10 things you need to know in markets August 29

Ueslei Marcelino/Brazil

Good morning! Here’s what you need to know in markets on
Wednesday.

1. The
U.S. Senate voted on Tuesday to confirm Richard Clarida as vice
chair of the Federal Reserve, one of the most powerful positions
at the central bank. Clarida, a managing director at
fund manager Pimco and an economics professor at Columbia
University, was nominated by President Donald Trump in April.

2. Thomson
Reuters will buy back $9 billion worth of its common stock using
the proceeds of the sale of the majority of its Financial and
Risk business to Blackstone, the news and data firm said in a
statement on Tuesday. The company also said it and
Blackstone agreed to close the sale on October 1.

3. The
U.S. goods trade deficit widened sharply in July as exports of
agricultural products tumbled, suggesting trade will likely be a
drag on economic growth in the third quarter. The
Commerce Department said on Tuesday the goods trade gap surged
6.3% to $72.2 billion last month. 

4. House
prices in London’s overvalued market will fall this year and
next, a Reuters poll of analysts and experts predicted, and will
tumble if Britain fails to reach a deal ahead of its departure
from the European Union. The quarterly poll of
around 30 housing market specialists, taken in the past week,
said house prices in the capital – where foreign investors have
previously fuelled skyrocketing prices – will fall 1.6% this year
and 0.1% next.

5. EU
antitrust regulators have approved Procter & Gamble’s
(P&G) 3.4 billion euro ($3.9 billion) acquisition of Merck’s
consumer health unit, saying on Tuesday that they had no
competition concerns. The takeover would add vitamin
brands such as Seven Seas to a P&G portfolio that includes
Pampers diapers and Gillette razors while boosting its presence
in Latin America and Asian markets.

6. Current
U.S. sanctions on Iran are unlikely to stop Iranian oil exports
completely, a long-time adviser at Saudi Arabia’s Energy Ministry
said on Tuesday, adding Iran would be unable to close the Straits
of Hormuz and Bab al-Mandab even partially. Speaking
at an oil conference in the Norwegian city of Stavanger, Ibrahim
al-Muhanna said Iran would be the first to lose out on a move to
block those major shipping routes and that any such action would
trigger further sanctions on Iran.

7. Sotera
Health, a private-equity owned company that operates facilities
that sterilize medical products and food, is exploring a
potential sale worth as much as $5 billion including debt, people
familiar with the matter told Reuters on
Tuesday. The company’s owners, Warburg Pincus
and GTCR, are working with investment banks to assist them in the
sales process, the people said, asking not to be named because
the matter is private.

8. Japanese
trading house Itochu Corp is to invest less than 1 billion yen
($9.05 million) in Singulato Motors, a Chinese smart, connected
electric vehicle startup – a deal that might lead to further
partnerships with Japanese automakers and suppliers, two people
familiar with the matter said on Wednesday. The
two sources said that although Itochu’s stake will be small, the
deal should create opportunities for Singulato, in which Intel
Corp also already has a small stake.

9. Aspen
Insurance Holdings said on Tuesday certain funds affiliated to
alternative investment manager Apollo Global Management will take
the insurer private in an all-cash transaction valued at $2.6
billion. Apollo Funds will pay $42.75 per
share, representing a 6.6% premium to Aspen stock’s closing price
on Monday, the companies said.

10. Emergent
BioSolutions said on Tuesday it would buy privately held Adapt
Pharma for up to $735 million to acquire its drug Narcan, the
only needle-free emergency treatment approved to treat opioid
overdose.The deal comprises an upfront
cash-and-stock payment of $635 million and up to $100 million in
cash dependent on sales-based milestones through 2022, Emergent
said.