Good morning! Here’s what you need to know on Thursday.
The US Federal Reserve left rates unchanged. The Fed’s statement, released on Wednesday, showed that it kept rates unchanged, and thought that the case for a rate hike this year had strengthened. “Our decision does not reflect a lack of confidence in the economy,” Fed chair Janet Yellen said at a press conference.
McLaren denied a report published in the Financial Times on Wednesday that Apple is in talks to buy the supercar maker.”There’s no takeover, no strategic investment. It’s completely untrue,” a McLaren spokesperson told Business Insider.
Moral hazard has arrived in China. According to the Chinese business publication Caixin, the first of China’s massive state-owned organisations has collapsed under the weight of $2.2 billion worth of bad debt in China’s interbank bond market. The company, Guangxi Nonferrous Metals Group, filed for bankruptcy nine months ago but only got approval from the Chinese government to go bankrupt a few days ago.
Hedge fund legend Leon Cooperman was charged with insider trading. The Securities and Exchange Commission has charged Leon Cooperman of Omega Advisors with insider trading. The trading involves Atlas Pipeline Partners, according to the SEC complaint. Cooperman is a hedge fund industry legend and manages Omega, an iconic New York fund with about $5.5 billion in assets.
The European Union’s probe into Apple’s taxes actually began in the United States, according to EU competition chief Margrethe Vestager, who was speaking at a panel at Columbia University. In 2013, a US Senate committee called out the “gimmicks” and “schemes” that allowed Apple to get sweetheart deals by noting that the company had quietly negotiated a special corporate tax rate of 2% or less in Ireland.
Oil is on the rise. Oil prices extended gains from the previous session in Asian trading on Thursday after a surprise third consecutive weekly U.S. crude inventory draw tightened the market. Around 6:45 a.m. BST (1:45 a.m. ET) US WTI crude is higher by 0.95% to $45.77, while Brent is up 0.85% to $47.23 per barrel.
Shares in a shipping giant on the brink of collapse surged after some good news. Hanjin Shipping shares surged as much as 28 per cent in morning trade on Thursday after the board of Korean Air Lines , its biggest shareholder, approved lending 60 billion won ($53.96 million) to the troubled container carrier.
Fixed-income investors would be doing a lot better if interest rates — and the yields on their investments — were higher. As of September 12, the total global stock of negative-yielding sovereign debt was $10.9 trillion, according to a note on Tuesday from Fitch Ratings. “Weighted average sovereign yields for the 14 countries with negative-yielding debt remain near all-time lows,” wrote Robert Grossman, the head of macro credit, in the note.
Deutsche Bank is the riskiest bank in the world, according to the US Federal Deposit Insurance Corporation. The bank has a leverage ratio of 2.68% according to the regulator’s calculations. The leverage ratio is a measure of a bank’s financial sustainability, and shows how much equity capital a lender has against assets such as loans.
California-based ad tech company The Trade Desk debuted on the Nasdaq on Wednesday at $28.75. That’s a nice pop on the $16 to $18 per share price range the company had set on Monday — with the Trade Desk opening up 59.33%. The Trade Desk is a demand-side platform that works with advertising agencies, allowing them to buy online ads using automated technologies.