10 things you need to know in markets July 30

A
man steps on the portrait of Russia’s President Vladimir Putin
during a protest over government’s decision to increase the
retirement age in Moscow, Russia, July 29,
2018.

REUTERS/Sergei
Karpukhin

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

1.
Deutsche Bank has moved almost half its euro clearing activities
from London to Frankfurt, in the latest sign of European cities
winning financial business from the UK ahead of
Brexit. The Financial Times reports that the move
has provided a significant boost to Deutsche Börse’s ambition to
steal business from LCH after Britain leaves the EU next March —
six months ago, Deutsche Bank’s euro clearing operation was
almost entirely done in London.

2.
ARM Holdings, the British computer-chip designer owned by
SoftBank, has agreed to buy US-based data analytics firm Treasure
Data, people familiar with the matter said.
Bloomberg reports that Treasure Data may fetch about $600 million
in the sale, the people said, asking not to be identified because
the deal isn’t yet public.

3.
Heineken, the world’s second-largest beer maker, cut its guidance
for full-year margins on Monday after reporting first-half
earnings below market expectations. Reuters reports
that the brewer of Heineken lager, Tiger, Sol and Strongbow cider
forecast that its operating margin would decline by 20 basis
points, compared with a previous forecast of an increase of 25
basis points.

4.
The UK owner of bookmakers Ladbrokes and Coral is likely to seal
a $200 million (£153 million) tie-up with the world’s biggest
casino operator this week, to catapult it into the lucrative,
newly liberalised US sports betting market. The
Guardian reports that FTSE-listed gambling group GVC Holdings
confirmed on Sunday it was in advanced talks to form a joint
venture with MGM Resorts, giving both partners a foothold in what
is forecast to grow into a multibillion-dollar sector.

5.
Asian share markets drifted lower on Monday while currencies kept
to familiar ranges ahead of a busy week peppered with central
bank meetings, corporate results, and updates on US inflation and
payrolls. Japan’s Nikkei share index closed down
0.75%, the Hong Kong Hang Seng is down 0.74% at the time of
writing (7.20 a.m. BST/2.20 a.m. ET), and China’s Shanghai
Composite is down 0.48%.

6.
US Treasury Secretary Steven Mnuchin said on Sunday that he
believes the quickening pace of growth in the nation’s economy in
the second quarter will persist for the next few
years. “I don’t think this is a one- or two-year
phenomenon. I think we definitely are in a period of four or five
years of sustained 3 per cent growth at least,” Mnuchin said in
an interview with ‘Fox News Sunday.’

7.
London-focused estate agent Foxtons on Monday posted a pre-tax
loss in the first half of the year, hurt by lower sales in the
British capital and on more investments. Reuters
reports that Foxtons, which was once a symbol of London’s
property boom, reported a loss before tax of £2.5 million
compared with a profit of £3.8 million a year earlier.

8.
The Bank of Japan has intervened to support the domestic bond
market for the third time in a week. The Financial
Times reports that the BoJ launched another round of bond
purchases on Monday, after the yield, which moves inversely to
price, on 10-year Japanese government bonds moved above 0.11 per
cent – marking its highest level since February 2017.

9.
John Hussman, the outspoken investor and former professor who has
been predicting a stock market crash, has called out a big
mistake he says investors are making as valuations continue to
climb. He sees this dynamic specifically playing out
in the tech sector, which has been largely responsible for market
gains in recent months, leaving them that much more vulnerable.

10.
Tesla reports second-quarter earnings this week, and they’re
expected to be as bad as first-quarter earnings.
Tesla is also burning cash at a furious rate, leading
short-sellers to intensify their pressure on the company.