Good morning! Here’s what you need to know in markets on Thursday.
1. Global equities remained under pressure with stocks in Asia down for the sixth straight day on Thursday amid fragile investor confidence in the wake of turmoil in emerging markets and anxiety about a major escalation in the U.S.-China trade conflict. Investors were focused on the Sino-U.S. trade war with a public consultation period in the United States ending Thursday on additional $US200 billion of U.S. tariffs on Chinese goods.
2. Prices for Ethereum have fallen to their lowest level in a year. The world’s second-biggest cryptocurrency has been caught in the latest crypto selloff, which saw Bitcoin lose around $US1,000 over the last 24 hours. Ethereum has lost around 20% in that time and a short time ago was trading beneath $US230, the lowest level since August 2017.
3. Citigroup on Thursday is expected to announce a restructuring of its investment banking operations as it seeks to grab more wallet share in one of Wall Street’s most high-profile businesses.The firm is said to be combining its corporate and investment bank with capital markets origination, a move that will involve the reshuffling of key senior executives, according to people familiar with the matter.
4. Uber Chief Executive Dara Khosrowshahi said on Wednesday the ride-hailing company was on track to launch an initial public offering next year and had no plans to sell its self-driving car research arm.Khosrowshahi told Reuters in an interview that the company was not planning to sell its Advanced Technologies Group, which develops the company’s self-driving car technology, “at this time.”
5. North and South Korea agreed to hold a summit of their leaders in Pyongyang on September 18-20, and discuss “practical measures” to realise denuclearization of the Korean peninsula, a senior South Korean official said on Thursday.North Korean leader Kim Jong Un “reconfirmed his determination to completely denuclearise” the Korean peninsula, and expressed his willingness for close cooperation with South Korea and the United States.
6. Tesla CEO Elon Musk has hired two lawyers as the Securities and Exchange Commission reportedly investigates statements Musk made about converting Tesla into a private company, Fox Business Network reports.One of the lawyers Musk reportedly retained, Roel Campos, was an SEC commissioner from 2002 until 2007. Campos is a partner at the firm Hughes Hubbard & Reed and lists securities enforcement, securities litigation, and regulatory cases among his areas of focus.
7. Separately, Tesla’s stock and bond prices dropped on Wednesday after Musk renewed an attack on a British caver whom he had previously insulted on social media and a day after Mercedes unveiled a challenge to the electric car maker. The $US1.8 billion high-yield bond Tesla issued a year ago hit a record low price on Wednesday. It also became more expensive to insure Tesla’s bonds against default.
8. The United States and India are engaged in “very detailed conversations” over Washington’s request to completely stop India’s oil imports from Iran, a senior U.S. State Department official told reporters on Thursday.“We’re asking all of our partners, not just India, to reduce to zero oil imports from Iran and so I’m confident that will be part of our conversation with India,” the official said.
9. Pricing practices within American Express’ foreign-exchange unit is being probed by the Federal Bureau of Investigation (FBI), the Wall Street Journal reported, citing people familiar with the matter.The investigation is in its early stages and is focused on whether the foreign-exchange international payments department misrepresented pricing to clients in order to win their business, the Journal reported.
10. British drugmaker GlaxoSmithKline said on Wednesday it would cut about 650 positions in the United States related to a global restructuring program it announced in July.The job cuts would include about 100 each in its back office in Philadelphia and at Research Triangle Park, North Carolina, and 450 sales representatives, GlaxoSmithKline spokeswoman Mary Anne Rhyne said in a statement.
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