Good morning! Here’s what you need to know in markets on Tuesday.
1. Theresa May has vowed to end the “injustice” of rising energy costs by including a cap in the Conservative general election manifesto. The BBC reports that the Prime Minister said the energy market “is not working”, with vulnerable people worst hit by “rip-off” bills.
2. Jamie Dimon, the chairman and CEO of JPMorgan Chase, talked to Business Insider about education, the economy, and the Trump administration in an interview in the South Bronx, New York. Dimon believes there is a “national catastrophe” in education and JPMorgan Chase has announced a $US6 million (£4.6 million) investment in the Bronx as part of its $US75 million (£57.9 million) New Skills for Youth initiative.
3. The Co-operative Bank is set to admit that a sale of its business has faltered, increasing the chances that its American hedge fund owners will have to plough more capital into the bank. The Times reports that an announcement expected in the next few days is set to move the loss-making bank into a new phase of trying to thrash out a deal with the hedge funds, which own 80% after a previous restructuring in 2013.
4. British shoppers are increasingly seeking bargains to offset rising inflation and employers are finding it harder to recruit migrant workers, according to surveys published on Tuesday which reflected the impact of last year’s Brexit vote. Total retail sales showed their strongest year-on-year growth in six years in April, Reuters reports, but the jump largely reflected the timing of the Easter holiday which fell in March last year but in April in 2017, the British Retail Consortium said.
5. Commerzbank posted a 28% rise in first-quarter net earnings in the first quarter, benefiting from a positive one-off effect in its run-off unit. The €217 million (£183 million) net profit of Germany’s second-largest listed lender after Deutsche Bank was ahead of analysts’ expectations for €107 million (£90.25 million), Reuters reports.
6. Shares of Apple rose 3.05% to $US153.44 (£118.47) on Monday, following an analyst report from Drexel Hamilton that suggests Apple will become a $US1 trillion (£770 billion) company. Monday’s pop pushed Apple’s value past $US800 billion (£617.6 billion) for the first time, solidifying the company’s position as the world’s largest publicly traded company.
7. Big banks in the City could shift at least 9,000 roles out of the UK as a result of Brexit, according to a tally of job warnings since the EU referendum. The Guardian reports that Deutsche Bank is leading the threatened exodus, according to research by Reuters, while the two financial centres making the most gains from London’s loss are Frankfurt and Dublin.
8. US stocks were little changed on Monday amid a muted reaction to the French election, the outcome of which was already largely priced into markets. All three major indices were almost completely unmoved on the day, after the S&P 500 and Nasdaq finished last week at record highs.
9. Asian stock markets are following the US lead and are quiet. Japan’s Nikkei index is down 0.08% at the time of writing (6.25 a.m. BST/1.25 a.m. ET), the Hong Kong Hang Seng is up 0.46%, and China’s Shanghai Composite is down 0.19%.
10. Hertz Global Holdings, the parent company of Hertz car rental franchises, saw its stock plunge 15% to $US12.67 (£9.78) a share after reporting a first-quarter loss that was worse than analyst forecasts. The adjusted loss for the period was $US1.61 per share, missing analyst estimates of an $US0.84 per share deficit.
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