| Good morning. A German leadership showdown, a revolution in European elite soccer and a crypto boom setback. Here's what's moving markets. Center-Right Fight NightThe battle to lead Chancellor Angela Merkel's conservative bloc into September's German federal election is headed for a final showdown. Last night Markus Soeder, who leads the Bavarian allies of Merkel's CDU, flew into Berlin with support piling up for his candidacy, looking to force his rival Armin Laschet to concede. A decision is likely at some point early this week after Soeder and CDU leader Laschet held secret negotiations at an undisclosed location in Germany. Both had pledged not to let the dispute drag on but missed their self-imposed Friday deadline for an agreement. If Soeder is chosen, it will mark a major overhaul of the conservative alliance that's been at the center of German politics for seven decades. Weekly RecordMore people around the world were diagnosed with the coronavirus during the past seven days than any other week since the virus emerged, topping 5.2 million globally, according to data from Johns Hopkins University. The worst outbreaks are gaining speed in many countries that are ill-equipped to cope. The data also showed a 12% increase in cases from a week earlier, throwing doubt on hopes that the end of the pandemic is in sight. Meanwhile, the University of Oxford is embarking on a study where people who recovered from Covid will be reinfected, which it hopes will reveal ways to make vaccines more effective. Weekend SetbackThe mania that drove crypto assets to records as Coinbase went public last week turned on itself on the weekend, sending Bitcoin tumbling the most since February. The world's biggest cryptocurrency plunged as much as 15% just days after reaching a record while Ether, the second-biggest, dropped below $2,000. Both assets have pared losses since Sunday evening. The weekend carnage came after a heady week for the industry that saw the value of all coins surge past $2.25 trillion amid a frenzy of demand for all things crypto in the runup to Coinbase's direct listing on Wednesday. The largest U.S. crypto exchange ended the week valued at $68 billion, more than the owner of the New York Stock Exchange. Soccer SecessionA group of the world's richest soccer clubs, including Manchester United and Real Madrid, announced plans for a European breakaway league starting in August, a project that could herald the sport's biggest shakeup in decades and make elite teams even wealthier. The marquee names -- six from England, three from Italy and three from Spain have signed up so far -- would play each other midweek as an alternative to the prestigious UEFA Champions League, according to a statement early today. In addition to what will be 15 permanent teams, another five will qualify each year for the so-called Super League. Coming Up…European stocks look set to follow Asian and U.S. equities higher as investors shrugged off ever-rising coronavirus infections and set their sights on corporate earnings prospects. Faurecia, Energean and Korian are among the European names giving results today while in the U.S., blue-chips reporting include Coca-Cola, IBM and United Airlines. Watch U.K. homebuilders at the open after Rightmove data showed the country's house prices rising to a record in April, helped by low rates and tax breaks. What We've Been ReadingThis is what's caught our eye over the past 24 hours. And finally, here's what Cormac Mullen is interested in this morningThe euro is back knocking on the door of $1.20 and opinion is split as to whether it will open. Chief among the bulls is Goldman Sachs who boosted their three-month target for the currency to $1.25 and came out with a buy recommendation on Friday. Strategists see a euro boost from a pick up in regional growth on the back of faster vaccinations as well as equity capital inflows from a buoyant stock market. Their peers at Barclays aren't so sure and expect weak European purchasing managers' data on Friday to stop any further appreciation in the currency. A look at the technicals suggests some resistance ahead -- from a so-called Ichimoku cloud analysis of the euro's recent trend -- but this is not necessarily insurmountable. Traders are also waiting for the ECB's April meeting on Thursday, where policy makers are expected to sound cautiously optimistic on the outlook without making any significant announcements.  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. | 
Post a Comment