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10 things you need to know in markets September 14



Students
use red scarves to make a flag of the Communist Party of China,
ahead of the 19th National Congress of the Communist Party, at a
primary school in Linyi, Shandong province, China September 13,
2017.


REUTERS/Stringer


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

1. All eyes are on the Bank of England, with the latest
inflation decision, asset purchase facility decision, and outlook
on the UK economy all due at 12.00 p.m. BST (7.00 a.m.
ET).
No change is expected to the Bank’s policy but
inflation data on Wednesday put pressure on the bank to raise
rates sooner rather than later. Markets will therefore be
watching the wording of any statements closely.

2.
The tax authorities have accused Amazon of failing to co-operate
fully in tackling a multibillion-pound fraud that is putting
scores of small British companies out of business.

The Times reports that figures from HM Revenue & Customs
suggest that foreign companies selling goods through websites
such as Amazon and eBay are evading tax on up to a third of all
sales. Meanwhile, the online giants make millions of pounds in
commission.

3.
US stocks nudged higher to a new record overnight as investors
weighed new inflation data in an attempt to forecast the Federal
Reserve’s next move.
The S&P 500 rose less than
0.1%, up slightly from a new record high reached on Tuesday.
Meanwhile, the Dow rose 0.2%, while the more tech-heavy Nasdaq
increased 0.1%.

4.
Japanese stocks were steady in choppy trade on Thursday morning,
as weak Chinese economic data offset early gains.

China posted its
slowest growth in investment in nearly 18 years
along with
weaker-than-expected industrial output and retail sales. Japan’s
Nikkei stock index is down 0.29% at the time of writing (6.30
a.m. BST/1.30 a.m. ET), while elsewhere in Asia the Hong Kong
Hang Seng is down 0.66%, and China’s Shanghai Composite is down
0.32%.

5. The UK
government will aim for a “bespoke” deal with the EU to protect
the City of London after Brexit, Chancellor Philip Hammond has
said.
Financial services are the UK’s most important
export to the EU, he said at a dinner in the City last night. The
BBC reports that Hammond said Brussels would not be allowed to
use Brexit to introduce “protectionist” measures designed to
target the City.

6.
House prices in central London fell at their sharpest pace since
2008 in August, intensifying the slowdown in the capital’s
housing market, but prices went up in other regions of Britain, a
survey showed on Thursday.
Reuters reports that the
Royal Institution of Chartered Surveyors (RICS) said its monthly
balance of overall British house prices picked up to +6 after
dropping to a four-year low of +1 in July.

7.
China’s newly wealthy families have increased their overseas
investments in European properties and technology stocks in the
US, according to research by UBS and Campden.
Enrico
Mattoli, head of global family office in Greater China at UBS
Wealth Management, said that family offices in Hong Kong and
mainland China were increasingly seeking opportunities beyond
Asia.

8.
US President Donald Trump blocked a Chinese-backed private equity
firm from buying a US chipmaker on Wednesday, sending a clear
signal to Beijing that Washington will oppose deals that involve
technologies with potential military applications.

Canyon Bridge Capital Partners’ planned $1.3 billion (£980
million) acquisition of Lattice Semiconductor was one of the
largest attempted by a Chinese-backed firm in the US chip sector
and was the first announced deal for the Palo Alto-based firm,
which launched last year with a focus on technology investments.

9.
Facebook is rolling out a slew of new policies and guidelines
aimed at making advertisers more comfortable about where their
ads will run and what kind of content they’ll be adjacent
to.
The announcements are summed up in a new blog
post by Facebook’s vice president of global marketing solutions
titled “Providing More Clarity and Control for Advertisers.”

10.
JPMorgan’s global head of quantitative strategy has joined his
boss, CEO Jamie Dimon, in the growing legion of
anti-cryptocurrency crusaders.
In a client note on
Wednesday, Marko Kolanovic said cryptocurrencies as a whole had
“some parallels to fraudulent pyramid schemes.”

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