| Welcome to your morning markets update, delivered every weekday before the European open. Good morning. Equities traders in Asia began the week cautiously, Turkey's leader suffered a blow, Boris Johnson's character is facing scrutiny and the White House gave mixed messages on Iran. Here's what's moving markets. G-20 Eyed Asian stocks were mixed as investors started looking ahead to a meeting between U.S. President Donald Trump and Chinese President Xi Jinping on the sidelines of the Group of 20 summit later this week. Automakers could be in focus today after a profit warning from Daimler AG, and so could the consumer industry after Metro AG got a takeover offer and France's Carrefour SA agreed to sell a majority stake in its China unit. The dollar was little changed as Trump carries on slamming Federal Reserve Chairman Jerome Powell. Erdogan Stung Recep Tayyip Erdogan was dealt a blow as the opposition candidate won a redo of the Istanbul mayor's race by a landslide, an indictment of the Turkish president's economic policies and increasingly autocratic ways. Traders may also have an eye on Prague after Czechs took to the streets to demand the resignation of Prime Minister Andrej Babis over allegations of conflict of interest and a criminal fraud case involving EU funds. The lira jumped while the koruna was steady. Johnson's Character Boris Johnson is facing questions about a row with his partner that brought the police to his London home last week, with his rival for the U.K. premiership, Jeremy Hunt, criticizing him for avoiding scrutiny. Though a poll showed Johnson's support among the wider public has dipped slightly, bookmakers don't expect the incident to have a meaningful impact on the race. Meanwhile, the EU is plotting how to keep Johnson out of sight for as long as possible. Trump's Sanction Warning Trump said the U.S. will impose major new sanctions on Iran on Monday, while also warning it's prepared to hold talks without preconditions, days after he called off what would have been fatal strikes on Iranian sites. Crude futures held Friday's gain overnight as traders digested the mixed headlines. The episode has already impacted aviation, with some carriers diverting planes away from southern Iran. Forgotten why the country is back in the headlines? Read this. Coming Up... German Ifo business confidence is the main event on a thin data schedule, and there's no European corporate earnings on our radar. In politics, U.S. Vice President Mike Pence gives a speech on China ahead of that crucial Trump-Xi meeting, while French President Emmanuel Macron hosts a Mediterranean summit with representatives from Spain and Italy among the attendees. What We've Been Reading This is what'caught our eye over the weekend. And finally, here's what Cormac Mullen is interested in this morning Much like last week, when the Fed was the focus, stocks could well go into a holding pattern ahead of the key G-20 summit in Osaka at the weekend. So it's a good time to take a look at this year's stock market performance of the lead characters in the trade war drama. Despite the trade spat roiling markets across the world, U.S. stocks are at a record high and China's shares are back in a bull market. Together they have added over $6 trillion in market value in 2019. It hasn't been all about trade. The inclusion of Chinese A-shares in MSCI indexes and policy stimulus has helped the Shanghai Composite Index rise 20% while a dovish pivot from the Fed has contributed to an 18% gain in the S&P 500 Index. Furthermore, according to Goldman Sachs, stocks are discounting just a 15% probability of a U.S.-China trade resolution -- meaning traders aren't expecting too much from the Osaka summit. So barring a complete breakdown in talks, this leaves the two stock markets poised to react favorably to any form of positive G-20 spin. At the very least, they are unlikely to give up their world-beating crowns just yet.  Cormac Mullen is a Cross-Asset reporter and editor for Bloomberg News in Tokyo. Like Bloomberg's Five Things? Subscribe for unlimited access to trusted, data-based journalism in 120 countries around the world and gain expert analysis from exclusive daily newsletters, The Bloomberg Open and The Bloomberg Close. Before it's here, it's on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can't find anywhere else. Learn more. | 
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