Five Things You Need to Know to Start Your Day
Five Things You Need to Know to Start Your Day
(Bloomberg) --
Good morning. All eyes are on the European Central Bank rate decision, the new U.K. cabinet is looking rather Brexity, and Tesla Inc. shares took a bit of a tumble. Here’s what’s moving markets.
Mario’s Move
It’s the main event of the week for lots of traders. The European Central Bank will announce its latest interest rate decision later, and while consensus is for no change, there’s a significant number of outside bets on a cut, and weak manufacturing data from the region on Wednesday only added fuel to the fire. The majority of economists still think today will be used by President Mario Draghi to set the stage for easing in September, and here’s five reasons why they might be right. The euro slipped overnight.
Brexit Flavor
British Prime Minister Boris Johnson swung the axe, clearing out more than half of Theresa May’s cabinet. There’s shiny new jobs for Sajid Javid, named chancellor of the exchequer, Priti Patel, who becomes home secretary, and Dominic Raab, the new foreign secretary. Right-winger Jacob Rees-Mogg becomes Leader of the House of Commons. The new gang, which has a distinctly more hard-Brexit flavor, will catch up later before Johnson sets out his priorities in a statement to the House.
Boeing Pain, Cobham Joy
Boeing Co. suppliers faced more pain overnight after the plane giant warned it will consider slowing, or even temporarily halting, production of the 737 Max if a global flying ban drags on longer than anticipated. The supply chain may be under pressure today, although one stock might be rising, as defense-and-aerospace contractor Cobham Plc is set to be acquired by U.S. buyout firm Advent International Corp. in a deal that would value the company at about 4 billion pounds ($5 billion), including debt, according to the Financial Times.
Different Days
Tesla shares plunged after the electric-car maker delivered a worse-than-expected loss and announced Co-Founder and Chief Technology Officer J.B. Straubel is stepping down from that position. Elon Musk says he’s hoping to earn a profit in the three months ending September, ahead of his China factory starting production. Mark Zuckerberg had a better day, as Facebook Inc.'s business kept growing despite massive regulatory distractions as 1.59 billion of us log into its main social-media service daily.
Coming Up...
It’s another heavy earnings day across the continent, with large-cap companies like Swiss drug-maker Roche Holding AG, Belgian beer giant Anheuser-Busch InBev NV, French oil firm Total SA, and Anglo-Dutch consumer products heavyweight Unilever all on the slate. In economic data, we’ll get a German Ifo business survey and U.S. durable goods and trade balance statistics, and there’s also a Turkish rate decision. In Spain, acting Prime Minister Pedro Sanchez will go to parliament on Thursday to seek its permission to form a government.
What We’ve Been Reading
This is what’s caught our eye over the past 24 hours.
- #NoMarriage movement adds to this country’s woes.
- VIX buying evokes memories of `50 Cent.’
- How hedge funds mine data for consumer habits.
- The old rules for building wealth are obsolete.
- James Bond’s carmaker suffers share plunge.
- The triad gangs linked to Hong Kong protests.
- Polish magazine’s ‘LGBT-free zone’ stickers stoke boycott.
To contact the editor responsible for this story: Celeste Perri at cperri@bloomberg.net
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