Five Things You Need to Know to Start Your Day
Five Things You Need to Know to Start Your Day
(Bloomberg) --
Good morning. An election gamble in Spain hasn’t paid off, the scene is set for more on trade talks and the U.K. election focus is turning to spending plans. Here’s what’s moving markets.
Sanchez’s Gamble
Spaniards voted Sunday for a second time this year and Acting Prime Minister Pedro Sanchez is no closer to being able to form a clear government than he was back in April. His Socialists are set to win the greatest number of seats, but will be short of a majority again, facing a fragmented Parliament and a new set of torturous negotiations for Sanchez to try to form a government. Notably, the nationalist Vox party did better than expected, raising further questions about where the sentiment of the country is headed. Watch Spanish bonds and shares at the open as political uncertainty in the country continues.
Deal Talk
Prepare for another week nervously watching for any headlines from the U.S. or Chinese sides of the trade war after U.S. President Donald Trump over the weekend said China wants a deal “much more than I do,’’ in advance of a speech he’ll give Tuesday from which investors will be awaiting more pointers. That speech and those potential pointers could in turn influence the Federal Reserve’s outlook statement following its interest rate decision the following day, with trade still center stage for the U.S. and global economy. Note, too, warnings about the dangers of a capital war and the reality check trade concerns are creating for many emerging markets.
Spending Plans
It's the first full week of official election-campaign time in the U.K., and the back-and-forth between the parties seems to be returning to familiar ground, namely the Conservatives attacking Labour’s spending plans as fiscally irresponsible. Right now, the Tories are still comfortably ahead in the polls, though whether they’re far enough in the lead to win a majority is a question that will sharpen as the weeks go by. Brexit, the central issue, remains on the lips of many companies but data seems to show that for stocks, whoever is in charge doesn't matter as much as one might assume.
Protester Shot
A protester was shot by police in Hong Kong during the Monday morning commute following a weekend of demonstrations that resulted in nearly 90 arrests that will refocus attention on the turmoil the city is facing. The news battered local stocks, which had been on a strong run recently, with local landlords hit the hardest once more by the escalating tensions between protesters and authorities. For Europe, luxury-goods firms, hotel operators and Asia-focused banks have all taken a hit from the protests, and that may well continue Monday.
Coming Up…
The slump in Hong Kong’s Hang Seng index led the losses for Asia on Monday, while European stock futures are pointing to a mixed start to the week. It’s a relatively quiet day for European economic numbers, with Italian industrial production and U.K. GDP data, and not too much is on the slate on the earnings front either, though note that bookmaker William Hill Plc will update following the new regulatory concerns sector is facing.
What We’ve Been Reading
This is what’s caught our eye over the weekend.
- Instagram will cover celebrity video costs, if they avoid politics.
- Fukushima is to become a renewable energy hub.
- Password sharers, beware! The streaming giants are coming for you.
- Here’s the other powerful woman starting at the European Central Bank.
- Want to see Santa at Harrods? You’ll have to spend $2,500 first.
- India is importing a huge batch of onions to keep prices under control.
- The impact of decades of dietary advice.
To contact the editor responsible for this story: Tom Lavell at tlavell@bloomberg.net
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