10 things you need to know in markets today

Good morning! Here’s what you need to know in markets on Monday.

1. Deutsche Bank has moved almost half its euro clearing activities from London to Frankfurt, in the latest sign of European cities winning financial business from the UK ahead of Brexit. The Financial Times reports that the move has provided a significant boost to Deutsche Börse’s ambition to steal business from LCH after Britain leaves the EU next March – six months ago, Deutsche Bank’s euro clearing operation was almost entirely done in London.

2. ARM Holdings, the British computer-chip designer owned by SoftBank, has agreed to buy US-based data analytics firm Treasure Data, people familiar with the matter said.Bloomberg reports that Treasure Data may fetch about $US600 million in the sale, the people said, asking not to be identified because the deal isn’t yet public.

3. Heineken, the world’s second-largest beer maker, cut its guidance for full-year margins on Monday after reporting first-half earnings below market expectations. Reuters reports that the brewer of Heineken lager, Tiger, Sol and Strongbow cider forecast that its operating margin would decline by 20 basis points, compared with a previous forecast of an increase of 25 basis points.

4. The UK owner of bookmakers Ladbrokes and Coral is likely to seal a $US200 million (£153 million) tie-up with the world’s biggest casino operator this week, to catapult it into the lucrative, newly liberalised US sports betting market. The Guardian reports that FTSE-listed gambling group GVC Holdings confirmed on Sunday it was in advanced talks to form a joint venture with MGM Resorts, giving both partners a foothold in what is forecast to grow into a multibillion-dollar sector.

5. Asian share markets drifted lower on Monday while currencies kept to familiar ranges ahead of a busy week peppered with central bank meetings, corporate results, and updates on US inflation and payrolls. Japan’s Nikkei share index closed down 0.75%, the Hong Kong Hang Seng is down 0.74% at the time of writing (7.20 a.m. BST/2.20 a.m. ET), and China’s Shanghai Composite is down 0.48%.

6. US Treasury Secretary Steven Mnuchin said on Sunday that he believes the quickening pace of growth in the nation’s economy in the second quarter will persist for the next few years. “I don’t think this is a one- or two-year phenomenon. I think we definitely are in a period of four or five years of sustained 3 per cent growth at least,” Mnuchin said in an interview with ‘Fox News Sunday.’

7. London-focused estate agent Foxtons on Monday posted a pre-tax loss in the first half of the year, hurt by lower sales in the British capital and on more investments. Reuters reports that Foxtons, which was once a symbol of London’s property boom, reported a loss before tax of £2.5 million compared with a profit of £3.8 million a year earlier.

8. The Bank of Japan has intervened to support the domestic bond market for the third time in a week. The Financial Times reports that the BoJ launched another round of bond purchases on Monday, after the yield, which moves inversely to price, on 10-year Japanese government bonds moved above 0.11 per cent – marking its highest level since February 2017.

9. John Hussman, the outspoken investor and former professor who has been predicting a stock market crash, has called out a big mistake he says investors are making as valuations continue to climb. He sees this dynamic specifically playing out in the tech sector, which has been largely responsible for market gains in recent months, leaving them that much more vulnerable.

10. Tesla reports second-quarter earnings this week, and they’re expected to be as bad as first-quarter earnings.Tesla is also burning cash at a furious rate, leading short-sellers to intensify their pressure on the company.

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