Good morning! Here’s what you need to know in markets on Wednesday.
EU antitrust regulators are set to fine HSBC, JPMorgan, and Credit Agricole by the end of the year for rigging financial benchmarks linked to the euro, two people familiar with the matter said on Tuesday. Reuters reports that charges were levied in May 2014 against the three banks, which denied wrongdoing. The European Commission could penalise HSBC, JPMorgan, and Credit Agricole next month, the people said. The decision has been delayed several times and another hold-up could still occur.
Google still plans to open a new UK headquarters building in London, which the BBC reports could create up to 3,000 jobs in the country by 2020. Sundar Pichai, the CEO of Google, told the BBC the company sees “big opportunities” in the UK despite the country’s vote to exit the European Union in June.
Employment and wage data is coming. UK earnings and job figures for September and October are due at 9.30 a.m. GMT (4.30 a.m. ET). The unemployment rate is forecast to remain steady at 4.9% and wage growth is forecast to be 2.3%, the same as in the prior month.
The Dow Jones Industrial Average rallied for a seventh straight day on Tuesday, clinching another record closing high overnight near 19,000. The rout in the bond market finally paused as traders bought Treasurys, sending yields lower for the first time since last week’s election.
Japan’s Nikkei hit a 9 and a half month high. The Japanese stock market closed up 1.1% at its highest level since February, buoyed by the weak yen helping exporters. Elsewhere in Asia, China’s Shanghai Composite is down 0.07% at the time of writing (6.25 a.m. GMT/1.25 a.m. ET) and the Hong Kong Hang Seng is up 0.45%.
Saudi Arabia will reveal how much oil it is sitting on as it prepares to sell shares in Saudi Aramco. “This is going to be the most transparent national oil company listing of all time,” Khalid al-Falih, Saudi Arabia’s energy minister, told the Financial Times in an interview.
Intel will invest more than $250 million (£200 million) to make autonomous driving a reality. Intel wrote in a press release that the investment will be geared toward advancing tech related to connectivity, communication, deep learning, and cybersecurity for cars.
Deutsche Bank has shaken up some of its senior ranks in its US investment bank. The firm has promoted Michael Santini to vice chairman of Americas corporate finance and John Anos to cohead of global industrials alongside Richard Sheppard.
Senior Morgan Stanley executives collectively earned about $10.5 million (£8.4 million) over the past week by exercising options and selling shares, with most of them profiting from an election-fuelled rally in bank stocks, according to securities filings. The executives made the sales after shares of Morgan Stanley, which traded as low as $22 in the last 12 months, reversed course to become the best performing of the six largest US banks so far this year, closing Monday at $39.35.
An aggressive tax avoidance scheme used by temp recruitment agencies is depriving the taxpayer of “hundreds of millions” of pounds a year, a Guardian investigation has found. A number of agencies have been making large windfalls by using “contrived” financial arrangements to slash their employer’s national insurance bills.
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