Good morning! Here’s what you need to know in markets on Tuesday.
1. Uber’s chief executive has apologised for the taxi app’s mistakes in London and promised to change as the company fights a decision by the city not to renew its licence, the Guardian reports. The firm is battling to keep operating in the capital after Transport for London decided not to renew its licence to operate. Uber’s London licence expires on 30 September, although it will continue to run taxis while it pursues a legal appeal process that could last a year.
2. The Bank of England has warned that British high street banks risk losing as much as £30bn from defaults on credit cards and personal loans credit were the economy to take a turn for the worst, the Telegraph reports. The central bank cautioned that the UK’s growing £200 billion consumer debt pile threatens some to damage the capital positions of some of Britain’s biggest banks should a sharp downturn in the economy take place.
3. Global accounting firm Deloitte has admitted it was the victim of a cyberattack which may have revealed sensitive emails belonging to some of its clients, Sky News reports. The company, which is one of the world’s ‘big four’ accountancy firms, released a statement in response to media reports that its data had been compromised.
4. Unilever has agreed its biggest acquisition in six years, months after fending off a £115 billion takeover attempt by Kraft Heinz, the Times reports. The Anglo-Dutch group will pay €2.27 billion for Carver Korea to Bain Capital, the private equity firm, Goldman Sachs and other investors as it beefs up its personal care business.
5. There are growing signs that the UK’s peer-to-peer lending sector could be experiencing the toughest test of its lending abilities since the nascent sector’s inception. GLI Finance, a listed investment company that backs fintech businesses, on Monday wrote down the value of its investments in eight peer-to-peer lending platforms by £12.6 million to £28.9 million, citing “concerns over the collectability of some platform loans.”
6. Japan’s Nikkei average slipped slightly on Tuesday morning as tech shares and Apple suppliers declined, tracking their U.S. counterparts overnight, while concerns over North Korea sapped risk appetite, Reuters reports. The Nikkei was effectively flat, down 0.36% to 20,325.13 at 6.45 a.m. BST (1.45 a.m. ET), moving away from a two-year high of 20,481.27 hit last week.
7. The former Burberry executive who took over the running of Harvey Nichols nearly four years ago is stepping aside to take a new role at the company, the Times reports. Stacey Cartwright will become deputy chairwoman of Harvey Nichols alongside Sir Dickson Poon, the chairman and Hong Kong billionaire who bought the famous upmarket central London store in 1991.
8. The microchip designer ARM is attempting to position itself as a white knight ready to save its struggling rival Imagination if a Chinese takeover is blocked, the Telegraph reports. The Cambridge giant, acquired by Japan’s SoftBank in a £24 billion swoop last year, is understood to be circling the controversial sale in the hope of snatching a bargain.
9. French President Emmanuel Macron wants to overhaul a welfare system which saw expat bankers who lost their jobs return to the country and claim 7,000 euros (£6,150) a month in benefits, Reuters reports. The aim is to spur those who lose their jobs to get back to work more quickly and fill France’s growing number of vacancies, part of what Macron terms “an unprecedented transformation of our social model and economy.”
10. And finally… At least six White House advisers made use of private email accounts for government business, according to a New York Times report on Monday. The Times said that former White House chief of staff Reince Priebus, former chief strategist Steve Bannon, and current advisers Gary Cohn and Stephen Miller all sent or received work-related emails from personal accounts, citing current and former White House officials.