(Bloomberg) --
Good morning. Luxury M&A is in full swing, a huge strike is gripping France and Asian stocks were lifted by the latest trade news. Here's what's moving markets.
Going Shopping
There's more big deal news for luxury-goods watchers: Gucci-parent Kering SA of France held exploratory talks with Moncler SpA about a potential deal for the Italian maker of $2,000 puffy down jackets, according to people with knowledge of the matter cited by Bloomberg. The report follows Kering's larger rival LVMH agreeing to buy U.S. jeweler Tiffany & Co. for $16.2 billion in the biggest-ever luxury transaction. Moncler has a market value of about 10 billion euros ($11 billion) after its shares quadrupled since its initial public offering in 2013.
La Grève
Unions in France representing everyone from transport workers to lawyers, doctors, teachers and students are going on an indefinite “grève,'' or strike, today, in a move that's been the undoing of previous French governments. The strike is in opposition to President Emmanuel Macron's plan to rebuild the country's pension system and risks becoming one of the biggest challenges of his term. The leader has already backtracked on some tax policies to appease Yellow Vest protesters, and faces crucial municipal elections in the spring ahead of legislative and presidential voting in a few years time.
Trade Optimism
Asian stocks were lifted by Wednesday's report that China and the U.S. are getting closer to a deal that would prevent new tariffs kicking in this month. U.S. President Donald Trump told reporters at the NATO meeting in Watford, England, that discussions with China are going very well. He later left abruptly after a video emerged of other leaders mocking him. In Europe, keep an eye on the underperforming U.K. FTSE 100 Index, which is on course for its worst week in two months as polls suggest Boris Johnson's Conservative party could win a majority next week, lifting the pound and pressuring shares of exporters.
Oil Focus
Brent crude oil futures edged lower overnight after surging as much as 4.4% Wednesday, the most in two months, on a combination of trade optimism and U.S. data showing a bigger-than-expected draw in American inventories. The move also came ahead of a meeting of OPEC and its partners that starts today in Vienna, where further production cuts could be eyed. Meanwhile, the initial public offering price for Saudi Aramco shares will finally be announced today, with the size of the deal set to surpass that of Chinese internet giant Alibaba Group Holding Ltd.'s $25 billion New York offering of 2014, Bloomberg reported Wednesday.
Coming Up…
We'll get macro data in the form of German factory orders and euro-zone gross domestic product, along with a U.S. durable goods update later. Statistics released Wednesday showed the euro-zone services sector is still in contraction, while U.S. ISM non-manufacturing missed forecasts and the ADP employment update printed its weakest reading in six months ahead of tomorrow's official jobs report. Earnings come from paper company DS Smith Plc and Swedish airline SAS AB.
What We've Been Reading
This is what's caught our eye over the past 24 hours.
- The Bloomberg 50.
- How to stretch a cruise ship.
- Jay-Z celebrates his birthday by returning to Spotify.
- Navigating grief in the workplace.
- Rules-based stock-picking methods aren't working.
- Saxo Bank's 10 outrageous market predictions for 2020.
- A story of soccer loyalty, duty and hope.
To contact the editor responsible for this story: Phil Serafino at pserafino@bloomberg.net
©2019 Bloomberg L.P.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
