Good morning! Here’s what you need to know in markets on Wednesday.
1. Snap Inc’s stock plunged in after-hours trading on Tuesday after the company reported a disastrous third-quarter report that revealed widespread weakness throughout the business just nine months after its splashy debut on the public markets. The company reported smaller than expected user growth, a 60% drop in advertising rates, and a hefty charge due to an overambitious entry into the hardware market.
2. Tim Sehn, Snap Inc.’s senior vice president of engineering, is leaving the company, The Information reported on Tuesday. Sehn joined the Snapchat-marker in 2013 and oversaw all of the company’s engineering efforts to date. He was one of Snap’s highest-paid execs and sold shares totalling roughly $US27 million (£20.5 million) this year.
3. “Big Six” energy rivals SSE and Npower are in merger talks. The Telegraph reports that SSE is in talks with Innogy, the German owner of Npower, about spinning off their retail arms and combining them into a separate company.
4. The chief executive of Deutsche Bank has given his clearest hint yet that his bank could cut tens of thousands more jobs as it turns to technology to bring costs into line with sharply lower revenues. “We employ 97,000 people,” John Cryan told the Financial Times. “Most big peers have more like half that number.”
5. Japan’s Nikkei share average slipped on Wednesday morning from the previous session’s near 26-year high as investors took their profits, dragging on financial and mining stocks. The stock index closed down 0.11%. Elsewhere in Asia, the Hong Kong Hang Seng is flat at the time of writing (6.20 a.m. GMT/2.20 a.m. ET) and China’s Shanghai Composite is up 0.17%.
6. US gas and oil figures are coming. David Madden, an analyst with CMC Markets, said in an email: “At 3.30pm (UK time) the energy information administration (EIA) will release the latest US oil and gasoline inventories, and dealers are anticipating a draw of 2.9 million barrels and 2 million barrels respectively.”
7. Sky has threatened to shut down Sky News if the news channel proves to be a major obstacle in its takeover bid by Rupert Murdoch’s 21st Century Fox. The BBC reports that regulators are investigating the deal amid concerns that Murdoch’s media empire could become too powerful.
8. Tesla is ramping up investment in its manufacturing process amid Model 3 production problems. The automaker and energy company said on Monday that it had acquired a factory automation company called Perbix Machine Company.
9. Chinese trade data remains solid if not spectacular. According to China’s General Administration of Customs, exports grew by 6.9% in US dollar terms in the year to October, down marginally on the 8.1% level of September and forecasts for a smaller decline to 7.2%.
10. An estimated $US280 million (£213 million) worth of the cryptocurrency ethereum is currently locked up thanks to one person’s mistake. An unidentified user accidentally locked up recently-created digital wallets within Parity — a popular digital wallet provider — by deleting the code library required to use those wallets, according to a critical security alert posted to Parity Technology’s blog on Tuesday.