Good morning! Here’s what you need to know in markets on Wednesday.
1. Turkey has doubled tariffs on some U.S. imports, such as passenger cars, alcohol and tobacco, in what its vice president said was a response to deliberate U.S. attacks on the Turkish economy.The move comes amid increased tension between the two NATO allies over Ankara’s imprisonment of a pastor and other diplomatic issues.
2. Asian stocks sagged on Wednesday, failing to track Wall Street’s gains and with the dollar near a 13-month high as concerns about Turkey’s financial crisis weighed on investor appetite, despite the lira’s move away from an all-time low.Wall Street’s three main indexes rose on Tuesday as the lira’s climb eased fears of broader financial contagion for now.
3. Some members of Tesla’s board of directors are hiring lawyers to protect themselves in the ongoing fallout from CEO Elon Musk’s public declarations about taking the company private. Fellow board members are also urging Musk to cool it with the public statements about a go-private deal, according to a New York Times story published Tuesday night.
4. Warren Buffett added to his stockpile of Goldman Sachs shares during the second quarter.The investing legend’s Berkshire Hathaway upped its stake in the investment bank by 21% to 13.2 million shares, according to a regulatory filing out Tuesday. It’s total position in the firm is now worth more than $US3 billion, assuming it has not sold any shares during Q3.
5. Royal Bank of Scotland will pay $US4.9 billion to settle U.S. claims that it misled investors on residential mortgage-backed securities between 2005 and 2008, the U.S. Justice Department said. The DoJ added that his was the largest penalty imposed on a bank for misconduct during the financial crisis.
6. Billionaire investor George Soros bet big on music-streaming platforms in the second quarter.His fund, Soros Fund Management, bought 728,700 shares of Spotify currently valued at $US122.6 million in the second quarter, according to documents filed Tuesday.
7. Theresa May’s government is considering plans to register EU citizens who wish to stay in the UK after Brexit in alphabetical order, multiple sources have told Business Insider.The plans come as it struggles to design a system which will cope with the millions of applications expected to flood in.
8. A U.S. decision to subsidise its renewable energy companies and impose tariffs on imported products has seriously distorted the global market and harmed China’s interests, China’s Ministry of Commerce said late on Tuesday. China has lodged a complaint to the World Trade Organisation to help determine the legality of the U.S. policies, saying they not only harm China’s rights but also undermine the WTO’s authority.
9. A federal judge on Tuesday said Goldman Sachs shareholders may again pursue class-action claims that the bank concealed conflicts of interest when creating risky subprime securities before the 2008 financial crisis.U.S. District Judge Paul Crotty in Manhattan said shareholders could sue as a group because Goldman had not shown it more likely than not that its alleged misstatements had no impact on its stock price.
10. Apple could release augmented reality glasses by 2020, and a car three to five years after that, highly-respected analyst Ming-Chi Kuo predicted in a TF Securities research note distributed on Tuesday.Kuo’s research has a strong track record of accurately describing Apple products often months before they officially launch.
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