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Five Things You Need to Know to Start Your Day

Five Things You Need to Know to Start Your Day

(Bloomberg) --

Good morning. Stocks in Asia slipped again, although volume in Europe is expected to be lighter than normal today. European deals activity is picking up, there’s important data coming from the U.S. later and Iran is still on the radar. Here's what's moving markets.

Europe’s Turn

It’s Ascension Day, meaning many of you have a day off, despite several core European bourses remaining open for business. Stocks were mostly lower in Asia for a second day, with the latest piece of negative trade news pertaining to the U.S.’s relationship with the European Union. Domestic dilemmas on both sides of the Atlantic are threatening efforts at a pact before they’ve even begun. The dollar traded near a five-month high, and if you hadn’t heard already, bond yields are pretty low

Waking Up

European dealmakers are getting busy. Overnight, Axel Springer SE, publisher of German tabloid Bild, said its founding family is in talks with private equity about a potential strategic investment. That followed Wednesday’s news that Berlusconi-controlled broadcaster Mediaset SpA had bought a stake in Germany’s ProSiebenSat.1 Media SE. Add that to the well-publicized saga between Renault SA, Fiat Chrysler and Nissan Motor Co., plus recent developments in the U.K. for  Legoland-owner Merlin Entertainments Plc and builder Galliford Try Plc, and M&A in Europe is looking far more interesting than a few weeks ago. 

Something Old, Something New

Donald Trump loves nothing more than a good GDP number, but the U.S. president might be disappointed later, as the second print of first-quarter economic growth is likely to show a minor downgrade, due to slightly less inventory accumulation, according to Bloomberg Intelligence. But while the second reading might be viewed as “old news” by some, the report will also include new news: a first look at corporate profits for the period, which could set the tone for business investment and hiring later this year.

Iran In Sight?

With market participants focused on trade war games and a potential slowdown, developments on Iran might not be getting the attention they merit. Earlier this week, the White House threatened penalties against the financial body created by some key European nations to shield its trading with the Islamic Republic from U.S. sanctions. But while even oil is brushing off those headlines, Iran tensions could come back into focus if other risks subside.

Coming Up...

Earnings from Russian energy giant Gazprom and U.K. banknote-maker De La Rue Plc, among others, will keep us busy this morning. Meanwhile in politics, U.S. Secretary of Mike Pompeo heads to Europe for a meeting with Germany’s Angela Merkel and other visits to the U.K., the Netherlands and Switzerland. For what it’s worth, Bloomberg Opinion thinks he’d be better off heading to Sudan.

What We’ve Been Reading

This is what’s caught our eye over the past 24 hours: 

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