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Market Cap £35.46bn
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Reuters Insider - UK Day Ahead: Investors hit by trade angst, Trump in Britain day 2, UK retail sales

Mon 3rd June, 2019 4:54pm
Click the following link to watch video: https://share.insider.thomsonreuters.com/link?entryId=1_495bqx4m&referenceId=1_495bqx4m&pageId=ReutersNews
Source: Reuters Insider

Description: Investors keep a wary eye on the rising trade and security
rhetoric between the United States and China. U.S. President Donald Trump is
expected to demand a tougher British stance on China and telecoms giant Huawei
on his second day of a state visit to Britain. Plus, look out for British
retail sales and euro zone inflation figures.
Short Link: https://reut.rs/2QFQyli

Video Transcript:

Good afternoon. I'm Angeline Ong and welcome to your insight into Tuesday. But
first stocks are taking a hammering amid the fresh trade war angst. European
stocks hit its lowest level since mid-February. This added to more than 6%
slide in May but later in the session, have a look at the data board in front
of you, the indices are erasing, if not erased all those losses already. The
STOXX 600 is down around 0.1%, the FTSE 100 is up just ever so slightly and
the DAX is just in the red. Weighing on the DAX for most of the session -
Infineon. The move came after Infineon agreed to buy Cypress Semiconductors
for some EUR9 billion, including debt. Some traders said the fall in
Infineon's shares was due to concerns it was overpaying for its US peer. The
European tech sector was also hurt by ongoing trade tensions. The lack of
trade talk progress between Beijing and Washington and Trump's hardening
stance towards countries beyond China is prompting concerns that all this
could tip the global economy into a recession. China at the weekend clashed
with the US on trade and security. At Asia's premier defense summit, China's
Defense Minister Wei Fenghe warned the US not to meddle in security disputes
over Taiwan and the South China Sea. This coming a day after US Defense
Secretary Patrick Shanahan said the US would no longer "tiptoe" around Chinese
behavior in Asia. Dewi Fortruna Anwar, part of the Indonesian delegation at
the defense summit held in Singapore, said the escalation of the rhetoric is
worrying. 

Southeast Asia, this area, that is often used as a bone of contention, between
major powers and clearly we do not want to be used as pawns again, to be torn
between the two great powers. So we are all very concerned about the
escalation of rhetorics that each side's getting more hardline in their
positions with each other, it's not just on the South China Sea, but also the
trade war.

The tensions are prompting investors to move into assets traditionally seen as
safe havens. The Swiss franc rallied to its highest levels in nearly two years
against the euro. Gold also rose above $1,317 an ounce. Well, brace for more
waves tomorrow as it's Trump's second day in Britain where he's on a state
visit. He's expected to hold a news conference with UK Prime Minister Theresa
May and then Trump and the First Lady Melania are due to host a banquet at
Winfield House, which will be attended by The Prince of Wales and The Duchess
of Cornwall. Trump is expected to use the trip to demand a tougher British
stance on China and telecoms giant Huawei. Before he set off for the UK, the
president repeated his message that there was an opportunity for a "very big
trade deal" between the two countries in the near future. We’ll data for
US durable goods on Tuesday and that may give us an indication of how
companies there are feeling about the future. Here in Britain, look out for
retail sales figures for May and from the euro zone, look out for labor and
inflation numbers. That's it for now - I'm Angeline Ong and this is Reuters
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