Five Things You Need to Know to Start Your Day
Five Things You Need to Know to Start Your Day
(Bloomberg) --
Good morning. A U.S. airstrike killed a senior Iranian general, Spain is finally set to have a government again and a U.K. retail bellwether is reporting. Here’s what’s moving markets.
Airstrike
U.S. President Donald Trump ordered an airstrike that killed one of the most senior and revered generals in Iran, Qassem Soleimani, a move that raises the risk of further severe tensions between the two nations. Iran’s supreme leader, Ayatollah Ali Khamenei vowed that “severe retaliation” awaits Soleimani’s killers. Oil prices surged to levels not seen since an attack on Saudi Arabia's oil infrastructure in September, U.S. stock futures declined as traders consider the potential for more escalation, which could have a broader de-stabilizing impact on the Middle East and gold rose as investors fled to haven assets.
Spain’s Government
Spain finally looks set to get a government. The country has been without a proper one in place since March, when it held the first of two elections in 2019, but acting Prime Minister Pedro Sanchez has now secured the support of a Catalan separatist party to help him take office for the second time. Now the question will be the price that Sanchez’s Socialists have had to pay to secure that support and there will be scrutiny of the policy plans, which are set to include raised taxes for wealthy individuals and big companies. Spanish banks and energy companies will likely be in focus for stock investors.
Next Bellwether
The first clues of how the U.K. high street fared over the Christmas period will arrive with bellwether Next Plc, amid hopes that the decisive election result and perception of some clarity about the near-term Brexit outlook would spur consumers to open their wallets over the festive season. The update from Next is always closely watched and it comes ahead of a slew of other trading statements from the sector next week, including all the major supermarkets and Next’s rival Marks & Spencer Group Plc.
Ghosn Watch
The world continues to watch for further details on Carlos Ghosn’s escape from Japan to Lebanon and nowhere more so than at Nissan Motor Co., which Ghosn used to run and where executives are worried about what he might say in the expected media blitz to follow. Lebanon said it would probe the allegations against Ghosn should Japan seek his return and could even hold a trial in Beirut, though Japanese Prime Minister Shinzo Abe has mostly continued with his normal routine so far. If nothing else, Twitter has been set ablaze by the story’s pun potential, something this 5 Things column would never stoop to.
Coming Up…
The minutes from the Federal Reserve’s latest policy meeting will be released after the European close and markets will be watching for hints on its plans for the repo market and its resolve to keep interest rates unchanged. Crude oil inventory data will arrive in the European afternoon and the major car makers will all provide updates on sales in the U.S. during December. U.S. manufacturing data, French inflation and German unemployment numbers are all still to come too.
What We’ve Been Reading
This is what’s caught our eye over the past 24 hours.
- Words and phrases from the last decade in business.
- “Weirdos and misfits” wanted to work in the British government.
- Women directed 11% of major films in 2019. That’s a record.
- The world’s safest and most punctual airlines.
- AI spots breast cancer better than doctors.
- The best places to travel in 2020.
- British Army targeting social media addicts in new recruitment drive.
To contact the editor responsible for this story: Celeste Perri at cperri@bloomberg.net
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