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Five Things You Need to Know to Start Your Day

Five Things You Need to Know to Start Your Day

(Bloomberg) --

ISIS’s leader killed in a U.S. strike, Asia stocks set to kick off the week with modest gains, and Louis Vuitton owner bids for Tiffany. Here’s what’s moving markets. 

ISIS’s Al-Baghdadi Dead  

President Donald Trump said Abu Bakr al-Baghdadi is dead after a U.S. military raid in northwest Syria that left the Islamic State leader “in utter fear, in total panic and dread” in his final moments. Still, it’s probably premature to say Islamic State is a spent force, even though Trump hailed al-Baghdadi’s removal as bigger for the U.S. than killing Osama Bin Laden in 2011. Islamic State had already become a more scattered movement, but al-Baghdadi’s death could become a rallying cry for his supporters to show the U.S. and others that it remains a force to be reckoned with.

Market Open

Stocks in Asia looked set to start the week with modest gains as investors weigh the ongoing flurry of corporate results and positive signals emanating from U.S.-China trade talks. Futures edged up in Japan, Hong Kong and Australia. The S&P 500 rose Friday and Treasuries declined as the U.S. said it is close to finalizing sections of the first phase of a trade deal with China. Alphabet and HSBC will deliver earnings on Monday, while China’s Communist Party begins its plenum — an important gathering for future policy planning. Things to watch: The Federal Reserve is expected to lower the main interest rate when policy makers decide on Wednesday;  U.S. GDP is forecast to slow to 1.6% in the third quarter; the Bank of Japan sets policy on Thursday;  Friday brings the monthly U.S. non-farm payrolls report. 

LVMH Eyes Tiffany

LVMH’s $14.5 billion bid for U.S. jeweler Tiffany & Co.  sees Europe’s richest man, Bernard Arnault, making his biggest bet ever. If successful, LVMH would gain access to more U.S. consumers who have the resources to reach for beautiful things such as Louis Vuitton bags and Givenchy haute couture. As a bonus, Tiffany’s name resonates internationally, expanding LVMH’s global footprint in fast-growing branded jewelry. The luxury group approached New York-based Tiffany with a takeover proposal earlier this month, Bloomberg News reported Saturday. Tiffany is currently evaluating the bid and there’s no guarantee an agreement will be reached.

China’s Biggest Annual Meeting

China’s economic challenges have proliferated in the almost two years since Xi Jinping last convened a full meeting of the Communist Party. But politics remain at the top of his agenda. The party’s Central Committee is expected to gather behind closed doors Monday for the first time since February 2018 — the longest stretch the 200-plus-member body has gone without meeting since China began its reform era four decades ago. And Xi appears poised to pick up where he left off: Solidifying control over the ruling party and the country of almost 1.4 billion people.

Australian First-Home Buyers Hit 

An Australian government program aimed at helping first-time home buyers cuts off support at a little more than half the value of an average property in Sydney, where the real-estate market has been booming. The First Home Loan Deposit Scheme will guarantee eligible buyers purchasing a property with a deposit of as little as 5%. The program’s price cap for homes in Sydney is A$700,000 ($478,000), according to details announced by the Treasury on Sunday. That contrasts with a median property value of A$1.2 million for the city, where a typical house costs A$1.4 million, according to CoreLogic, a real-estate data provider.

What We’ve Been Reading

This is what’s caught our eye over the weekend.

To contact the editor responsible for this story: Alyssa McDonald at amcdonald61@bloomberg.net

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