Five Things You Need to Know to Start Your Day
Get up to date with what’s moving the markets this morning.
(Bloomberg) --
Trump lashes out at China as trade talks restart. The White House is keeping a close eye on China’s military presence on the border with Hong Kong. And while iPhone sales came up short, Apple’s outlook is rosy. Here are some of the things people in markets are talking about today.
Welcome to Shanghai
President Trump slammed China on the day his trade team arrived in Shanghai. He tweeted: “China is doing very badly, worst year in 27—was supposed to start buying our agricultural product now—no signs that they are doing so." He added: "That is the problem with China, they just don't come through.” His tweets came just as the two nations resumed negotiations following a three-month breakup. He later said Beijing is willing to make concessions, but he’s not sure if he will accept them and that the decision on reaching a deal is up to him, not China. Here’s how we got to this point.
Border Patrol
The White House is monitoring a buildup of Chinese forces on Hong Kong's border, a senior administration official said. Earlier, Beijing said recent violence in the city's protests was the "creation of the U.S.," laying direct blame on Washington—which American officials denied. China has been trying to shift responsibility for the unrest to unspecified foreign forces.
Hong Kong GDP
The unrest and ongoing trade spat haven't been good for Hong Kong. Economic momentum has weakened in recent months on "uncertainties," leader Carrie Lam said. There's "no room for optimism for the second quarter and the entire year," the city's chief executive told business groups. Consensus is for GDP growth in the June quarter to pick up to 1.5% year-on-year while slowing to 0.9% from the prior period.
Rosy Outlook
The iPhone didn't do so well, but Apple investors are looking ahead. The company predicted current-quarter sales near the high end of estimates—$61 billion to $64 billion—a sign of optimism in new handsets coming later this year. The all-important iPhone missed on both unit sales and revenue last quarter, but wearables and services are picking up the slack. Shares gained in post-market trading.
Brexit Blame Game
Boris Johnson said it's "up to the EU" to compromise on a Brexit agreement and avoid a no-deal divorce. "If they can't compromise, if they really can't do it, then clearly we have to get ready for a no-deal exit," he said, reiterating that Britain won't accept an Irish backstop. The U.K. prime minister is expected next week to commit hundreds of millions of pounds on hospitals and health care technology, as he seeks to deliver on his own most contentious political promise, a person familiar said.
What we’ve been reading
This is what’s caught our eye over the last 24 hours.
- China's profit warnings signal more gloom for the economy
- Singapore’s rich kids end up with penthouses as parents skirt tax
- The U.S. risks falling behind China on robocars, Qualcomm warns
- North Korea fires multiple projectiles for the second time in a week, South says
- A massive U.S. drug price-fixing probe hits major roadblocks
To contact the editor responsible for this story: Alexandria Arnold at abaca3@bloomberg.net
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