Good morning! Here’s what you need to know in markets on Tuesday.
1. The Dow Jones industrial average gained nearly 400 points Monday, fuelled by tech gains and stabilizing treasury yields. Warren Buffett seemed to catalyze the day’s rally, as his comments on airlines sent the sector higher and Berkshire Hathaway’s tax gains from the recently passed reform law sent its shares up as well.
2. Some Asian shares extended their recovery on Tuesday, hitting a three-week high as US borrowing costs eased ahead of Federal Reserve Chairman Jerome Powell’s highly-anticipated first congressional testimony later in the day. Japan’s Nikkei closed up 1.04%, the Hong Kong Hang Seng is down 0.53% at the time of writing (6.30 a.m. GMT/1.30 a.m. ET), and China’s Shanghai Composite is down 1.15% at the same time.
3. Powell will answer Congress’ questions at 1.30 p.m. GMT (8.30 a.m. ET). Micheal Hewson, the chief market analyst at CMC Markets, said in an email on Tuesday morning: “If markets want to make a judgment on whether we can expect to see four rate rises this year then the tone of Powell’s remarks could go some way to supporting that premise.”
4. Standard Chartered resumed its dividend payout after unveiling a six-fold jump in annual pretax profit, indicating the bank was making progress in its return to revenue growth following a painful two-year restructuring. Pre-tax profit at the emerging markets-focused lender jumped to $US2.41 billion (£1.73 billion) in its latest financial year, up from $US409 million in 2016, but below the $US2.7 billion average of 10 analysts’ estimates, according to Thomson Reuters data.
5. Facebook and CEO Mark Zuckerberg reached a $US35 million (£25 million) settlement in a class-action lawsuit brought on by shareholders.The shareholders claimed that Facebook had been hiding concerns about its growth just before the social media company’s IPO in May 2012.
6. Certain lenders and noteholders of iHeartMedia on Monday said John Malone’s Liberty Media proposed to buy a 40% stake in a restructured version of iHeart for $US1.16 billion (£830 million). The offer comes less than a month after struggling radio station owner iHeart skipped a $US106 million interest payment, triggering a 30-day grace period to buy more time to restructure its $US20 billion debt and avoid bankruptcy.
7. The job review website Glassdoor could go public in 2018, Bloomberg reports. Glassdoor is interviewing banks to advise on an initial public offering, which could come in the second half of 2018, sources told Bloomberg.
8. Boston-based financial-technology company Circle dove deeper into the nascent digital-coin market by scooping up cryptocurrency exchange Poloniex, the company announced Monday. The acquisition, which is reportedly worth $US400 million (£286.3 million) according to Fortune’s Robert Hackett, appears to be a natural move for the five-year-old company, which already facilitates cryptocurrency trades worth upwards of a couple hundred million dollars via its market-making arm Circle Trade.
9. The United States will overtake Russia as the world’s biggest oil producer by 2019 at the latest, the International Energy Agency (IEA) said on Tuesday, as the country’s shale oil boom continues to upend global markets. IEA Executive Director Faith Birol said in Tokyo the United States would overtake Russia as the biggest crude oil producer “definitely next year”, if not this year.
10. Uber is still committed to its dream of flying cars.In May, the ride-hailing company will host a special conference dedicated to the futuristic vehicles, a sign that Uber’s intentions to play a leading role in the nascent industry have not been dampened by the new management and investors who now control the company.
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