Good morning! Here’s what you need to know in markets on Thursday.
JP Morgan CEO Jamie Dimon believes that more jobs than previously expected may have to be moved out of the UK as a result of Britain leaving the EU. Speaking at the World Economic Forum in Davos, Switzerland, Dimon told Bloomberg that the bank could be forced into shifting staff elsewhere in Europe or to its New York offices because the UK is leaning toward a so-called “Hard Brexit.”
Goldman Sachs is considering cutting its London staff by 50% to 3,000. German business paper Handelsblatt reports that the investment bank is planning to transfer key operations to New York and the European continent, particularly Frankfurt
Credit Suisse formally agreed to pay $5.3 billion (£4.3 billion) to settle with US authorities over claims it misled investors in residential mortgage-backed securities it sold in the run-up to the 2008 financial crisis, the US Department of Justice said on Wednesday. Zurich-based Credit Suisse will pay a $2.48 billion (£2 billion) cash penalty and provide $2.8 billion (£2.2 billion) in consumer relief, the Justice Department said in a statement.
BHP, its partner Vale SA, and Samarco have reached an agreement with Brazil authorities to settle a $47.5 billion (£38.7 billion) civil claim over the Samarco iron ore mine disaster, the companies said on Thursday. Reuters reports that operations at the Samarco mine were suspended in 2015 after the collapse of a dam holding mining waste, or tailings. The rupture killed 19 people and caused Brazil’s worst environmental disaster.
The ECB is updating the markets from 12.45 p.m. GMT (7.45 a.m. ET). The central bank will deliver its latest interest rate decision just after midday, followed by a monetary policy statement and press conference by head Mario Draghi at 1.3o p.m. GMT (8.30 a.m. ET).
Federal Reserve Board Chair Janet Yellen said the Fed is close to meeting its dual goals of full employment and price stability but can’t be precise about the timing of interest-rate hikes. In a speech titled “The goals of monetary policy and how we pursue them,” Yellen said she and most of her colleagues expect to raise interest rates “a few” times this year.
Asian stock markets are mixed. Japan’s Nikkei closed up 0.92%, the Hong Kong Hang Seng is down 0.33% at the time of writing (6.27 a.m. GMT/1.27 a.m. ET), and China’s benchmark Shanghai Composite is down 0.26%. US stocks were quiet on Wednesday.
China and the United States are not about to be drawn into a trade war, Alibaba Executive Chairman Jack Ma said on Wednesday at the World Economic Forum (WEF) in Davos. “China and (the) US will never have a trade war. Give Trump some time. He’s open minded,” Ma told a panel at the meeting of business and political leaders in the Swiss Alps.
Hedge funds are piling into the same bets ahead of the inauguration of President-elect Donald Trump. There are “extreme market positions in all asset classes,” according to Societe Generale. It said the “extreme positioning inevitably raises the question of whether investors have run ahead of themselves.”
Netflix’s international and US subscriber additions sped past analysts’ estimates as the video streaming service released shows including the award-winning British drama “The Crown” and a revival of “Gilmore Girls.” Netflix, whose original shows include “Narcos” and “Stranger Things”, said on Wednesday it signed up 5.12 million subscribers outside the United States in the quarter ended December 31.