Good morning! Here’s what you need to know in markets on Tuesday.
British financial-services companies will get no special favours in Brexit negotiations from Prime Minister Theresa May, who wants to change the relationship between the government and the City of London. Bloomberg reports that three senior figures in May’s administration told the newswire that the government will refuse to prioritise the protection of the sector after the UK has left the European Union.
The pound has stabilised. After falling close to 30-year lows on Monday, sterling is up 0.08% against the dollar to 1.2846 at the time of writing (6.25 a.m. BST/1.25 a.m. ET) and up 0.15% against the euro to 1.1471.
Google is set to launch new hardware on Tuesday, but the company might not have much left to say about the two Pixel smartphones it’s expected to reveal by the time the event starts. Those phones have been extensively leaked as it is, but a since-removed listing from UK retailer Carphone Warehouse (spotted by 9to5Google) appears to have provided the most complete look yet.
Asian markets are higher. Japan’s Nikkei is up 0.49% at the time of writing (6.40 a.m. BST/1.40 a.m. ET), China’s benchmark Shanghai Composite is up 0.23%, and the Hong Kong Hang Seng is up 0.07%. US markets closed lower overnight.
British healthcare conglomerate Bupa is weighing a £500 million takeover bid for Oasis, the dentistry chain, in a move that would create a private sector powerhouse. Sky News reports that Bupa has held preliminary talks with Oasis Healthcare’s management and shareholders about a deal, although the discussions are said to be at a very early stage.
Samsung BioLogics, the drug-making arm of the South Korea’s Samsung Group, is seeking to raise as much as Won2.2 trillion in an effort to cement its place as a major contract manufacturer of biological medicines. The Financial Times reports that the company is offering 16.5 million shares in the price range of Won113,000 — Won136,000, which equates to an offer size of Won2.24 trillion (£1.7 billion, $2.2 billion) at the top end.
UK construction figures are coming. IHS Markit PMI data for September, due at 9.30 a.m. BST (4.30 a.m. ET), is expected to show the industry continues to contract and at a faster pace than in August.
Deutsche Bank has made some new hires in its tech investment banking and financial institutions groups. The firm has hired Brian Pitz as cohead of internet investment banking coverage, according to an internal memo from global tech, media, and telecom-banking coheads Gavin Deane and Mark Keene.
Mutual funds could sell more stocks than they buy this year for the first time since 2012, according to Goldman Sachs. During the second quarter, the big-money managers who pool assets for all kinds of investors dumped the stock market for a third straight quarter, according to David Kostin, Goldman Sachs’ chief US equity strategist.
Deutsche Bank should be able to weather its problems, JPMorgan CEO Jamie Dimon says. “There’s no reason” the bank can’t resolve issues including settlement talks with the US Department of Justice over the sale of mortgage-backed securities, Dimon said Tuesday in a phone interview with CNBC reported by Bloomberg, adding the problems were largely created by government.
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