Good morning! Here’s what you need to know in markets on Friday.
Another devastating attack has hit France. At least 80 people were killed in the southern French city of Nice when a truck ran into a crowd celebrating the Bastille Day national holiday at around 10:30 p.m. local time on Thursday, French Interior Minister Bernard Cazeneuve said.
Chinese GDP grew more than expected. According to the National Bureau of Statistics (NBS), the economy grew by 6.7% year-on-year in the June quarter, topping expectations for an expansion of 6.6%. After seasonal adjustments, the economy expanded by 1.8% during the quarter, again beating expectations for growth of 1.6%. The increase in the March quarter, previously reported at 1.1%, was revised up to 1.2%.
The Bank of England shocked markets by leaving interest rates unchanged at 0.5%. At the Old Lady of Threadneedle Street’s first Monetary Policy Committee meeting since Britain voted to leave the European Union, governor Mark Carney and seven other members of the committee decided that taking Britain’s interest rate closer to zero is not yet the best course of action to mitigate the economic risks posed by the UK’s Brexit decision. The Monetary Policy Committee voted 8-1 in favour of leaving interest rates unchanged, with only notoriously dovish Gertjan Vlieghe voting for a cut of 25 basis points.
The biggest tech IPO of the year soared in its debut. Shares of Japanese mobile-messaging app Line jumped by as much as 30% in their debut.
The UK minister in charge of Brexit says Britain “will quit” the European Union in December 2018. New Brexit Secretary David Davis outlined his vision for a “brisk but measured approach to Brexit.”
Bayer is not letting Monsanto off the hook. The chemical giant has raised its all-cash takeover offer for the US-based agricultural giant to $125 per share from $122.
The company behind Pokémon Go wants to release the game in 200 markets. The head of the developer behind Nintendo’s Pokemon Go said he wanted to launch the smash-hit mobile game in roughly 200 countries and regions “relatively soon” and was working on bolstering server capacity to enable the wider rollout.”Why limit it?” John Hanke, chief executive of Niantic, said.
Asian stocks hit an eight-month high. Asian shares rose to eight-month highs on Friday, on track for solid weekly gains, as record highs on Wall Street offset the impact on sentiment of an attack in France that lifted the safe-haven yen.
Federal Reserve officials are in no rush to rate interest rates. Policymakers appear to be in no hurry to raise U.S. interest rates despite signs that the U.S. economy is near full employment, with two more top Fed officials — the bosses of the Atlanta and St. Louis Feds — expressing that view on Thursday.
The price of oil is slipping. Crude futures fell in early trading in Asia on Friday as concerns about a global oil glut returned to the fore and traders wait on data from China, which is expected to report its lowest growth rate since 2009.