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 optimism around virus infection rates, the U.K. Prime Minister is stable in hospital and stocks are slipping after two days of gains. Here’s what’s moving markets.
Infection Rate Optimism
Virus statistics continue to offer reasons to be cautiously optimistic. Italy reported its fewest new infections since March 13 as the government considers easing some containment measures, while France recorded fewer new cases too, even as the total number of deaths rose sharply and Paris banned daytime outdoor exercise. U.K. science chiefs are hopeful about the infection rate in Britain too, even as daily deaths hit a new high. Spain, however, reported an increase in both daily fatalities and new cases. Over in China, the exodus from Wuhan is underway after the government relaxed its months-long lockdown.
Johnson Stable
U.K. Prime Minister Boris Johnson remains in intensive care as his country heads into the peak of its outbreak and the government contends with criticism over its handling of the pandemic. “I’m confident he’ll pull through,” Foreign Secretary Dominic Raab said as he deputized for the 55-year-old at the head of the government. The PM is in a stable condition receiving oxygen, and has not been diagnosed with pneumonia or put on a ventilator, officials said. Adding to the government’s woes, Cabinet Minister Michael Gove -- a key member of Johnson’s top team -- said he is in self-isolation after a family member displayed symptoms.
Stocks Lower
European stock futures are slightly lower as equities in Asia ended a two-day rally. In the U.S., the S&P 500 rocketed into a new bull market, at least technically, but closed lower. While President Donald Trump may waver on the quickest way to return the U.S. economy to health, investors are most reassured by a flattening curve. Oil is still a major focus as investors weigh whether output cuts being discussed by the world’s top producers will be enough to offset demand destruction. But while most assets remain volatile, Ray Dalio thinks there are better things to hold than cash.
Asos Sales Slump
Online fashion retailer Asos Plc gave insight into the disruption seen in the sector amid the pandemic, warning group sales have dropped 20%-25% in the most recent three weeks of trading. It wasn’t all gloomy, though: loungewear is performing well, and its social media traffic was boosted in March as it made use of fitness sessions and influencers. The 20-something-focused group is planning to seek more than 200 million pounds ($250 million) in a share sale to shore up its finances, people with knowledge of the matter told Bloomberg.
Coming Up…
We’ll also see updates from stockpiling beneficiary Tesco Plc and ingredients group Givaudan SA, while in monetary policy, the Polish central bank is expected to keep interest rates on hold after easing last month. This evening we’ll get minutes from the U.S. Federal Reserve’s emergency cut last month.
What We’ve Been Reading
This is what’s caught our eye over the past 24 hours.
- Did Zuckerberg’s jealousy hold back Instagram?
- Europe’s push to regulate artificial intelligence.
- The virus changed how we internet.
- Billionaire sells most of Dixons Carphone stake
- Tesla to cut employees’ pay by up to 30%.
- Acting U.S. navy secretary resigns after calling captain stupid.
- Germanwings airline to close.
©2020 Bloomberg L.P.