Five Things You Need to Know to Start Your Day
Five Things You Need to Know to Start Your Day
(Bloomberg) --
The U.S. avoids calling China a currency manipulator, most Asian futures point to a lower open as trade worries take hold and Singapore is crowned the world’s most competitive economy. Here are some of the things people in markets are talking about today.
China Avoids Currency Manipulator Label
The U.S. again refrained from labeling China a currency manipulator when the Treasury Department issued its semi-annual foreign-exchange report to Congress on Tuesday. That decision leaves one of President Donald Trump’s campaign promises unfulfilled but avoids further escalation in the U.S.-China trade war. Meanwhile, former White House strategist Steve Bannon is urging Trump to “go all the way” and intensify his trade battle with China by barring Chinese businesses from U.S. capital markets and technology. Bannon made the comments in the central Asian state of Kazakhstan, where he was attending a media forum.
Trade Angst Spreads
Equity futures in Asia are trending lower broadly after trade angst reversed early gains in the U.S. to send U.S. stocks fell to a two-month low and pushed the Treasury yield curve deeper into inversion. The gap between 3-month and 10-year rates reached the widest since March, historically a signal that a recession is looming. “People are fighting to find yield,” Seaport Global Holdings' managing director Tom di Galoma said. In the U.S., a growing chorus of companies is warning that Trump’s trade tariffs hurt more than they help.
Singapore Leapfrogs Hong Kong, U.S.
Singapore has taken the top spot among the world’s most competitive economies for the first time in nine years. Switzerland-based IMD Business School said the city state’s advanced technological infrastructure and efficiency for starting businesses supported its rise to the No. 1 spot in its annual rankings. The U.S. fell two spots, while Asia-Pacific economies performed particularly well, with 11 of 14 in the region either improving or maintaining their rankings.
Amazon’s Mom & Pop Purge
Amazon may purge thousands of smaller suppliers from its platform, focusing instead on major brands like P&G, Sony and Lego, people familiar said, a hit to mom-and-pop outfits. The move will ensure the online retailer has adequate supplies of must-have merchandise so it can better compete with the likes of Walmart, Target and Best Buy.
Succession in Shambles
Angela Merkel's succession plans are in shambles. Germany's leader has decided protege Annegret Kramp-Karrenbauer isn't up to the job, people familiar said. AKK oversaw the CDU's worst ever result in national elections on Sunday, and her diminishing popularity leaves the chancellor more determined to stay in power until her term ends in 2021.
What we've been reading
This is what's caught our eye over the last 24 hours.
- Hong Kong heirs take hold of $109 billion in personal wealth.
- Apple and Nike brace for China’s wrath following America’s Huawei ban.
- The White House’s Mick Mulvaney is cracking down on stalled U.S. labor rules.
- New Zealand’s budget is in disarray after the Treasury got hacked.
- Thailand’s political feud dims outlook for projects worth $20 billion.
- Tainted pigs lead Vietnam’s farmers to try cows and ostriches.
- Fishing village with socialist roots becomes go-to superyacht berth.
To contact the editor responsible for this story: Laura Yin at yyin26@bloomberg.net, Alyssa McDonald
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