Good morning! Here’s what you need to know in markets on Tuesday.
1. The UK economy is set for a persistently slow pace of growth over the next two years as it negotiates Brexit, according to the latest economic forecast from the Confederation for British Industry (CBI). But the business group, which represents over 190,000 UK businesses, has marginally revised up its growth forecast to 1.6% for 2017 and 1.4% in 2018 compared with the previous forecast of 1.3% and 1.1% respectively.
2. Bank of England Governor Mark Carney and Chancellor Philip Hammond are both speaking this morning. The pair will deliver speeches at the private Mansion House breakfast event in London, with Reuters reporting that both will spell out plans to protect Britain’s already weakened economy from the impact of Brexit.
3. Barclays and some of its former directors are braced for the Serious Fraud Office to decide today whether to bring criminal charges over the bank’s dealings with Qatar during its £11.8 billion fundraising in the financial crisis. The Telegraph reports that sources familiar with the bank said they thought it was likely that both the lender and individuals will be charged.
4. The Dow Jones industrial average hit a record high in trading on Monday, the 22nd record close of 2017. The S&P 500 similarly broke through to a record close. Tech stocks bounced back after a slew of down days, with the Nasdaq composite finishing up more than 1%.
5. Japan’s Nikkei rose more than 1% to hit a near two-year high on Tuesday following a rebound in US hi-tech shares as investors bet on solid growth in the economy and corporate profits globally. The Nikkei is up 1.11% at the time of writing (6.30 a.m. BST/1.30 a.m. ET). Elsewhere in Asia, the Hong Kong Hang Seng is down 0.13% and China’s Shanghai Composite is down 0.03%.
6. Vice Media announced on Monday that it had closed a $US450 million (£353 million) investment from private equity firm TPG, as the millennial-focused media company seeks to offer more programming content as well as expand into new markets. TPG’s investment values New York City-based Vice at about $US5.7 billion (£4.4 billion), a source familiar with the matter said.
7. BlackRock, the world’s biggest asset manager, made its first push into Europe’s “robo-advice” market on Tuesday after taking a stake in Anglo-German digital investment manager Scalable Capital. BlackRock, which manages $US5.4 trillion (£4.2 billion) across a range of actively managed and index-tracking funds, led a €30 million (£26.2 million, $US33.6 million) funding round for Scalable alongside its two existing German venture capital backers, a joint statement said.
8. Bernard Arnault, CEO and chairman of the world’s largest luxury goods conglomerate LVMH, has a dire warning for the global economy. “I think a bubble is building and this bubble, one day, will explode,” Arnault said in an interview with CNBC.
9. Goldman Sachs’ Marcus, an online lending business for customers seeking loans of $US30,000 (£23,537) or less, has already hit a $US1 billion (£780 million) milestone, according to Goldman Sachs Lloyd Blankfein. Blankfein said in an interview on CNBC’s “Mad Money with Jim Cramer” that “we just crossed over a billion dollars.” The service was launched last October.
10. More must be done to encourage people over the age of 55, and women in particular, to keep working longer in order to boost the economy. That is according to PwC’s latest “Golden Age Index” report, published on Tuesday, which ranked countries that were best at “harnessing the economic power of older workers.”