Good morning! Here’s what you need to know in markets on Tuesday.
Europe is heading towards a “cataclysmic event” that could lead to the collapse of the euro and the end of the European project as we know it, according to Nobel prize-winning economist Joseph Stiglitz. In an interview with Business Insider following the launch of his latest book, Stiglitz said that a “disastrous” political event similar to the United Kingdom’s decision to leave the European Union could trigger such a collapse.
Oil is still falling. Crude oil is down 1.24% to $46.82 at the time of writing (6.30 a.m. BST/1.30 a.m. ET), while Brent is down 0.96% to $48.69. Prices dived on Monday after Morgan Stanley’s chief energy analyst warned the recent rally may be unwarranted.
A French government report omitted significant details about how Renault’s diesel cars were able to emit fewer deadly gases when subject to official emissions testing, members of the state inquiry have told the Financial Times. Three of the 17 members of the commission told the paper that the published report did not include the full details of their findings, including the fact that a NOx “trap” in the Renault Captur went into overdrive when the sport-utility vehicle was prepared for emissions testing but not during normal driving conditions.
It’s preliminary PMI day. Early estimates are coming for manufacturing, service sector, and overall economic growth in key EU nations in August. From 8.00 a.m. BST (3.00 a.m. ET) onwards we’ll get readings for France, Germany, and the EU as a whole. The EU’s economic growth is expected to hold steady at 53.2. (Anything above 50 signals growth, below means contraction.)
Asian stock markets are treading water. China’s benchmark Shanghai Composite Index is up 0.27% at the time of writing (6.30 a.m. BST/1.30 a.m. ET), while Japan’s Nikkei is down 0.60%, and the Hong Kong Hang Seng is down 0.26%.
Verizon Communications, the largest telecommunications company in the US, is experimenting with blockchain technology. Blockchain technology, which powers Bitcoin and other cryptocurrencies, depends on a distributed ledger that allows users to verify transactions without an intermediary.
Lyft President John Zimmer is disputing a series of recent news stories saying that the US ride-hailing company failed to find a buyer after talking to six different companies. “Lyft is not seeking a buyer,” Zimmer told Business Insider. “Getting approached and then having it characterised as us wanting to sell the business and failing to do so is a large mischaracterization.”
Amazon is working on a music subscription service that would cost about $5 (£3.80) a month and would only work on its Echo hardware, Recode reported, citing sources. Amazon would like to launch the services in September, but has not finalised deals with major music labels and publishers, Recode reported.
FolgerHill Asset Management has suffered through investor redemptions and losses that have cut the hedge fund firm’s assets by nearly one-third from its 2015 peak, people familiar with the situation told Reuters. Launched in 2014 by an acolyte of SAC Capital Advisors founder Steven A. Cohen, FolgerHill was one of the most prominent hedge funds to come on the scene.
Shoppers spent £9.27 billion ($12.2 billion) in the UK on 1.1 billion contactless payments between January and July, compared to £7.75 billion ($10.2 billion) during last year, according to the UK Cards Association, a trade body. The Telegraph reports that last month nearly one in five purchases made on a card used contactless readers, up from 7% a year ago.