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[Bloomberg]( Pound adds to losses, massive day for earnings and trade talks begin. Sterling performance The British pound dropped below $1.2200 overnight and was trading at $1.2185 by 5:45 a.m. Eastern Time as investors pushed the currency toward its [worst run of losses in almost three years]( due to rising no-deal Brexit concerns. Prime Minister Boris Johnson’s office said that he will spend the next few weeks trying to get the European Union to [renegotiate the current exit deal](, while also preparing to leave the bloc in case he fails. The one silver lining to the collapse in the pound is that the FTSE 100 Index [continues to climb]( as the long established [inverse relationship]( between the two still holds. Apple, BP Apple Inc. reports earnings after the bell today, with investors expecting a [slump in iPhone sales](, while hoping other product sectors will boost performance. Earlier, Huawei Technologies Co. showed it was withstanding U.S. efforts to curb its business by reported a [23% rise in revenue]( in the first half of the year. BP Plc beat expectations with adjusted net income of $2.81 billion in the second quarter, results which spurred shares to [rise as much as 3.4% in London trading](. Sponsored by Daily Harvest Daily Harvest delivers perfectly portioned, chef-crafted food that’s ready to enjoy with one step and five minutes, max. Everything is built on organic fruits and vegetables and farm-frozen to lock in peak-season nourishment. Get $25 off your first box with code [FIVETHINGS]( (Valid for new customers only).  Trade talks U.S. delegates including Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer [are in Shanghai]( for meetings with their Chinese counterparts, with both sides expected to dine together today before spending tomorrow in talks. Hopes [remain low]( for a breakthrough as neither side seems eager to make a deal. Lighthizer, meanwhile, has found what might be an easier [trade partner to target]( for their large surplus with the U.S. Markets mixed Overnight the MSCI Asia Pacific Index climbed 0.3% while Japan’s Topix index closed 0.5% higher after the Bank of Japan held its [monetary policy unchanged](. In Europe, the Stoxx 600 Index was 0.8% lower at 5:45 a.m. as disappointing [corporate results]( weighed on the regional gauge. S&P 500 futures pointed to a [drop at the open](, the 10-year Treasury yield was at 2.053% and gold was slightly higher. Coming up… Household income and spending data is expected to show a slowdown in June when the numbers are published at 8:30 a.m. The PCE deflator is expected to hold unchanged at 1.5%, with a rise in the core reading to 1.7% when it is released at the same time. Pending home sales for June and consumer confidence for July are both published at 10:00 a.m. The Fed’s [two-day policy meeting]( begins in Washington and there is a Democratic presidential candidate debate in Detroit later. What we've been reading This is what's caught our eye over the last 24 hours. - Citi to [cut hundreds of trading jobs]( in worrying sign for Wall Street. - [Asset bubbles to zombie companies](: The dark side of rate cuts. - Tycoon who founded Starbuck’s Indian rival [goes missing](. - China IPO breaks new ground pricing at [468 times profit](. - German top court rejects suits [challenging EU’s banking union](. - Where is the next [housing bubble brewing](? - European research suggests an [unreported 2017 nuclear accident in Russia](. And finally, here’s what Luke's interested in this morning If you look at the stock market, a Fed rate cut tomorrow sure seems priced in. Bond market? At least 25 basis points of easing is still in the cards. But for a central bank that’s lowering rates because of softness abroad which threatens to reach domestic shores -- and harbours hopes of generating some “opportunistic reflation” to buoy inflation expectations -- there’s a big variable that’s not cooperating. It’s the dollar. Since Chair Jay Powell entrenched expectations of an ease with his early June commitment to “act as appropriate” to sustain the expansion, the Dollar Spot Index (which is primarily geared towards developed-market currencies) is up nearly 1 percent. The broader, more balanced Bloomberg U.S. dollar basket is marginally higher. It’s tough to see how a stronger dollar is positive for [global activity]( at this juncture, as the negative effects through financial channels likely outweigh any benefits to net exports outside the U.S. Certainly, the first-order effect of a stronger greenback is to soften inflation, all else equal. A stronger dollar simply doesn’t help what [ails U.S. activity, either](. The “sources of weakness in the national accounts are actually very similar to 1998-1999!” notes [Skanda Amarnath](, director of research and analysis at Employ America, commenting on last week’s GDP data. “[Fed tells you it’s worried]( about the effects of global growth and business uncertainty. Latest data showed that business fixed investment and export growth seriously weakened.” While seemingly everyone fears another major central bank disappointment on the heels of Draghi’s presser last week, perhaps the knowledge that the market isn’t completely cooperating with the Fed’s plans will steel Powell’s resolve to ensure an outcome that’s perceived as dovish throughout the cross-asset spectrum. 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. 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