Five Things You Need to Know to Start Your Day
Five Things You Need to Know to Start Your Day
(Bloomberg) --
Good morning. A closely watched poll points to a big Tory victory, Trump signs the Hong Kong bill and output cuts seem unlikely to arrive for crude oil. Here’s what’s moving markets.
The Poll
The most closely watched poll of the U.K. election so far predicts the Conservatives will score a large majority, news that sent the pound higher and will likely boost domestic stocks and cause exporters to dip. The poll carries quite a bit of weight as it correctly predicted that the Tories would lose their majority in the 2017 election, going against all other indications at the time of a landslide victory. But there is some way to go yet, so for Boris Johnson, counting chickens is probably unwise given recent history, even if these findings indicate the chance of a market-unfriendly Labour majority is very low indeed.
Pro-Democracy Bill
President Donald Trump goes into the Thanksgiving break not only after tweeting a picture of his head on Rocky's body, but after signing the bill supporting pro-democracy protesters in Hong Kong. The legislation had already passed through both houses of Congress and again brought undefined threats of retaliation from China at a delicate time in the trade talks between the two. Attention will now turn to exactly what the blowback will be from Beijing, but it could mean jitters around cyclical, trade-sensitive assets.
Output Cuts
Plenty to keep in mind in oil markets today. Expectations that OPEC and its partners will make deeper cuts to crude oil production when they meet next week have essentially evaporated, according to a Bloomberg survey, raising new concerns about the outlook for prices. In Libya, output has been halted in a key oil field amid clashes between pro-government forces and their rivals. But any impact that could have on prices has been overshadowed by rising U.S. inventories and after Trump signed the Hong Kong bill, meaning oil prices are a touch lower going into Thursday.
Reshuffle
Spanish telecoms giant Telefonica SA announced a major restructuring after Wednesday’s close that’s sure to be a hot topic of conversation among watchers of the company. It will create an infrastructure unit to house its towers and data centers, a technology unit to help other companies undergoing a digital transformation and will carve out all its Latin American units, except Brazil, into a separate unit. All part of the mission to create the “New Telefonica.” Given shares are down almost 8% this year and one of the worst telecom performers in Europe, that might be welcomed.
Coming Up…
Asian stocks are mixed once again but European futures are pointing to a lower open for a Stoxx Europe 600 Index sitting at the highest since 2015. There will be a slew of inflation data from Germany and economic confidence numbers for the euro area, while French liquor firm Remy Cointreau SA tops the earnings agenda. And, of course, it’s Thanksgiving so U.S. markets will be closed while traders tuck into their turkeys.
What We’ve Been Reading
This is what’s caught our eye over the past 24 hours.
- Euro volatility has never been this low.
- Brands are targeting teens with memes.
- From stock exchanges to swanky hotels.
- Man Utd’s shares soared after Man City’s stake sale.
- Spain retrieved three tons of cocaine from a “narcoship.”
- Black Friday ain’t what it used to be.
- Eating is more expensive and economists are worried.
To contact the editor responsible for this story: Phil Serafino at pserafino@bloomberg.net
©2019 Bloomberg L.P.