Good morning! Here’s what you need to know in markets on Tuesday.
1. Theresa May has cleared her first major parliamentary hurdle in the Brexit process after the EU (Withdrawal) Bill passed its second reading in the House of Commons. The bill, which is designed to transfer all existing European law into British law, was voted through by 326 to 290.
2. Apple is set to launch new products at a major event in California later on Tuesday. The most valuable company in the world is expected to introduce several new products, including a flagship iPhone that Wall Street hopes will spur a “supercycle” of sales.
3. The latest UK inflation data is due at 9.30 a.m. BST (4.30 a.m. ET). Investors are expecting prices to have risen by 2.8% in August compared to a year ago, which would be an acceleration of July’s growth rate of 2.6%.
4. US stocks soared to a record high on Monday as investors sought risky assets after Hurricane Irma caused less damage than originally thought. The S&P 500 climbed 1% as fears over escalating North Korea tensions ebbed, erasing last week’s 0.6% loss in the benchmark index. Meanwhile, both the Dow and the more tech-heavy Nasdaq surged more than 1.1%.
5. Asian shares joined a global equities rally, hitting a 10-year peak on Tuesday with investors breathing a sigh of relief as North Korean fears eased slightly and the worst-case scenario from Hurricane Irma looked to have been avoided. Japan’s Nikkei stock index is up 1.14% at the time of writing (6.23 a.m. BST/1.23 a.m. ET), while the Hong Kong Hang Seng is up 0.05%, and China’s Shanghai Composite is up 0.19%.
6. China is reversing course and loosening some financial restrictions after the yuan’s appreciation in 2017. The People’s Bank of China will remove an October 2015 measure that made it more expensive for onshore banks to use currency forwards, as well as a January 2016 reserve requirement on foreign banks’ yuan deposits, according to the Wall Street Journal’s Lingling Wei.
7. Online lender Social Finance said on Monday its chief executive and cofounder, Mike Cagney, would step down before the year-end. Cagney’s resignation comes less than two weeks after the company said it was investigating claims of sexual harassment that emerged in a lawsuit.
8. British energy company BP on Monday filed for an initial public offering of its US pipeline assets. BP Midstream Partners LP, the master limited partnership (MLP) formed by BP’s US pipeline unit, said in a regulatory filing it plans to list on the New York Stock Exchange under the symbol “BPMP”.
9. Citigroup’s third-quarter total markets revenue is running about 15% less than a year earlier when volatility was boosted by reactions to the Brexit vote and US elections, Chief Financial Officer John Gerspach said on Monday at an investor conference. Gerspach’s outlook was similar to the 12% decline anticipated by Barclays analyst and conference host Jason Goldberg in a preview for the event being held through Wednesday.
10. Goldman Sachs is making its first investment in the British consumer lender market by providing £100 million of debt and equity financing to Neyber, a fintech start-up providing loans that are repaid out of people’s salaries. Founded by two former Goldman Sachs investment bankers five years ago, Neyber partners with companies to offer their employees loans at lower rates than credit cards or payday lenders, the Financial Times reports.