Good morning! Here’s what you need to know in markets on Wednesday.
1. President Donald Trump delivered his first major address to a joint-session of Congress amid internal Republican confusion about how the administration will pursue some of its major legislative priorities. In contrast to the dark message of his inauguration speech, which argued that America was engulfed by “carnage,” the speech struck a slightly lighter tone, focusing on the policy objectives the president wishes to accomplish over the next year on issues like international trade, military, and the economy.
2. Snap, closing in on one of the largest tech debuts in years, has enough demand to push the price of its initial public offering higher than expected, people with knowledge of the matter said. Bankers are telling investors that Snap could price its shares at $US17 (£13.75) to $US18 (£14.56) a share, the people said, valuing the Snapchat maker at up to $US25 billion (£20.2 billion). Shares will price on Wednesday.
3. Uber CEO Travis Kalanick has apologised for his behaviour in a leaked video showing him fighting with an Uber driver over falling fares in February. “My job as your leader is to lead…and that starts with behaving in a way that makes us all proud. That is not what I did, and it cannot be explained away,” Kalanick writes in a memo to staff seen by BI.
4. US stocks slipped in trading on Tuesday, with markets closing before President Donald Trump’s address to Congress. The Dow broke its streak of 12 straight days with a record high close, meaning it fell short of the longest such streak of 13 days set in 1987.
5. Asian markets were buoyed by Trump’s speech. Japan’s Nikkei closed up 1.45%, Hong Kong’s Hang Seng is up 0.19% at the time of writing (6.35 a.m. GMT/1.35 a.m. ET), and China’s Shanghai Composite is up 0.08%.
6. It’s manufacturing PMI day. Markit will deliver estimates for January growth in the manufacturing sectors of Spain, Italy, France, Germany, Greece, the UK, and the eurozone as a whole from 8.15 a.m. GMT (3.15 a.m.) onwards. The UK’s figure, due at 9.30 a.m. GMT (4.30 a.m. ET), is forecast to show a slight slowdown on December.
7. Nissan has told the British government to spend £100 million to attract component suppliers to the UK or risk the future of its Sunderland car plant. “This is critical. If we don’t really invest in the supply base it will be a house of cards effect,” Colin Lawther, head of European manufacturing at Nissan, told MPs on the International Trade committee according to the Financial Times.
8. South Korea’s LG Electronics said it would spend $US250 million (£202.1 million) to build a new factory in the United States, in a move that comes amid criticism from US President Donald Trump about companies manufacturing abroad for US consumers. The US administration has threatened an import tax, and Trump has attacked some of the world’s biggest companies, triggering many to make promises to invest more in the United States.
9. Chinese bike-sharing start-up ofo said it has raised $US450 million (£363.9 million) in a fresh round of funding, as the firm faces up against deep-pocketed rival Mobike in one of the hottest sectors to attract tech investors. Investment group DST Global, ride-hailing giant Didi Chuxing and CITIC’s private equity arm were among investors, the company said in a statement.
10. Online property investment platform BrickVest has raised £2 million from its second fundraising round. The Series A funding takes the current total raised by the London-based startup to £2.7 million including seed funding, and the firm expects to raise an additional £2 million by June this year.