Good morning! Here’s what you need to know in markets on Monday.
The British government will be “unashamedly pro-business” as it seeks to forge the country’s future role outside the European Union, Prime Minister Theresa May will say on Monday. In a speech at Mansion House in the City of London financial district, May will say Britain must be the strongest advocate for free trade, but also manage the forces of globalization so that everyone benefits from them.
Japanese economic growth easily topped expectations in the September quarter according to preliminary figures released by the government on Monday. The economy expanded at a seasonally adjusted annual rate (SAAR) of 2.2% for the quarter, well ahead of the 0.9% increase expected.
The Nikkei has surged to a nine-month high. Japan’s main stock market is up 1.68% at the time of writing (6.20 a.m. GMT/1.20 a.m. ET), buoyed by the growth figure. Elsewhere in Asia, China’s Shanghai Composite is up 0.10% and the Hong Kong Hang Seng is down 1.51%.
The chairman of RBS has warned that banks could pull out of the City unless Theresa May secures a post-Brexit transition plan. Sir Howard Davies said American and Japanese banks are very concerned at the prospect of a hard Brexit and are drawing up contingency plans.
Citi is preparing to move up to 900 jobs from London to Dublin as part of its contingency plans for Britain’s exit from the European Union, the Sunday Times reported. The newspaper said the bank held a board meeting in Dublin last month, and cited sources in the Irish capital as saying Citi was exploring options for office space there.
Willem Buiter, chief economist at Citi, thinks Trump’s protectionist trade policies could spark a global trade war, “which could easily trigger a global recession.” Deutsche Bank also thinks that “the biggest threat to growth is a possible protectionist turn, which could depress global trade and even trigger trade wars.”
Siemens, Europe’s biggest industrial group, is nearing a deal to buy Mentor Graphics, which makes software for designing semiconductors, for $4.5 billion (£3.6 billion) to $4.6 billion (£3.67 billion) in cash, according to people familiar with the matter. The deal could be announced as soon as Monday, according to the sources, who requested anonymity because it had not yet been made public.
A London technology headhunter got calls from three senior Silicon Valley executives in the 24 hours after the US election “explicitly” saying they were interested in moving to Britain to escape a Trump Presidency. Sam Gordon, cofounder of specialist technology headhunter Gordon & Eden, said people who had been put off moving to Britain by June’s Brexit vote were suddenly keen to relocate after Trump beat Hillary Clinton in the race to the White House.
The former finance director of British software group Autonomy has been accused by US prosecutors of “intimidating, pressuring, and paying off” individuals who questioned his company’s financial practices. In a 12-page indictment, filed on Thursday and seen by the Guardian, Sushovan Hussain is alleged to have masterminded an elaborate financial fraud designed to deceive investors, analysts, regulators, and auditors.
Dominic Chappell, the former bankrupt who bought BHS for £1 from Sir Philip Green, has reportedly been arrested for failing to pay more than £500,000 ($630,000) in tax on money from the department store. The Sunday Times reports that Chappell was arrested by HM Revenue & Customs (HMRC) in a dawn raid at his home in Dorset on 2 November.
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