United States, Bloomberg, China discussed on Bloomberg Daybreak: Europe
So let's get right to that. We see European equity Malk is a fairly flat this hour. This don't six hundred is flat. The Footsie-100 plas-. We see a little bit of selling on the CAC and the Dax, but not as much as we've previously seen earlier on in the session. The footsie MIB is regained little of its poise as well. Although worth pointing out the footsie may be primarily weighed down by ex dividends today, while other than any fundamental news flee the ibex ease up by health. Percents. I'm not he's a real standout move it to the upside anything connected to the oil price, and anything the benefits from stronger oil price has been gaining. So we've seen some of those heavily weighted oil companies in London and Paris moving higher this morning. We all eight tenths of a percent at sixty three twenty six on the WTI price oil off its highs of the session of the measures of oil prices well by than one percent lately later on this morning. But still we stronger after that meeting over in Jeddah in Saudi Arabia at the weekend of oil produces the dole broadly flats negative this morning. A little bit of negativity in the yen as well. We see that the euro is slightly stronger against the dollar, but not by much, and the pound is up one cool to have a percents against the dollar at one twenty seven fifty five politics, certainly having a big impact in the Asian session. Overall, the Asian equity mock as well by full tenths of one percent, equities in India and in Australia in particular, really boosted by the latest political developments in vice markets, Matt's, by the way, the pound this see this is the kind of thing. I missed it was trading. It basically. Dollar thirty for most of my recent life and I'm away for two days, all of a sudden, it's under one twenty eight. Yes. And those talks with Ponzi, and the conservatives, even though many people at suggested, they wouldn't deliver much anyway, the callosities Tokes did these way on the pound. But yeah, we see a little bounce this morning. All right. Now, let's get to US tech companies, they have reportedly frozen supply of critical software and components to Weiwei, which makes sense because they were told to by the US government. In fact, it would be legal if they continued supplying software and components to China's largest tech company for more. Let's go to Hong Kong where Bloomberg's Asia tech reporter Shelly banjo is standing by. So Shelly talk talk us through. Who were taught who, who were who were talking about here because it's not just Qualcomm, and we're, we're talking about international companies like Infineon as well. That's exactly right. So the big headline news was Google, you know, saying that they were going to could potentially stop giving software access to the Android operating cell phone. So that's the big thing that, that kind of set people, questioning, particularly consumers wait. So I don't I can't use Google search or Google maps on my phone's if I buy away phone, which is not a big deal in China or those things are blocked, but in Europe and, and in southeast Asia, and India, where while he has tried to grow beyond China. That's, that's a big deal. And then the kind of second layer to all this is that not only is it the Qualcomm and the US companies that are required by law to no longer supply combat. Components to wa but any company worldwide that gets a big, big enough percentage of its components from the US who then also then sell stuff to China. And so what this does is kind of this ripple effect all across the global supply chain, saying, I got to check out my supply chain where all my components going, and coming from, and who am I going to choose my on team, China or on team America? And so, when we what can't damage, they still team China, then Shelly does this effectively kill hallway or does it depend? How long it lasts what, what's the what's the latest that I think people are really holding their breath right now because the latest example we have from this is from Z T E last year where the us government to the exact same thing, put them on the ban list, all of a sudden stocks went down for, for all these supply companies and also anything related to t and then over a course of few weeks and a few months, the issue resolved itself. And yes, the t took a big hit to its business, but it is now back online. And so the question is, is why this casualty of the trade wars, something that they will regain that access to the US components or or not? Or is this a bigger issue? And if it is a bigger issue, and it lasts for a longer period of time, you know, because while he has stockpiled quite a quite a bit of components to make it lasts for throughout a few a few more months, then. It. That's, that's when we really have to ask the question can, we keep going from here, but we are sure, at least from Wilbur Ross, this has nothing to do with the US, China trade negotiations. Right. So no relation to the trade war. Right. And that was the same exact thing that they said about Z T. And so people have, you know, this is the memory right? So if you do the same, if you if you do one thing, and then you do it again. Why should we believe you this time? Okay, Shelley, thank you very much, Shelly banjo. Joining us the Bloomberg's Asia tech reporter with the latest on while way. Let's get over to Sandra Kilhof now for more on what's going on around the world center morning, Matt Australia's prime minister has pulled off the seemingly impossible in one reelection plays conservative coalition over the weekend. Bloomberg's Paul Allen has the latest from Sydney votes are still being counted. But Australian Prime minister Scott Morrison looks to have secured a majority for his ruling coalition Marcin hailed this win as a miracle, and it's no exaggeration, opinion polls, and even internal strategists had considered this a lost cause, but voters rejected the sweeping economic reforms promised by the labour opposition them, Sydney, pulled, Alan, Bloomberg, daybreak Europe, Austria has called a snap election off to chancellor Sebastian coots dumped his populist coalition partner this as a leaked video showed the right-wing vice-chancellor, offering government contracts in exchange for campaign funds. But with campaigning. Ready underway. Hines Clinton's tie has raised questions about the timing of the video shortly before you elections. Prime Minister Theresa may has vowed one we'll push to get her on Popolo, DeVos deal through parliament. But Bloomberg's Jess shankleman explains policies already engaged in bitter leadership race, that will define the course of Brexit rival factions of the conservative party staking out that positions and on Monday, work companion secretary Ambarawa will lead to group of sixty Tories seeking to stop bookie's favourite Boris Johnson from pursuing a no deal exit from the European Union in London. Jessica shankleman, Bloomberg daybreak Europe. And President Donald Trump has wound around not to threaten the USO face ruinous consequences. He spoke to folks news amid mounting tensions between Washington and Tehran, just don't want them to have nuclear weapons, and they can't be threatening us. And, you know, with all of.