Five Things You Need to Know to Start Your Day
Five Things You Need to Know to Start Your Day
(Bloomberg) --
Good morning. Tensions are escalating in Syria, stocks got a boost from Friday’s partial U.S.-China trade deal and the U.K.’s Brexit deal prospects have run into trouble. Here’s what’s moving markets.
Syria-Turkey Escalation
Tensions are rising in the middle east as Syrian President Bashar al-Assad sent troops to his country’s northeast in response to a Turkish offensive after Kurdish fighters turned to Damascus in the absence of U.S. support. European Union leaders may decide on an arms embargo on Turkey over its incursion into Syria as soon as next week, said officials familiar with the discussions, while President Donald Trump said the U.S. is “ready to go” with more sanctions on Turkey. Here’s why all this matters. The lira is steady after weakening Friday.
Trade Questions
The U.S. and China agreed Friday on outlines of a partial trade accord that President Donald Trump said he and his counterpart Xi Jinping could sign as soon as next month. But while the outlook was further aided by China agreeing to more than double its annual purchases of American agricultural products to as much as $50 billion, the latest agreement leaves more questions than answers for many. China’s exports and imports shrank more than expected in September, but Asian stocks are higher on Monday. In Europe, the next few days could be key to determining whether recent optimism has been warranted.
Brexit Stumble
U.K. Prime Minister Boris Johnson’s attempt to secure a Brexit deal ran into trouble after the European Union warned the talks were still a long way from a breakthrough and some of his political allies distanced themselves from his plans. The pound edged lower this morning and, with Brand Britannia on the decline, Brexit-exposed stocks will likely be in focus again today. High street banks Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc both surged on Friday, with the former recording its biggest one-day rise for a decade, up about 14%. Here’s some possible Brexit deal equity winners.
Japan Cleans Up
Clean-up operations are underway in Japan in the wake of the most powerful typhoon to hit the country in decades, which left at least 40 people dead, more than 180 people injured and 16 missing. Insurance claims could reach $5 billion, according to Bloomberg Intelligence. While some Rugby World Cup games — including England versus France — were cancelled over the weekend, a closely watched contest between Japan and Scotland went ahead, dealing a blow to bookmakers, as the host country unexpectedly advanced.
Coming Up...
Industrial production numbers for the euro area will be released later, and ahead of the International Monetary Fund meeting that begins this week, Bloomberg looks at how likely a global recession might be. Here’s what else economists are watching this week, and speaking of economists, these are some of the frontrunners for the Nobel Prize that’s due to be awarded later.
What We’ve Been Reading
This is what’s caught our eye over the weekend.
- Now there’s a degree for aspiring influencers.
- Is Kim Jong Un hiding a hog-ocalypse?
- Russia bombs Syrian hospitals, NY Times says.
- When a vacuum company tries to make an electric car.
- Polish nationalists signal Orban’s Budapest loss is no big deal.
- Mysterious 500% rally in this stock creates a new billionaire.
- Creator of “Neighbours,” Australia’s legendary soap opera, dies at 93.
To contact the editor responsible for this story: Celeste Perri at cperri@bloomberg.net
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