Good morning! Here’s what you need to know in markets on Tuesday.
1. Britain will outline ways on Tuesday to resolve cross-border civil disputes with the European Union after Brexit, Reuters reports. In the third of five such papers to be published this week, the government will look at civil judicial cooperation, suggesting ways of tackling disputes ranging from marital cases to challenges brought by small businesses against EU suppliers.
2. The former chief executive of Lloyds Banking Group and one of his top lieutenants are suing the bailed-out lender for hundreds of thousands of pounds in unpaid bonuses in a move that risks sparking public outrage, the Times reports. Eric Daniels and Truett Tate, former head of the wholesale banking division, this month filed legal claims with the High Court against the bank.
3. Japanese stocks were nearly flat in choppy trade on Tuesday morning as geopolitical uncertainty kept activity in check while investors awaited the annual Jackson Hole conference this week, Reuters reports. The Nikkei share average edged down 0.01% at 6.30 a.m. BST (1.30 a.m. ET), after traversing negative and positive territory: The fifth day of decline represents the longest losing streak since April 2016.
4. New figures show spending on credit, debit and charge cards is growing at the fastest rate since 2008, rising more than five times faster than earnings in a fresh sign of ballooning borrowing by consumers, the Guardian reports. The number of card transactions increased by 12.3% over the year to the end of June, according to the banking trade body UK Finance, coming amid a boom in consumer debt that has been raising alarm bells at the Bank of England.
5. Potential investors in private equity group Terra Firma’s latest buyout fund have insisted on tight restrictions to avoid another EMI scenario by mitigating over-exposure to one single asset, the FT reports. Guy Hands bought the UK music label across two flagship funds with more than 30 per cent exposure to the company in 2007, leading to huge losses. Hands is asking investors for $US3.4bn for a flagship fund, less than the €5.4bn he raised 10 years go but still a large sum.
6. UK house price growth will slow sharply this year after decades of high growth, according to Countrywide, the UK’s largest estate agency group. It said growth would slow to 1.5% this year, down from 5% last year, citing Brexit negotiations as “the biggest risk” to the market’s performance.
7. The British government’s hopes of opening discussions on a future trade relationship this autumn will definitely be dashed by the European Union due to the slow progress of Brexit negotiations, one of 27 prime ministers who will make the decision has said. Miro Cerar, the prime minister of Slovenia, told the Guardian it had proved too difficult to close the differences between the two sides in the opening rounds of talks, with the UK producing some unrealistic proposals.
8. Funding Circle will no longer allow investors to pick which businesses to back, in the latest sign of the transformation of peer-to-peer lending from how it was originally envisaged, the Times reports. The online lending platform said that by only accepting passive investments it would make its platform simpler and fairer, but the move has provoked anger from some customers.
9. A former senior official at the UK Treasury says global central banks’ policy of quantitative easing in the wake of the 2008 financial crisis is like heroin for the economy. Nicholas Macpherson, who was permanent secretary to the Treasury from 2005 to 2016, said on Twitter on Monday that attempts to boost the money supply through bond purchases are increasingly leading to “negative side-effects.”
10. German app-only bank N26 has reached 500,000 customers, the startup announced on Monday. The Berlin-based firm said 200,000 new customers have signed up in the last five months and 1,500 people are signing up each day. Transactions have also jumped from €3 billion (£2.7 billion) in March to €5 billion (£4.5 billion).