German Banking Giants Announce Formal Merger Talks - EMEA Brief 18 Mar
- Deutsche Bank and Commerzbank have announced formal merger talks which could result in the combined bank holding one fifth of Germany's High Street banking business.
- Asian shares rose despite reported potential push back of agreement to end trade war. The Hang Seng gained 1%, the Shanghai Composite surged 2.3% and Japan's Nikkei climbed 0.6%.
- Trump's weekend tweets ramped up the pressure on General Motors to reopen Ohio manufacturing plant which recent's closure cut 1,700 jobs.
- OneWeb a UK based space internet start-up has secured £940 million in funding to speed up plan to launch global high-speed broadband network.
- US Department of Transportation have launched a probe into the FAA's Boeing 737 Max aircraft approval.
- U.S. stock index futures rise in expectation of Federal Reserve meeting. The Dow future rising 21 points.
Asian overnight: Another Brexit vote and central bank decisions dominate the coming week, while the backdrop of US-China trade talks continues. Equities and the US dollar both enjoyed strong runs last week, but the gains have been built on optimism that the two largest economies will be able to strike a deal. Should this view change, then we may see risk appetite suffer.
UK, US and Europe: The week begins on a quiet note, with little in the way of heavyweight data today, but investors will be gearing up for the Brexit vote tomorrow and the FOMC decision on Wednesday.
South Africa: Global equity markets are continuing last week's positive momentum with all major indices trading in positive territory this morning. The Shanghai Composite in leading gains having added over 1% in early trade. Commodity prices trade mixed with base metals slightly higher, precious metal prices slightly lower and oil relatively flat on the day. The rand remains weak against the majors although is slightly firmer on the day. Tencent Holdings is up 2% in Asia, suggestive of a positive start for major holding company Naspers. The BHP Group is up 1.3% in Australia, suggestive of a positive start for local resource counters. While today's economic calendar is light, this week will see another Brexit vote in UK parliament, before Theresa May asks the EU for an extension to the Brexit deadline, as well as the US Federal Reserve guiding on monetary policy as major events to watch.
Economic calendar - key events and forecast (times in GMT)
Source: Daily FX Economic Calendar
Corporate News, Upgrades and Downgrades
- Serco has won a contract from the government of South Australia to manage a remand centre, in a deal worth £62 million.
- JD Sports has announced that it will buy Footasylum for £90.1 million.
Alstom upgraded to buy at Kepler Cheuvreux
Rolls-Royce raised to overweight at Morgan Stanley
Deutsche Post upgraded to buy at Jefferies
IWG upgraded to sector perform at RBC
Adidas downgraded to no position at Evercore ISI
EDF downgraded to hold at HSBC
IMCD downgraded to hold at HSBC
VAT downgraded to hold at Kepler Cheuvreux
IGTV featured video
Information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
There are no comments to display.
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!Register a new account
Already have an account? Sign in here.Sign In Now