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Written by
Joe Easton
Written by

Joe Easton

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(Bloomberg) --

Good morning. It looks like investors will be kept waiting over news on a trade pact, a $100 billion chipmaker beat earnings estimates and the Bank of England's policy path is clouded by the upcoming U.K. election. Here's what's moving markets.

Trade Delay

Market sentiment took another blow on news that President Donald Trump and Chinese President Xi Jinping may not be able to sign a partial deal until December, while two U.S. locations have been ruled out for their highly anticipated meeting. Both sides are still attempting to reach a pact that would see the U.S. dropping some tariffs on Chinese imports in exchange for Beijing resuming purchases of American farm goods. Some equity benchmarks slipped in Asia but futures in Europe are mixed, while oil held losses after snapping a three-day rally, also weighed on by indications some OPEC+ producers aren't seeking deeper output cuts.

BoE May Soften Tone

If there's one thing that can mess with a central bank's plans, its an election. The Bank of England may walk back its previous guidance that a smooth Brexit would entail higher interest rates as December's vote adds to an outlook already clouded by the divorce. Meanwhile, in Westminster, U.K. Prime Minister Boris Johnson was nursing another blow Wednesday as minister Alun Cairns quit after reports he knew about a former aide's role in the collapse of a rape trial. The opposition Labour party also saw the surprise resignation of remain-backing deputy leader Tom Watson.

Merkel's Rogues

Questions are arising over who's really in charge in Germany. For the second time in as many weeks, one of Chancellor Angela Merkel's chief cabinet members has gone rogue. Finance Minister Olaf Scholz's efforts to end years of European deadlock over a banking union was announced with fanfare Wednesday, but he hadn't cleared it with the chancellor. Speaking of Germany, the European Central Bank will pick a new board member today, with an adviser to Merkel's government touted as a likely replacement. German industrial production data later comes after better-than-expected factory numbers on Wednesday.

Tech and Tiffany

Chip-makers and broader technology should get a boost today after Qualcomm Inc. gave a stronger-than-predicted forecast for the current quarter, indicating that smartphone demand -- fueled by new wireless technology -- may be slowly picking up after a prolonged slump. The company's shares rose 5% in extended trading. Elsewhere, Tiffany & Co. gained on a report that said the luxury jeweler asked LVMH to improve its $14.5 billion offer. Tiffany could open its books and provide confidential due diligence with a better offer, while LVMH is engaging, Reuters reported.

Coming Up…

Engineering giant Siemens AG got a huge day of European earnings up and running, saying it expects a decline in market volume for some businesses next year amid the manufacturing downturn that's gathered steam in Europe, while lender Commerzbank AG cut its 2019 net income guidance. Those still to come include grocer J Sainsbury Plc and luxury carmaker Aston Martin Lagonda amid questions over its next route to raising more cash. Other data include South Africa manufacturing and Czech and Serbian rate decisions.