- Thomson Reuters
Good morning! Here’s what you need to know in markets on Monday.
1. Saudi Aramco’s record breaking IPO is set to be delayed until 2019. According to a report from the Financial Times on Sunday, officials trying to secure the listing for the UK have been told that the $2 trillion float has been delayed.
2. Chancellor Philip Hammond said on Sunday that he might be able to relax his grip on public spending at the end of this year but the country had to keep on bringing down its levels of public debt that are too high.“If there is the flexibility and the space to do something, then we will decide in the autumn how we are going to use that,” Hammond told BBC television.
3. The recent volatility in global financial markets should not deter top central banks from lifting interest rates or ending years of unprecedented stimulus, the Bank for International Settlements said on Sunday.The latest report from the Switzerland-based group said that after such a long period of calm there were bound to be more market wobbles and that trade war worries were making the “delicate task” of trying to normalize policy more complicated.
4. A relief rally swept across Asian share markets on Monday after the latest U.S. jobs report managed to impress with its strength while also easing fears of inflation and faster rate hikes, a neat feat that whetted risk appetites globally. MSCI’s broadest index of Asia-Pacific shares outside Japan firmed 0.4%.
5. Oil markets climbed on Monday on the back of a drop in the number of U.S. rigs drilling for more production and as the U.S. economy continued to create jobs, which industry hopes will drive higher fuel demand.U.S. West Texas Intermediate (WTI) crude futures were at $62.22 a barrel at 0102 GMT, up 18 cents, or 0.3%.
6. South Korea said it will “deploy all possible means” to fight US tariffs. President Donald Trump rolled out new tariffs on steel and aluminum last week, with experts warning the move could spark a trade war.
7. UBS has told staff that it is “business as normal”, after the Swiss bank revealed on Friday it is fighting an 18-month suspension in Hong Kong from leading initial public offerings (IPOs). UBS disclosed the suspension by Hong Kong’s securities regulator, the Securities and Futures Commission (SFC), in its annual report released on Friday, and added it planned to appeal the decision as well as a HK$119 million ($15.18 million) fine handed out to it.
8. Deutsche Bank on Sunday said its 2017 bonus pool would be above €2 billion ($2.46 billion). “Variable compensation for the whole bank will be somewhat over €2 billion,” Deutsche board member Karl von Rohr told newswire Deutsche Presse-Agentur.
9. China voted to abolish presidential term limits, allowing President Xi Jinping to rule for life. The decision may have been motivated by Xi’s fear of a powerful faction within the Communist Party.
10. Support for Labour and its leader Jeremy Corbyn is surging again, as a new poll gave the party a seven-point lead over the Conservatives.A Survation poll commissioned by trade union GMB, which we saw via PoliticsHome, puts Labour on 44% – a point higher than its previous standing – while the Conservatives dropped three points to 37%.