Five Things You Need to Know to Start Your Day
Stock sell-off, Apple supplier woes, Goldman under pressure and Brexit talks in the endgame. Here are some of the things people in markets are talking about.
Back in the Red
Stocks in Asia are set to tumble Tuesday after a slide in U.S. equities on worsening investor sentiment toward the technology sector. U.S. stocks tanked in Veteran's Day-thinned trading, with the Dow losing 600 points. Tech shares led the rout on concerns over Apple's iPhone, as investors fretted that one of the sector's most important product lines was seeing weak demand. California utilities plunged as wildfires swept the state. The dollar rose against every G-10 peer but the yen, while Treasuries didn't trade. Gold dropped. Futures in Japan, Australia and Hong Kong pointed to declines of over 1 percent.
Major suppliers to Apple Inc.’s iPhone fell Monday as investors fretted that one of the most important product lines in the technology sector was seeing weak demand. The latest warning sign was Lumentum Holdings Inc. cutting its second-quarter outlook after one of its largest customers asked to “meaningfully reduce shipments” for previously placed orders. Lumentum didn’t name the customer, but Apple is its biggest, according to Bloomberg supply-chain data. Shares of Lumentum plummeted a record 33 percent while Apple dropped 5 percent.
Goldman Sachs Group Inc.’s rough month is getting worse. The investment bank’s shares hit the lowest in almost two years Monday, falling twice as much as any other major U.S. lender. The drop came after Malaysia’s finance minister said the nation would seek a “full refund” over bond deals for its sovereign wealth fund that have landed Goldman Sachs in the midst of globe-spanning corruption probes.
Through the Night
Brexit negotiators are working through the night in an effort to reach a deal, but the final stage of the talks is proving “immensely difficult,” U.K. Prime Minister Theresa May said. Negotiators believe they have until Wednesday to secure a deal if it’s to be signed off by a special EU summit this month. Officials are trying to nail down what May called “significant” remaining issues around the customs union framework that will apply to Britain if it can’t deliver the technology-based solutions it’s aiming for. But there are signs that any agreement will struggle to survive the scrutiny of senior U.K. ministers.
The European Commission is ready to escalate its budget battle with Italy. For all their apprehensions, officials in Brussels are prepared to kick start a disciplinary process to tackle Italy’s unprecedented challenge to the European Union budget regime unless the government in Rome delivers a last minute U-turn. Italy has until Tuesday to send in a fresh budget after its first draft was rejected by the commission last month. But the administration’s determination to stick to its plan to boost benefit spending, cut taxes and lower the retirement age has left the EU executive in Brussels with little choice, officials say.
What we’ve been reading
- Trump blasts Saudi Arabia for plan to reduce oil production.
- GE rout deepens as CEO’s attempt to soother investors falls flat.
- Your private data is quietly leaking online.
- Spotify falls below listing price for first time.
- Your wagyu beef may be about to get even pricier.
- The war inside 7-Eleven.
- Marvel legend Stan Lee dies at 95.
©2018 Bloomberg L.P.