Good morning! Here’s what you need to know in markets on Friday.
The pound plummeted overnight in a suspected “flash crash.”Sterling continues to suffer, falling as much as 6% against the dollar in Asian trade. The pound is down 1.43% to $1.2437 at the time of writing (6.17 a.m. BST/1.17 a.m. ET) and down 1.11% against the euro to €1.1187.
Deutsche Bank is in informal talks with securities firms to explore options including raising capital should mounting legal bills require it, Bloomberg reported on Thursday. Senior advisers at top Wall Street firms are speaking to representatives of Deutsche Bank about ideas including a share sale and asset disposals, Bloomberg reported, citing people familiar with the discussions.
One option being looked at is an IPO of Deutsche Bank’s asset management unit, according to the Financial Times. Germany’s biggest bank has not made a final decision about the potential float of a minority stake in its asset management unit and any such offering is unlikely before the first half of next year, according to several people briefed on the situation.
Snap, the company formerly known as Snapchat, is working on an initial public offering for March that would value the company at $25 billion (£20 billion), according to The Wall Street Journal. A source familiar with the matter confirmed the company’s IPO ambitions but told Business Insider that the situation is still “fluid” and that Snap hasn’t hired bankers at this point.
Verizon is asking for a $1 billion (£800 billion) discount on the Yahoo acquisition deal, after learning about the massive data breach last month, according to the New York Post’s Claire Atkinson. The Post’s report, citing “several sources,” says AOL CEO Tim Armstrong is “pretty upset” about Yahoo’s lack of disclosure about the hack, and is even questioning if there’s a way to pull out of the deal entirely.
Asian stock markets are down. Japan’s Nikkei is down 0.36% at the time of writing (6.25 a.m. BST/1.25 a.m. ET) and the Hong Kong Hang Seng is down 0.44%. China’s benchmark Shanghai Composite remains closed.
Two leading hedge funds that made big bets on Deutsche Bank shares falling are now reducing their “short” positions, in a sign of confidence in the stability of the lender. Hedge funds can take bets against companies – known as short positions – by borrowing the stock in the hope it will lose value and they can repay the loan for less, pocketing the difference.
Symphony, a secure messaging platform backed by Google and some of the world’s biggest banks and touted as a potential “Bloomberg killer,” has released user numbers and announced two major new features a year after launch. The Silicon Valley-based company announced on Thursday that it now has 116,000 paying customers across 104 different finance firms, a year after launching its product.
Overseas investors accounted for 78% of the commercial property bought in central London in the last three months, according to The Telegraph, as sterling devaluation and price discounts make the capital more attractive than ever. More than £695 million of Asian capital has been deployed in the city since June, with Hong Kong investors being particularly active, according to research from property advisory firm Savills. US money accounted for £685 million worth of transactions.
US aircraft maker Boeing is expected to announce a major deal to supply Qatar Airways with widebody jetliners on Friday. The sale could be worth as much as $18 billion (£14.5 billion), the BBC understands. If finalised, it would give Boeing a boost in a year when orders for widebody planes has slumped.