Good morning! Here’s what you need to know in markets on Thursday.
1. Morgan Stanley has become the latest global bank to pick Frankfurt for its new trading headquarters inside the European Union after Brexit, according to people briefed on the decision. Bloomberg reports that the firm plans to relocate some of its European broker-dealer business to the German city from London, while moving parts of its asset management operations to Dublin, said one person, who asked not to be identified because the matter is private.
2. The cofounders of a new challenger bank are being pursued by former associates and staff for what they claim are unpaid debts of tens of thousands of pounds. Companies and individuals that dealt with WeAreBriqs, an apparently now-defunct banking technology company, claim they are owed over £100,000, according to documents reviewed by Business Insider and conversations with over half a dozen sources.
3. SAP, Europe’s most valuable technology firm, posted rapid growth in Internet-delivered cloud services, dampening near-term operating profit that was slightly below forecasts. The German company reported revenue for the second quarter rose 10.4% to €5.78 billion (£5.1 billion, $US6.65 billion) from a year ago, beating average analyst expectations of €5.71 billion, according to a Reuters poll.
4. Bitcoin has held strong support and has its sights set on a test of the $US3,000 level, according to Goldman Sachs. In a note sent out to clients on Monday, Sheba Jafari, the head of technical strategy at the bank, updated her recent chart work on the cryptocurrency.
5. US stocks headed higher in trading on Wednesday after strong earnings from some major players. The Tech-heavy Nasdaq led the way, setting another closing all-time high. The S&P 500 also broke through for a record, while the Dow Jones industrial average came up just short.
6. Japan’s Nikkei share average rose in morning trade on Thursday, buoyed by record highs on Wall Street. The Nikkei is up 0.62% at the time of writing (6.20 a.m. BST/1.20 a.m. ET), after the Bank of Japan decided to keep interest rates on hold. Elsewhere in Asia, the Hong Kong Hang Seng is up 0.22% and China’s benchmark Shanghai Composite is up 0.15%.
7. Qualcomm reported a 40% slump in quarterly profit as its escalating patent battle with Apple took a toll on its business. Shares of the company were down 2.3% at $US55.40 after the bell on Wednesday.
8. American Express’s profit fell less than expected in the second quarter, as higher spending by card members made up for increased costs from offering rewards. AmEx said card member spending was up 8% in the second quarter ended June 30, when adjusted for currency changes and the impact of losing a longtime partnership with warehouse club retailer Costco Wholesale.
9. Goldman Sachs wants to become the Google of Wall Street, and now it is staffing up the unit that could help it achieve that goal. The New York-based financial services giant is hiring for Marquee, a platform that provides clients access to the bank’s analytics, data, content and execution capabilities via a browser or an API.
10. US Spanish-language broadcaster Univision Communications held early-stage talks with John Malone’s Liberty Media after he expressed interest in an acquisition or significant investment, a person familiar with the matter said on Wednesday. An acquisition of Univision would expand Liberty Media’s ever-growing media footprint, while giving the broadcaster’s private equity owners a chance to cash out on their investment after they pushed back plans for an initial public offering.