Five Things You Need to Know to Start Your Day
Five Things You Need to Know to Start Your Day
(Bloomberg) --
Good morning. Tensions between the U.S. and Iran are bubbling, Boris Johnson has his opponent for the final round and gold prices are surging. Here’s what’s moving markets.
`Loose and Stupid’
U.S. President Donald Trump doesn't think Iran intentionally shot down a U.S. drone and that instead, the country made a “very bad mistake” possibly caused by a “loose and stupid” individual. Senators in the U.S. are looking into whether presidents have overstepped their authority in declaring war, and reports suggest Trump only pulled back on air strikes on Iran at the eleventh hour. Keep an eye on oil markets too, already coping with supply concerns and economic worries, if tensions in the Persian Gulf get worse given a third of the world’s oil comes from the area.
Two Remain
Two enter. One will emerge victorious. Boris Johnson’s place in the final pair of candidates to become the new leader of the U.K.’s Conservative Party has been a near-given since the race began. He’ll face off against Foreign Secretary Jeremy Hunt, who just pipped Michael Gove to make the run-off. Now the campaign and the vetting of the candidates will begin, with questions likely to be raised about second referendums, hard Brexits and, of course, general elections. All after the Bank of England said fears about a no-deal exit in the market are rising, out of sync with the bank’s assumptions.
All That Glitters
Gold’s position as the safe haven of choice appears assured. In a week when central banks have turned even more dovish, economic sentiment has deteriorated and geopolitical tensions worldwide have risen, gold prices are going through the roof. Futures surpassed the $1,400 per ounce mark and are likely to provide some more support to gold miners when trading opens up in Europe and in South Africa.
Dog Fight
The Paris Air Show closed out with a set up for the next stage in the eternal battle for jet supremacy between Airbus SE and Boeing Co. Boeing, having come into the show under pressure to restore its reputation after the grounding of the 737 Max, scored the deal of the show with its $24 billion order from International Consolidated Airlines Group SA. Now, Airbus says it never got a request for proposals from IAG, currently an Airbus-only carrier. So, it plans to make a rival bid. Watch this space.
Coming Up...
Asian stocks were mixed on Friday but headed for the biggest weekly gain since January as investors embrace a more dovish central banking tone. The S&P 500 closed at a record high overnight. Oil prices pared advances after the report Trump had u-turned on Iranian air strikes. Euro-area PMI data will be due and, like all economic data from Europe right now, will be closely scrutinized for areas of weakness.
What We’ve Been Reading
This is what’s caught our eye over the past 24 hours.
- The firm charging staff to use conference rooms.
- Deal hunters head to the world’s happiest nation.
- Colombia is trying to appease the U.S. as cocaine production booms.
- Legendary rock riffs are up for grabs.
- The man building the Tesla of Thailand.
- Ladurée macarons are going vegan.
- A Norwegian city wants to get rid of clocks.
To contact the editor responsible for this story: Phil Serafino at pserafino@bloomberg.net
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