Good morning! Here’s what you need to know in markets on Tuesday.
Britain’s top financial policymakers begin a two-day visit to India on Tuesday, hoping to promote Britain’s booming fintech sector abroad as Brexit looms. Chancellor Philip Hammond, Business Secretary Greg Clark, Bank of England Governor Mark Carney, and Financial Conduct Authority (FCA) CEO Andrew Bailey will all visit Delhi and Mumbai for the ninth UK-India Economic and Financial Dialogue (EFD) summit, hosted by Indian Finance Minister Arun Jaitley.
Prime Minister Theresa May must prove that “no deal is better than a bad deal” by offering an economic assessment on the impact of leaving the European Union with no agreement, a parliamentary committee said on Tuesday. The Committee on Exiting the EU also called on the government to publish its contingency planning for failing to strike a deal after two years of talks.
The Reserve Bank of Australia left rates on hold. The cash rate holding steady 1.5% from its April monetary policy meeting was an outcome that was widely expected by economists and financial markets alike.
When Verizon merges Yahoo with AOL after its acquisition of Yahoo closes, the newly created division will be called Oath. Yahoo will be merged with Verizon’s AOL unit under Marni Walden, the executive vice president and president of product innovation and new businesses, with Verizon scooping up Yahoo’s search, mail, content, and ad-tech businesses.
Tesla is now bigger than Ford. Tesla’s stock price rose more than 7% on Monday to $US298 a share after the company reported blow-out delivery numbers for the first quarter. Monday’s gain has the electric car marker’s market cap up to around $US50 billion, overtaking Ford’s which is currently at close $US45 billion.
Japan’s Nikkei share average fell on Tuesday as the safe-haven yen rose and as automakers tumbled on weaker-than-expected U.S. sales. Financial stocks such as banks and insurers, which seek to boost returns from higher yielding U.S. bonds, also lost ground after yields on 10-year U.S. Treasury notes overnight fell to the lowest level since Feb. 27.
US stocks were red on Monday in the first day of trading for the second quarter of 2017. All three major indexes started in the green but dropped into negative territory by mid-morning after the release of US economic data.
Living standards around the world could fall unless governments invest more in research and education that can help revive weak productivity growth, International Monetary Fund Managing Director Christine Lagarde warned on Monday. Lagarde said in a speech in Washington that the private sector alone will not be able to generate enough innovation to lift productivity to acceptable levels without government help.
South Africa’s debt was cut to junk level by S&P. The credit rating agency cut South Africa’s rating to BB+, the highest level that also qualifies as junk. Following the cut, the country’s currency — the rand — tumbled against the US dollar.
Shares in Imagination Technologies Group fell as much as 70 per cent in London trading on Monday. That came after it disclosed that Apple — its biggest customer — would stop using Imagination technology in the graphics processing units in its devices within 15 months to two years.
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