Five Things You Need to Know to Start Your Day
Five Things You Need to Know to Start Your Day
(Bloomberg) --
Good morning. European election results are being digested, China’s playing the long game in the trade war and the U.K. will be hearing from all those lining up to be the next Prime Minister. Here’s what’s moving markets.
Mainstream Resistance
Europe’s mainstream parties appear to have broadly held their own against a surge of support for populist rivals in the European Parliament elections, but it's likely the ramifications of the results won’t be fully clear for a few days. But the early indications are that, for the most part, voters swung towards liberal and especially green parties. French President Emmanuel Macron’s party was humbled by Marine Le Pen’s National Rally, Angela Merkel’s coalition partner in Germany took a hit and Greece has called elections.
Long Game
China's retaliation to U.S. tariffs so far has been less spectacular than its counterpart but it is there nonetheless and the government appears to be playing the long game. Technology has become central to the dispute and China has bemoaned the “rough” moves by the U.S., said it will open up its industrial sector to more foreign investment and is seeking global cooperation on the internet, big data and AI. It also warned the trade war will hurt everyone. Markets, meanwhile, are waking up to the wall of worry they face and digesting the ripple through commodities.
Who’s Next?
The U.K. is closed Monday but will be gearing up for a week packed with questions about who is going to lead the country when Prime Minister Theresa May leaves in a couple of weeks. Most of the prospective names are touting their Brexit-supporting qualities but Chancellor of the Exchequer Philip Hammond fired a warning shot across their collective bow, saying that defying the will of Parliament and putting no-deal back in play would not go down well. May’s departure also throws a wrench into another succession plan: the next boss of the Bank of England. All the while, the path of the pound grows hazier.
The Alliance
Fiat Chrysler Automobiles NV is said to be close to announcing a tie-up with Renault SA. It could mark the first step in Fiat Chrysler becoming the new wing of a Renault-Nissan Motor Co. alliance looking for “serenity”. A deal would vault the combined group past Volkswagen AG and Toyota Motor Corp. as the biggest automaker in the world. It would also mark the first major combination in an auto sector beset by challenges from the trade war and the midst of a once-in-a-generation shift to electric and autonomous cars.
Coming up...
With the U.K. and U.S. are both closed, European markets will take center stage digesting the EU Parliament election results.
What We’ve Been Reading
This is what’s caught our eye over the weekend.
- How the Tesla stock bubble burst.
- A British college dropout is now a billionaire.
- Secret museums hiding some of the world’s greatest art.
- The new “supreme” bullet train broke a speed record.
- The Willy Wonka of Wall Street.
- The world's rarest cars on show in Lake Como.
- The hidden women who helped create chaos theory.
To contact the editor responsible for this story: Tom Lavell at tlavell@bloomberg.net
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