Five Things You Need to Know to Start Your Day
Five Things You Need to Know to Start Your Day
(Bloomberg) --
Good morning. There’s a high-stakes lunch in England, Chinese officials are set to discuss trade in Washington and LVMH restored faith in luxury sales, for the moment. Here’s what’s moving markets.
Breaking Brexit Bread
This may be what’s called a power lunch: U.K. Prime Minister Boris Johnson will dine today with his Irish counterpart, Leo Varadkar, to see if the two sides in the Brexit divorce can find room to compromise. The meeting – at a secret location in England – comes amid an increasingly sour tone in the talks as both sides sought to blame each other for the lack of progress. The markets don’t appear too optimistic for Johnson: Here are five charts that show why they think the U.K. isn’t leaving the EU anytime soon. Meanwhile, Johnson’s Labour Party rival Jeremy Corbyn said he is ready and “champing at the bit” for an early U.K. election.
Trade Talks
There’s a lot to catch up and sort through regarding trade. With Chinese negotiators in Washington to talk trade for the first meeting in months, there is a report that the White House is looking at rolling out a previously agreed currency pact as part of an early harvest deal that could also see a suspension of a tariff increase next week. That news helped steady markets, which were roiled overnight due to conflicting mood music after the South China Morning Post reported that deputy-level discussions had made “no progress” and negotiators might cut short their stay, which the U.S. refuted. For western companies, though, trade isn’t the only thing to worry about in terms of China. A moment of truth may be coming as they survey the fallout from the National Basketball Association’s stance on speech.
Turkish Incursion
Turkey launched a military ground incursion into northeastern Syria to force U.S.-backed Kurdish militants controlling the border area away from the region, after President Donald Trump ordered U.S. forces to stand aside. The move spurred Russia, Iran and some European officials to urge Turkey to use restraint amid concern that renewed chaos in Syria could lead to a jihadist resurgence. In the U.S., Senator Lindsey Graham introduced a bipartisan measure to sanction Turkey unless the Trump administration certifies that the country is not operating in Syria. For more on why what happens in Syria matters beyond its borders, read here.
King of Bling
While French billionaire Bernard Arnault may have called Greta Thunberg demoralizing, the results his company LVMH posted last night will likely be anything but for the luxury industry. The juggernaut posted 19% growth in sales of its fashion and leather goods in the third quarter, topping expectations and allaying some concerns about disruptions from protests in Hong Kong. Keep an eye on the sector in Europe today with LVMH shares already up 38% this year.
Coming Up…
It was a wild ride in Asian trading for U.S. futures, though they have now settled down and erased most of the losses, while Asian indexes were mixed. After a period of quiet for corporate updates, Thursday will bring a relative slew of news from companies, with Hargreaves Lansdown, Chr. Hansen and fragrance-maker Givaudan all reporting. And for book lovers, the long wait is finally over as the Nobel prize for literature for two years will be announced. Here are predictions for who will win.
What We’ve Been Reading
This is what’s caught our eye over the past 24 hours.
- Billionaire Fisher bewildered his sexual remarks offended.
- Trump urged top aide to help Giuliani client facing charges.
- The master of robots is coming for Wall Street.
- Is private equity the next asset class to let Harvard down?
- The resort with all the trappings of an ultra-luxury ski destination.
- Colombia, notorious for cocaine, embraces cannabis.
- Tesla’s autopilot could be a lifesaver. But some will die first.
To contact the editor responsible for this story: Phil Serafino at pserafino@bloomberg.net
©2019 Bloomberg L.P.
