(Bloomberg) --
Good morning. The U.K. prime minister is in hospital, virus death rates in some countries are falling and stock futures are starting the week higher. Here’s what’s moving markets.
Johnson Hospitalized
U.K. Prime Minister Boris Johnson was taken to hospital as his doctor advised he undergo “precautionary” tests because coronavirus symptoms, including a fever, have not cleared up. It was a news-packed Sunday in Britain as Queen Elizabeth II made a rare televised address on the outbreak, the Jeremy Corbyn era officially ended as the opposition Labour party named its new leader and Scotland’s chief medical officer resigned after flouting lockdown guidelines. All of this comes amid a warning that U.K. measures might be tightened.
Death Rate Hopes
Europe’s four worst-hit countries reported declines in the pace of coronavirus deaths. Italy recorded its lowest daily number in two and a half weeks while Spain’s toll declined for a third straight day and fatalities also dropped in the U.K. and France. Over in the U.S., New York reported its first decline in daily deaths, but we’ll have to wait to see if it’s a plateau or just a blip, Governor Andrew Cuomo said. Officials in the city were left stunned after a zoo tiger contracted the illness. If you’re wondering when or how this all ends, here’s some ideas.
Stocks Starting With Gains
We’re on course for a positive start to this shortened trading week with European equity futures rising this morning as some commentators turn less gloomy. A slowdown in the growth rate of new U.S. coronavirus cases may help put a floor under stocks and dampen volatility, according to JPMorgan Chase & Co. Others, like Morgan Stanley and Eaton Vance, are encouraged by the unprecedented government and central bank stimulus efforts, as well as signs of the pandemic peaking in Europe.
OPEC+ Talks Postponed
Oil prices are giving up some of last week’s huge rally. Futures dropped around 4% in New York after a virtual gathering of the OPEC+ alliance that was originally scheduled for Monday was postponed to Thursday as Saudi Arabia and Russia traded barbs over who was to blame for the collapse in oil prices. Some progress was made toward an agreement on Sunday, according to diplomats, but the lack of participation from the U.S. -- the world’s largest producer -- could prove to be a stumbling block. Here’s how Saudi Arabia might be able to save the oil industry.
Coming Up…
U.K. construction purchasing managers index and German factory orders data are due today and, like most of the macroeconomic statistics scheduled for the weeks ahead, we don’t expect them to make for pleasant reading. Elsewhere, in monetary policy, Israel is forecast to cut interest rates. Here’s what’s on the macroeconomic agenda over the next five days.
What We’ve Been Reading
This is what’s caught our eye over the weekend.
- Ripping up insolvency rules won’t save all companies.
- The fate of Milan will be the fate of Italy.
- Africa’s woes threaten to starve its factories.
- U.K. to release 4,000 low-risk prisoners.
- India bans exports of drug touted by Trump.
- Soccer star apologizes for party during lockdown.
- Tiger King reflects our world back to us.
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