Good morning! Here’s what you need to know on Tuesday.
The Bank of England’s chief economist says owning property is better investment for retirement than paying in to a pension. In an interview with the Sunday Times, Haldane said: “It ought to be pension but it’s almost certainly property,” when answering a question about preparing for retirement.
Europe is set to hit Apple with its ‘largest tax penalty’ ever. Margrethe Vestager, the EU’s competition commissioner, has distributed a 130-page judgment on Apple’s Ireland operations, ahead of an official ruling on Apple’s tax structure expected on Tuesday.
A diplomat said that triggering Article 50 will be like turning the engines off on an aeroplane. When Britain makes its exit move – by invoking Article 50 of the EU’s Lisbon Treaty – it will set the clock running on a two-year deadline to leave the EU.
The boss of a London stockbroker thinks finance is heading for an “Uber moment.” Sam Smith, CEO of finnCap told BI: “If they don’t change it, and I don’t believe they will, you’ll have new and up-and-coming players that will take the market. It will be like how Uber smashed that entire market. It’s become a multi-billion dollar company almost overnight because people weren’t servicing the market in the right way.”
Gold may be worth more than what traders have decided is the spot price. There’s a correlation between gold price changes and the rate at which central banks bought assets to expand their balance sheets, according to Deutsche Bank’s Michael Hsueh and Grant Sporre. And the pace of balance-sheet expansion — by 300% since 2005, according to the analysts — indicates that gold could be worth more.
It’s been a quiet summer in the markets, but that may be about to change. According to Joe Amato, chief investment office for equities at Neuberger Berman, in his latest market outlook. With the quiet summer, the market is getting complacent — and complacency always comes back to bite investors. “In financial markets, complacency itself can store up danger, increasing vulnerability to unexpected changes in conditions.”
A petition against former European Commission president José Manuel Barroso’s involvement with Goldman Sachs has gained 76,000 signatures. A change.org petition, apparently created by a group of EU civil servants, wants Barroso to be punished for his involvement with Goldman, and calls for the suspension of his EU pension, according to an article in the Financial Times.
Britain is heading for a pensions disaster in 10 years’ time.Public pensions are under-funded and privately people are not putting enough money away to live on when they stop working. Those aged 55 and over said they will need £2,000 a month to live comfortably during retirement but a fifth of these people say they have saved nothing to date, according to research from UK insurance provider LV=.
Oil is higher. Oil futures edged up on Tuesday as the U.S. dollar erased earlier gains, but doubts that producers would be able to agree to an output freeze continued to drag on prices. International Brent crude oil futures were trading at $49.56 per barrel at around 6:35 a.m. BST (1:35 a.m. ET), up 0.22% cents from their previous close. U.S. West Texas Intermediate (WTI) crude futures were up 0.43% at $47.18 a barrel.
Apple CEO Tim Cook unlocked 1.26 million shares of Apple stock — worth $135 million — last week as part of a stock-compensation plan enacted when he became CEO in 2011.Nearly 1 million of those shares were earned because Cook lasted five years as Apple CEO.