Stock Market News Today 2018/08/07
Brexit News Today. The European Investment Bank has bowed to calls to reform. The lender, which is owned by EU states, has agreed to start talks to become independently supervised by the European Central Bank.
The decision came after Brexit sparked a debate among EU finance ministries about how best to maintain the EIB’s financial firepower once Britain, which provides €39bn of the lender’s €243bn capital base, leaves.
Donald Trump News Today. A former Donald Trump aide says he and Paul Manafort, Donald Trump’s former campaign manager, committed crimes together. Rick Gates is the key witness in the case brought against Mr Manafort as a result of an investigation into links between the Trump campaign and the Russian government.
PepsiCo News Today. Indra Nooyi, who has consistently ranked among the most powerful women in the world, leaves PepsiCo after trying to shape a healthier future for the company. Here’s Lex’s take: “She is smart to depart now that every big consumer brand is under siege.”
Danske Bank News Today. Denmark has launched a criminal investigation into Danske Bank, the country’s biggest lender, for potential money-laundering offences. The Danish bank’s general counsel said Danske Bank is assisting prosecutors with the investigation.
US-China Trade War News Today. The US-China trade war is now hitting the cloud computing boom. But the complexity — and invisibility — of what happens inside today’s data centres has left the sector struggling to draw attention to the seriousness of a rise in its costs.
Italy News Today. Italy has overturned a legal obligation to vaccinate schoolchildren — despite a rise in measles over the past year. The new legislation puts the country out of step with other European countries such as France and Germany, which have been bolstering vaccine regulation.
Earnings Round-up News Today. Analysts expect mixed third-quarter results from Walt Disney. Investors will look out for details on how the group plans to integrate assets from 21st Century Fox. Elsewhere social media company Snap is set to report second-quarter numbers. It will be closely watched given lacklustre results from peers such as Facebook last week which sparked a tech sell-off.
US Midterm Test News Today. There is a special election in Ohio and it’s important because it serves as a final test ahead of the US midterm elections. A 31-year-old Democrat hopes to flip a House seat that has been Republican for decades. It’s neck-and-neck. Separately, the New York Times has an interactive chart on the women who could shatter glass ceilings in governors’ races come November.
Stocks To Watch News Today. Spire Healthcare fell on a profit warning, with the hospital operator blaming further tightening of NHS waiting lists. Management said to expect earnings before interest tax depreciation and amortisation for 2018 to be “materially lower” than 2017, compared with previous guidance of flat ebitda, as an 8.3 per cent increase in revenue from self-pay operations failed to counter a 9.5 per cent drop in NHS revenues.
Regus owner IWG dropped to its lowest level since May after the serviced office group terminated takeover talks with three potential suitors because none was capable of delivering a workable deal at a recommended price. First-half results and guidance from IWG were in line with a June 27 profit warning, which flagged up increased investment and poor trading in the UK.
In brief: Ferrexpo raised to “outperform” at Credit Suisse; Mitie upgraded to “buy” at Stifel; TP ICAP raised to “buy” at Peel Hunt; IG Group downgraded to “sell” at Shore Capital; Osram cut to “hold” at HSBC; Siemens downgraded to “hold” at Société Générale; Umicore cut to “hold” at Investec; BMW raised to “neutral” at JPMorgan Cazenove; Norsk Hydro upgraded to “neutral” at Goldman Sachs; Proximus raised to “neutral” at Citigroup; Swedish Match upgraded to “buy” at Goldman Sachs; Banco BPM cut to “neutral” at Credit Suisse; Almirall upgraded to “outperform” at Credit Suisse; DNB downgraded to “hold” at Jefferies.