Good morning! Here’s what you need to know in markets on Monday.
Italy’s Prime Minister Matteo Renzi announced his resignation in Rome, after losing a critical referendum battle on which he staked his political career. “Italy has chosen. Now it’s up to those who won to make proposals,” Renzi said during a press conference at Palazzo Chigi, the prime minster’s residence, in Rome. “I take all responsibility for the defeat.”
The euro is diving after Renzi’s resignation. The currency is down 0.88% against the dollar at the time of writing (6.10 a.m. GMT/1.10 a.m. ET) and down 0.66% against the pound.
Asian stock markets are down after the Italy result spooked investors worldwide. Japan’s Nikkei closed down 0.88%, the Hong Kong Hang Seng is down 0.76% at the time of writing (6.20 a.m. GMT/1.20 a.m. ET), and China’s Shanghai Composite is down 1.35%.
British luxury fashion brand Burberry has rejected multiple takeover offers from US handbag maker Coach, the Financial Times reported on Sunday. The market value of the combined company would have been above £15.7 billion ($20 billion), according to the Financial Times.
Oil is slipping after a higher US rig count unsettled markets and amid nagging concern that OPEC’s output cuts might not be as big as initially anticipated. Crude oil is down 1.14% at the time of writing (6.22 a.m. GMT/1.22 a.m. ET) and Brent is down 1.07%.
Far-right Austrian presidential candidate Norbert Hofer’s campaign manager conceded defeat on Sunday to former Greens leader Alexander Van der Bellen. While the president’s role in Austria is traditionally largely ceremonial, Hofer had made clear he wanted to be an interventionist head of state, threatening to dismiss a government if it raises taxes and calling for referendums on a range of issues, even though referendums are beyond the job’s remit.
Japan’s Panasonic is in the final stages of talks to buy European automotive light maker ZKW Group for up to $1 billion (£790 million), accelerating its push into the automotive electronics market, the Nikkei business daily reported on Monday. The two companies could reach a basic agreement as early as this month, the Nikkei said.
Cheung Kong Infrastructure (CKI) has made an unsolicited offer to acquire Australian energy firm Duet Group for $5.4 billion (£4.2 billion). The BBC reports that CKI is a Hong Kong-based conglomerate, owned by billionaire Li Ka-shing. The offer represents a 28% premium on Duet’s share price, when last traded on Friday.
The cohead of UBS’ new fintech product SmartWealth says it was built like an internal startup. “What we tried to do with SmartWealth is to be like a fintech, to go at that pace but within a large organisation,” UBS’ Shane Williams told Business Insider.
Nested, a UK startup that helps people sell their house by guaranteeing them a minimum price in cash, is being offered £10 million ($12.6 million) of property a week just months after launch, according to its CEO. Matt Robinson, the founder and CEO of Nested, told Business Insider the numbers were “insane.”
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