Five Things You Need to Know to Start Your Day
Another resignation from the White House, flaring trade tensions and more among the five things to watch this Monday.
(Bloomberg) --
U.S. ambassador to China summoned, markets in for a rocky start and another departure from the White House. Here are some of the things people in markets are talking about today.
Tensions Flare
China’s Vice Foreign Minister Le Yucheng has summoned the U.S. Ambassador to China, Terry Branstad, in a protest over the arrest of Huawei Technologies Co. Chief Financial Officer Meng Wanzhou, and said it will take “further action” if needed. Meng was arrested in Vancouver on Dec. 1 on the orders of U.S. authorities for allegedly violating American sanctions on selling technology to Iran. U.S. actions have violated the “legitimate rights and interests of Chinese citizens and are extremely bad in nature,” according to a posting on the ministry website. “China will take further action based on the U.S. actions.” The two nations are, at the same time, trying to ratchet back a damaging trade dispute. Meanwhile, President Donald Trump’s trade team sought to insulate talks with China on trade from the dispute.
Market Open
Asian equity futures were down on Monday morning after the worst week since March for the S&P 500 Index. U.S. stocks plunged Friday on trade turmoil following the arrest of Huawei’s CFO and after U.S. payrolls and wages rose by less than forecast in November. Investors are growing wary of a trade truce: Robert Lighthizer, the U.S. trade representative, played down the possibility of extending the tariff truce agreed in Buenos Aires beyond March 1. The yuan weakened. Treasuries fluctuated before settling higher as risk aversion increased. The dollar fell. Oil rose after OPEC agreed to cut output.
Another One Bites the Dust
White House Chief of Staff John Kelly will step down toward the end of the year, removing a key force for West Wing discipline from President Donald Trump’s inner circle. Vice President Mike Pence’s Chief of Staff Nick Ayers won’t be taking over as had been speculated, a White House official said. Kelly’s departure follows other senior aides who have headed for the exits in recent weeks.
Coming Up…
The U.K. House of Commons votes on the EU divorce deal on Tuesday, with Prime Minister Theresa May confronted by opponents within her own Conservative Party. The European Central Bank sets monetary policy on Thursday. Japan GDP and current account are out on Monday. China money supply is due this week. U.S. CPI is scheduled for Wednesday. China industrial production and retail sales data will be released Friday. Also on Friday, the Reserve Bank of India board meets amid a standoff with the government over the central bank’s autonomy and reluctance to cut interest rates.
Nissan Tensions
Almost three weeks after his shock arrest in Japan, Carlos Ghosn’s relationship with his former protege is emerging as key to determining what may have triggered the investigation that has put the car industry titan in a Tokyo jail cell. Ghosn, who was ejected as Nissan’s chairman shortly after his arrest, planned for months to shake up senior management at the automaker and had made known his plans to replace Chief Executive Office Hiroto Saikawa, the Wall Street Journal reported Sunday, citing unidentified people familiar with the situation. Ghosn, who promoted the Nissan lifer to the CEO position in 2017, wanted to carry out his plan at a board meeting in November, one of the people told the WSJ. But people familiar with the situation told Bloomberg News there was no plan to eject Saikawa last month, or before the end of his term, which was due to run until April next year.
What we've been reading
This is what's caught our eye over the last 24 hours.
- Data highlights China’s weakening demand.
- Investors sifting for clues to market correction.
- May sticks with Brexit vote.
- OECD warns Australia about property market collapse.
- Treasury market’s hurdles.
- Malaysia, Singapore trade comments on maritime dispute.
- Wall Street on avoiding women in the #MeToo era.
To contact the editor responsible for this story: Cormac Mullen at cmullen9@bloomberg.net, Alex Millson
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