Good morning! Here’s what you need to know in markets on Thursday.
The Reserve Bank of New Zealand cut interest rates. RBNZ cut rates by 25 basis points at the conclusion of its August monetary policy meeting, taking the cash rate to a record-low level of 2%. The decision was expected by markets and economists alike. Suggesting that the rate cut won’t be the last, the board stated that its “current projections and assumptions indicate that further policy easing will be required to ensure that future inflation settles near the middle of the target range.”
Oil is sliding. Oil prices fell early on Thursday as a build in U.S. crude inventories and record Saudi Arabian production weighed on markets. U.S. West Texas Intermediate (WTI) crude was trading at $41.56 per barrel at 6:50 a.m. BST (1:50 a.m. ET), down 14 cents, or 0.34%, from their last settlement. International Brent crude was at $43.02 a barrel, down 13 cents, or 0.3%.
The Bank of England may have to reconsider negative interest rates, Credit Suisse says. Bank of England governor Mark Carney may be forced to eat his words, and backtrack on his adamance that the UK’s central bank will not introduce negative interest rates during his tenure, according to analysts from Credit Suisse.
The Bank of England’s bond-buying went off without a hitch on Wednesday. The Bank of England managed to purchase £1.17 billion of medium-dated UK government bonds on Wednesday, in a more successful reverse auction than the one conducted the day before, when the bank was unable to persuade bond investors to part with their holdings in government debt.
There is proof that Saudi Arabia only cares about trying to kill competition in the oil industry. The country said output increased by 123,000 barrels per day, which pushed overall production for July to 10.67 million barrels per day. This surpasses the previous record of 10.56 million per day from June last year.
A former Danish minister who took Greenland out of the EU says Brexit will take ‘much longer’ than 3 years. Uffe Ellemann-Jensen, Denmark’s former foreign minister handled Greenland’s departure from the EU in the 1980s, and told Bloomberg that any notion the process of Britain leaving the EU will be straightforward is illusory and far off the mark.
The boss of Google’s venture capital arm is reportedly leaving the company. Bill Maris, the chief executive and founder of Alphabet Inc’s venture capital arm GV, is leaving the company, Recode reported, citing sources. Maris, who leaves on Friday, will be replaced by GV managing partner David Krane, Recode said. GV, previously known as Google Ventures, was founded in 2009 and has invested in more than 300 companies including Uber.
An Apple executive tried to take credit for Uber in an recent interview. “I think it’s awesome that Travis and his team have done Uber on our platform. It would not exist without our platform, let’s be clear,” Eddie Cue said.
Pharmaceuticals company Valeant is reportedly under criminal investigation. Valeant, the troubled Canadian drugmaker, is under criminal investigation, according to The Wall Street Journal. Federal investigators are considering bringing charges of defrauding investors with its relationship to specialty pharmacy Philidor, reported The Journal, citing unnamed sources familiar with the matter.
Venezuela’s president hopes the ‘Jesus Christ of economics’ can fix the country’s economic disaster. The Wall Street Journal’s Anatoly Kurmanaev and Mayela Armas report that Maduro “has placed his trust in an obscure Marxist professor from Spain who holds so much sway the president calls him ‘the Jesus Christ of economics.'”