Good morning! Here’s what you need to know in markets on Tuesday.
1. Leaving the EU without a deal would be the most damaging Brexit outcome for the UK economy and could cost $US140 billion 10 years after Brexit, according to a new report by non-profit organisation the RAND Corporation. Of all the possible Brexit scenarios, leaving without a deal and operating under World Trade Organisation (WTO) rules would reduce GDP by nearly 5%, or $US140 billion (£105 billion), 10 years after Brexit, compared with EU membership, the report said.
2. Apple has bought Shazam, the popular music-recognition app and augmented-reality service. Shazam and Apple both confirmed the purchase on Monday morning. “We are thrilled that Shazam and its talented team will be joining Apple,” an Apple spokesperson told Business Insider.
3. Brent oil has jumped above $US65 after major North Sea producer INEOS announced it is shutting its pipeline for at least two weeks due to a crack. Brent is up 1.34% to $US65.56 at the time of writing (6.30 a.m. GMT/1.30 a.m. ET). The Financial Times has the full story on the pipeline shutdown.
4. US stocks climbed to a record high ahead of a Federal Reserve meeting on Wednesday, where the central bank is expected to announce a 25-basis-point rate hike. The S&P 500 gained 0.3%, while the Dow Jones Industrial Average added 0.2%, and the more tech-heavy Nasdaq Composite index rose 0.5%.
5. Japanese stocks endured choppy trade, with gains in financial stocks, mining shares, and shipping companies.The Nikkei stock index ended down 0.22%. Elsewhere in Asia, the Hong Kong Hang Seng index is down 0.32% at the time of writing (6.25 a.m. GMT/1.25 a.m. ET) and the Shanghai Composite is down 0.85%.
6. UK inflation data is coming. The Office for National Statistics will release price growth figures for November at 9.30 a.m. GMT, with economists expecting the headline rate to remain unchanged at 3%.
7. SEC chairman Jay Clayton weighed in on the crypto-mania sweeping Wall Street in a statement Monday. Clayton warned investors about threats associated with cryptocurrencies and ICOs, a crypto-based fundraising method.
8. People have taken out mortgages to buy bitcoin and others are purchasing the cryptocurrency with credit cards, a securities regulator told CNBC on Monday. “We’ve seen mortgages being taken out to buy bitcoin… People do credit cards, equity lines,” said Joseph Borg, president of the North American Securities Administrators Association and director of the Alabama Securities Commission, told CNBC.
9. Bitcoin topped its previous all-time high on Monday, according to data from Markets Insider. The digital currency was trading up more than 14% against the US dollar on Monday at a record $US17,346, less than a day after the launch of Cboe’s bitcoin futures market. The highs didn’t last though – bitcoin is down 1.4% to $US16,456.40 at the time of writing (6.42 a.m. GMT/1.42 a.m. ET).
10. Chamath Palihapitiya, a former Facebook executive, said in an interview at Stanford’s Graduate School of Business that social media was damaging society. The November talk, which was picked up by The Verge on Monday, is another example of early Facebook executives criticising what they created.
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