Good morning! Here’s what you need to know in markets on Monday.
1. China’s economy grew by 6.9% in the second quarter from a year earlier, faster than expected and in line with the first quarter’s growth. Analysts polled by Reuters had expected the economy to expand by 6.8% in the April-June quarter, slightly slower than the previous quarter’s robust 6.9% pace.
2. A major, global cyber attack could trigger an average of $US53 billion (£40.5 billion) of economic losses, a figure on par with a catastrophic natural disaster such as US Superstorm Sandy in 2012, Lloyd’s of London said in a report on Monday. The report, co-written with risk-modelling firm Cyence, examined potential economic losses from the hypothetical hacking of a cloud service provider and cyber attacks on computer operating systems run by businesses worldwide.
3. Brexit Secretary David Davis launches the first round of negotiations on Britain’s withdrawal from the European Union on Monday when he meets the EU’s Michel Barnier for four days of talks between their teams in Brussels. A month after a first meeting where the two exchanged gifts inspired by a shared passion for hill walking and spoke of the mountain of complexity they must climb, the Frenchman will press Davis to agree to Britain covering substantial British financial commitments and offer more detail on other British proposals.
4. EU inflation data is coming. Inflation figures for the eurozone in June are due at 10.00 a.m. BST (5.00 a.m. ET). Price growth is forecast to be flat month-on-month and 1.3% compared to June 2016.
5. Anglo-Dutch conglomerate Unilever is vying with US canned meat producer Hormel Foods Corp to buy the foods division of British consumer goods maker Reckitt Benckiser, the Sunday Times newspaper reported, citing sources. Unilever and Hormel are front-runners in a deal that is likely to top £2.2 billion ($US2.9 billion), the unidentified sources told the Sunday Times.
6. EasyJet will announce Monday that Chief Executive Officer Carolyn McCall is stepping down from the discount carrier to take up the same role at broadcaster ITV, according to a person familiar with the matter. Bloomberg reports that McCall told the airline’s board of her decision Sunday, according to the person, who asked not to be identified discussing the switch.
7. A former Goldman Sachs financier who has shaken up HSBC’s investment bank has emerged as a contender to become the next boss of Europe’s biggest lender. The Telegraph reports that Matthew Westerman is increasingly viewed in City circles as a challenger to succeed Stuart Gulliver when the chief executive steps down from the helm of HSBC next year.
8. Asking prices for houses and apartments in England and Wales stabilised after a drop in June, but home-buyers remain cautious as wage growth falls behind inflation, a survey by property website Rightmove showed on Monday. The figures were based on property advertised between June 11 and July 8, covering the weeks after Prime Minister Theresa May unexpectedly lost her majority in parliament, creating uncertainty for investors who were already on edge about Britain’s exit from the European Union.
9. Brexit is now directly affecting the investment decisions of British firms, according to a survey from the Confederation of British Industry. Its survey of 357 businesses found over 40% said Brexit has affected their investment decisions. Of those, 98% said the impact has been negative.
10. Online mattress startup SIMBA Sleep has raised at least £2 million to fuel growth since February, accounts show. SIMBA raised £9 million in February but accounts filed with Companies House show the startup, which is advertised by Real Madrid footballer Gareth Bale, has already gone back to investors for more cash.