Good morning! Here’s what you need to know in markets on Tuesday.
Global ratings agency S&P Global has a cautious message for Brexiteers who are gleefully dismissing the remain camp’s — dubbed “Project Fear” — economic warnings. “While the [economic] news is encouraging” in the weeks since Brexit “we believe it has no bearing on the cloudy longer-term outlook for the U.K. economy,” said economist Sophie Tahiri and her team at S&P.
US and Asian stock markets jumped overnight after the Fed softened talk of a rate hike. Minneapolis Fed President Neal Kashkari said there is no rush to move ahead on raising rates. All three major indices in the US finished up by more than 1% and in Asia, Japan’s Nikkei is up 0.41% and the Hong Kong Hang Seng is up 0.96% at the time of writing (6.35 a.m. BST/1.35 a.m. ET).
Chinese industrial output, retail sales and fixed asset investment figures — known in markets as China’s “data dump” — have beaten across the board in August. At face value, today’s numbers, along with those released in recent weeks, suggest that economic conditions improved noticeably last month.
UK inflation figures are coming. Consumer price index data for August will be released at 9.30 a.m. BST (4.30 a.m. ET). CMC Markets’ chief market commentator Michael Hewson says in an email this morning: “The latest inflation data looks set to show a sharp uptick as a result of the recent slide in the pound in the wake of the June Brexit vote.”
Goldman Sachs has established a team to put deposits from its retail bank to work on Wall Street. Led by 40-year-old Goldman partner and credit trading veteran Gerald Ouderkirk, the team’s job is to use consumer deposits and other types of funding for trades, investments and big loans to earn profits, people familiar with the matter told Reuters.
Facebook’s Messenger application, which now boasts a billion users, is introducing new capabilities that let people pay for goods and services through Messenger or through “bots,” automated programs, that use the messaging app. David Marcus, VP of messaging products at Facebook, said at the TechCrunch Disrupt conference that the company was working with a number of payment providers including PayPal, Visa, Mastercard, American Express, and Stripe to implement the features.
Morgan Stanley is moving jobs overseas. Jonathan Pruzan, chief financial officer at the bank, said at the Barclays Financial Services Conference on Monday: “We said we were going to deploy 1250 people into our lower cost centres of excellence in Mumbai and other parts of the world. We have had about 450 jobs that we’ve put in those centres so far.”
HSBC’s retail banking and wealth management head John Flint expects banks to partner more with fintech companies in the coming years to help meet changing demands from customers. “I think there’s an awful lot of scope for collaboration,” Flint said in an interview at the Toronto Global Forum on Monday.
Deutsche Bank’s boss John Cryan says the bank needs to become more nimble and creative, and should take inspiration from firms in Silicon Valley. The Telegraph reports that Cryan said the bank’s employees, including its 8,000 or so staff in London, should act on their own initiative “instead of waiting for an instruction from above,” ordering managers to foster a culture of “self-reliance.”
JPMorgan Chase CEO Jamie Dimon wants to live in the White House, but he doesn’t think it will happen. “I would love to be president of the United States, but it’s too hard and too late,” Dimon said in a Monday conversation at the Economic Club of Washington, D.C..
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