Good morning! Here’s what you need to know in markets on Monday.
Oil is jumping. Supply outages persisted over the weekend because of Canada’s wildfires, which have shut half the country’s vast oil sands capacity. Brent crude is up 1.28% to $45.95 (£31.97) at the time of writing (6.20 a.m. GMT/1.10 a.m. ET) and US crude is up 1.77% to $45.45 (£31.51).
The oil market is also getting to grips with the appointment of the new Saudi Arabian oil minister. Khalid al-Falih, chairman of the state-owned oil company Saudi Aramco, is the new man in the role. He replaces 20-year veteran oil minister Ali al-Naimi and his promotion underlines the growing authority of 30-year-old Deputy Crown Prince Mohammed bin Salman.
Saudi Arabia is planning a three-way foreign listing in London, Hong Kong, and New York for the record-smashing privatisation of its $2.5 trillion (£1.7 trillion) oil giant Aramco, according to reports. The Telegraph reports that Saudi authorities hope to entice ExxonMobil, China’s Sinopec, and potentially BP, into taking strategic stakes, offering them long-term access to upstream operations in return for cutting-edge technology or refinery deals, according to sources close to Saudi thinking.
Chinese stocks are crashing. The benchmark Shanghai Composite is down 2.32% at the time of writing (6.30 a.m. GMT/1.30 a.m. ET). That’s after economic data over the weekend showed Chinese trade growth slipped in April. The Hang Seng is up 0.48% in Hong Kong.
Japan’s stock market has finally turned higher. The Nikkei suffered three sessions of losses after the Bank of Japan surprised the world by refusing to take anymore stimulus action. But Japan’s benchmark stock market is up 0.72% at the time of writing (6.30 a.m. GMT/1.30 a.m. ET).
David Cameron is hosting an international anti-corruption summit in London this week. The summit was initially announced in the wake of the Panama Paper’s scandal when the Prime Minister’s father was found to have offshore interests. On the eve of the conference of world leaders, The Guardian has highlighted new research that suggests more than $12 trillion (£8 trillion) has been siphoned out of Russia, China, and other emerging economies into the secretive world of offshore finance.
The Parliamentary inquiry into the collapse of BHS kicks off today. The joint session of the Work and Pensions Select Committee and the Business Select Committee will hear evidence on the state of BHS’ pension fund from witnesses including the CEO of the Pension Protection Fund and the head of the Pensions Regulator. The session begins at 3.50 p.m. GMT (10.50 a.m. ET). You can watch it online here.
Crowdfunding platform SyndicateRoom is doing a second crowdfunding round on its own website to fund its expansion into the public markets. Cambridge-based SyndicateRoom is hoping to raise at least £2.3 million at a valuation of £25 million. The startup was valued at £9 million in a £1.2 million funding round on its platform last May, which was filled in just 33 hours.
Greece’s parliament on Sunday passed a package of unpopular pension and tax reforms that the country’s leftist-led government hopes will help persuade official creditors to release bailout cash. After a two-day heated debate and amid protests and strikes by labour unions, Prime Minister Alexis Tsipras’ coalition, which has a thin parliamentary majority, secured enough votes to pass the reforms ahead of Monday’s Eurogroup meeting.
Goldman Sachs could be turning to Main Street. Portia Crowe reports that the Wall Street firm has made some significant changes in recent weeks that hint at a strategic shift away from its traditionally elite clients and toward more common investors.
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