Five Things You Need to Know to Start Your Day
Five Things You Need to Know to Start Your Day
(Bloomberg) --
Good morning. Donald Trump is making a closely watched speech, U.K. election math has shifted and protests rage on in Hong Kong. Here’s what’s moving markets.
Trump Speech
U.S. President Donald Trump will make a lunchtime speech at the New York Economic Club and the market is on tenterhooks for any comments about trade, taxes, drug prices and everything in between. Trade is the key topic and the question will be whether the president will stick to prepared remarks or go off-script. There have been conflicting signals and stocks took a dip on Monday as the optimism around a possible trade deal started to wane; keep in mind there are consequences for both sides if a deal isn’t reached, in particular for American farmers.
Brexit Math
The math has changed a touch in the U.K. election, though quite how much is still a debate. Nigel Farage and his Brexit Party will not contest a few hundred seats against the Conservatives, potentially clearing a path to wins for the Tories but still leaving plenty of marginal seats in the game. Still, the bookmakers now have Boris Johnson on track to win, though whether he will win the majority he needs to push through his Brexit deal is still on a knife edge and one can assume there are plenty more twists and turns to come.
Hong Kong
Pro-democracy protesters in Hong Kong gathered Tuesday in the city’s financial district for a second day running, having once more disrupted the morning commute by blocking subway lines and clashing with police. The escalation of the tensions weighed on Asia-focused financials like HSBC Holdings Plc and Prudential Plc on Monday and if this is the new normal, that could continue to be the pattern. Fake news and rumors circulating among the protesters appears to be fanning the flames and heightening the distrust and violence, making resolving the matter a much more difficult task.
Car Partners
India’s Tata Group, the owner of Jaguar Land Rover, is said to have approached the likes of China’s Zhejiang Geely Holding and BMW AG as it seeks to form partnerships for its British autos business to share the huge cost burden of investing in creating a new generation of electric vehicles. Car companies are increasingly looking towards mergers and partnerships, as seen with the combination of PSA Group and Fiat Chrysler Automobiles NV, to bulk up and work through this expensive, transitional period for the industry. One positive for autos, however, is the U.S. may delay tariffs on imported vehicles.
Coming Up…
Stocks were mixed in Asia, with eyes still on the trade picture and Hong Kong, and European futures are pointing to a slightly positive open. There’s a smattering of European data to digest, including unemployment numbers in the U.K. and the ZEW economic sentiment indicator for Germany. Earnings ramp up again, with the bill topped by telecoms giant Vodafone Group Plc, U.K. broadcaster ITV Plc and German car parts maker Continental AG.
What We’ve Been Reading
This is what’s caught our eye over the past 24 hours.
- Ignoring women costs the financial industry $700 billion a year.
- Adidas abandoned its robot factory experiment.
- Wealthy folks have amassed $121 billion in tax-sheltered accounts.
- Burger King’s plant-based Rebel Whopper has been unveiled in Europe.
- Scary Spice wants to talk to Tesco’s CEO.
- A branded Amazon grocery store is on the way.
- Could gimmicky airline safety videos put passengers in danger?
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