Good morning! Here’s what you need to know in markets on Tuesday.
1. Asian shares slumped on Tuesday as a cocktail of negative drivers from Saudi Arabia’s diplomatic isolation to fresh worries about trade wars whacked sentiment across the region. Selling in Asia erased gains made in rally of the previous two sessions, which were led by China stimulus hopes, with the MSCI’s broadest index of Asia-Pacific shares outside Japan dropping 2.2%. Declines in many regional benchmark indexes also exceeded 2%
2. Japanese lender Nomura’s early warning indicators (EWIs), a model that has reliably signalled at least two-thirds of all financial crises that have occurred since the early 1990s, the risks of such an outcome is growing in Asia, in particular, Hong Kong. “For Hong Kong, 50 warning signals were given over the past 12 quarters out of a maximum of 60, the highest of all the 30 economies in our sample,” they say.
3. Uber executive Cameron Poetzscher, who led corporate development at the ride-hailing startup, has resigned following reports of an investigation into sexual misconduct, according to The Wall Street Journal.A spokesperson for Uber confirmed Poetzscher’s departure to Business Insider without commenting on the reason.”We thank Cam for his four and half years of service to Uber,” the person said.
4. US President Donald Trump, speaking to reporters at the White House as he departed on a trip to campaign in Texas, said on Monday his administration plans to produce a resolution calling for a 10% tax cut for middle income earners.Trump said on Saturday his administration was studying a tax cut to be rolled out some time around the beginning of November just before congressional elections.
5. British drugmaker AstraZeneca will buy a newly issued equity stake of 9.8% in smaller French peer Innate Pharma, as consolidation intensifies in the healthcare sector.AstraZeneca will buy the stake via around 6.26 million new shares being issued to it at a price of 10 euros per share, the companies said on Tuesday. Innate Pharma has a current market capitalisation of around 277 million euros ($US317 million).
6. Netflix is launching a new $US2 billion debt offering to fund its cash-burning content business. Shares dropped 1.26% on the news.The streaming-media giant announced Monday that it intends to offer approximately $US2 billion of unsecured senior notes in dollars and euros, and use the net proceeds to support content acquisitions, production and development, as well as other corporate purposes.
7. Major economies should launch coordinated regulation of cryptocurrencies, the head of Goldman Sachs-backed startup Circle said on Monday, underscoring growing industry support for international rules on digital money.“Ultimately there needs to be normalization at the G20 level of critical crypto-related regulatory matters,” Jeremy Allaire, CEO of Boston-based Circle, told Reuters in an interview in London.
8. An explosive device was found on Monday in a mailbox near the New York home of billionaire financier George Soros, a favourite target of right-wing campaigners in the United States and eastern Europe, the New York Times reported, citing police.Authorities responded to the home in Katonah, New York after they received a call about a suspicious package at about 3:45 p.m., the Times reported.
9. UBS allows all its staff to travel “freely in and out” of China and it is business as usual there, the Swiss bank said, after local authorities last week asked one of its bankers to delay her departure from Beijing to meet with officials.That move by the Chinese authorities led to UBS asking its wealth management staff to reconsider any travel plans to China, a person familiar with the matter told Reuters on Saturday.
10. Gilberto Benetton, a co-founder of Italian clothing retailer United Colours of Benetton who masterminded the family empire’s diversification into construction, transport and catering, has died at the age of 77.The former head of family holding company Edizione which controls Italy’s biggest infrastructure group Atlantia, died after a short illness, the family said on Monday.
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