Good morning! Here’s what you need to know in markets on Wednesday.
1. China’s credit-fuelled economic strategy has been branded as dangerous by the International Monetary Fund in a strongly-worded statement warning that its approach risks financial turmoil. The Guardian reports that the IMF used its annual health check on the world’s second biggest economy to stress that faster expansion in 2017 was coming at the cost of a jump in private sector debt and an increasing use of complex financial instruments.
2. The first round of the North American Free Trade Agreement (NAFTA) renegotiations begins on Wednesday. US President Donald Trump, Mexican President Enrique Peña Nieto, and Canadian Prime Minister Justin Trudeau are scheduled to meet in Washington, DC from August 16 to 20.
3. Bitcoin has tumbled below $US4,000, following a strong surge that pushed the cryptocurrency’s price to almost $US4,500 on Monday. The digital currency is down 8.2% against the dollar t0 $US3,981.25 at the time of writing (6.20 a.m. BST/1.20 a.m. ET).
4. UK unemployment data and wage growth figures are coming. The Office for National Statistics will release data for June and July at 9.30 a.m. BST (4.30 a.m. ET). Unemployment is forecast to hold at 4.5%, while wage growth is expected to remain at 2%.
5. The EU’s second quarter GDP growth estimate is coming. Eurostat will release its first reading on growth in the quarter at 10.00 a.m. BST (5.00 a.m. ET). Economists are predicting year-on-year growth of 2.1% and growth of 0.6% on the last quarter.
6. Goldman Sachs is bringing on a Silicon Valley-insider to lure tech talent. The investment bank has hired Andrew Tout from Square, a San Francisco-based financial technology company, to help fill the bank with top engineering talent, according to Bloomberg.
7. Scandal-hit Wells Fargo on Tuesday announced multiple changes in its board of directors, including a new chair, adding a new independent director, and changing the composition of board committees. The US bank said Elizabeth “Betsy” Duke would succeed Stephen Sanger as the independent chair, effective January 1.
8. MongoDB, a database startup with over $US300 million (£233.2 million) in venture capital financing, has confidentially filed to go public, reports TechCrunch. At the time of its last private valuation in 2015, MongoDB was reportedly a $US1.6 billion (£1.2 billion) company.
9. The major US equity indexes closed little changed on Tuesday. The US dollar index rose to its strongest level of this month after Federal Reserve Bank of New York President William Dudley talked up a September announcement on the Fed’s balance sheet. Markets also saw some stronger-than-expected data on retail sales and New York-area manufacturing.
10. In a bit of a coup in the cloud computing world, Microsoft on Tuesday announced that it bought a startup called Cycle Computing for an undisclosed sum. Cycle may not have the name recognition of some of its better-known tech peers, but the startup has played a crucial role in creating today’s cloud computing industry.