Good morning! Here’s what you need to know in markets on Monday.
Asian stocks are charging on Monday. Asian share markets enjoyed a relief rally on Monday as upbeat U.S. jobs data lessened immediate concerns about health of the world’s largest economy, though long-run fallout from Brexit kept sovereign yields near record lows. Around 6:50 a.m. BST (1:50 a.m. ET) Japan’s Nikkei is higher by almost 4.5%, while Hong Kong’s Hang Seng is roughly 1.45% up.
Germany expects the UK to begin formal EU exit talks once either Theresa May or Andrea Leadsom is appointed as the new prime minister. Germany expects Britain to trigger article 50 of the European Union’s Lisbon treaty to begin the formal process of leaving the bloc once it has picked a new prime minister, Chancellor Angela Merkel said on Sunday. Merkel also told German broadcaster ZDF in an interview that Britain would not be allowed to “cherrypick” what it wants to keep from its EU membership while jettisoning aspects of the relationship that it does not like.
There’s a ‘new offensive against Swiss banks.’ Switzerland’s politicians have done too little to protect the country’s banks from demands for data from foreign governments, UBS Chief Executive Sergio Ermotti said in an interview published by the SonntagsZeitung newspaper on Sunday.
Britain should have a second EU referendum, but it probably won’t, according to constiutional experts. Legal and constitutional experts from Oxford University and the University of Westminster say the government must hold a second referendum before the UK can officially leave the European Union. However, constitutional expert Dr. Peter Catterall says the government will have to be challenged in court to force a second referendum on the eventual contents of a Brexit deal.
The outcome of Australia’s election is still not 100% clear. It was still not clear as vote counting entered its ninth day whether prime minister Malcolm Turnbull’s Liberal-National coalition would form a majority government by the barest of margins or instead need to join forces with independents for a minority government.
Pokemon GO is giving Nintendo a big boost. Shares of Japan’s Nintendo soared more than 20% in early Tokyo trading on Monday, extending last week’s gains, on hopes that the popularity of its new Pokemon GO smartphone game will boost its results.
Some Credit Suisse employees worked 36 hours straight after the UK’s EU referendum, according to CEO Tidjane Thiam. “I was on the trading floor in London the day after the Brexit referendum. Some of our people worked 36 hours straight and at one point we had 27 times the normal daily trading volume,” he told the NZZ am Sonntag newspaper.
Budget airline Air Asia could list in Hong Kong. AirAsia is studying a dual listing in Hong Kong, part of plans to become a pan-Asian low-cost airline player as it also moves toward setting up a joint venture in China, people familiar with the matter said on Sunday.
Summer 2016 is the perfect time to buy a property in London. Combining the fact that Britain voted to leave the European Union, which has created massive uncertainty over how the country is going to fare politically and economically, as well as changes to Stamp Duty tax rates in April this year, and the perfect storm is brewing for dampened house prices.
Aircraft manufacturing giant Boeing is looking at M&A. Boeing’s defence division is continuing to look at bolt-on acquisitions across its various business areas, and particularly in the services business, Leanne Caret, chief executive of Boeing Defence, Space & Security, said on Sunday.