5) WI'm a no-deal brexit, forcing automakers to move overseas. Part 2 of a three-part daily series discusses the future of major British automotive plants. Does a mass exodus (Br) wait, or does Britain's reputation for excellence in engineering discourage vehicle manufacturers from settling elsewhere?
What happened overnight?
Rising fears of a global recession drove global equities down in Asia.
Ghostly investors dodged the security of sovereign debt, pushing yields on 30-year government bonds to an all-time low of 1.97 percent. Yields have now dropped a whopping 60 bps in only 12 sessions to pay less than three months of debt.
Returns on 10-year paper fell to 1.55 and were below 2-year paper. Such a reversal was last seen in 2007, properly predicting the great recession that followed a year later.
Although the Japanese Nikkei lost 1.5 percent, but was up from the early lows, while the Shanghai blue chips fell by a relatively modest 0.5 percentage points.
MSCI's broadest index for Asia-Pacific equities outside Japan fell 0.8 percentage points, briefly reaching a seven-month low.
In Hong Kong, the Hang Seng Index fell 0.17 percent or 42.59 points, ending the morning at 25,259.69.
Retail sales in July should continue to recover after June decoupled from the downward trend in April and May. The sector tended to benefit from hot weather and major events dwarfed in July – including Wimbledon, the British Grand Prix and England's World Cup cricket fame.
"Against this backdrop, it would be a surprise if we did not see the consumer spending recovery in June," said Michael Hewson of CMC Markets.
Interim results: Kaz Minerals, Marshalls
Economy: Retail Sales (UK), Productivity, Unemployment Claims, Retail Sales and Industrial Production (all US)