Five Things You Need to Know to Start Your Day
Good morning. Asian stocks started the new quarter in the green, the Conservative Party awaits the next Brexit plan and China celebrates its 70th anniversary. Here’s what’s moving markets.
U.K. Prime Minister Boris Johnson will unveil his detailed Brexit plan to EU leaders within the next 24 hours, The Daily Telegraph reported. The reception his plan receives in Brussels and among pro-Brexit members of his ruling Conservative Party will determine whether there is any hope of securing an orderly exit for the U.K. by the end of this month. If he can't do that, he'll have to either force the country out of the U.K. with no deal – something his opponents in Parliament have moved to stop – or seek another delay to Brexit, breaking his previous pledge to deliver the divorce on time, no matter what. And any potential deal he does reach would need to pass through parliament -- something his predecessor, Theresa May, tried and failed to do, three times.
Chinese President Xi Jinping marked the 70th anniversary of the People’s Republic of China by declaring that no force could stop the nation’s rise, as it faces unprecedented challenges from the trade war. The country’s markets are closed for a holiday through Oct. 7. Another country concerned about the tariff saga is Australia, a key supplier of base metals to China. Its central bank cut its main rate overnight, saying it’s prepared to ease further if needed, sending the Aussie dollar lower. These are the currencies you should watch if a trade deal miraculously appears.
Credit Suisse Probe
The drama at Credit Suisse Group AG continues amid news the bank hired detectives to follow a former top executive over fears he would poach employees after moving to UBS Group AG. This morning, the bank said an investigation by a law firm found no indication that Chief Executive Tidjane Thiam had approved the observation of the star employee and Chief Operating Officer Pierre-Olivier Bouee has resigned after saying he alone initiated observation of Iqbal Khan. There were also reports that a contractor involved in the episode has died.
Green Start to Quarter
Asian stocks kicked off a new quarter with a rise after gains in the U.S. overnight, and futures on the S&P 500 Index pushed higher. JPMorgan strategists switched their preference to European shares from the U.S. yesterday, citing a relative under-performance over the past 18 months. Oil edged higher after its biggest quarterly drop this year, as investors ponder Saudi Arabia’s quick recovery from attacks last month versus a resumption in U.S.-China trade negotiations coming up next week.
A preliminary reading of euro area inflation is due later, of note for European Central Bank hawk Jens Weidmann, who’s scheduled to speak today. A couple of Federal Reserve board members are also on the slate, and elsewhere, U.K. nationwide housing numbers are due to be released, as is a quarterly trading update from Greggs Plc, following some concern a few months back that the buzz around vegan sausage rolls might been nearing an end.
What We’ve Been Reading
This is what’s caught our eye over the past 24 hours.
- Super yacht-maker valued at $1.2 billion in IPO.
- Putin could decide future of genetically modified babies.
- Fugitive found after 17 years, in a cave.
- Did anyone really like kale anyway?
- Munich is city most likely to face property bubble.
- World’s largest insurance market goes online.
- China’s missing pigs reveal trouble tracking animals.
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