Good morning! Here’s what you need to know in markets on Tuesday.
1. Citi has chosen Frankfurt as its post-Brexit European base, according to Sky News. Sky News has learned that Citi executives have finalised plans to establish a second EU-based broker-dealer, which will handle many of the market trading activities currently undertaken in London.
2. Netflix stock took off after announcing better than expected earnings for the second quarter. The company added 5.2 million total streaming subscribers, which was much higher than the 3.2 million expected by Wall Street.
3. UK inflation could reach 3% for the first time since June 2013. Inflation figures for June of this year are due to be released by the Office for National Statistics at 9.30 a.m. BST (4.30 a.m. ET). Prices are rising fast as last year’s collapse in the value of the pound filters through into imports.
4. The US Federal Reserve announced Monday it was fining BNP Paribas $US246 million (£187.8 million) for “unsafe and unsound” practices in its foreign exchange markets. The regulator said it found deficiencies in the bank’s oversight and internal controls of its traders, and in particular failed to detect and address those traders use of electronic chatrooms to talk with competitors about trading positions.
5. About 1 billion barrels of oil have been discovered off Mexico’s coast, amid a glut of global supplies. Premier Oil, a UK oil and gas company, said that its Zama well was the first offshore exploration drilled by a private company in Mexico.
6. Credit Suisse begins work this month on plans for its strategic priorities beyond the Swiss bank’s current set of targets, Chief Executive Tidjane Thiam said in a memo to staff. Credit Suisse aims to achieve its current capital, cost and pre-tax income targets by 2018 but Thiam told staff preparation will start in July on its 2018-2020 plan.
7. US stocks were little changed in trading on Monday. All three major US stock indexes moved less than one-tenth of one per cent during trading, and the VIX index — a measure of the S&P 500’s volatility — remained below 10.
8. Japanese stocks are down. Japan’s Nikkei is down 0.68% at the time of writing (6.25 a.m. BST/1.25 a.m. ET), pulling back from all-time highs on Friday. Elsewhere in Asia, the Hong Kong Hang Seng is down 0.04%, and China’s Shanghai Composite is down 0.46%.
9. The owner of the Ashley Madison adultery website said on Friday it will pay $US11.2 million (£8.5 million) to settle US litigation brought on behalf of roughly 37 million users whose personal details were exposed in a July 2015 data breach. Ruby Corp, formerly known as Avid Life Media Inc, denied wrongdoing in agreeing to the preliminary class-action settlement, which requires approval by a federal judge in St. Louis.
10. Hampton Creek’s board of directors made a big, and very unusual, change recently: they all left. All, that is, except for the CEO of the Silicon Valley startup best known for its egg-less mayo and some of the controversies that have clung to it.