Good morning! Here’s what you need to know in markets on Monday.
1. Beverage and snack giant PepsiCo announced Monday plans to acquire at-home carbonated drink-maker SodaStream for $US3.2 billion. CNBC reports that the New York-based company agreed to pay $US144 per share in cash for SodaStream’s outstanding stock, a 32% premium to its 30-day volume weighted average price.
2. Asian share markets crept cautiously higher on Monday as investors awaited developments on proposed Sino-US trade talks while keeping a wary eye on the Chinese yuan and Turkish lira for any new signs of strain. Japan’s Nikkei share index closed down 0.31%, while the Hong Kong Hang Seng is up 1.04% at the time of writing (7.15 a.m. BST/2.15 a.m. ET), and China’s Shanghai Composite is up 0.25% at the same time.
3. Venezuela has announced another series of desperate measures to try and save its economy from collapse. The government will devalue to Venezuelan bolivar by 95%, and peg it to the government’s oil-linked cryptocurrency.
4. Brussels plans to force companies including Facebook, YouTube, and Twitter to identify and delete online terrorist propaganda and extremist violence or face the threat of fines.The Financial Times reports that the European Commission has decided to abandon a voluntary approach to get big internet platforms to remove terror-related videos, posts and audio clips from their websites, in favour of tougher draft regulation due to be published next month.
5. PIF, the Saudi Arabian sovereign wealth fund that Tesla CEO Elon Musk has said could help him fund a $US72 billion deal to take his electric car maker private, is in talks to invest in aspiring Tesla rival Lucid Motors, people familiar with the matter said on Sunday. Reuters reports that talks between privately-held Lucid Motors and PIF underscore the latter’s appetite to invest in electric car makers to diversify the oil-rich Middle Eastern kingdom’s investment portfolio.
6. As investors take time off during the summer, they’re also taking their eyes off several things that point to a “likely correction” in the stock market, according to Morgan Stanley’s global investment committee. There’s proof of their complacency in the S&P 500 put/call ratio, which has risen in the past month but remains below average.
7. Rocket Internet’s finance chief Peter Kimpel had resigned to pursue a new management challenge, the German company said in a statement on Monday. Kimpel, who joined Rocket from Goldman Sachs in 2014 and helped oversee the group’s initial public offering, will leave effective at the beginning of October.
8. Greece emerged on Monday from its third and last bailout after years of austerity, although officials warned that the country still has a “long way to go.” The Guardian reports that the European Union, the European Central Bank, and the International Monetary Fund loaned Greece a total of €289 billion ($US330 billion) in three programmes, in 2010, 2012, and 2015.
9. The head of securities and exchanges at the Swiss stock exchange says his biggest piece of advice for fintech startups that want to work with established financial services companies is for them to “learn the regulations.” SIX Group’s Thomas Zeeb told Business Insider: “I go to conferences and people say: what would you tell us to be more successful? One thing, learn the regulations.”
10. The market is facing a growing number of alarming comparisons between the dot-com era and current conditions. The most recent observation, from Leuthold Group, relates to the jagged, uninspiring recovery by US stocks since their 11% correction earlier this year.
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