Five Things You Need to Know to Start Your Day
Five Things You Need to Know to Start Your Day
(Bloomberg) --
Good morning. A viral outbreak in China is already affecting markets, the latest European earnings season and the economic summit in Davos get going and U.K. unemployment is today’s key data point. Here’s what’s moving markets.
China Pneumonia
A new market risk has emerged in the form of a coronavirus outbreak in central China, with the death toll reaching four and multiple medical workers infected. The illness drove Asian stocks lower amid fears over person-to-person spreading just as hundreds of millions of Chinese begin their Lunar New Year travels. Investors on this continent are still trying to gauge the potential impact, but shares of European luxury goods-makers with large Chinese exposure were a notable weak spot on Monday.
Europe’s Results
European earnings are getting going today, with Switzerland’s UBS Group AG missing on full-year profit and cost targets and reducing its mid-term goals, while London- and Sydney-listed mining giant BHP Group Plc announced it’s on track to increase iron ore output this year. Coming up, the consumer sector gets a report from posh suit maker Hugo Boss AG and EasyJet Plc shareholders will hope that the budget airline’s numbers are as strong as those reported by peer Ryanair Holdings Plc this month.
Duels in Davos
Donald Trump may bump into an adversary in Davos today, with teenage activist Greta Thunberg due to attend the World Economic Forum in the Swiss Alps on the same day as the U.S. president. Climate change is expected to be one of the subjects debated in the snow, while another topic on leaders’ lips may be the optimism of the International Monetary Fund, whose latest economic growth report highlighted signs that the slump in manufacturing and global trade may be nearing a bottom. From the environment to billionaires, these are the Davos numbers.
France-U.S. Relations
Trump and French President Emmanuel Macron agreed to a truce in their dispute over digital taxes that means neither France nor the U.S. will impose punitive tariffs this year, according to a French diplomat. After talking by phone, the two leaders congratulated each other on Twitter, though a readout of their chat was notably more muted, and neither a White House spokesman nor officials with the U.S. Trade Representative’s office would confirm that the U.S. had called off Trump’s announced tariffs. Still, the possible respite may defuse transatlantic tensions somewhat, just in time for some skiing, perhaps.
Coming Up…
U.K. unemployment could be Tuesday’s key data point, amid mounting bets on an interest rate cut from the Bank of England next week. One firm not waging on more stimulus is JPMorgan, which expects the central bank to remain on hold all year. BoE Governor Mark Carney is due to speak in Davos today, while also note that the Bank of Japan left its rates as they were earlier, and in other data, we’ll get a reading of Germany ZEW investor expectations.
What We’ve Been Reading
This is what’s caught our eye over the past 24 hours.
- China takes rivalry with U.S. to Mars.
- Van Gogh self-portrait is genuine.
- 2,153 billionaires are richer than 4.6 billion people.
- Understanding Putin’s power grip.
- People drink less if it’s illegal to drive after.
- Tumbling Fevertree could attract big beverage firm: Opinion
- Boeing may need to rename the 737 Max.
To contact the editor responsible for this story: Phil Serafino at pserafino@bloomberg.net
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