Lagarde’s ECB

Women are slated to take over the EU's top jobs. Oil plunged in its worst reaction to OPEC since 2014. And the RBA's Lowe signals a rate pause while pledging a readiness to act. Here are some of the things people in markets are talking about today. Lagarde Succeeds Christine Lagarde is set to swap the IMF for the ECB, replacing Mario Draghi at the central bank just as the bloc's economy looks in need of fresh stimulus. Investors will likely bet that as a seasoned crisis-fighter, Lagarde will share Draghi's taste for aggressive and innovative monetary policy. German Defense Minister Ursula von der Leyen was nominated to be the next European Commission head. The selections, which must be ratified by parliament, mark the first female leaders for both institutions.   Havens Are Back Stocks in Asia look set for modest declines and havens are back in play. U.S. stocks edged higher, as investors surveyed the outlook for Fed policy and trade talks. But the Treasury rally resumed, with 10-year yields down five basis points below 1.98%, and gold jumped back up above $1,400. The dollar fell against most G-10 currencies, with the yen gaining the most. Oil Plunges Oil had its worst reaction to an OPEC meeting in more than four years, as a deal to extend output cuts reinforced concerns over a weak demand outlook. Non-OPEC producers including Russia ratified the group's decision to prolong the existing curbs for another nine months. Ministers also signed a charter intended to make long-term collaboration more formal at their joint meeting.    Hong Kong Winner Hong Kong's protesters have benefited from broad support among businesses and ordinary citizens. But Monday night's ugly demonstrations risk losing some of that backing — and giving a boost to Hong Kong Chief Executive Carrie Lam, the pro-Beijing leader they despise. Few in the city are likely to support actions that disrupt daily business. Allowing Lam to position herself as a guardian of order may give the leader a new lease on political life.  RBA on Hold Australia's central bank governor signaled he'll stand pat in coming months to observe the impact of back-to-back interest rate cuts. Reserve Bank chief Philip Lowe, in an evening speech after taking the cash rate down to 1% earlier Tuesday, cited rising risks to global growth from the U.S.-China dispute. In Australia, he noted low borrowing costs, high commodity prices, a weaker currency and rising household incomes were cause for optimism. What we've been reading This is what's caught our eye over the last 24 hours. India's new finance minister faces age-old problems.  Super-fast new gas turbines make green energy more viable.  Saudi Arabia revives Aramco IPO plans. More yuan bonds sold outside China than in any quarter since 2014.  SoftBank Vision Fund weighs backing crime-busting tech.  Investors chasing higher returns can't ignore India.  You're grilling things all wrong. And finally, here's what Cormac's interested in this morning The difference in performance between a small number of global mega-cap stocks and the majority of smaller companies that make up the world market is stark — and ominous. An analysis of the Bloomberg World Index shows companies worth over $100 billion make up just 2.4% of members and have had the highest median return over the last 12 months, at 15%. Those valued between $5 billion and $50 billion had a median performance of 4.8% while firms between $1 billion and $5 billion showed a loss of 3.8%. The latter two groups make up a combined 87% of the global gauge. The data show a worrying concentration of return dependency. As strategists at SocGen noted Monday, it's a healthier stock market when the majority of names are doing well. The increased likelihood of easier monetary policy from major central banks has buoyed benchmark indexes in recent months, despite signs of a slowing global economy. Scratching below the surface shows that the rising tide is not lifting all boats. Cormac Mullen is a Cross-Asset reporter and editor for Bloomberg News in Tokyo.   Even before Trump's trade war, China was the world's biggest story. It's reshaping the global economy — but its ascent hasn't come without major problems. Sign up to get Next China, a weekly dispatch on where the country stands now and is headed next. 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. FOLLOW US SEND TO A FRIEND You received this message because you are subscribed to Bloomberg's Five Things - Asia newsletter. Unsubscribe | Bloomberg.com | Contact Us Bloomberg L.P. 731 Lexington, New York, NY, 10022