10 things you need to know before European markets open

Good morning! Here’s what you need to know on Tuesday.

A quiet shake-up inside Goldman Sachs’ securities division has seen at least 18 partner-level departures from key roles in the US and Europe in 2016. The securities division, which generated about half of Goldman’s first-half revenues, has been assigned a new “mission” to sell more products to existing clients.

A Canadian trade official said he expects Canada’s trade with Britain to drop by up to 8% against previous forecasts in the wake of Brexit. Businesses will “put plans on hold until they find out what the terms [of negotiation] look like,” Bruce Dunlop, vice president for International Business Development at Export Development Canada, told Business Insider.

A ride-hailing app company just completed a huge funding round. Southeast Asian ride-hailing firm Grab said it raised $750 million in a funding round led by investor SoftBank Group, adding that it would continue expanding in the region and also significantly invest in mobile payments capabilities.

Deutsche Bank is set to securitise billions of dollars of loans. Deutsche Bank, which faces a hefty fine from the U.S. Department of Justice over mortgage-backed securities, is planning to convert billions of dollars of corporate loans into marketable securities, according to a person close to the matter, cited by Reuters.

There is 10% too much oil in the markets right now. Oil prices fell on Tuesday after Venezuela said that global crude supplies needed to fall by 10 per cent in order to bring production down to consumption levels, confirming analyst views that markets remain heavily over supplied. Around 6:50 a.m. BST (1:50 a.m. ET) US WTI crude is off by 0.62% at $43.59 per barrel, while Brent is down 0.37% at $45.78.

Asian stocks are stuttering. Asian shares edged lower on Tuesday as investors nervously waited on the outcomes of the Federal Reserve and Bank of Japan policy meetings that begin later in the session. Global markets have been blowing hot and cold in recent weeks over the Fed’s intentions, not helped by both hawkish and dovish comments from several Fed officials over this period.

One of America’s most famous fund managers doesn’t think the Federal Reserve will raise rates this week. Jeff Gundlach, the CEO of DoubleLine Funds, thinks the Federal Reserve will be on hold in September. Gundlach told Reuters that he does not think the Fed will raise rates on Wednesday when they conclude their two-day meeting of the Federal Open Markets Committee. Gundlach did tell Reuters that the Fed will use “hawkish no-hike” language and will raise rates when rate hike probabilities are above 40%.

Shares in biotech firm Sarepta Therapeutics spiked by as much as 86% in trading on Monday after the US Food and Drug Administration said it approved a key drug. The FDA green-lighted Exondys 51 (eteplirsen), the first approved drug to treat patients with Duchenne muscular dystrophy (DMD), it said in a statement.

Wal-Mart’s merger with Jet.com is complete. Wal-Mart said on Monday it has completed the acquisition of internet retailer Jet.com after agreeing to pay about $3 billion for the e-commerce startup last month. Wal-Mart Chief Executive Doug McMillon announced the closing of the deal, which was pending regulatory approval, in a blog post on the retailer’s website.

Brits are holding more and more cash, and it is a worrying sign for the UK’s post-Brexit economy, according to research from Pantheon Macroeconomics. In the nearly three months since the UK voted to leave the European Union, the country’s supply of narrow money — essentially the amount of money in circulation in the form of physical notes and coins, and not being held in bank accounts and other assets — has surged People holding more physical cash by withdrawing it from bank accounts, investment funds and other vehicles, is a pretty strong indicator that things look bad for the economy.

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