Good morning! Here’s what you need to know in markets on Wednesday.
1. Chaos erupted in Zimbabwe prompting rumours of a coup. Multiple explosions were heard and soldiers stormed the state broadcaster before announcing their actions were “not a military takeover.”
2. A survey from Bank of America Merrill Lynch found that investors think stocks are over-valued, but a record number recently took on increased levels of risk. Investors also think these risky positions are “crowded trades,” meaning there could be a damaging rush to the exits.
3. DRW, a Chicago-based firm, is looking to set up a bitcoin trading desk in Singapore to dominate the cryptocurrency market in Asia. The firm has been in the bitcoin game since 2014 via its division Cumberland Mining, which already operates over-the-counter bitcoin trading desks in Chicago and London. Bobby Cho, the head of over-the-counter trading for Cumberland, told Business Insider the firm is preparing to start up operations in Singapore well-before year-end.
4. President Donald Trump’s economic team is reportedly considering Allianz economist and former CEO of bond fund giant Pimco Mohamed El-Erian for one of four open seats on the Federal Reserve’s powerful Washington-based board of governors. The news was first reported by Dow Jones Newswires, which is part of The Wall Street Journal. They cited a source familiar with the matter
5. Warren Buffett’s Berkshire Hathaway raised its stake in Apple by 3%, to 134 million outstanding shares, in the third quarter, a regulatory filing released on Tuesday showed. The conglomerate owned about 2.6% of Apple shares as of September 30, the 13F filing for the quarter ended September 30 showed. That made Berkshire the fifth-largest owner of Apple’s outstanding shares, according to Bloomberg data.
6. David Lipton, the deputy managing director of the International Monetary Fund, has warned of the potentially “costly” consequences of the fragmentation of banking and capital markets in Europe in the aftermath of Brexit. In a speech at Swiss bank UBS’ annual European Conference, Lipton — a former Clinton and Obama administration official — said that Brexit will serve to focus “our minds on the future of the financial system architecture,” on the continent, but made clear that fragmenting functions is in no one’s best interests.
7. Japan’s Nikkei share average fell to a two-week low on Wednesday, with all sectors in negative territory as investors took profits following a two-month rally that pushed …read more
Source:: Business Insider