Five Things You Need to Know to Start Your Day
Five Things You Need to Know to Start Your Day
(Bloomberg) --
Donald Trump delayed blacklisting Huawei on concerns it could disrupt China trade talks. Asia equities are in the green following a rebound in U.S. stocks as the trade war remains in focus. And South Koreans are closely following health updates on Samsung Chairman Lee Kun-hee. Here are some of the things people in markets are talking about today.
Trump’s Huawei Hold Off
President Trump held off on blacklisting Huawei on concerns it could disrupt China trade talks and only took action after discussions stalled, people familiar said. Plans were on the table for months but the decision to curtail the company's access to American suppliers set off a scramble to implement. Some national security officials are concerned Trump could scrap the order to resuscitate bilateral negotiations. A U.S. official said European nations are coming around to the severity of the threat posed by Huawei. Here's how Trump's ban threatens to throttle a global 5G rollout.
Stocks Bounce Back
Asian stocks looked set to track an advance in U.S. equities as the China trade war remained the focus of investor attention. The Nasdaq climbed more than 1% after the Trump administration granted limited relief for companies doing business for Huawei Technologies, boosting chip shares. The dollar was largely higher, with the yen and kiwi pacing losses. Treasuries edged down, oil advanced and gold retreated.
May’s Brexit Gamble
Theresa May made a new — and likely final — Brexit offer, but her efforts looked doomed. The U.K. Prime Minister said Parliament will have a choice over EU customs union arrangements, and the government will give MPs a vote on whether her deal should be put to a referendum. Die-hard Brexiteers aren't happy, while Jeremy Corbyn said Labour won't support the “repackaged version of the same old deal.”
Modi’s Reform Failings
India’s Narendra Modi looks to be on the verge of securing a landslide victory when votes in the country’s election are counted on Thursday. Heavy-handed appeals to nationalism have been a key tool. Since he first contested India’s top office five years ago, he said a vote for his Bharatiya Janata Party was a vote for development, reform and jobs. And he had some initial success pushing reforms. Yet as Modi’s ratings dipped, reform talk gave way to pledges of quotas for government jobs, income support for farmers, a massive health insurance program and vows to punish arch-rival Pakistan. The question now is what he might do with a second term.
He’s Breathing
South Koreans have been closely following health updates on Lee Kun-hee, the 77-year-old chairman of Samsung. He's been incapacitated since a 2014 heart attack, and the local press frequently speculates about his health with flashes like “He’s Breathing.” The reason? When he dies, his heirs will face an estate tax of almost $7 billion. To pay it, they'll likely have to sell shares, diluting their stake in Samsung. The company says Lee is in stable condition and not on life support.
What we've been reading
This is what's caught our eye over the last 24 hours.
- Steve Cohen outed as mystery buyer of $91 million Koons bunny.
- Kyle Bass says he's “very long dollars” in a bet against Hong Kong.
- A blood test can predict dementia — there’s just one problem.
- Hong Kong’s proposed extradition law would be the “worst thing” since 1997, Chris Patten says.
- These are the Asian countries with the best expat pay packages.
- When everything you thought you knew about your neighbor turns out to be wrong.
To contact the editor responsible for this story: Robert Lafranco at rlafranco@bloomberg.net
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