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U.K. unemployment falls below 5 percent, Pimco gets a new CEO, and Trump is officially the Republican nominee. Here are some of the things people in markets are talking about today.
Good news for the U.K.
Amid all the Brexit gloom, there were a couple of pieces of good news for the U.K. this morning. In the three months through May, the unemployment rate fell to 4.9 percent, its lowest level since 2005. While this data predates the Brexit referendum, there was survey data from the Bank of England's Agents' summary of business conditions (similar to the Fed's Beige Book) which showed that while uncertainty rose "markedly" there was no evidence of a sharp slowing in the economy. The pound rose following the unemployment data, and was trading at $1.3192 at 6:00 a.m. ET. Stay up to speed on all the Brexit developments by subscribing to our new newsletter, the Brexit Bulletin.
Pimco gets a new CEO
Pacific Investment Management Co. has named Emmanuel "Manny" Roman as its next chief executive officer. Roman has been CEO of Man Group Plc, since February 2013 and previously worked at Goldman Sachs Group Inc. He is set to take over the CEO role at Pimco on November 1, replacing Douglas Hodge, who has overseen the asset management company during recent turbulence following the acrimonious departure of Bill Gross to Janus Capital Group Inc. Man Group has named Luke Ellis, currently a president at the firm, as Roman's replacement.
The MSCI Asia Pacific Index rose 0.1 percent overnight, with the MSCI Hong Kong Index closing 1.1 percent higher, pushing gains since the January low to more than 20 percent, the normal definition of a bull market. In Europe, the Stoxx 600 Index was up 0.9 percent at 6:05 a.m. ET, with Volkswagen AG surging more than 6 percent after saying first-half earnings exceeded estimates. S&P 500 futures were 0.5 percent higher.
Turkey purge widens
The purge led by Turkey's President Recep Tayyip Erdogan following Friday's failed coup continues to widen, with, at last count, nearly 60,000 people detained, fired or dismissed. Investors are also divided on what to do next, with BlackRock Inc. saying there is a short-term buying opportunity while Wells Fargo and Credit Suisse Group AG say the risks are too great. Aberdeen Asset Management Plc and Deutsche Bank AG are in wait-and-see mode. The Turkish lira is rebounding somewhat this morning after trading within 1 percent of an all-time low overnight.
Trump gets the nod
At yesterday's Republican National Convention in Cleveland, Donald Trump was formally nominated as the party's 2016 presidential candidate. Trump, who is trailing presumptive Democratic nominee Hillary Clinton in most polls, now needs to widen his appeal to independent voters if he is to succeed in his run for the White House. An updated assessment of the nominee's wealth shows he is richer in property and deeper in debt than previously estimated.
What we've been reading
This is what's caught our eye over the last 24 hours.
- Bull who saw Treasury rally forecasts yields will fall to 0.9 percent.
- The BOJ should correct 'big lies' at July meeting, a former executive says.
- ECB's precision stimulus can't duck doubt on how economy works.
- Citigroup says the bang for your buck is key to everything in stocks.
- The future of big oil? At Shell, it's not oil.
- The Feds get caught in the crossfire between students and debt collectors.
- It feels good to be CSPP'd.