10 things you need to know in markets today

Good morning! Here’s what you need to know in markets on Monday.

PSA Group has agreed to buy European rival Opel from General Motors in a deal valuing the business at 2.2 billion euros ($US2.3 billion). The companies confirmed the deal on Monday morning, creating a new regional car giant to challenge market leader Volkswagen.

Britain’s factories are growing at their fastest pace in more than three years, helped by the fall in the value of the pound after the Brexit vote and a recovery in core markets in Europe, a survey showed on Monday. The survey, by manufacturing lobby group EEF and consultancy BDO, added to signs that British factories are enjoying a growth spurt.

Deutsche Bank is planning to raise capital, list its asset management unit and realign its divisions as it seeks to reinvent itself after spending about two years dealing with past misdeeds and massive losses. Germany’s flagship lender plans an 8 billion euro ($US8.50 billion) rights issue, due to be launched on March 20, it said on Sunday.

Standard Life
and Aberdeen Asset Management, two of Scotland’s most well-known financial firms, are in talks over an £11 billion ($US13.5 billion) tie-up to create Britain’s largest investment manager. Any deal would “leverage Standard Life and Aberdeen’s combined strengths to create a world class investment company,” the two firms said in a joint statement on Saturday evening.

Japanese shares fell on Monday as the yen firmed and as global geopolitical tensions rose after North Korea fired four missiles, three of which landed in Japan’s exclusive economic zone. The Nikkei share average fell 0.5% to 19,377 points by the end of trading.

Australian bank Macquarie Group Ltd is planning on buying Cargill Inc’s global oil business, according to people familiar with the matter, marking the second energy business the global commodities trader has shed this year. Terms of the deal have been agreed upon, but the integration could take several weeks or longer, one of the sources said.

Talks between Britain and the EU over Brexit are becoming “increasingly pragmatic,” according to Chancellor Philip Hammond. Speaking on ITV political show “Peston on Sunday,” Hammond said the mood music of the negotiations has changed since Theresa May set out her blueprint for Brexit in January.

President Donald Trump on Sunday called for a congressional investigation into whether former President Barack Obama overstepped his authority investigating Russia’s involvement in the 2016 election. In doing so, Trump doubled down on claims from Saturday for which he did not provide supporting evidence. “Reports concerning potentially politically motivated investigations immediately ahead of the 2016 election are very troubling,” White House press secretary Sean Spicer said in a statement.

Four in five of Britain’s housebuilders have gone out of business in the last 30 years, according to new research. A report by LendInvest, an online property marketplace, found that in 1988 — when Britain’s last housebuilding boom stalled — the number of smaller UK housebuilders stood at 12,200. That figure fell to 5,700 by 2006, and to 2,400 by 2014.

Britain could end up leaving the European Union with no legal obligation to pay any sort of Brexit divorce bill, the House of Lords EU Financial Affairs Committee has claimed. If Britain reaches the end of the two-year Article 50 negotiation period without any concrete deal in place with the 27-EU member states, it would be in a strong legal position not to have to pay any formal settlement with Brussels, the Lords committee said.

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