Five Things You Need to Know to Start Your Day
Five Things You Need to Know to Start Your Day
(Bloomberg) --
Good morning. Trade war optimism proved short-lived. Hurricane Dorian battered the Bahamas and could still hit Florida. And it could be make or break for Brexit this week. Here’s what’s moving markets.
Tariffs Take Effect
The trade war optimism at the back end of last week didn’t last long, as the White House slapped tariffs on roughly $110 billion of Chinese imports on Sunday, with targeted goods ranging from apparel to Apple Watches. A separate batch of about $160 billion in Chinese goods will be hit in December and China’s retaliated with higher tariffs being rolled out in stages on a total of about $75 billion of U.S. products. At least Elon Musk’s charm offensive is paying off.
Devastating Dorian
Hurricane Dorian is tied as the most powerful storm to hit land anywhere in the Atlantic, already battering the Bahamas and inflicting colossal damage to property and infrastructure across the chain of islands at maximum sustained winds of 185 mph, according to the National Hurricane Center. The fate of Florida remains uncertain, with the storm just 135 miles away. Its impact will be of particular interest to insurance companies exposed to the damage.
Merkel’s Relief
It was a satisfying weekend for Angela Merkel, as the German chancellor’s ruling coalition parties stemmed a surge by right-wing populists in two elections in the former communist east, potentially staving off a deeper political crisis in the 17-month-old governing coalition. Still, the stiff challenge from a protest party is a wake-up call just as Europe’s largest nation teeters on the brink of a recession.
Equities Lower
Most Asian stocks fell with U.S. equity futures after those latest tariffs, while data showed further weakness in China’s manufacturing sector and Hong Kong protesters caused major disruptions to the city’s international airport at the weekend. The pound was steady ahead of a week that could determine the fate of U.K. Prime Minister Boris Johnson, and Brexit itself. Johnson’s plans to meet potential Tory rebels on Monday have been called off. Where did it all go wrong?
Coming Up...
Several European Central Bank members are due to speak after hawkish commentary last week. Over the weekend, the ECB’s newest policy maker added to skepticism over the need for a large stimulus package later this month. Elsewhere, we ease into the week with a very light corporate earnings schedule, while today’s economic data includes euro area manufacturing PMI and Turkish GDP.
What We’ve Been Reading
This is what’s caught our eye over the weekend.
- Pope late after getting stuck in elevator.
- Zimbabwe turns to Tesla during power crisis.
- U.S. steps up fight against fake news.
- We’re running out of helium.
- Kevin Hart recovering from car crash.
- Woodford blames “momentum-driven market” for underperformance.
- Germany seeks forgiveness from Poland.
To contact the editor responsible for this story: Celeste Perri at cperri@bloomberg.net
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