Good morning! Here’s what you need to know in markets on Thursday.
Credit Suisse swung to a loss in the fourth quarter as it wrote off billions of dollars in goodwill, set aside provisions for litigation and booked a multi-billion-dollar loss in its main trading unit. Bloomberg reports that the bank gave up 5.83 billion Swiss francs (£3.9 billion, $5.8 billion) during the final, rocky months of 2015, including a 3.8 billion-franc impairment that exacerbated its quarterly loss.
It was a wild day on Wall Street on Wednesday with stocks opening higher, nose-diving in the morning, and then spiking higher as the Dow gained triple-digits. The tech-heavy Nasdaq closed in the red. But the Dow closed up 183 points overnight in the US.
Oil’s rally continues, albeit at a slower pace. After jumping 8% on Wednesday, UK Brent is up 0.94% to $35.37 (£24.28) at the time of writing (6.30 a.m. GMT/1.30 a.m. ET) and US crude is up 0.98% to $32.87 (£22.56).
Asian stock markets are mixed. Japan’s Nikkei closed down 0.81%, Hong Kong’s Hang Seng is up 1.42% at the time of writing (6.30 a.m. GMT/1.30 a.m. ET) and China’s benchmark Shanghai Composite is up 1.34%.
It’s interest rate day at the Bank of England. The bank is expected to hold the headline rate unchanged at 0.5% when it delivers its latest decision at 12.00 p.m. GMT (7.00 a.m. ET). The Bank will release minutes and a Monetary Policy Statement at the same time, followed by a speech from Bank of England Governor Mark Carney at 12.45 p.m. GMT (7.45 a.m. ET).
Lloyds is cutting another 1,755 jobs and closing 29 branches as it looks to increasingly automate its operations. It is being widely reported that staff at the bank were told on Wednesday afternoon that Lloyds will lower its employee numbers as part of a broader restructuring, announced last year, that will see 9,000 staff cut by the end of 2017.
Deutsche Bank must face a US lawsuit seeking to hold it liable for causing $3.1 billion (£2.1 billion) of investor losses by failing to properly monitor 10 trusts backed by toxic residential mortgages, a federal judge ruled on Wednesday. US District Judge Alison Nathan in Manhattan said Belgium’s Royal Park Investments SA/NV may pursue claims that the trustee Deutsche Bank ignored “widespread” deficiencies in how the underlying loans were underwritten and serviced, and failed to require that bad loans be repurchased.
The CEO of South Africa’s main power supplier, Eskom, told a group of reporters that Glencore — the massive international commodities trader — threatened to cripple the country’s power supply over the summer, Bloomberg reports. Glencore wanted Eskom to renegotiate its coal contract in July and pay a higher rate — 530 rand per metric ton instead of 150 rands per metric ton.
Cisco said on Wednesday it was buying Jasper Technologies, a startup that connects devices like cars and medical devices to the Internet, for $1.4 billion (£960 million) in cash and equity awards, its largest acquisition since 2013. The so called Internet of Things, the area Jasper specialises in, offers Cisco a chance to offer cutting-edge technology to its current customers such as telecommunications companies.
GoPro reported really ugly fourth-quarter results on Wednesday. The digital-camera maker posted an unexpected earnings loss as its growth slowed and new products failed to catch on with consumers as expected.
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