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Good morning. China’s growth is slowing but there looks to be a silver lining, campaigning to be the next U.K. prime minister is getting messy and the year’s biggest IPO isn’t happening. Here’s what’s moving markets.
Slowing China
Chinese economic growth slowed to the weakest pace since quarterly data started in 1992 in the second quarter of the year, hit hard by the trade standoff with the U.S. but with signs of stabilization starting to emerge in the monthly indicators for the country. The slowdown is helping to increase the focus on the need for interest-rate cuts across emerging markets after the dovish Federal Reserve comments last week. In Turkey, at least, where interest-rate cuts are a constant hot topic, President Recep Tayyip Erdogan has pledged rates will be significantly lower by the end of the year, a week after he ousted the central bank chief.
Best Laid Plans
The battle between the two contenders to be Britain’s next prime minister is getting messy. Boris Johnson, the frontrunner, admitted that he doesn’t know all the details involved in the plan B he’s set out for continuing trade should the U.K. leave without a deal. The October 31 deadline is also getting an airing, with Johnson saying it would be “insane” to suggest this date couldn’t be met while his opponent, Jeremy Hunt, refused to commit to getting the exit done by Christmas. And pro-EU campaigner Gina Miller said that if the government were to suspend Parliament to push through a no-deal Brexit, she’ll sue.
Flat Beer
The decision by Anheuser-Busch InBev NV, the world’s biggest brewer, to pull the planned IPO of its Asia-Pacific business is a blow not only for the heavily indebted company but also for listings outside of a booming, unicorn-filled U.S. market. The move came after Swiss Re AG, the Swiss reinsurance group, suspended the listing of its Reassure unit, a move also blamed on the familiar market conditions concerns.
Controversial Tweeting
U.S. President Donald Trump stirred more controversy over the weekend as he faced accusations of racism after telling four Democratic lawmakers to return to the “broken and crime infested places from which they came.” His impact didn’t stop there. Criticisms that Trump made about cryptocurrencies last week sent Bitcoin and its cohort tumbling lower over the weekend, though these kinds of moves in cryptos are hardly one-offs. Note, too, that Trump is trailing three Democratic presidential contenders in theoretical polling match-ups, though it remains some way to go before 2020 elections roll around.
Coming Up…
The signs that China’s economy is stabilizing sent stocks higher in Asia and European futures are pointing to a positive start following a pretty flat Friday. Oil prices eased a little after a strong week as a storm shut down a huge proportion of Gulf of Mexico crude production. Elsewhere, EU foreign ministers will meet in Brussels to discuss Iran’s non-compliance with its nuclear accord and the U.S. bank earnings season will kick off later with Citigroup Inc.
What We’ve Been Reading
This is what’s caught our eye over the past 24 hours.
The countries most at risk of a housing bubble. Jeffrey Epstein and the Victoria’s Secret billionaire. The disturbing selfie craze at a toxic lake in Siberia. E-scooter safety is back in focus after the death of a YouTube star. The unlikely bond industry powerhouse: Japan’s Post Office. Royal Box attendees at Wimbledon may have been swiping their water bottles. You had Hygge. You had lagom. Get ready for Niksen.
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To contact the author of this story: Sam Unsted in London at [email protected]
To contact the editor responsible for this story: Celeste Perri at [email protected]
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