Five Things You Need to Know to Start Your Day
Five Things You Need to Know to Start Your Day
(Bloomberg) --
Good morning. The U.S. jobs report is likely to be the focus this afternoon, Boris Johnson has a week to revise his Brexit deal, the FTSE 100 has had a rough four days and the bond market is sending a signal on growth. Here’s what’s moving markets.
Payrolls
It’s nonfarm payrolls Friday, which usually provides the biggest data point of the month. Judging by the macroeconomic statistics released in recent days, there’s not much to look forward to, with every piece of data now holding the prospect of vindication or rebuttal. A U.S. services gauge dropped to a three-year low in September, according to data Thursday, while jobless claims rose more than expected. All that came shortly after a euro-zone report showing a factory slump has spread to services.
Johnson Has a Week
U.K. Prime Minister Boris Johnson was given a week by the European Union to revise his Brexit deal or risk a postponement of the divorce just as support at home for his plan suggested it might get though parliament. The EU’s chief negotiator, Michel Barnier, told senior diplomats that Johnson’s latest blueprint fell far short of his conditions for a deal, three EU officials told Bloomberg. Here’s how Brexit might become a problem for the world economy, and here’s Johnson’s Plan B that could be used to avoid one.
FTSE Falters
The U.K. FTSE 100 is on course for its worst week in 20 months as the combined effect of a stronger pound and growth concerns hit sentiment. Sterling gained on hopes that a no-deal will be avoided, hitting exporters, while the blue chip commodities firms were weighed on by a string of poor macroeconomic data this week. Elsewhere, stocks in Asia were mixed after gains in the U.S. Germany reopens after yesterday’s Unity Day holiday. Oil erased Thursday’s decline overnight and gold traded above $1,500.
Debt Market’s Signal
The world’s biggest government-debt markets are sending a clear signal that global economic growth is stalling and inflation expectations are fading. That message was seen in tumbling yields on Treasuries and German bunds, and other bond-market metrics that demonstrate how investors see no need for extra compensation to load up on long-term debt. At least one person, however, says investors faced with ultra-low yields might still flock to stocks.
Coming Up...
Aside from the U.S. jobs numbers, and waiting for any further updates on Brexit, it’s a light schedule, although Federal Reserve Chairman Jerome Powell speaks after European markets have closed this evening. Keep an eye on Apple suppliers in Europe after a report of a boost in iPhone11 output. Outside of markets, “Joker,” opens in cinemas in the U.S., U.K. and some European countries.
What We’ve Been Reading
This is what’s caught our eye over the past 24 hours.
- Buyout firms roam every corner of the corporate world.
- Banksy painting of MPs as chimpanzees sells for $12.2 million.
- Netflix teams up with Silvio Berlusconi’s Italian broadcaster.
- Instagram launches app for more intimate sharing.
- Radio group sued for playing Bruce Springsteen.
- So you crashed a $3 million car. Now what?
- Socialism can work, if it’s done properly.
To contact the editor responsible for this story: Celeste Perri at cperri@bloomberg.net
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