Good morning! Here are the 10 things you need to know in markets on Monday.
China’s ruling Communist Party opens a key meeting on Monday that will focus on financial reforms and how to maintain growth of around 7%. The Central Committee, the largest of the party’s elite governing bodies with more than 200 full members, is gathering until Thursday to finalise the 13th Five-Year Plan, a blueprint for economic and social development between 2016 and 2020.
Asian markets are mostly higher following the People’s Bank of China’s surprise rate cut on Friday evening. Japan’s Nikkei is up 0.65% at time of writing (6.30 a.m. GMT/2.30 a.m. ET), Hong Kong’s Hang Seng is down 0.32%, and the Shanghai Composite is up 0.64%.
Standard Chartered plans to exit its equity derivatives and convertible bonds businesses, following a step earlier this year to close the bulk of its global equities operations. The move is part of a plan to cut costs and focus on using capital more efficiently, it added in a statement on Monday. The wind-down will take place “in a phased manner”.
Aberdeen Asset Management is looking for a buyer, according to reports. The Financial Times reports that Europe’s second-largest fund house has begun to sound out potential buyers as it struggles to put an end to a slump in its profitability, share price, and assets under management.
Profits at Chinese state-owned companies are falling, in part because of the costs of paying back debt. They are responding by adding more debt, making the matter worse. In the first nine months of 2015, profits fell 8.2% across the board, according to state media organisation Xinhua.
The European Union’s top environmental official warned his colleagues that automakers were rigging European emissions tests in 2013, the Financial Times reported on Sunday. Top EU regulators were aware of test manipulation two years ago, but allowed regulatory loopholes to remain, according to the FT, which cited an exchange of letters between officials.
UK mortgage approval data for September is due at 9.30 a.m GMT (5.30 a.m. ET). The previous data from the British Bankers Association showed 47,743 approvals in August.
US regulators are expanding a probe into Deutsche Bank as a money laundering investigation of a Moscow unit has widened into possible sanctions violations, the Financial Times reported. The regulatory investigation involving trades worth $US6 billion (£3.9 billion) would be one of the first by the US authorities regarding a potential breach of Western sanctions against Russia after its 2014 annexation of Crimea.
TalkTalk has hired defence company BAE Systems to investigate a cyber attack that may have led to the theft of personal data from its more than 4 million customers. The broadband provider said on Friday it had received a ransom demand from an unidentified party for the attack, which has led to calls for greater regulation of how companies and public bodies manage personal data.
Barclays is recovering from tech glitches, after customers reported difficulties accessing money in their accounts and in making payments. Some reported having their debit cards blocked over Saturday and Sunday, the BBC reports.