Five Things You Need to Know to Start Your Day
Five Things You Need to Know to Start Your Day
(Bloomberg) --
Good morning. European equity futures are pointing to another morning of declines as cases of the coronavirus in this region mount up. Elsewhere, there was a shock management change at an entertainment giant, Bernie Sanders absorbed blows from his rivals for the Democrat presidential nomination, and Angela Merkel got some well-needed good news. Here’s what’s moving markets.
No Let Up
Shares in Europe aren’t yet seeing the rebound some had expected this time yesterday, as the list of places infected by the coronavirus just keeps on growing. Cases have been reported on the Spanish holiday island of Tenerife, and in Catalonia and Austria, while incidents in northern Italy keep on rising. In London, Chevron Corp. asked staff based in Canary Wharf to work from home. Elsewhere, the U.S. is warning of a potential outbreak, Latin America had its first incident, South Korea is now a hotspot and even the Iranian deputy health minister contracted the illness. Hong Kong, also bruised by protesting, announced a HK$120 billion ($15.4 billion) relief package.
Iger Out
There was a shock change at the top of the world’s biggest entertainment company, as Bob Iger abruptly stepped aside as Walt Disney Co.’s chief executive officer, handing the reins to theme-parks head Bob Chapek. While Iger will stay to direct the company’s creative endeavors as executive chairman through 2021, the news jolted investors, sending the shares down as much as 4.3%. Disney betting its future on streaming services, including the Disney+ platform, had fueled speculation that its streaming chief, Kevin Mayer, was in line for the top job.
Democrat Debate
Bernie Sanders felt the burden of his front-runner status in the Democratic presidential race, as all six of his rivals delivered blows at Tuesday night’s debate. Michael Bloomberg said Russia’s intelligence services favor the Vermont senator because Vladimir Putin wants President Donald Trump to be re-elected, while Joe Biden criticized Sanders’ past stances on gun control and Elizabeth Warren, who had generally refrained from attacking her fellow progressive, accused Sanders of stealing details of her health-care plan. Here’s why Sanders is the one to beat. (Bloomberg is the founder and majority owner of Bloomberg LP, the parent company of Bloomberg News.)
Merkel Buoyed
Angela Merkel got some much-needed good news as moderate Armin Laschet became the clear front-runner to replace her after a vocal conservative contender, Jens Spahn, backed his bid to lead the Christian Democratic Union party in a surprise move that threatens the ambitions of Friedrich Merz, a long-time Merkel antagonist. Merkel now looks likely to be in position to see out her fourth term, which runs until the fall of 2021, as Laschet and Spahn have indicated they won’t put pressure on her to leave early.
Coming Up…
Watch out for any comments around next week’s European Union-U.K. trade talks, with the two sides still not on the same page. And South African Finance Minister Tito Mboweni presents his country’s budget for 2020-21, with investors keen to hear plans for taming its deficit and reining in debt. Corporate earnings, meanwhile, come from French luxury goods group Hermes International, Spanish renewables firm Iberdrola S.A. and U.K. homebuilder Taylor Wimpey Plc, among others. Also keep an eye on shares of London Stock Exchange Group Plc as the Financial Times reports its acquisition of financial data provider Refinitiv is facing deeper-than-expected early scrutiny by regulators in Brussels.
What We’ve Been Reading
This is what’s caught our eye over the past 24 hours.
- The airplane bar is dead. Long live the in-flight lounge.
- JPMorgan could buy anything that’s not a U.S. bank.
- Violence escalates in India’s capital.
- Fancy a beer in Frankfurt?
- U.K. regulator put confidential info on website.
- Juventus shares hit by fears of closed-door matches.
- Virgin Galactic to resume ticket sales for space flights.
To contact the editor responsible for this story: Phil Serafino at pserafino@bloomberg.net
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