Five Things You Need to Know to Start Your Day
Get up to date with what’s moving global markets this morning.
(Bloomberg) --
The U.S. and Iraq continue to volley warnings and threats at each other, the world’s fugitive of the hour Carlos Ghosn is expected to let rip as he fronts the media in Lebanon, and investors encouraged by the trade talks are snapping up Chinese assets. Here are some of the things people in the markets are talking about today.
Iran fired tens of rockets at a joint U.S.-Iraqi airbase early Wednesday morning Baghdad time, Iranian state television reported, citing the Islamic Revolutionary Guard Corps. A U.S. defense official confirmed that an attack was underway against the Ayn al-Asad in western Iraq. “We are aware of the reports of attacks on US facilities in Iraq,” White House press secretary Stephanie Grisham said in a statement. “The president has been briefed and is monitoring the situation closely and consulting with his national security team.” U.S. stock futures fell on the news, with contracts on the Standard & Poor’s 500 index dropping 0.8%. Earlier, Iran said it is evaluating 13 possible ways to inflict a “historic nightmare” on the U.S.
After more than a year away from the cameras and microphones, Carlos Ghosn is set to face the media again, this time not as a legendary auto executive, but as the world’s most famous fugitive. While reams have been written about the former chief executive officer of Nissan Motor Co. and Renault SA since his arrest in Tokyo in November 2018, he hasn’t spoken publicly beyond a handful of interviews, a hastily recorded video message and court testimony. Come Wednesday, that will change, with Ghosn set to hold a tell-all news conference in Beirut, the city he fled to after his shock escape by private plane from Japan just over a week ago. The former CEO has already hinted he’ll identify those he considers responsible for his downfall, including government officials.
Investors are snapping up Chinese financial assets, putting aside concerns over tension in the Middle East and instead focusing on progress in trade talks with the U.S., as well as signs that the world’s second-largest economy may be stabilizing. Improving confidence helped stoke a 0.5% rally in the yuan Tuesday, pushing it to its strongest level since early August. The currency punched past the key 6.95-per-dollar level, and traded on the strong side of its 200-day moving average for the first time since May. The CSI 300 Index of stocks closed at an almost two-year high as volume jumped. The return of risk appetite in China comes amid growing optimism that Beijing and Washington may sign an initial deal on trade as soon as next week.
Asian equity futures were mixed after U.S. stocks fell amid the Iran tensions. The dollar rose across the board, with the Australian dollar losing more than 1% as investors assess the impact on the economy from the ravaging bushfires. Oil continued its retreat from multi-month highs. Gold advanced.
Smoke from deadly bush fires that have devastated Australia has now spread halfway across the world, darkening skies in Argentina and beyond. A U.S. weather satellite captured the smoke crossing South America and spreading out over Buenos Aires before it drifted into the Atlantic Ocean -- some 7,328 miles (11,793 kilometers) east of Sydney, Australia -- according to the National Oceanic and Atmospheric Administration.
What We’ve Been Reading
This is what’s caught our eye over the past 24 hours.
- Hedge funds see 9% gain in 2019 after previous year’s losses.
- How Jeffrey Gundlach’s predictions for 2019 turned out.
- China’s next crisis brews in Taiwan election.
- EM investors shrug off Iran’s threats.
- Boeing backs simulator training for 737 Max pilots in reversal.
- Malaysia’s Mahathir likens U.S. killing of Iranian general to Khashoggi murder.
- Where to spend your money drinking in Las Vegas.
To contact the editor responsible for this story: Adam Haigh at ahaigh1@bloomberg.net
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