Good morning! Here are the 10 things you need to know in markets on Tuesday.
China has weakened its yuan again. The USD/CNY rate was set at 6.5169 overnight on Tuesday, higher than Monday’s fix of 6.5032 but below yesterday’s closing level of 6.5338. A higher figure indicates that the US dollar has strengthened against the Chinese currency.
Chinese stocks are falling again. Trade was halted following a 7% fall on Monday, but stock markets resumed their decline on Tuesday. The benchmark Shanghai Composite opened down 3% and is down 1.3% at time of writing (6.30 a.m. GMT/1.30 a.m. ET). Bloomberg is reporting that the government is once again trying to halt the slide by buying up shares.
Other Asian markets are also down. Japan’s Nikkei is down 0.42% at 6.30 a.m. GMT (1.30 a.m. ET) and the Hong Kong Hang Seng is down 0.97%.
The US government is suing Volkswagen for up to $80 billion (£54.3 billion) over an emissions-cheating scandal that has affected hundred of thousands of vehicles in the US and millions worldwide. The Justice Department lawsuit will be filed in the Eastern District of Michigan and then transferred to Northern California, where class-action lawsuits against Volkswagen are pending.
European inflation figures are coming. Consumer price index data for the Eurozone will be released at 10 a.m. GMT (5 a.m. ET), with economists predicting core inflation in December of 0.9%.
Chinese property and investment firm Dalian Wanda Group has agreed to acquire a majority stake in Legendary Entertainment. The deal values the US movie studio at between $3 billion (£2 billion) and $4 billion (£2.7 billion), according to a person familiar with the matter. The move is Wanda’s latest bid to expand overseas and become a major player in the US entertainment industry, following its acquisition of AMC Entertainment, the second-largest movie theatre chain in North America, for $2.6 billion (£1.7 billion) in 2012.
General Motors and ride-hailing company Lyft are forming an unprecedented partnership that could help them beat their rivals to the self-driving future. Lyft said Monday that GM invested $500 million (£339.7 million) in the company as part of a $1 billion (£680 million) round of fund-raising, the Guardian reports. GM gets a seat on Lyft’s board and access to the three-year-old company’s software, which matches riders with drivers and automates payments.
Ford says it plans to triple to 30 the size of its fleet of self-driving test cars as part of an effort to accelerate autonomous vehicle development. In an announcement coinciding with the Consumer Electronics Show in Las Vegas, Ford said it will begin using a new, lower cost LiDAR sensor made by California-based Velodyne.
Hot British online money transfer startup TransferWise is officially a “small company.” The startup, apparently valued at $1 billion (£680 million) last year, had revenue of less than £6.5 million ($9.5 million) in the year to March 31 2015, according to its latest set out accounts filed with Companies House on December 27.
Business at US gunmaker Smith & Wesson is going gangbusters. Management announced overnight that it was raising its guidance because sales have been unexpectedly strong.