10 things you need to know in markets today

Good morning! Here’s what you need to know in markets on Monday.

1. Trade negotiators for the US and Canada on Sunday evening put the finishing touches on a deal to reshape the 25-year-old North American Free Trade Agreement, known as NAFTA, sealing the largest trade-deal rewrite of President Donald Trump’s tenure.The agreement came just hours before a deadline set by the Trump administration, will pave the way for a vote in Congress to approve the deal after more than a year of negotiations among the US, Canada, and Mexico over the trilateral agreement.

2. The UK would crash out of the EU without a deal rather than pursuing a soft Brexit, Dominic Raab will warn today.Speaking at the Conservative conference in Birmingham, the Brexit secretary will warn the UK will be “left with no choice” but to pursue a no-deal Brexit if the EU fails to offer a favourable agreement. “Our willingness to compromise is not without limits,” Raab is expected to say.

3. Brexit is already reportedly costing Britain £500 million ($US651.6 million) a week. New research suggests the UK economy is already 2.5% smaller than it would have been had Britain voted to remain in the EU.

4. Separately, the UK has the fiscal capacity to cope with leaving the European Union without having first secured a deal, British finance minister Philip Hammond said on Monday.When asked about health spending, Hammond said that voters would have to accept that if they wanted an expanding health service they would have to pay a little more tax.

5. The Canadian dollar and the Mexican peso rose on Monday on hopes of progress in negotiations over a renewed North American Free Trade Agreement (NAFTA) deal, but Asian shares got off to a slow start amid further signs of weakness in China.Casting a shadow in Asia, two surveys showed on Sunday that growth in China’s manufacturing sector sputtered in September as domestic and export demand softened..

6. Facebook may be fined as much as $US1.63 billion by an EU privacy watchdog for a recent data breach announced Friday that compromised the personal information of more than 50 million users.According to the Wall Street Journal, Ireland’s Data Protection Commission, Facebook’s lead regulator in Europe, said on Saturday it demanded more information about the nature and scope of the hack, which may have violated the EU’s new privacy law called the General Data Protection Regulation.

7. In an email, Elon Musk told Tesla employees on Sunday they have “one more day of going super hardcore” to close the quarter and the company is “very close to achieving profitability and proving the naysayers wrong.”Musk assured investors that Tesla would turn a profit in the third quarter in a conference call in August. The company has never turned an annual profit, and has had only two profitable quarters in its history.

8. US President Donald Trump said he and North Korea’s Kim Jong Un “fell in love” through “beautiful letters.”Trump lauded his recently improved relationship with Kim during a West Virginia rally.

9. Saudi Arabia has shelved a $US200 billion plan with SoftBank to build the world’s biggest solar-power-generation project, the Wall Street Journal reported on Sunday, citing Saudi government officials.No one is actively working on the project, and instead, the Saudi kingdom is working up a broader, more practical strategy to boost renewable energy, to be announced in late October, the WSJ reported.

10. China has canceled a security meeting with U.S. Secretary of Defence Jim Mattis that had been planned for October, a senior U.S. official said on Sunday, days after a top Chinese official said there was no reason to panic over tensions between the countries.The official, who is involved in China policy and spoke on condition of anonymity, said it was not clear if or when the meeting would be rescheduled.

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