Good morning! Here’s what you need to know in markets on Tuesday.
US stock markets closed at record highs overnight. The Dow Jones Industrial Average and benchmark S&P 500 clinched new closing highs on Monday, even though the indexes were little changed during much of the trading session. Asian markets are mixed, with Japan’s Nikkei up 1.26% at the time of writing (6.45 a.m. BST/1.45 a.m. ET), China’s benchmark Shanghai Composite down 0.51%, and the Hong Kong Hang Seng down 0.54%.
The International Monetary fund will slash its forecasts for UK growth this week as the impact of the Brexit vote triggers a wave of downgrades across Europe.The Telegraph reports that Christine Lagarde, the IMF’s managing director, warned that the Fund was also likely to cut its projections for world growth for the third time this year as global risks mount.
Yahoo wrote down $482 million (£364.5 million) in impairment costs from Tumblr, the social media site it bought for $1.1 billion (£830 million) in 2013. That’s the second time Yahoo has written off Tumblr’s value this year. In February, it disclosed its first non-cash impairment charge that cost $230 million (£173.9 million). Yahoo announced the impairment cost alongside in-line second quarter earnings.
Netflix missed huge on domestic and international subscriber additions in its Q2 earnings. “We are growing, but not as fast as we would like or have been,” Netflix said in a letter to shareholders. The stock plunged over 15% immediately following the news.
Wells Fargo has struck a £300 million deal to buy a new European headquarters in the heart of London’s financial district in a much-needed boost for the city after the UK’s vote for Brexit. The Financial Times reports that the world’s biggest bank by capitalisation has agreed to buy an 11-storey building known as 33 Central in one of the largest London property deals to be sealed since the June 23 referendum.
UK inflation data is coming. Consumer Price Index figures for June are due at 9.30 a.m. BST (4.30 a.m. ET). Price growth is expected to slow, with growth of just 0.1% compared to the prior month forecast and an expected 0.4% increase compared to the same month a year earlier.
Morgan Stanley has merged three businesses within its prized equity sales and trading business — and it’s emblematic of a bigger trend on Wall Street. The firm has combined the cash equity sales desks looking after voice, program trading, and electronic trading under the name of One Delta One.
Goldman Sachs’s Jason Gottlieb, a partner in the bank’s asset management division, is leaving the firm. Gottlieb, one of four portfolio managers on the Goldman Sachs Multi-Manager Alternatives Fund, will leave the bank in August, according to an internal memo sent last week and seen by Reuters.
Libya’s sovereign wealth fund is seeking information on alleged “code words” used by Societe Generale staff to mask bribery and corruption, in a $2 billion (£1.5 billion) lawsuit.The Libyan Investment Authority asked a London court to require the lender to reveal the meaning of words such as “cooking,” “pizza” and the “Men in Black,” which feature in documents disclosed by SocGen.
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