Five Things You Need to Know to Start Your Day
Five Things You Need to Know to Start Your Day
(Bloomberg) --
Good morning. Coronavirus concerns remain top of the agenda, Ireland’s election appears to have upended the establishment and Angela Merkel’s intended successor is struggling. Here’s what’s moving markets.
Virus Spread
Three European countries have now reported coronavirus infections stemming from a single British man who visited a French ski resort after having been to a conference in China, raising concerns as to how far the illness has spread. Infections on a closely watched Japanese cruise ship are also still rising. The total toll from coronavirus has now topped SARS, too, even if a U.K. study suggests it may be nearing its peak. China says it has spent $4.5 billion to battle the outbreak and the attention will continue to be on how big a toll it will take on the economy.
Responses
Central banks are starting to consider seriously what they may have to do to ease the bruising the outbreak will give to economic growth. U.S. Federal Reserve Chairman Jerome Powell is due to deliver two days of Congressional testimony this week and the damage coronavirus stands to cause the the global outlook is likely to be high on the agenda. Elsewhere, economists are getting creative in the difficult mission of gauging how much damage the store closures, flight cancellations and factory shutdowns will have. And oil will be closely watched amid signs the OPEC+ group won’t imminently respond to the virus threat while also deciphering what impact unlocking Libyan oil output could have.
Three Parties
The election in Ireland saw the traditional system upended, with a surge for the nationalist Sinn Fein leaving it in a virtual dead heat with the incumbent Fine Gael and opposition party Fianna Fail ahead, according to result projections. Attention will now be paid to what role Sinn Fein will have, if any, in governing after its left-wing platform struck a chord with voters. The focus now moves to forming a government, with all the uncertainty that can bring, so it'll be worth keeping an eye on Irish assets, particularly bonds, to see what the impact may be for markets.
One-Woman Show
Angela Merkel’s intended successor as German chancellor, Annegret Kramp-Karrenbauer, struggled into the weekend to rein in her conservative party`s Thuringia state chapter, after it had aligned itself with the far right to elect a new state premier. Only after Merkel cut short a trip to lay down the law from her chancellery in Berlin did the embattled new state premier resign, sending all parties back to the drawing board. The crisis appears to have damaged Kramp-Karrenbauer’s prospects for leading her party in the future, according to a weekend poll.
Coming Up…
Asian stocks slipped as the virus news continued to dominate, albeit not at the quantum seen in previous weeks, and European stock futures are pointing to a slightly lower open. Monday won’t too too busy a day for earnings in Europe but there could be plenty of attention on the reinsurance sector, a sentence one does not often get to write in 5 Things. France’s Covea is in advanced talks to acquire PartnerRe from Italy’s Exor NV for around $9 billion, both sides have now confirmed following a Bloomberg report.
What We’ve Been Reading
This is what’s caught our eye over the past 24 hours.
- ‘Parasite’ wins Best Picture at the Oscars.
- Storm Ciara propels a London-New York flight.
- What it takes to be in the 1%.
- Celebrating Africa by designing 300 emojis.
- A Kardashian friend gets involved in a soccer club bid.
- The world’s happiest nation embraces financial literacy.
- The shipping business is getting hit on all sides.
To contact the editor responsible for this story: Celeste Perri at cperri@bloomberg.net
©2020 Bloomberg L.P.