Five Things You Need to Know to Start Your Day
Good morning. The pound edged lower after the U.K. Parliament delayed a vote on the Brexit deal, China said progress is being made on a partial trade pact with the U.S. and results are in from Switzerland’s election. Here’s what’s moving markets.
Pound Move Contained
Sterling fell after U.K. politicians failed to deliver the decisive Brexit vote that had been promised at the weekend, although the move was contained to just 0.6% this morning with some commentators expecting the decline could be short-lived. Prime Minister Boris Johnson is making a fresh bid to deliver on his promise to take Britain out of the European Union on Oct. 31 amid mounting optimism that he now has the numbers to get his deal through Parliament. Domestically oriented companies could be in focus today in the stock market, while the Brexit update is likely to overshadow news of a rebound in London property prices.
Any disappointment among equity investors about the Brexit delay might be counteracted by China’s top trade negotiator offering positive signals that talks between Washington and Beijing are progressing toward a partial trade deal. “Substantial progress in many aspects” has been made, laying an important foundation for a phase one agreement, Vice Premier Liu He said. Amid its slowest pace of growth since the early 1990s, there were also signs that China may be trying to support to the real economy via its base rate for corporate loans.
Swiss Greens Triumph
Switzerland’s environmentalists achieved a historic result in Sunday’s parliamentary election with the chance of a seat in government, while the anti-immigrant party was dealt a setback. The Greens overtook the Christian Democrats to become the fourth-strongest party in parliament’s 200-member lower house, and the Green Liberal Party also increased its share, meaning the two now control about a quarter of the chamber. The Swiss franc was little changed Monday after the result that’s in line with polls and the environmentalist movement seen across Europe.
Some mid-cap M&A news to kick off the week: First, Austria’s AMS AG, a sensor supplier to Apple Inc., renewed its 4 billion-euro ($4.4 billion) offer for Osram AG, in the latest twist in its prolonged pursuit of the German lighting firm. Meanwhile, Canada’s Open Text Corp. is denying a report that it’s weighing a bid for U.K. software firm Micro Focus International Plc. Finally, luxury property developer Nick Candy is considering a move for Capital & Counties Properties Plc, owner of Earl’s Court and Covent Garden estates in London, the Sunday Times reported.
German software giant SAP SE confirmed its forecast for 2019, as well as its 2020 and 2023 goals, but otherwise the schedule is light. Currency traders will have an eye on potential comments from European Central Bank Vice President Luis de Guindos and Chief Economist Philip Lane at a conference in Frankfurt. And Canada’s federal election takes place today as Prime Minister Justin Trudeau faces the fight of his life.
What We’ve Been Reading
This is what’s caught our eye over the weekend.
- Berlin’s governing parties strike deal to freeze rents.
- China halts release of Tarantino film.
- Woodford took cash as bust loomed, Hargreaves says.
- Here’s what the world’s first twenty-hour flight did to me.
- Bacon is getting really expensive.
- Goldman Sachs banker arrested on insider-trading allegations.
- Harassed at a start-up with no HR department.
©2019 Bloomberg L.P.