Five Things You Need to Know to Start Your Day
Five Things You Need to Know to Start Your Day
(Bloomberg) --
Good morning. Donald Trump fired his national security adviser, Germany’s budget plans remain the subject of great debate and a trio of IPOs are grabbing all the attention. Here’s what’s moving markets.
Bolton Out
U.S. President Donald Trump fired his hawkish national security adviser, John Bolton, after saying he “strongly” disagreed with many of his positions. The move comes directly after Bolton had advised Trump against meeting directly with Taliban leaders to complete negotiations to end the war in Afghanistan. Now the question becomes, what does this mean for the outlook on American policy? Oil prices dropped after the news on the view that Bolton’s firing may lead to a de-escalation in tensions with Iran and could lead to a softening in the U.S.’s dealings with Venezuela.
‘Many Billions’
The International Monetary Fund has said Germany should not wait for an economic shock before loosening the purse strings on public spending, arguing the nation should address the structural challenges it faces now. Those comments came after German Finance Minister Olaf Scholz on Tuesday said Germany was ready with “ many billions’’ should its economy head into recession, but that it will stick to a balanced budget. Germany’s budget is the great debate heading into a European Central Bank meeting on Thursday that is likely to be painful for banks. Still, don’t forget those frugal Swedes.
IPO Trio
Three IPOs are taking up all the attention right now. Prosus, the arm of South Africa’s Naspers Ltd. that will hold its stake in Chinese internet behemoth Tencent Holdings Ltd., will complete its direct listing in Amsterdam today with a valuation expected to be a touch north of $105 billion. When it arrives, Saudi Aramco will be even bigger and the Saudi state-owned oil giant is said to have tapped the banks that will run the float. The IPO of flexible office space firm WeWork, however, is looking rockier and the firms that lent it money are starting to get nervous.
More Cameras
Apple Inc.’s event to launch its new set of products offered much to digest. The big new change on the iPhone 11 is it has two cameras, the latest watch has a titanium case and an always-on screen option and there’s a cheaper iPad option with a bigger screen. And note, too, the launch of Apple’s streaming service, which hit shares in the likes of Netflix Inc. and Walt Disney Co. For Apple’s European supply chain of screen and chip makers, the most startling part is the much more aggressive pricing strategy. Watch out for any reaction in the companies exposed to the U.S. tech giant.
Coming Up...
Asian stocks added to gains and U.S. futures advanced following an influential newspaper editor saying China will implement policies to cushion the blow of the trade war. On the earnings front, keep an eye on luxury giant Hermes International and any read-across for its peers, plus numbers from Spanish fast-fashion group Inditex SA. OPEC will publish its monthly oil market report ahead of crude inventories data from the U.S. later in the European day.
What We’ve Been Reading
This is what’s caught our eye over the past 24 hours.
- Beware the risk of a zombie Libor.
- The heaviest-hitting debuts from the Frankfurt Motor Show.
- Billionaires want this art. Too bad.
- Women’s soccer works to build on its World Cup success.
- Europe’s new tech regulator, same as the old tech regulator.
- The pizza joint that pays a living wage.
- Concerts are more expensive than ever, but fans keep paying.
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