondaryDateLine”:”First published on Mon 24 Oct 2022 02.57 EDT”}],”filterKeyEvents”:false,”id”:”key-events-carousel-mobile”}”>
filter beta
As Sunak neared number 10, he received a call from Tory backer and billionaire businessman Guy Hands to either renegotiate Brexit or give the UK economy “frankly doomed”. You are warned to face it.
These comments came to BBC Radio 4’s Today programme, and were elaborated on by my colleague Joanna Partridge.
The founder and chairman of private equity firm Terra Firma said Conservatives “need to start acknowledging some of the mistakes they’ve made over the past six years. Europe.”
Mr Hands said Prime Minister Liz Truss had tried to follow a “dream” of Brexit and a “low tax, low benefit economy”, but added that this was “clearly unacceptable to the British public”.
“Accepting that it can’t really be done, a Brexit that has been done will be completely hopeless and will only drive the UK into an economic disaster,” Hands said.
On the day Rishi Sunak is expected to become Britain’s third prime minister-elect in two months, Hands called for a Conservative leader with “the intellectual capacity and authority to renegotiate Brexit” and turn the economy around. .
“Without it, the economy is frankly doomed,” Hands said.
Full story that follows.
Sky News’ Ed Conway says interest rate expectations are headed for levels not seen since the government set a disastrous mini-budget under former prime minister Kwasi Kwarteng (remember him?). pointing out.
Gosh
As of this morning, money markets are pricing in @bankofengland interest rates of (just) under 5% next year.
That’s the lowest expected peak I’ve seen since the mini-budget.
A few weeks ago the peak on this curve was up above 6%… pic.twitter.com/1LvpnsgXSb
— Ed Conway (@EdConwaySky) October 24, 2022
n”,”url”:”https://twitter.com/EdConwaySky/status/1584444096613330944″,”id”:”1584444096613330944″,”hasMedia”:false,”role”:”inline”,”isThirdPartyTracking”:false,”source”:”Twitter”,”elementId”:”9229f08a-6f71-4fcf-ad87-36403bf0b585″}}”>
Aw
As of this morning, financial markets are @bankofengland Interest rates next year are (slightly) below 5%.
This is the lowest expected peak I’ve seen since the minibudget.
A few weeks ago this curve peaked at over 6%… pic.twitter.com/1LvpnsgXSb— Ed Conway (@EdConwaySky) October 24, 2022
UK bond yields fall further, below 4%
The UK bond market is also open and yields are also slightly lower, indicating growing confidence in the economy.
Big fall in gilt yields this morning when the market opened.
Implied interest rate on 10yr UK govt bond down from 4.1% to 3.8% pic.twitter.com/8JPycD3xob
— Ed Conway (@EdConwaySky) October 24, 2022
n”,”url”:”https://twitter.com/EdConwaySky/status/1584442271172173826″,”id”:”1584442271172173826″,”hasMedia”:false,”role”:”inline”,”isThirdPartyTracking”:false,”source”:”Twitter”,”elementId”:”af408b19-8b62-4527-bb05-ca9f08ec741c”}}”/>
UK stocks rise as markets open ahead of leadership race deadline
UK stocks follow the pound’s lead.
The FTSE 100 is up 0.3% with 6995 points.
The rise is led by British banks such as Barclays, NatWest and Lloyd’s.
Lender shares, which are due to report third quarter results this week, have fallen in recent weeks amid concerns over economic stability across the UK. Investors seem relieved that the leadership race could turn the page and leave the recent turmoil behind.
It probably doesn’t hurt that ex-banker Sunak is famous for being the City’s ally.
All Europe:
-
German Dachs gains 1.1%
-
French Cac 40 up 0.7%
-
Spain’s Ibex rises 1.1%
Introduction: Starling rising as Sunak paces towards 10 Downing Street
good morning. Welcome to our rolling coverage of business, the global economy, and financial markets.
The term of the Conservative leader and Britain’s next prime minister is approaching, and markets are watching.
With Boris Johnson withdrawing from the race and Penny Mordaunt reportedly still struggling to get over the nomination hurdle requiring the support of 100 congressmen, Sunak tops the job at number 10 is said to be in pole position to obtain
Indeed, the prospect of former Prime Minister Rishi Sunak taking the lead has been welcomed by markets, with the pound rising 0.4% against the US dollar to $1.13 and 0.6% against the euro to around €1.15. became.
AvaTrade Chief Market Analyst Naeem Aslam explains:
In the UK, the focus remains on the turmoil taking place in the UK government. Boris Johnson understood that he was unlikely to win the support of the Conservative Party, so Rishi Sunak became popular among bookmakers as a leader to get out of that misery.
Sterling, coming from the Treasury Department and as a former finance minister, could be stronger because he knows what the country needs without tarnishing his reputation in front of the IMF and others. . All eyes will be on sterling and gold leaf.
The UK bond market has also been subdued in recent days, with yields falling, hovering around 4% for both 10- and 30-year bonds.
We’ll keep an eye on the market as the day unfolds and the deadline for leadership nominations at 2pm.
Meanwhile, China’s third-quarter GDP was better than expected, growing 3.9% year-on-year. The increase is due to more flexible Covid restrictions following a lengthy lockdown in Shanghai from March to May.
The GDP figure is better than expected, with economists forecasting 3.3% for the quarter. However, it is still short of the government’s official target of 5.5%. The economy continues to battle disruptions from local lockdowns linked to the country’s zero Covid policy.
Of course, more economic data is coming, but this time it’s today’s Eurozone, UK and US PMIs.
stay tuned!
agenda
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09:00 BST: Flash PMI Eurozone Manufacturing and Services Sectors
-
9:30am BST: UK Manufacturing and Services Flash PMI
-
2:45pm BST: US manufacturing and services sector flash PMI
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