(Bloomberg) --
Good morning. A couple of big U.S. tech companies had mixed quarters, Boris Johnson got his first big knock-back as British leader, Iran tensions aren’t disappearing and Mario Draghi is shouting for help. Here’s what’s moving markets.
Tech Fortunes
Last night was one of mixed fortunes for big tech. Google-parent Alphabet Inc. jumped after hours after reporting revenue that beat expectations, along with a plan to repurchase $25 billion of stock, the biggest buyback in its history. Meanwhile, Intel Corp. agreed to sell the majority of its smartphone-chip business to Apple Inc. in a deal d at $1 billion, while beating on second-quarter profit. The downside surprise came from Amazon.com Inc., which said that one-day delivery is more costly and complicated than expected, driving up expenses.
Thanks, But No Thanks
After spending the past few days talking up his hard line approach to Brexit, Boris Johnson’s already been rebuffed by the European Union. The new U.K. prime minister told European Commission President Jean-Claude Juncker by phone that the Withdrawal Agreement would have to change for it to pass Parliament, but Juncker said it was the best and only deal possible. With Johnson looking like he’ll need all the help he can get, here’s a recap of who’s in his band.
Asia Slips, Iran Tests
Asian stocks mostly slipped on Friday, following the U.S. market’s mood, as investors digested corporate results in addition to macroeconomic factors like the ECB meeting. Oil was steady, but set for a weekly increase, with more hawkish news from Iran after the country test-fired a medium-range ballistic missile earlier this week that traveled 1,000 kilometers, according to a CNN report. U.S. Secretary of State Michael Pompeo says he would “happily” go to Iran to speak to its people about the actions of the government.
Louder and Louder
European Central Bank boss Mario Draghi is shouting louder than ever for help with the economy, but still no one is listening. The euro is now back to where it started before the European Central Bank’s policy announcement Thursday, having gained despite Draghi’s comment that the euro area's outlook is becoming “worse and worse” raising the curtain for another round of monetary stimulus as soon as September. Some commentators had expected an even more dovish outlook.
Coming Up...
U.S. second quarter GDP is forecast to grow at its slowest pace since 2016, ahead of an expected rate cut from the Federal Reserve next week. Russia’s central bank is expected to cut its rate on Friday, while also signalling more easing. Swiss consumer goods giant Nestle S.A. reported first-half sales that missed estimates and U.K. telecoms group Vodafone Group Plc updates later.
What We’ve Been Reading
This is what’s caught our eye over the past 24 hours.
- The bonds that eat your money.
- Aston Martin needs a billion pounds to catch up with Ferrari.
- How to make a Spicy Swimsuit.
- Women-only motorcycle rallies are attracting attention from companies.
- A Buffett lunch mystery.
- What’s so special about a Rolex Submariner?
- Saudi Prince’s megacity shows signs of life.
©2019 Bloomberg L.P.
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