Five Things You Need to Know to Start Your Day
Good morning. The next big Brexit vote is just a day away, Fed’s Powell indicated no hurry to adjust rates on CBS’s “60 Minutes,” and plane-maker Boeing could come under scrutiny after Sunday’s Ethiopian Airlines crash. Here’s what’s moving markets this morning.
A Royal Air Force jet is standing by to fly U.K. Prime Minister Theresa May to Brussels in case of a breakthrough in Brexit negotiations, according to weekend reports. But there’s no need to start the engine just yet – May ally Andrea Leadsom rejected the European Union’s latest plan to break the deadlock, dismissing Michel Barnier’s new proposal for the backstop as a joke, in an interview with Bloomberg. The next big vote is just a day away and May’s aides are worried that the U.K. prime minister could lose this one by an even bigger margin than the last, according to The Sunday Times newspaper. The pound is lower.
Boom boom Powell
Federal Reserve Chairman Jerome Powell reiterated he is in no hurry to change interest rates, in a keenly anticipated interview that aired Sunday on CBS News’ “60 Minutes.” The U.S. central bank boss acknowledged that over the past few months there’s been increasing evidence of the global economy slowing down. S&P 500 futures were steady following the worst week for global equities since mid-December.
Passengers booked to fly on Boeing 737 Max jets are expressing concern after the Ethiopian Airlines jet crash on Sunday that took the lives of all 157 on board. China grounded its fleet of the best-selling plane that has now been involved in two deadly accidents in five months, and Indonesia is considering doing the same. Futures on the U.S. Dow Jones Industrial Average Index -- where Boeing has the largest weighting -- slipped during Asian hours.
Turkey is back in the headlines after an apparent deterioration in relations with Germany over the weekend. Berlin tightened its travel advice for the country after officials in Ankara denied accreditation to European journalists without offering a reason. Also note that economic growth data from the country, still reeling from last summer’s currency crash, is due to be published this morning. It’s payback time for Turkey’s economy after a decade of living beyond its means, Bloomberg's Cagan Koc writes.
Better late than never: U.S. President Donald Trump is due to release his proposed fiscal 2020 budget today. It’s about a month overdue because of the government shutdown. Trump is expected to urge sharp cuts in domestic spending, while seeking funding for his Mexican border wall. Here in Europe, industrial production data from Germany is the other key release of the day.
What We’ve Been Reading
This is what’s caught our eye over the weekend.
- It’s time to find out how the world’s number 2 economy is faring.
- Merkel party chief sets limit on Macron's European ambitions.
- German carmaker BMW and top soccer team are working on a strategic partnership.
- How Greggs made its vegan sausage roll a social media sensation.
- The 87-year-old hobbyist who measures the royal family’s workload.
- By order of the Peaky Blinders: Actor auctions hat from acclaimed TV series.
- Billionaire Kylie Jenner is the future of shopping.
©2019 Bloomberg L.P.