Good morning! Here’s what you need to know in markets on Thursday.
It is Bank of England day. On Thursday, the Bank’s Monetary Policy Committee will announce its first decisions since the UK’s vote to leave the EU. A cut of the Bank’s base rate from 0.5% to 0.25% is widely expected. The decision comes at 12:00 p.m. BST (7:00 a.m. ET).
Britain officially has a new Prime Minister. Former Home Secretary Theresa May took over the role from outgoing David Cameron on Wednesday after he resigned his position following the UK’s Brexit vote.
Prime Minister May has begun the process of appointing a new cabinet. Prominent Brexit campaigner and former London Mayor is the new Foreign Secretary, while Phillip Hammond takes over as Chancellor of the Exchequer. Former Chancellor George Osborne has been sacked from cabinet.
Brexit is going to cost up to 500,000 Brits their jobs. Britain’s vote to leave the European Union, and the subsequent impending recession will push up UK unemployment and cost almost 500,000 people in the country their jobs, say Credit Suisse.
UBS remains as the biggest private bank in the world. With $1,737.5 billion of assets under management, UBS retained its highly-prized first place in 2015, staying nearly $300 billion ahead Bank of America Merrill Lynch which replaced Morgan Stanley in second place. The research came as part of a study by wealth management researcher Scorpio Partnership.
There could still be as many as two Fed rate hikes this year, according to a top official. The Federal Reserve could hike interest rates up to two times before year end, Philadelphia Fed chairman Patrick Harker said on Wednesday, slightly downgrading his expectations for monetary tightening even though he said the economy is on “fairly firm footing.”
Stocks in Asia held at levels not seen since late 2015. Asian shares held near eight-month high on Thursday as investors bet the Bank of England will cut rates in a pre-emptive strike to ward off a recession following the country’s decision to leave the European Union.
Nintendo shares are still charging thanks to Pokemon GO. Shares in Nintendo jumped as much as 9.5% in early trade on Thursday, powered by ongoing hopes for its new Pokemon GO mobile game, which has become an instant hit after just over a week on the market in three countries.
Hong Kong is heading for an “outright recession,” according to Nomura. The Japanese bank cut its GDP forecast for the city to -0.2% from 0.8% for 2016, and to 0.5% from 1.5% for 2017. The territory’s economy has been in bad shape for a while. After exports and GDP decreased in the first quarter, many interpreted it as the beginning of a long decline.
Europe’s best low-cost airline is invading America. Norwegian Air’s expansion into the US is a potentially industry-changing move that US airlines and unions have vigorously opposed.
Business Insider Emails & Alerts
Site highlights each day to your inbox.