Good morning! Here’s what you need to know in markets on Thursday.
1. Brexit talks are at a virtual political standstill, with no substantial advances made in the fifth round of negotiations, according to several diplomats briefed on the discussions. The Financial Times reports that expectations were low for the final UK-EU negotiating round before a crucial summit next week, where EU27 leaders are almost certain to declare there has been insufficient progress to move from divorce to trade talks.
2. A hard Brexit with no trade deal will cost the economy £400 billion by 2030, according to a new report. The Independent reports that a study by Dutch banking and financial services company Rabobank has found that leaving the single market without a trade agreement in place would cost up to 18% of the UK’s GDP growth by 2030, compared with remaining in the EU.
3. The UK housing market continued to stall in September, according to the Royal Institute of Chartered Surveyors. The group’s monthly UK Residential Market Survey found surveyors reporting a decline in both sales and new buyer enquiries over the month, meaning sentiment is now flatter than at any point since the EU referendum result last June.
4. Foreign exchange startup Revolut is expanding rapidly, signing up 16,000 companies to its business accounts in just four months. CEO Nikolay Storonsky disclosed the figure during a presentation at the LendIt Europe conference in London on Tuesday. Storonsky said Revolut is signing up 40 to 50 new businesses a day and hopes to scale that sign-up rate to 100 business a day.
5. US stocks inched higher to a new record as traders digested minutes from the Federal Reserve’s last meeting and prepared for an earnings season that’s set to kick off. The S&P 500 gained 0.1%. Meanwhile, the Dow increased 0.1% and the more tech-heavy Nasdaq rose 0.2%.
6. Asian stocks were near a decade high on Thursday, riding the bull run in global equity markets, while the dollar sagged after the Federal Reserve showed a guarded view towards inflation. Japan’s Nikkei is up 0.46% at the time of writing (6.25 a.m. BST/1.25 a.m. ET), while the Hong Kong Hang Seng is 0.43% higher. China’s Shanghai Composite is down 0.19%.
7. The Bank of England’s credit conditions survey is coming. The central bank delivers its latest verdict on the state of credit at 9.30 a.m. BST (4.30 a.m. ET) as part of its financial stability function. The BoE has previously warned it is worried about rising levels of consumer credit and structured car finance.
8. Bank of America has signed a lease for office space in Paris, cementing plans to move its European trading hub to France after Brexit, Bloomberg reported on Wednesday, citing people familiar with the decision. BofA has agreed to rent about 100,000 square feet of space – large enough to accommodate a thousand workers, Bloomberg said.
9. The publisher behind some of Britain’s most popular magazine titles, including Marie Claire, Wallpaper, and NME, is close to being sold in a £150 million deal that will hive off its pension liabilities. Sky News reports that Time Inc, the US-based media giant, is in advanced talks to offload its UK publishing empire to Epiris, a private equity investor.
10. Google is permanently disabling a feature on the forthcoming Google Home Mini smart speaker after a reviewer discovered that it was surreptitiously recording his conversations without his knowledge or consent. The issue, says Google, was that the button on top of the device was faulty and would sometimes activate on its own.