Five Things World Business Will be Talking About Today

(Bloomberg) 

Libor to be put out of its misery, it’s a huge days for earnings, and the Fed sad-trombones the dollar. Here are some of the things people in markets are talking about today.

Offered no more

Libor, the benchmark underpinning more than $350 trillion of financial products across the world, will be phased out by the end of 2021, Andrew Bailey, the head of the Financial Conduct Authority, said this morning. The FCA said the lack of transactions data meant it was no longer possible to determine a reliable rate. Libor’s reputation has taken a battering in recent years as it became dogged by scandal but finding a replacement will not be easy.

Earnings, earnings, earnings

The “day from hell” for corporate analysts is well underway. Among the notable earnings results this morning: Royal Dutch Shell Plc’s profit boost from rising cash flows, Total SA’s statement that it is ready to make acquisitions as its financial position strengthens, and Deutsche Bank AG’s outlook warning after its weakest quarterly revenue in over three years. Shares in British drugmaker AstraZeneca Plc plunged after it suffered a setback in a crucial lung-cancer drug trial. Amazon.com Inc., Twitter Inc., and Intel Corp. are some of the many companies reporting in the U.S. today.

Dollar slide

Yesterday’s Federal Reserve statement added further impetus to an already-weakening dollar. The Bloomberg Dollar Spot Index dropped to its lowest level since May 2016, with the euro trading at $1.1726 by 5:41 a.m. Eastern Time. Technical analysis suggests that should the greenback close below 1,150 on the dollar index, it may be set to erase all its post-2014 gains.

Markets mixed

Overnight, the MSCI Asia Pacific Index climbed 0.9 percent, while Japan’s Topix index added 0.4 percent amid strong earnings from some of the region’s key companies. In Europe, the Stoxx 600 Index was 0.1 percent lower at 5:45 a.m. as corporate results meant large variations in national indexes with the DAX Index falling 0.6 percent as Italy’s FSTE MIB Index gained 0.2 percent. U.S. market futures pointed to a higher open.

Failing demolition

Senate Republican plans to demolish Obamacare are more likely to turn out to be a light trimming at the edges as the votes needed to overturn the previous administration’s signature legislation are not forthcoming. An all-night blizzard of amendment votes late today may ultimately lead to a bill that merely ends the mandate that all Americans have insurance or pay a penalty, along with a few other provisions. Investors continue to ignore the drama in Washington, with health-care companies in the Standard & Poor’s 500 Index outperforming the overall market this year.