10 things you need to know in markets today

Good morning! Here’s what you need to know in markets on Friday.

The Financial Conduct Authority proposed on Thursday a series of new rules around stock market listings in the UK that could pave the way for Saudi state oil giant Aramco to bring part of its record-breaking initial public offering to London. Under new proposals, the regulator would create a new category “within its premium listing regime” for sovereign-owned companies looking to enter the market.

Get ready for “MAGAnomics.” That’s the new name for President Donald Trump’s economic agenda, rolled out in a Wall Street Journal op-ed article by Mick Mulvaney, the director of the Office of Management and Budget, on Thursday. MAGA, of course, is the acronym for Trump’s campaign slogan, “Make America Great Again.”

Oil markets dipped on Friday, pulled down by high fuel inventories and improving industry efficiency, but were still on track for a solid weekly gain. Brent crude futures, the international benchmark for oil prices, recovered a little as European traders got to work, with the commodity up to $US48.43 per barrel, a gain of 0.02%.

Britain leaving the European Union without a trade deal could cost as many as 70,000 jobs within the City of London, a new report from t
he Centre for London think tank argues. “Falling out of the Single Market without a comprehensive trade deal or adequate transitional arrangements would be catastrophic for many London businesses, as would the sudden loss of EU workers,” the report said.

Burberry Group shareholders have staged another protest against executive pay at the luxury firm, three years after its strategy was voted down. The firm’s chairman, Sir John Peace, was forced to defend a string of awards at its annual general meeting, including a near-doubling in the total package for former boss Christopher Bailey.

Upmarket flip-flop firm Havainas is on the brink of being sold for around £850 million as its owners look to settle a huge fine related to the huge corruption scandal that has hit the company’s native Brazil. “The owner J&F, part of the business empire of Brazil’s disgraced Batista family, said it had sold an 86% stake in the sandal maker for R3.5bn (£844m) to a consortium of wealthy investors,” a report from the Guardian says.

F. William McNabb will be stepping down as CEO of investment giant Vanguard Group. McNabb, who joined the company in 1986, became CEO in 2008. Under his leadership, Vanguard’s assets under management have exploded from $US1.25 trillion almost threefold to $US4.4 trillion. He will be replaced in January by Vanguard’s current CIO Mortimer J. “Tim” Buckley and transition to chairman next year before also passing that role to Buckley.

Singapore’s economy continued to splutter in the June quarter, growing at a far slower pace than expected. According to advanced estimates offered by the Singaporean government, the economy grew 0.4% in seasonally adjusted annualised terms, missing forecasts for an expansion of 1.1%

The majority of Brits want to see Labour and other opposition parties included in Brexit negotiations, YouGov research published on Thursday showed. Over two-thirds of respondents (68%) told YouGov they want to see other parties included in divorce talks with the European Union in some capacity, with just 14% saying they do not. Over a third (35%) said they believed other parties should play an equal role to Theresa May’s Conservative government in negotiating Britain’s divorce from the European Union.

The British government would fail spectacularly if its finances were subjected to the same sort of stress tests carried out by the Bank of England on the UK’s lenders, a scathing report from the independent Office for Budgetary Responsibility released on Thursday shows. “The Government’s fiscal targets would be missed by wide margins,” the OBR notes in the report, saying that the deficit could balloon to 8.1% of GDP in the next five years, with the UK’s overall debt burden growing to around 114% of GDP, up from around 90% now.