Good morning! Here’s what you need to know in markets on Thursday.
It’s ECB day. The European Central Bank will meet in Vienna this month (instead of Brussels) and announce the bank’s latest monetary policy decisions. No change in any of its rates is expected, but it will be worth looking out for new economic forecasts and any comments on Britain’s upcoming EU referendum.
China is facing a terrifying new problem. Instead of the usual problem of too much money flowing out, there’s now not enough money flowing in.
Global manufacturing stalled last month. Activity levels across factories the world over stalled last month, according to the latest JP Morgan-Markit global manufacturing purchasing managers’ index (PMI) released on Wednesday. The PMI came in at 50.0, down from 50.1 in April.
The world’s biggest investor just downgraded stocks around the globe. BlackRock has cut its rating on global stocks to “neutral” citing an upcoming Fed rate hike and the UK’s EU referendum as risks to the market.
The price of oil is slipping. Oil prices fell early on Thursday as a row between Saudi Arabia and Iran made it unlikely that the OPEC would agree any output constraints during a meeting in Vienna, just as demand worries from China resurfaced. Around 6:50 a.m. BST (1:50 a.m. ET) Brent crude is down 0.04%, while WTI is off slightly more, down 0.27%.
Uber got $3.5 billion from Saudi Arabia. The ride-hailing service announced on Wednesday that it has received a cash infusion from Saudi Arabia’s Public Investment Fund.
Wall Street is bracing for a software M&A frenzy after Salesforce’s $2.8 billion Demandware deal. The deal opens up Salesforce to the massive e-commerce market.
Theranos CEO Elizabeth Holmes has a net worth of zero dollars, according to Forbes, down from an earlier estimation of $4.5 billion.
Bank of England governor Mark Carney will unveil the new £5 note today. The note will be made of a sophisticated polymer and feature former prime minister Winston Churchill. The bank says that “Polymer banknotes are cleaner, more secure, and more durable than paper banknotes. They also provide enhanced counterfeit resilience, and increase the quality of banknotes in circulation.”
These are the biggest questions investors are asking Deutsche Bank. Deutsche Bank analysts compiled the five most-asked questions about the European equity markets from their clients, spanning everything from the recovery in oil prices to the performance of the Chinese yuan, back to the inevitable questions about Brexit.