Trump and Khamenei trade barbs, low hopes for a G-20 trade breakthrough, and Powell speaks in New York. Throwing toysPresident Donald Trump's announcement of sanctions on Iran's supreme leader, Ayatollah Ali Khamenei, seem to be a tactic aimed at annoying Iranians rather than doing any real damage to the country's already battered economy. If that was the idea, it has been a complete success, with state media saying the move has permanently closed the diplomatic path. Oil, which had risen strongly on tensions in the region, was broadly unchanged this morning as traders do not see much escalation in the latest diplomatic handbags, while looking for more details on a possible output deal from OPEC+. Nothing to XiU.S. officials are playing down expectations ahead of this weekend's meeting between President Donald Trump and China's Xi Jinping at the G-20 in Japan. Investors are showing little sign of optimism, with Chinese fund managers happy to sit on their hands as they look further down the line for a breakthrough. Meanwhile, the real economic costs from the trade war are stacking up. Stubborn?Fed Chairman Jerome Powell will speak on the economic outlook in New York at 1:00 p.m. Eastern Time today. While his prepared remarks will be followed with the usual diligence by investors, the Q&A session may be dominated by Trump's latest monetary attack. The president accused the Federal Reserve of acting like a "stubborn child" by holding rates unchanged, even as markets predict a rate cut at the meeting next month. Markets slipOvernight, the MSCI Asia Pacific Index eased 0.2% while Japan's Topix index closed 0.3% lower as the yen strengthened against the dollar. In Europe, the Stoxx 600 Index was 0.1% lower at 5:45 a.m. in a quiet session that saw miners among the best performers while banks and retailers fell. S&P 500 futures pointed to a slight drop at the open, the 10-year Treasury yield was at 2.021% and gold was higher again. Coming up…While all eyes will be on Powell today, there is a positive easing of Fed speakers to catch today with New York Fed President John Williams, Atlanta Fed President Raphael Bostic, Richmond Fed President Thomas Barkin and St. Louis Fed President James Bullard all due to make their feelings known. In data, the U.S. Federal Housing Agency house price index April update is due at 9:00 a.m., with May new home sales and June consumer confidence both published at 10:00 a.m. Earnings today include FedEx Corp. -- company that is suing the U.S. government on trade restrictions while it also risks getting blacklisted by China. What we've been readingThis is what's caught our eye over the last 24 hours. Due to a technical issue, yesterday's email was delayed. We apologize for any inconvenience caused. And finally, here's what Joe's interested in this morningGold has broken out to a six-year high after surging more than 12 percent since the middle of April. Obviously the perma bulls are thrilled, although since they never change their tune on gold in any environment, their views aren't particularly interesting. It's more notable when people change their tune. One such person is Marc Chandler of Bannockburn Global Forex, who recently wrote that he's turned positive on the metal, marking a rare moment in his career. In his view, the Fed's shift to an easing bias plus rising tensions in the Gulf have set bullion up for the perfect combination. He wrote on his blog that gold's technical formation now "projects towards $1700." We'll have Marc on TV during What'd You Miss this afternoon to talk about gold, the dollar (which hasn't rallied with the latest geopolitical stress), and whether this moment really does mark a turning point in some key financial variables.  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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