Five Things You Need to Know to Start Your Day
China trade talks resume as Donald Trump says Beijing and Europe are playing a “currency manipulation game.” Asia equity futures are higher after the Dow hits a record. And Boeing offers $100 million in “outreach” to Max crash victims’ families. Here are some of the things people in markets are talking about today.
U.S. and Chinese officials will talk by phone in the coming week as they seek to resolve a growing trade war between the two countries, said Larry Kudlow, President Donald Trump’s chief economic adviser. “They will be on the phone this coming week. And they will be scheduling face-to-face meetings,” Kudlow said. Meanwhile, Trump accused China and Europe of playing a “big currency manipulation game” in a tweet, and said the U.S. should match their efforts “or continue being the dummies who sit back and politely watch as other countries continue to play their games.” He didn't suggest specific policy measures.
Stocks Hit High
Asian equity futures are in the green after U.S. stocks rose, with the Dow hitting a record, in shortened pre-U.S. holiday trading. Treasuries extended the global bond rally, with 10-year yields down at 1.95%. The dollar was mostly lower, with the Aussie and kiwi leading G-10 gains. Oil jumped, while gold was flat.
China Hits Out
China accused the British government of “utter interference” in the affairs of Hong Kong after protests in the former British colony, and issued a strongly worded reminder the territory “is not what it used to be” before it was handed over to Chinese control. Its Foreign Ministry this week said the Sino-British “one country, two systems” agreement “no longer has any practical significance.” The Communist Party’s flagship newspaper, the People’s Daily, blasted the protesters who stormed the city’s legislative chamber on Monday as “extremists” who threaten to “ruin Hong Kong’s reputation as an international business metropolis.”
Max Crash Compensation
Boeing is offering $100 million to s upport the families of victims and others affected by two crashes of its 737 Max jetliner, which killed 346 people and have led to scores of lawsuits. The money will go toward “education, hardship and living expenses for impacted families, community programs and economic development in impacted communities,” Boeing said Wednesday in a statement. The pledge — described as an “initial outreach” — underscores the high stakes for Boeing as it navigates one of the worst crises in its 103-year history.
It Wasn’t a Pie
A routine keynote address by billionaire Robin Li morphed into a public humiliation when an unidentified man jumped onstage and doused the Baidu chief in water. Li was 10 minutes into a product introduction at an artificial intelligence developers’ forum in Beijing when a man in a black T-shirt upended a small bottle over his head. It’s unclear who the prankster was. “What’s your problem?” Li said in English to the perpetrator. “As everyone has just seen, there will be a variety of unexpected happenings on the road to AI,” said the CEO, before returning to his speech. Li created China’s largest search service en route to a personal fortune estimated at $8.7 billion.
What we’ve been reading
This is what’s caught our eye over the last 24 hours.
- HP, Dell, Microsoft and Amazon may shift substantial production capacity out of China.
- Indian opposition leader Rahul Gandhi resigns.
- The feud between Japan and South Korea takes a dangerous turn.
- The world of monetary policy, according to Christine Lagarde.
- A China bond rally this quarter? Market observers just say no.
- Meet the British banking dynasty that’s older than the Rothschilds.
- This whisky cocktail is a refreshing twist on the Manhattan.
©2019 Bloomberg L.P.