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Good morning. UBS AG kicked off earnings for big European banks, Boris Johnson may finally get a vote on his Brexit deal and there’s even more optimism on trade this morning. Here’s what’s moving markets.
Khan’s Good Start
UBS AG got big bank earnings under way in Europe, reporting third-quarter net income of $1.05 billion, ahead of a $971 million consensus estimate, despite a "challenging environment." The firm got a boost from its affluent clients, who added $15.7 billion in new money last quarter, giving a boost to star hire Iqbal Khan -- whose start at the company was overshadowed by a spying scandal -- as he seeks to reinvigorate the key wealth management unit.
Third Time Lucky
Having twice been denied a vote on whether members of Parliament support his Brexit deal, U.K. Prime Minister Boris Johnson will give it another go later today. He’ll have to wait until around 7 p.m. in London, for what’s known as the Second Reading vote, to learn whether Parliament agrees with the general principles of the bill. But even if lawmakers scupper the pact, the long-term case for pound bulls is arguably still strong, while U.K. stocks are finally “investable” again, according to analysts at Morgan Stanley.
Bullish For Trade
Stock indexes in Asia were mostly higher as U.S. President Donald Trump said China indicated that negotiations over an initial deal are advancing, raising expectations the nations’ leaders could sign an agreement at a meeting next month. In a positive sign on global trade, A.P. Moller-Maersk A/S, the world’s largest container carrier, raised its 2019 profit forecast on Monday. Brent crude oil futures slipped a bit, lurking just below $59 a barrel, as investors weighed expectations for rising American crude stockpiles against signs of U.S.-China trade progress.
Trudeau’s Win
Canadian Prime Minister Justin Trudeau, whose popularity has taken a hit from a series of scandals, won a second term in national elections with a reduced mandate that will force him to rely on other parties to govern. Short of the numbers needed for a majority, according to Election Canada, the most likely partner for Trudeau would be the pro-labor New Democratic Party. The Canadian dollar trades with minor gains having also strengthened on Monday. Here’s what will, and won’t, likely change after the vote.
Coming Up…
The pace of earnings announcements is starting to pick up before the onslaught later in the week: Besides UBS, there’s Swiss drugmaker Novartis AG, which raised its sales and profit outlook for the year, and coming later U.K. consumer staples group Reckitt Benckiser Group Plc and French defense firm Thales SA, among others. Elsewhere, Hungary’s central bank is not expected to change its main interest rate at today’s monthly decision.
What We’ve Been Reading
This is what’s caught our eye over the past 24 hours.
- Professional soccer players more likely to get dementia.
- Portfolio manager leaves firm after BBC Panorama investigation.
- Mickey Mouse masks made in Nazi Germany to be auctioned.
- Assange tells judge prison isolation inhibited fight against U.S. extradition case.
- “Pierre Delecto” Twitter account unmasked.
- Britain is getting old.
- Deutsche Bank considers substantial job cuts in interest-rate securities unit.
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To contact the author of this story: Joe Easton in London at jeaston7@bloomberg.net
To contact the editor responsible for this story: Phil Serafino at pserafino@bloomberg.net
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