ADVERTISEMENT

Five Things You Need to Know to Start Your Day

Five Things You Need to Know to Start Your Day

(Bloomberg) --

Good morning. U.S. President Donald Trump tore into U.K. Prime Minister Theresa May on Twitter, there were two big profit warnings after the European close on Monday, Apple Inc. bears are growing in numbers, and Asian stocks mostly continued to decline. Here’s what’s moving markets.

What a Mess

Trump lambasted May on Twitter over her handling of Brexit, saying it’s “good news” that she’ll soon be gone. The remarks came after May offered her support to a U.K. ambassador that was critical of Trump in leaked memos, with the president declaring the White House will no longer deal with him. “What a mess,” he said of May and her representatives, while remaining complimentary about the U.K. in general. He’s been most impressed by the Queen, for what it’s worth.

Two Warnings

Speaking of messy, here’s a couple of profit warnings to be aware of. First, the world’s biggest chemical maker, BASF SE, slashed its 2019 sales and profit forecast “mainly due to the trade conflicts.” That may well put a dent in peers’ share prices this morning. Secondly, Danske Bank A/S also cut its full-year profit forecast, blaming “weak momentum” in revenue and heightened compliance costs, as the Danish lender contends with negative interest rates and government probes.

Five Apple Bears

Wall Street hasn’t been this bearish on Apple in a long time. A handful of analysts now  rate the giant company “sell” for the first time since before it even debuted its first iMac in 1998. All five of those recommendations have come in 2019, with caution driven by uncertain demand for its critical iPhone line, amid U.S.-China trade war risks. That can’t be a good sign for the global tech sector, and in particular, Apple’s sprawling supply chain. All eyes on third-quarter numbers at the end of the month. 

More Declines

The MSCI Asia Pacific stock benchmark slipped for a third day as rising tensions between Japan and South Korea add to existing headwinds for trade. The pound was steady despite some concerns that investors are underestimating the risk of a no-deal Brexit, and as economists predict a contraction in the U.K. economy in the second quarter. Oil fell for the first time in a week as concern over the slowing global economy took precedence over geopolitical tensions, but here’s why the world is still worried about Iran

Coming Up...

Fed policymakers Raphael Bostic and James Bullard address a conference in St. Louis later today, with a rate cut this month still not a done deal, but that event is just a pre-cursor for Chairman Jerome Powell’s address to lawmakers on Wednesday and Thursday. 

What We’ve Been Reading

This is what’s caught our eye over the past 24 hours.

©2019 Bloomberg L.P.