- Thomson Reuters
Good morning! Here’s what you need to know in markets on Monday.
1. US employers added 157,000 jobs last month, fewer than expected, according to a Bureau of Labour Statistics report released Friday. Economists had expected the jobs report to show nonfarm payrolls increasing by 193,000 on net. The job gains in June were revised higher.
2. British trade minister Liam Fox said “intransigence” from the European Commission was pushing Britain towards a no-deal Brexit, in an interview published on Saturday by the Sunday Times. Fox put the odds of Britain leaving the European Union without first agreeing a deal over their future relationship at 60-40, the newspaper reported.
3. Oil prices rose on Monday after Saudi crude production registered a surprising dip in July and as American shale drilling appeared to plateau. Markets also anticipated an announcement from Washington due later on Monday detailing renewed US sanctions against major oil exporter Iran, set to be reinstated at 1201 EDT on Tuesday (1601 GMT), according to a US Treasury official.
4.Munich Re, the world’s biggest reinsurer, will stop investing in bonds and shares of companies that generate more than 30% of their sales with coal-related business, its chief executive said, caving to pressure from investors. “In the individual risk business, where we can see the risks exactly, we will in future in principle no longer insure new coal-fired power plants or mines in industrial countries,” Joachim Wenning added in a commentary to be published in German daily Frankfurter Allgemeine Zeitung on Monday.
5.HSBC said on Monday its pretax profit rose 4.6% for the first half of the year, as Europe’s biggest bank showed early progress in its strategy of returning to growth mode after years of restructuring. HSBC reported a pretax profit of $10.7 billion in the six months through June, up from $10.2 billion in the same period a year earlier.
6.China’s Unipec, the trading arm of state oil major Sinopec, has suspended crude oil imports from the United States due to a growing trade spat between Washington and Beijing, three sources familiar with the situation said on Friday. The sources declined to be identified as they are not authorized to speak to the media.
7.Huawei Technologies is facing increased scrutiny in Britain because it is using an ageing software component sold by a firm based in the United States, one of the countries where lawmakers allege its equipment could facilitate Chinese spying, sources told Reuters. The fact that the British misgivings stem in part from Huawei’s relationship with a US company shows how trade wars and heightened national security concerns are making it harder for technology firms and governments to safeguard products and communication networks.
8.Deutsche Bank has uncovered shortcomings in its ability to fully identify clients and the source of their wealth, internal documents seen by Reuters show, more than a year after it was fined nearly $700 million for allowing money laundering. In two confidential reviews, dated June 5 and July 9, Germany’s biggest lender detailed the results of tests on a sample of investment bank customer files in several countries, including Russia.
9.Asian shares pared gains on Monday as Chinese stocks swung into negative territory, dragged lower by the escalating Sino-US trade war, though Beijing’s efforts to stop sharp declines in the yuan helped support the currency. Japan’s Nikkei closed down 0.05%, the Hong Kong Hang Seng is up 0.10% at the time of writing (8.05 a.m. BST/3.05 a.m. ET), and the Shanghai Composite is down 1.26%.
10. ICE, the parent company of the iconic New York Stock Exchange, is making a big move into the crypto market with a digital asset platform. The firm, which previously dove into the market for digital assets via a data feed product earlier this year, had reportedly been exploring a cryptocurrency exchange platform. On Friday, the company officially announced it had been developing out such an offering.