Good morning! Here’s what you need to know on Tuesday.
1. President Donald Trump on Monday removed Anthony Scaramucci as the White House communications director after he had served in the role for 10 days, The New York Times and other outlets reported. The decision came at the urging of the new White House chief of staff, John Kelly, The NYT reported, adding that it was unclear whether Scaramucci would leave the White House or remain employed in another capacity.
2. US stock index the S&P 500 will start excluding companies that issue multiple classes of shares, managers of the index said on Monday, a move that effectively bars Snap Inc after its decision to offer stock with no voting rights. “Companies with multiple share class structures tend to have corporate governance structures that treat different shareholder classes unequally with respect to voting rights and other governance issues,” the index provider said in a statement.
3. Activity levels across China’s manufacturing sectors improved modestly in July, according to the latest Caixin-IHS Markit Purchasing Manager’s Index (PMI). The survey’s headline PMI rose to 51.1 from 50.4 in June, indicating that activity levels strengthened modestly in July. It was the highest reading in four months.
4. Recent data show that the rebalancing of the oil market is speeding up and if the drawdown trends are sustained, stockpiles will normalize by early 2018, Goldman Sachs said, adding that it was “cautiously optimistic” on oil prices. “While OPEC’s production path remains uncertain, recent fundamental oil data have come in even better than we had expected,” Goldman said in a note.
5. Asian shares ticked up in early Tuesday trade as investors looked to a barrage of economic data around the world to confirm recent signs the global economy is in robust health with inflation staying well contained. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.1 per cent, while Tokyo’s Nikkei rose 0.4 per cent.
6. After its greatest-ever funding round, Reddit, the popular online message board is now valued at $US1.8 billion. The San Francisco-based website raised $US200 million from big-name Silicon Valley investors Andreessen Horowitz, Sequoia Capital, Coatue Management, Vy Capital, Fidelity, Y Combinator President Sam Altman, and SV Angel’s Ron Conway, reports Recode.
7. Singapore-listed commodities trader Noble Group Ltd has paid the coupon on its 2020 bond, market sources said on Tuesday, helping to reduce worries about the company’s immediate ability to service its debt. The payment of about $US40 million to bondholders comes after Noble last week announced a dramatic overhaul and flagged a quarterly loss of as much as $US1.8 billion.
8. Bank of England workers are set to go on strike Tuesday for the first time in 50 years. Last-ditch talks on Monday failed to avert the three-day strike over what they say was a pay offer that was below the inflation rate. The workers, many of whom work in security and maintenance, planned to protest outside the central bank wearing masks bearing the governor’s image.
9. The free movement of people from the EU into Britain will not continue during any Brexit transition period, Downing Street has insisted. A spokesperson for the prime minister insisted on Monday that free movement will end in Spring 2019. The spokesperson told a briefing attended by Business Insider that while they would not otherwise speculate on what future immigration rules will look like it was “wrong” to suggest “that free movement will continue as it is now.”
10. SIMBA Sleep, the British mattress startup advertised by Gareth Bale, has raised £13.2 million issuing new shares, as tens of millions of pounds continue to pour into mattress businesses in the UK. Filings with Companies House show SIMBA raised £11.4 million of new money at the start of June. It also issued £1.8 million worth of shares to settle a liability.