Five Things You Need to Know to Start Your Day
Get up to date with what’s moving the global markets this morning.
(Bloomberg) --
China used fake social media accounts to target Hong Kong protesters, Twitter and Facebook say. Huawei gets a breather. And billionaire Li Ka-shing bets big on Brits and beer. Here are some of the things people in markets are talking about today.
China Infiltrates Twitter
China is waging a social media campaign to undermine the Hong Kong protests. Twitter found and deleted hundreds of accounts it said Beijing used to undermine the pro-democracy movement and calls for political change. Facebook, acting on a tip from Twitter, found and eliminated similar content. “Based on our intensive investigations, we have reliable evidence to support that this is a coordinated state-backed operation,” Twitter said.
Sanctions Eased
Huawei got a reprieve. The U.S. will extend for another 90 days a narrow set of exemptions meant to protect U.S. customers from a ban on doing business with the Chinese company. “We're giving them a little more time to wean themselves off,” Commerce Secretary Wilbur Ross told Fox News. The move doesn't address wider national-security concerns about Huawei or answer the question of whether U.S. chip companies and other major suppliers will be allowed to sell parts to China.
Asian Futures Up
Asian stocks are set for modest gains after U.S. equities rallied on Huawei-fueled optimism and speculation central banks are poised to shore up their economies. Treasuries declined despite President Trump's call for more Fed easing. The dollar rose to this year’s high, gaining against every G-10 peer save the Norwegian krone. Oil jumped, while gold dropped more than 1%.
China’s New Lending Rate
The PBOC's first fixing of its new lending measure Tuesday should make debt a bit cheaper for Chinese firms. The central bank may set the Loan Prime Rate, or LPR, at 4.24%, according to a Bloomberg survey. That compares with 4.31% for the prior measure and the one-year benchmark of 4.35%. Beijing is aiming to tie borrowing costs to financial markets, making them less sticky.
Pub Deal
Raise a glass to Li Ka-shing. CK Asset Holdings, backed by the Hong Kong billionaire, bought U.K. pub chain Greene King for 2.7 billion pounds ($3.3 billion), betting Brits will continue to like lager as Brexit bites. Greene King, which operates almost 3,000 pubs and restaurants, had lost almost a third of its value over the last four years. It's the second big U.K. pub deal in as many months as the falling pound makes assets cheaper for overseas buyers.
What we’ve been reading
This is what’s caught our eye over the last 24 hours.
- Billionaire succession stirs protest at world’s largest shipyard.
- These nations faced bankruptcy. Now their bonds yield nothing.
- Here’s how Asia can protect its crazy riches, Satyajit Das argues.
- Jamie Dimon is one of the CEOs rejecting the shareholder-first business model.
- How Boris Johnson plans to prepare the U.K. for a no-deal Brexit.
- A Scottish castle in perfect condition is on sale for $9.7 million.
- Please enjoy the best Lamborghinis, Ferraris, Porsches, and Bugattis at the 2019 Pebble Beach Concours d’Elegance.
To contact the editor responsible for this story: Alexandria Arnold at abaca3@bloomberg.net
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