Five Things You Need to Know to Start Your Day
Five Things You Need to Know to Start Your Day
(Bloomberg) --
Good morning. In case you hadn’t heard, it’s going to be a scorcher today. Meanwhile, big bank earnings in the region have begun, the new U.K. leader is set to be announced, there was budget news from Washington, Asia stocks were mostly higher on lower volumes and Apple Inc. was said to be eyeing an acquisition. Here’s what’s moving markets.
UBS Cautiously Beats
Switzerland’s UBS Group AG and Spain’s Banco Santander SA kicked off European bank earnings, with both companies reporting net income for the second quarter that beat the highest analyst estimate. However, UBS says a drop in interest rates and expected rate cuts will continue to hurt net interest income, and its equity trading revenue fell 9% in the second quarter from a year earlier.
Day Before Boris
Seven years after getting stuck on a zip wire above a London park while waving British flags in the air, Boris Johnson will almost certainly be named prime minster today, officially taking up the role tomorrow. It’s been a long journey; now here’s the hard part. The make-up of the hard-Brexiteer’s cabinet will likely be the main focus, with Justice Minister David Gauke echoing Chancellor of the Exchequer Philip Hammond on Monday by saying he’ll quit if Johnson does get the job as expected.
Ceiling Stopped
U.S. President Donald Trump announced a bipartisan deal to suspend the U.S. debt ceiling and boost spending levels for two years, eliminating the risk that the government could miss payments as early as September, which would have severe economic ramifications and shake confidence in the government. The deal, which Trump called “a real compromise,” will likely push the annual budget deficit for the U.S. above $1 trillion next year.
Markets Thin
Asia stocks mostly gained on Tuesday amid lower volumes as investors brace for a jam-packed week of corporate earnings while eyeing trade developments between the U.S. and China, who are moving closer to their first face-to-face talks in months. Oil held a two-day advance as heightened tensions in the Persian Gulf threatened to disrupt energy flows from the crude-rich region. The Kiwi dollar provided some excitement in currency markets, dipping on news New Zealand’s central bank would could refresh its unconventional policy. Meanwhile, watch auto stocks: German car-parts giant Continental AG cut its earnings outlook amid shrinking vehicle production in key markets including China.
Coming Up...
The International Monetary Fund releases its World Economic Outlook update, having forecast a slowdown in growth for 2019 in April. Meanwhile, other data today include euro-area and Turkey consumer confidence, and a probably unchanged Hungary interest rate. Earnings outside of financials include France’s Hermes International for luxury apparel and Fevertree Drinks Plc for all of you gin lovers. Here’s a good preview for the latter.
What We’ve Been Reading
This is what’s caught our eye over the past 24 hours.
- Apple is said to be in talks to buy Intel’s cellular modem unit.
- Sainsbury's joins forces with Deliveroo to send snacks to U.K. living rooms.
- Uber’s path to profit could be slowed by customers waiting around for a cheaper ride.
- For this MDMA activist, Burning Man is the most important workweek of the year.
- When a phone won’t cut it, now you can hire a robot photographer.
- Sawdust might be one answer to the world’s plastic problem.
- ‘Lion King’ overcomes lukewarm reviews as Beyoncé helps boost box office.
To contact the editor responsible for this story: Phil Serafino at pserafino@bloomberg.net
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