Five Things You Need to Know to Start Your Day
Five Things You Need to Know to Start Your Day
(Bloomberg) --
Good morning. Equities traders in Asia began the week cautiously, Turkey’s leader suffered a blow, Boris Johnson’s character is facing scrutiny and the White House gave mixed messages on Iran. Here’s what’s moving markets.
G-20 Eyed
Asian stocks were mixed as investors started looking ahead to a meeting between U.S. President Donald Trump and Chinese President Xi Jinping on the sidelines of the Group of 20 summit later this week. Automakers could be in focus today after a profit warning from Daimler AG, and so could the consumer industry after Metro AG got a takeover offer and France’s Carrefour SA agreed to sell a majority stake in its China unit. The dollar was little changed as Trump carries on slamming Federal Reserve Chairman Jerome Powell.
Erdogan Stung
Recep Tayyip Erdogan was dealt a blow as the opposition candidate won a redo of the Istanbul mayor’s race by a landslide, an indictment of the Turkish president’s economic policies and increasingly autocratic ways. Traders may also have an eye on Prague after Czechs took to the streets to demand the resignation of Prime Minister Andrej Babis over allegations of conflict of interest and a criminal fraud case involving EU funds. The lira jumped while the koruna was steady.
Johnson’s Character
Boris Johnson is facing questions about a row with his partner that brought the police to his London home last week, with his rival for the U.K. premiership, Jeremy Hunt, criticizing him for avoiding scrutiny. Though a poll showed Johnson’s support among the wider public has dipped slightly, bookmakers don’t expect the incident to have a meaningful impact on the race. Meanwhile, the EU is plotting how to keep Johnson out of sight for as long as possible.
Trump’s Sanction Warning
Trump said the U.S. will impose major new sanctions on Iran on Monday, while also warning it’s prepared to hold talks without preconditions, days after he called off what would have been fatal strikes on Iranian sites. Crude futures held Friday’s gain overnight as traders digested the mixed headlines. The episode has already impacted aviation, with some carriers diverting planes away from southern Iran. Forgotten why the country is back in the headlines? Read this.
Coming Up...
German Ifo business confidence is the main event on a thin data schedule, and there’s no European corporate earnings on our radar. In politics, U.S. Vice President Mike Pence gives a speech on China ahead of that crucial Trump-Xi meeting, while French President Emmanuel Macron hosts a Mediterranean summit with representatives from Spain and Italy among the attendees.
What We’ve Been Reading
This is what’caught our eye over the weekend.
- The man who brought Fila back from dead is worth $830 million.
- Bitcoin climbs above $11,000 as memories of popped bubble fade.
- Are luxury holidays a badge of shame?
- Berlin risks return to ‘poor, but sexy’ era.
- Toy Story 4 box office underwhelms, despite rave reviews.
- Money starts flowing into women’s soccer in France.
- Debt king Drahi's bid for Sotheby's puts the art world in play
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