Good morning! Here’s what you need to know in markets on Wednesday.
1. Malaysia’s former prime minister Najib Razak has been charged with criminal breach of trust. Najib was arrested on Tuesday in relation to a probe investigating billions of dollars missing from the state investment fund 1MDB.
2. China is putting pressure on the European Union to issue a strong joint statement against President Donald Trump’s trade policies. Senior Chinese officials proposed an alliance between the two economic powers and offered to open more of the Chinese market in a gesture of goodwill.
3. Asian stocks were on shaky grounds on Wednesday while the Chinese yuan stood near 11-month lows as the spectre of a Sino-US trade war haunted investors ahead of an end-of-week deadline for US tariffs on billions of dollars worth of Chinese imports. Japan’s Nikkei closed down 0.34%, the Hong Kong Hang Seng is down 1.39% at the time of writing (7.30 a.m. BST/2.30 a.m. ET), and China’s Shanghai Composite is down 1.15%.
4. Service sector growth data is coming. IHS Markit will release PMI data for service sectors in Spain, Italy, France, Germany, the UK, and the eurozone as a whole from 8.15 a.m. BST (3.15 a.m. ET) onwards.
5. Google Cloud COO Diane Bryant is leaving the company less than a year after coming aboard. Bryant came from Intel, where she had a storied 32-year career, most recently leading the $US17 billion data-centre business.
6. Nick Caporella, the billionaire CEO of La Croix’s parent company, National Beverage, has faced two lawsuits alleging sexual misconduct over the last two years, The Wall Street Journal reported. Two pilots who flew as Caporella’s co-pilots on the beverage company’s private jet said that the CEO touched them inappropriately on more than 30 occasions.
7. Tesla CEO Elon Musk appears to have asked engineers at Tesla’s factory in California to remove a standard brake test from the tasks Model 3 cars must complete in order to move through production, according to internal documents seen by Business Insider. The test was apparently shut down before 3 a.m. on June 26, according to a person familiar with the matter.
8. Barnes & Noble on Tuesday said it terminated Chief Executive Officer Demos Parneros, citing violations of the retail bookseller’s policies. The company said the action was taken by its board, but did not provide further details.
9. A “triple shock” of risks is looming over the global economy and threatens to derail the world’s recovery, analysts at HSBC said. Tightening financial conditions in the US, rising oil prices, and the escalating trade war sparked by the Trump administration are all threats to the world economy, the bank said.
10. The demand for trucking services is greater than the number of drivers, and freight costs have increased as a result. According to a team of analysts at Morgan Stanley, costs across the industry are likely to continue rising and could reach a breaking point where shippers explore other options.
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