- Thomson Reuters
Good morning! Here’s what you need to know in markets on Tuesday.
1. Oil prices rose more than 1.5% on Monday ahead ofUS economic sanctions against that are Iran set to take effect on Tuesday. An initial round of sanctions against Tehran was reimposed Monday, administration officials said, as has been expected since President Donald Trump withdrew the US from the Iran nuclear deal in May.
2. US stocks rose Monday, with the S&P 500 approaching its January all-time high, after a wave of strong earnings reports from companies including Tyson Foods. The dollar edged higher, and Treasury yields fell.
3. Europe’s biggest bank, HSBC, has reached a $765 million (£591 million) settlement with the US Department of Justice to end an investigation into the sale of mortgage-backed securities in the run-up to the 2008 financial crisis, The Guardian reported. The provisional settlement over the way HSBC packaged up toxic bonds between 2005 and 2007 is smaller than some of the settlements the DoJ has reached with other banks, such as the $4.9 billion penalty for Royal Bank of Scotland and the $2 billion settlement with Barclays.
4. Indra Nooyi, PepsiCo’s first female CEO, will step down in October after 12 years at the helm. The company announced Monday that its president, Ramon Laguarta, would be the new chief executive.
5. Asian stocks wobbled on Tuesday as simmering worries over the US-China trade conflict offset positive leads from earnings-led gains on Wall Street. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.05%.
6. New York on Monday filed a lawsuit seeking to compel the Trump administration to turn over more information about a pilot program allowing employers to resolve violations of federal overtime and minimum wage laws without penalties. According to the lawsuit, filed against the U.S. Department of Labor by New York Attorney General Barbara Underwood in Manhattan federal court, the department had failed to respond to a request for more information submitted in April under the federal freedom of information law.
7. Marriott International on Monday signalled weakness in revenue per available room in North America, its largest market, for the third quarter, sending shares of the world’s largest hotel chain down about 4%. The company expects revPAR, an important metric that measures a hotel chain’s health, to increase by 1.5% to 2% in the region due to Independence Day holiday falling in the middle of the week and tough comparisons to last year’s numbers that included the impact of hurricane relief efforts.
8. Turkey’s lira sank to a record low and bonds tumbled as heightened concern over a diplomatic spat with the US overshadowed the central bank’s attempt to support the currency, Bloomberg reported. The lira slumped as much as 6.3% Monday before rising 1.1% Tuesday after a report Turkish officials will head to the U.S.
9. Eleven US passengers who survived an Aeromexico crash in the northern Mexican state of Durango on July 31 filed lawsuits against the airline in Chicago on Monday. The Mexico City-bound Embraer 190 passenger jet smashed into scrubland near the runway shortly after take-off during what passengers have described as strong winds, hail and rain.
10. Bids by telecommunications firms AT&T and Telefonica won 120 MHz of radioelectric spectrum in the 2500-2690 MHz frequency band that can be used for wireless services, Mexico’s telecommunications regulator, IFT, said on Monday. The auction had drawn strong interest from operators because it is well-suited for broadband, 5g mobile networks and the so-called Internet of Things.