10 things you need to know in markets today

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

1. The UK government has been told it has less than six months to strike a Brexit deal in order to prevent an exodus from the City of London. Sky News reports that RBS chairman Sir Howard Davies warned there is now a “very, very, very tight” time frame for ministers to agree the terms of a transitional Brexit agreement with the EU, if it hopes to stop major finance firms moving jobs abroad.

2. Wolfgang Schäuble has warned that spiralling levels of global debt and liquidity present a major risk to the world economy, in his parting shot as Germany’s finance minister. In an interview with the Financial Times, the Europhile said there was a danger of “new bubbles” forming due to the trillions of dollars that central banks have pumped into markets.

3. HSBC wants to appoint company insider John Flint as its next chief executive and has approached regulators seeking their approval, Britain’s Sunday Times newspaper said. Europe’s biggest bank has told the Bank of England it wants approval for Flint, who currently runs the lender’s retail and wealth management businesses, to take over from Stuart Gulliver, the paper said, citing unnamed sources.

4. A lawyer is pressing the government to publish legal advice it has allegedly received in secret saying that Brexit can be stopped at any time and Britain can remain in the European Union. The Observer newspaper reported that lawyer Jessica Simor QC, from Matrix chambers, has been told by “two good sources” that the Prime Minister has received advice that “the article 50 notification can be withdrawn by the UK at any time before 29 March 2019 resulting in the UK remaining in the EU on its current favourable terms.”

5. Prices may rise and home deliveries could be slower unless the retail sector retains access to all EU workers after Brexit, a trade body has warned. EU citizens account for just 6% of the industry’s 170,000 workforce, the British Retail Consortium said according to the BBC.

6. Deutsche Börse is intensifying its efforts to wrestle the prized euro derivatives clearing market away from London ahead of Brexit by drawing up a plan to share profits from the business with its members. The Financial Times reports that the German exchange is preparing to change the way it runs Eurex Clearing to give the investment banks that dominate the global swaps market more financial incentives to use its clearing house.

7. Asian share markets inched higher on Monday as the flow of economic news remained generally supportive of global growth, while political uncertainty caused some early ructions in currencies. Japan’s Nikkei closed up 0.30%, while the Hong Kong Hang Seng is down 0.46% at the time of writing (6.25 a.m. BST/1.25 a.m. ET) and China’s Shanghai Composite is up 0.98%.

8. Bitcoin is back above $US4,500 for the first time in a month. The digital currency is up 0.07% to $US4,604.78 at 6.30 a.m. BST (1.30 a.m. ET).

9. Coca Cola is spending £10 million to relaunch Schweppes in the UK as part of a fightback against posh new entrants to the tonic market such as Fever-Tree and Fentimans. The drinks giant is relaunching its core Schweppes tonic range with newly designed bottles and plans to spend £10 million on a marketing campaign that will include sponsorship of ITV’s prime time Jonathan Ross Show.

10. The CEO of Tesco insists the supermarket can be as innovative as the likes of HelloFresh and Amazon, and says it is experimenting with new ideas such as meal kits and checkout-free stores. Dave Lewis was peppered with questions about competition with Amazon at a press conference in London last week, following the e-commerce giant’s acquisition of US grocer Whole Foods earlier this year.

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