10 things you need to know in markets today

Good Morning! Here’s what you need to know on Monday.

1. Japanese Prime Minister Shinzo Abe will retain power with a “super majority” of seats after a huge victory in Sunday’s national election. Abe is expected to use his two-thirds majority to revise the country’s pacifist constitution, while continuing with his economic policies, coined “Abenomics,” and increasing sales tax to pay off public debt and fund new social services, including childcare support.

2. After the victory, Abe said on Monday he would discuss North Korea “thoroughly” with U.S. President Donald Trump when he visits next month, and reaffirm the two countries’ commitment to working together in dealing with the country. Abe was speaking at a news conference after his ruling coalition scored a landslide victory in the lower house election on Sunday.

3. Japan’s Nikkei share average made 21-year highs on Monday and was on course to rise for a record fifteenth straight session, lifted by a weaker yen after Abe’s coalition scored a resounding election victory on Sunday. The Nikkei was up 1.2% at 21,711 points by 6.40 a.m. BST.

4. Theresa May looked “despondent”, with deep rings under her eyes, EU chief executive Jean-Claude Juncker told aides after dining with the British prime minister last week, a German newspaper said on Sunday. The Frankfurter Allegemeine Zeitung said May, who flew in for a hastily announced dinner in Brussels with the European Commission president last Monday ahead of an EU summit, seemed to Juncker “anxious, despondent and disheartened”, “a woman who trusts hardly anyone but is also not ready for a clear-out to free herself”.

5. The UK government has announced plans to crackdown on gazumping in the housing market — a process when a seller accepts a higher offer from a new buyer after already agreeing to a sale. Communities Secretary Sajid Javid has announced an eight-week review of the property buying process. Javid said: “We want to help everyone have a good quality home they can afford, and improving the process of buying and selling is part of delivering that.”

6. InterContinental Exchange, the owner of the New York Stock Exchange, is “in advanced talks to buy a stake in Euroclear” — one of the key clearing houses in European financial markets. According to Sky News, ICE is close to a deal to buy a 4% stake in the business, currently owned by British bank RBS. The stake is believed to be worth around £200 million.

7. Catalonia’s leaders said on Saturday they would not accept direct rule imposed on the region by the Spanish government, as a political crisis that has rattled the economy and raised fears of prolonged unrest showed no signs of easing. Spanish Prime Minister Mariano Rajoy announced earlier on Saturday he would invoke special constitutional powers to fire the regional government and force a new election to counter the region’s move towards independence.

8. Oil prices rose on Monday over supply concerns in the Middle East and as the U.S. market showed further signs of tightening while demand in Asia keeps rising. “Oil prices are holding comfortably above $US50 as possible supply disruptions in the Kurdish region of Iraq support prices,” said William O’Loughlin, investment analyst at Rivkin Securities.

9. The number of trademarks registered by financial services companies hit a record-high of 4,228 in 2016, according to professional services firm RPC. Financial trademarks have risen by 35% over the last five years, figures from the Intellectual Property Office show. RPC, which compiled the data, puts the spike down to Britain’s booming fintech — financial technology — startup sector.

10. Spanish foreign minister Alfonso Dastis has reassured British expats in Spain that they will be allowed to stay in the event of a ‘no deal’ Brexit. Dastis appeared on ‘The Andrew Marr Show’ Sunday morning and said that his government would ‘make sure’ that the lives of British people leaving in Spain would not be disrupted.

And finally … Business Insider is looking for nominations for the hottest young talents in British finance right now. If you, or anyone you know, is making waves in the City of London (or anywhere else in the UK) and is under 31, we’d love to hear from you. Get in touch on social media, or email: [email protected]

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