Good morning! Here’s what you need to know in markets on Wednesday.
1. Asian stocks turned up on Wednesday as fresh signs of stimulus from China propped up sentiment despite Wall Street’s overnight losses, while crude oil approached two-month lows after Saudi Arabia flagged possible supply increases. MSCI’s broadest index of Asia-Pacific shares outside Japan was last up 0.2% following a decline of more than 2 per cent in the previous session.
2. The United States does not plan to send senior government officials to attend a major import expo in Shanghai next month, a US embassy spokesman said on Wednesday, urging Beijing to end what he called harmful and unfair trade practices.The world’s two biggest economies are locked in an escalating tariff row, with President Donald Trump having railed against China for intellectual property theft, entry barriers facing US businesses and a gaping US trade deficit.
3. China is struggling to restore confidence in its stock markets, which are being weighed down by a massive amount of shares that have been pledged as collateral as credit-starved companies seek to raise funds.Analysts say the practice, which involves 10 per cent of total outstanding shares, is a minefield for an economy already battling slowing growth and a trade war with the United States.
4. The S&P 500 may not yet be in correction territory, but the vast majority of the index’s components have already gotten there. About 353 S&P 500 stocks have fallen 10% or more from their 52-week highs. Of those, 179 stocks have fallen by 20% or more from their highs, establishing them in a bear market by many investors’ definitions. A correction is defined as a 10% fall from a high.
5. Barclays reported a profit before tax of £3.1 billion ($US4.02 billion) for the third quarter, as its under-pressure investment banking division booked increased trading revenues despite difficult market conditions. The bank also said it will redeem $US2.65 billion (£2 billion) worth of preference shares, in a move to reduce its annual funding costs.
6. Deutsche Bank on Wednesday said that it was on track to swing to a profit this year, its first since 2014, despite a steep decline in third quarter profit as it restructures under new leadership. “We have our costs under control and sufficient capital to grow. We are on track to be profitable in 2018, for the first time since 2014,” Chief Executive Christian Sewing said.
7. BlackRock, the world’s largest asset manager, will keep its biggest European operation and regional headquarters in Britain after Brexit, moving “only very few” roles to expanded offices in the Netherlands and France, a memo to staff seen by Reuters showed. The commitment by the US firm, which employs around 3,000 staff in Britain and manages around $US6.3 trillion (£4.85 trillion) worldwide, means it will still have three times as many staff in Britain as in all of the remaining 27 European Union countries combined.
8. Theresa May has drawn up a drastic plan for ensuring Britain has supplies if there’s a no-deal Brexit: chartering ships to create a government-run flotilla.According to a new report from The Financial Times on Tuesday, the UK government is considering chartering ships for a makeshift fleet that can be used to bring much-needed and perishable supplies like food and medicines into the country if Britain leaves the European Union without securing a deal.
9. Howard Wilkinson, the whistleblower who helped to reveal suspected money laundering at Danske Bank, has accepted an invitation to testify before the European Parliament, his lawyer said. “Mr. Wilkinson has agreed to testify before the Danish and European Parliaments,” U.S. attorney Stephen M. Kohn, who represents Wilkinson, said in a statement late on Tuesday.
10. Ford has appointed a new head of China operations to help turn around flagging sales in the world’s largest auto market, filling a post that had been vacant since January after the firm’s previous China chief suddenly quit.Anning Chen, a former chairman of Chery Jaguar Land Rover in China and who also worked for Ford previously, will become the U.S. automaker’s new CEO from November 1.
Business Insider Emails & Alerts
Site highlights each day to your inbox.