Good morning! Here’s what you need to know in markets on Tuesday.
1. No matter what form Brexit takes Britain will be worse off outside of the European Union (EU), according to a leaked government analysis obtained by BuzzFeed News. The online news outlet has got its hands on a document prepared by Whitehall officials for the Department of Exiting the European Union looking at the economic impact of Britain’s exit from the EU under various scenarios.
2. Apple has reportedly slashed production orders for its iPhone X despite the £999 handset’s initial success, The Telegraph reports, sending shares in the world’s biggest company down on Monday. The US giant has told Asian suppliers to halve manufacturing targets for the first three months of the year, from 40 million units to 20 million, according to the Japanese newspaper Nikkei.
3. Asian stocks retreated from record peaks on Tuesday after a sell off in Apple shares knocked Wall Street, while the dollar found support as US bond yields climbed to near four-year highs. Japan’s Nikkei stock index closed down 1.43%, the Hong Kong Hang Seng is down 1.06% at the time of writing (6.30 a.m. GMT/1.30 a.m. ET), and the Shanghai Composite is down 0.87%.
4. EU GDP numbers are coming. Eurostat will publish fourth-quarter economic growth estimates at 10.00 a.m. GMT (5.00 a.m. ET). The eurozone economy is expected to have grown by 2.7% year-on-year and by 0.6% compared to the third quarter.
5. UK consumer credit numbers are coming. The Bank of England will release borrowing figures for December at 9.30 a.m. GMT (4.30 a.m. ET). Economists are forecasting a slight dip to £1.3 billion.
6. The US private equity firm Blackstone is in advanced talks to buy an approximate 55% stake in the Financial and Risk business of Thomson Reuters for more than $ 17 billion (£12.1 billion), three sources familiar with the matter said on Monday. Thomson Reuters’ board, the sources said, is expected to meet on Tuesday to discuss Blackstone’s all-cash offer for the F&R business, which supplies news, data, and analytics to banks and investment houses around the world.
7. London is turning into a buyer’s market for houses and apartments as values rise at the slowest pace in six years and vendors are forced to cut asking prices to achieve sales. Bloomberg reports that prices in the UK capital rose less than 2% year-on-year in December to £488,400, the smallest increase since October 2011, according to researcher Hometrack.
8. Japanese chip company Renesas Electronics is in talks to acquire US chipmaker Maxim Integrated Products in a deal that could be valued up to $ 20 billion (£14.2 billion), CNBC reported on Monday. A deal is not imminent and one may not happen, CNBC said.
9. German business software group SAP on Monday said its unit SAP America will buy cloud-based company Callidus Software for a total enterprise value of $ 2.4 billion (£1.7 billion). The deal represents a per share purchase price of $ 36, which is a premium of about 10% to Callidus’s Monday close of $ 32.70.
10. The hedge fund which took Game Digital onto the stock market four years ago is in talks about a takeover of Waterstones, Britain’s best-known specialist bookseller. Sky News has learnt that Elliott Advisors, which has backed a string of UK retail deals, is one of a small number of bidders to have lodged formal offers for the chain.