Good morning! Here’s what you need to know in markets on Wednesday.
1. Prime Minister Theresa May has signed the Article 50 letter of notification that she will send to the European Union on Wednesday to formally get Brexit underway. May was pictured in Downing Street on Tuesday evening adding her signature to the historic letter, which will formally notify the European Commission of Britain’s departure from the EU.
2. US stocks rallied on Tuesday following a dip Monday that appeared related to concern about the failure of “Trumpcare” to get enough votes in the House. The Dow Jones and the S&P 500 both closed up 0.73% and the Nasdaq closed up 0.60%.
3. Asian stock markets are subdued ahead of the Brexit trigger in Europe. Japan’s Nikkei is up 0.03% at the time of writing (6.25 a.m. BST/1.25 a.m. ET), the Hong Kong Hang Seng is up 0.24%, and China’s Shanghai Composite is up 0.26%.
4. Wells Fargo has agreed to pay $US110 million (£88.7 million) to settle a class-action lawsuit over up to 2 million accounts its employees opened for customers without getting their permission, the bank announced Tuesday. It’s the first private settlement that Wells has reached since the company paid $US185 million (£149.1 million) to federal and California authorities late last year.
5. Goldman Sachs has named a new head of technology for Europe, the Middle East, and Asia, according to a memo seen by Business Insider. Joanne Hannaford, a partner at the bank since 2014, is taking on the role from Damian Sutcliffe, who is retiring.
6. BlackRock on Tuesday said it would overhaul its actively managed equities business, cutting jobs, dropping fees and relying more on computers to pick stocks in a move that highlights how difficult it has become for humans to beat the market. The world’s biggest money manager has faced active stock fund withdrawals and the revamp is its biggest attempt yet to engineer a turnaround.
7. Bitcoin slid into negative territory on Tuesday after the US Securities and Exchange Commission rejected the plans for the SolidX Bitcoin ETF. The cryptocurrency is down 1.81% against the dollar to reach $US1,025.40 at the time of writing (6.13 a.m. BST/1.13 a.m. ET).
8. Chinese tech giant Tencent has spent $US1.78 billion (£1.4 billion) on buying a 5% stake in electric carmaker Tesla. The BBC reports that Tencent, best known for its WeChat mobile app, has been investing in a number of sectors, including gaming, entertainment, cloud computing and online financing.
9. One of Sir Philip Green’s key lieutenants is leaving her job running Topshop for the same job at The White Company. The Telegraph reports that Mary Homer, who has been managing director of the fashion retailer for 11 years and has worked for the billionaire since 1987, is to replace outgoing White Company boss Will Kernan, who left in February to run online sports specialist Wiggle.
10. AC Milan is heading for a listing in Hong Kong after financing from US hedge fund Elliott Management revived a Chinese deal to buy the Italian football club from Silvio Berlusconi, former prime minister of Italy. The Financial Times reports that Elliott has agreed to provide part of the financing for little-known Chinese investor Yonghong Li to buy AC Milan for €740 million (£645.1 million), say people directly informed of the deal.
More from Business Insider UK:
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