Five Things You Need to Know to Start Your Day
Five Things You Need to Know to Start Your Day
(Bloomberg) --
Good morning. There’s a Brexit deal but plenty of hurdles remain, the Aramco IPO is set to be delayed a little and Chinese economic growth is at a 1990s pace. Here’s what’s moving markets.
Snags
Brexit negotiations all seem to be effectively in a permanent crunch time and Friday will be another day of watching every headline, every twist and every turn before the meaningful vote takes place at the weekend. U.K. Prime Minister Boris Johnson got his deal but it instantly hit a series of snags that may well mean the Parliamentary math does not fall in his favor. Should the deal be rejected by lawmakers over the weekend, prepare for an unparalleled political crisis and the potential for a new general election in an attempt to break the deadlock. Another day stuck to the screens watching the show awaits.
Waiting for Aramco
Plenty of highly anticipated IPOs have made it to market this year, but plenty have been withdrawn and the case of the biggest of them all seems fated to keep all watching on tenterhooks. Saudi Aramco, Saudi Arabia’s state-owned oil behemoth, is said to be planning to delay its float, not music to the ear of the bankers who look set to earn from the listing but also not encouraging for an IPO market suffering from high-profile flops, canceled plans and WeWork.
Moderation
Chinese economic growth missed expectations for the third quarter, providing yet more gloom for a global economy flirting with its first recession in a decade. Factory output was better and retail sales held up relatively well, but a slowdown in investment has meant growth in the economy weakened to the slowest pace since the early 1990s. That’ll be the backdrop for European Union leaders gathered in Brussels set to discuss how to plug the budget shortfall that will arise from Brexit and all the regular tensions about net contributions and countries getting more than what they put in are likely to flare once again.
Ceasefire
Turkey has agreed to a five-day ceasefire in Syria following the meeting between Turkish President Recep Tayyip Erdogan and U.S. Vice-President Mike Pence, with Turkey to halt an offensive in northern Syria temporarily. President Donald Trump said it was “great news” and that “millions of lives will be saved” but the doubts about the deal were immediately apparent. To some, it appeared Erdogan has essentially gotten a victory he had been seeking for years and Kurdish leaders, whose fighters came under bombardment following the withdrawal of American troops from the area, said they would not abide by a Turkish occupation.
Coming Up...
Asian stocks were mixed after the latest Chinese data and European futures are pointing to a lower open, in part due to China but also as the market digests the warning from French carmaker Renault, likely to weigh on European auto sector. Another relatively busy earnings day is ahead, particularly for a Friday, with recent bid target London Stock Exchange Group, Swedish truck maker Volvo AB and French yogurt giant Danone topping the bill.
What We’ve Been Reading
This is what’s caught our eye over the past 24 hours.
- Unloved European assets are starting to get a little attention.
- A guy won big on options after learning the craft on Reddit.
- Millennials are spending more time sleeping and socializing than older generations.
- The hotelier at the center of the impeachment inquiry.
- Marks & Spencer is trying to be a little more Whole Foods.
- The world's longest flight aims to defeat jet lag.
- Chinese sneaker fans are chasing 6,600% returns flipping Air Jordans.
To contact the editor responsible for this story: Celeste Perri at cperri@bloomberg.net
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