Good morning! Here’s what you need to know in markets on Tuesday.
1. Shares of Google’s parent company Alphabet jumped more than 5% in after-hours trading Monday, hitting a new record high, following the company’s second-quarter earnings report that topped Wall Street’s expectations. “We delivered another quarter of very strong performance,” Ruth Porat, Alphabet’s chief financial officer, said in a press release.
2. U.S. President Donald Trump spoke warmly of Mexico’s incoming leftist president on Monday, saying he expected to get “something worked out” on NAFTA, while a top Mexican official said there was scope to revive the trade talks this week.“We’re talking to Mexico on NAFTA, and I think we’re going to have something worked out. The new president, terrific person,” Trump said.
3. Global bond markets were under strain on Tuesday amid talk of central bank tightening and the risk of a robust reading on U.S. economic growth later in the week. Bond bulls were still smarting from speculation that the Bank of Japan is close to announcing measures to scale back its massive monetary stimulus, a risk that lifted long-term borrowing costs globally.
4. Bank of America has hired two veteran bankers to its media & telecom business, according to an internal memo viewed by Business Insider.Sam Powers will start in the fall as head of Americas Media & Telecom Investment Banking. He’s joining the firm from UBS where he led the Americas TMT group, advising on deals for clients like Viacom and TPG. He will join Randy Russell, who recently came on board the firm as a managing director in the group.
5. Deutsche Bank, which has been battling bad news for months, is now in hiring mode.German lender has hired almost 800 new university graduates globally this year, its second highest number ever and 25% more than last year, according to internal figures seen by Business Insider and confirmed by a bank spokesman. The bank held orientation for the class last week.
6. An Italian media outlet has reported that Fiat Chrysler Automobiles CEO Sergio Marchionne has been admitted to intensive care at a hospital in Switzerland.Marchionne, 66, fell ill after shoulder surgery and was replaced over the weekend as CEO of FCA and also Ferrari.
7. Nike said on Monday it would raise wages for about 7,500 employees following a global pay review, two months after the sportswear maker concluded a probe into workplace behaviour that resulted in the departure of a number of top executives.About 10% of its employees across all levels and geographies will receive pay adjustments, a Nike spokeswoman told Reuters.
8. Harley-Davidson will give investors on Tuesday a fresh look at the impact of trade conflicts and a strong dollar on its profits, and analysts are bracing for bad news and more cost-cutting.Analysts polled by Reuters, on average, expect the Milwaukee, Wisconsin-based company to report a profit of $US1.34 per share, below the $US1.48 per share reported in the corresponding period a year ago.
9. The operator of a shuttered bitcoin-denominated exchange pleaded guilty on Monday to federal charges that he defrauded investors and lied to U.S. securities regulators investigating the theft by hackers of virtual currency now worth about $US46 million.Jon Montroll, 37, pleaded guilty to securities fraud and obstruction of justice before U.S. Magistrate Judge James Cott in Manhattan, federal prosecutors said in a statement.
10. Volkswagen has hired BMW purchasing director Markus Duesmann to fill the post of Audi chief executive, German daily Handelsblatt reported on Tuesday.Citing sources close to the Volkswagen group, Handelsblatt said Audi wants Duesmann to start as soon as possible.
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