Five Things You Need to Know to Start Your Day
The American flag flies next to the dome of the U.S. Capitol building during rehearsal for the 2017 Inaugural Ceremonies in Washington, D.C., U.S. (Photographer: Andrew Harrer/Bloomberg)

Five Things You Need to Know to Start Your Day

(Bloomberg) --

Beijing politicians travel to U.S. for talks. The U.S. shutdown is over — for now. A big week for tech titans' earnings. Here are some of the things people in markets are talking about today.

Trade Talks

Vice ministers from Beijing arrive in the U.S. on Monday to pave the way ahead of trade talks in Washington, and investors will be watching for any hints of progress. Chinese President Xi Jinping's top economic aide, Vice Premier Liu He, will meet with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin on Wednesday and Thursday. Without a pact by the March 1 deadline, the U.S. could boost its import-tariff surcharge on Chinese goods to 25 percent from 10 percent.

Shut Down

U.S. federal employees may not be back at work for long. White House Chief of Staff Mick Mulvaney didn't rule out another shutdown if President Donald Trump and congressional leaders can't strike a budget deal by mid-February that includes funding for a border wall. One estimate indicated the 35-day partial government closure cost the U.S. $6 billion in lost productivity and economic activity.

Tech Titans

Tech titans take center stage in the earnings show this week. Apple's iPhone inventory buildup may lead to lower guidance when the company reports Tuesday, Sanford C. Bernstein said, while Morgan Stanley said shares already appear to be pricing in "unlikely long-term iPhone scenarios." Other Big Techs due are Amazon, Alibaba, Facebook, Microsoft and Samsung. Outside tech, Caterpillar, Exxon Mobil, Shell, Pfizer and LVMH report.   

Busy Week 

Federal Reserve Chairman Jerome Powell gets a fresh chance to explain the U.S. central bank’s policy stance when he speaks after the Federal Open Market Committee rate decision. No change for now is expected in the Fed’s strategy of reducing its bond holdings, and rates are forecast to remain on holdThe U.K. Parliament votes on amendments to Theresa May’s Brexit deal with the EU, while the European parliament debates the matter. Asian equity futures pointed narrowly higher.

Venezuela Diplomacy

Venezuela walked back its decision to sever diplomatic ties with the U.S., announcing that each country agreed to keep an interest section open in their respective capitals. Earlier, U.S. Secretary of State Michael Pompeo told the UN that Juan Guaido is the nation's rightful leader and the world must choose between freedom and mayhem. The EU demanded speedy elections. In Caracas, Guaido asked a crowd to reassure soldiers that they can get amnesty for deserting the president.

What we've been reading:

  • Trump lifts Rusal sanctions as Putin ally Deripaska cuts stake
  • Here are three scenarios for the U.S.-China trade talks
  • The world economy faces some pivotal health checkups this week
  • A split Venezuela battles for the military’s loyalty
  • An inside look at the aftermath of the deadly Vale dam break
  • What’s in Marie Kondo’s closet?
  • Rothschilds sell last piece of Austrian Empire after 200 years

©2019 Bloomberg L.P.

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