Good morning! Here’s what you need to know in markets on Wednesday.
1. Strong action to combat climate change could cumulatively add at least $US26 trillion to the world economy by 2030, according to a study on Wednesday which seeks to dispel fears that a shift from fossil fuels will undermine growth. The Global Commission on the Economy and Climate, which includes former heads of government, business leaders and economists, said there was “unprecedented momentum” toward greener growth that would boost jobs and countries’ economies.
2. Asian stocks tracked their global peers lower while the safe-haven dollar was broadly higher on Wednesday as worries over persistent trade conflicts curbed investor appetite for riskier assets. U.S. stocks had slipped on Tuesday as a drop in heavyweights Facebook and Nike added to worries over trade negotiations between the United States and other major economies.
3. Recent data prints out of China continue to point to a slowdown in growth for the world’s second-largest economy, despite efforts by policy makers to kick-start growth.Non-government data on composite PMIs prepared by Caixin fell to a five-month low of 52 in August, down from 52.3 in July.
4. Argentina’s government said on Tuesday it hoped the International Monetary Fund would agree in the second half of September to a deal giving the country more financial support as it seeks to escape a deepening economic crisis.Economy Minister Nicolas Dujovne met IMF chief Christine Lagarde in Washington and both said they were working together to improve a $US50 billion standby finance deal agreed with the IMF’s executive board in June.
5. Embattled blood-testing company Theranos will soon formally dissolve, the Wall Street Journal reported. The Silicon Valley firm will attempt to pay unsecured creditors its remaining cash in the coming months, the report said, adding that big name investors had lost about $US1 billion.
6. Tesla employees described the frenetic pace of working at the company, revealing that CEO Elon Musk is a visionary but unpredictable boss. They described an attitude of worship that some employees have toward Musk, likening it to a “cult.”
7. Snap shares pushed lower for a fifth straight session on Tuesday, touching a record low of $US10.49 apiece. They have plunged about 20% since the social-media company reported a drop in users just more than a month ago. On August 7, Snap beat on both the top and bottom lines, but said its number of daily active users fell 2% versus the first quarter to 188 million, missing the uptick to 193 million that was expected.
8. The newly formed healthcare venture of Amazon, Berkshire Hathaway and JPMorgan Chase on Tuesday hired Jack Stoddard as chief operating officer. Stoddard was previously general manager for digital health at Comcast Corp. His appointment was effective Tuesday.
9. Wealth manager Perpetual said it has divested Commonwealth Bank of Australia from its A$1.3 billion ($US933.6 million) ethical fund due to revelations of corporate misconduct, the first big institutional investor to do so.The move by one of Australia’s best-known share managers could encourage other socially minded stock pickers to divest from Australia’s “Big Four” banks on ethical grounds.
10. Norway’s $US1 trillion sovereign wealth fund will demand that companies in which it invests follow stricter guidelines on global sustainability, including efforts to combat plastic pollution of the oceans, the fund’s manager said on Wednesday.The fund’s ambitions as an investor significantly overlap with the United Nation’s Sustainable Development Goals, which aim to achieve sustainable economic, social and environmental development by 2030, it said in a statement.
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