Good morning! Here’s what you need to know in markets on Thursday.
1. Britain’s biggest vehicle maker Jaguar Land Rover said on Wednesday a so-called hard Brexit would cost it £1.2 billion ($US1.59 billion) a year, curtailing its future in the United Kingdom. “A bad Brexit deal” would force the carmaker to “drastically adjust our spending profile,” JLR’s CEO Ralf Speth said, confirming the details of an interview given to the Financial Times.
2. China’s commerce ministry said on Thursday the United States is “opening fire on the entire world”, warning that proposed tariffs on Chinese goods will hit international supply chains, including foreign companies. China will continue to assess the impact of the trade dispute and will help firms cope with possible shocks, Gao Feng, the ministry spokesman told reporters in a regular briefing.
3. Asian stocks got off to a cautious start on Thursday as investors remained nervous amid a looming deadline for Washington’s proposed tariffs on Chinese imports. Japan’s Nikkei closed down 0.75%, the Hong Kong Hang Seng is down 1.01% at the time of writing (7.20 a.m. BST/2.20 a.m. ET), and the Shanghai Composite is down 0.65%.
4. Embraer SA CEO Paulo Souza e Silva said the company is in the final stage of talks to combine operations with Boeing, newspaper Valor Economico reported on its website late on Wednesday. The two plane makers have been discussing for months a transaction in which a new company controlled by Boeing would be created and focused on commercial aviation.
5. A group of international investors managing more than $US12 trillion has written to 500 of the world’s top companies calling for more information about the treatment of their employees. More than 100 institutional investors from 11 countries signed a letter sent by the Workforce Disclosure Initiative (WDI) seeking better data on issues such as diversity, workers’ rights, and health and safety in their supply chains.
6. Mobike, one of the world’s biggest bike-sharing companies, is doing away with deposits for all customers in China, amid a fierce battle to win users. Existing users will be able to get a refund of their deposits as the company’s service also gets integrated into Meituan platform, Mobike said, after a $US2.7 billion takeover of the bike company in April by Meituan, China’s largest provider of on-demand online services.
7. Lloyds Banking Group has made compensation offers worth £76 million ($US100.46 million) to victims of a fraud at its HBOS Reading unit, lawmakers said on Thursday. 170 former directors of companies impacted by the fraud have so far been offered compensation, of whom 134 have accepted, Russel Griggs, who is overseeing the bank’s compensation process, said in a letter published by lawmakers on Thursday.
8. “Cash is cool again,” according to the $US2.78 trillion asset manager State Street Global Advisors. As the Fed raises interest rates, cash and other short-duration instruments are starting to earn more than many stocks.
9. JPMorgan has released its third quarter guide to the markets. Trade war fears and an increasing belief the US is nearing the end of the economic cycle have both put a damper on investor sentiment, the investment bank warns.
10. Sir Martin Sorrell is at risk of losing his multi-million-pound exit package from WPP after his new advertising venture sought to buy a business that his former employer is also pursuing, a person familiar with the matter told Reuters. WPP lawyers have written to the 73-year-old to warn him he is at risk of losing share awards that could be worth £20 million ($US26.5 million) if he breaches confidentiality obligations, the person said.
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