10 things you need to know in markets today
The British economy shrank in July. Britain's economy contracted by 0.2% in July, the first full month after the UK's vote to leave the European Union, according to the latest numbers from the National Institute of Economic and Social Research (NIESR).
London will bear the brunt of the economic shock from the UK's decision to leave the European Union. The capital will lag behind the rest of the country in terms of growth for the next few years, according to Samuel Tombs, chief UK economist at Pantheon Macroeconomics.
'The real economy in the world is not doing well, according to Marc Faber. In a CNBC interview on Monday, Faber, the editor and publisher of the "Gloom, Boom & Doom Report" spoke on why he sees a 50% drop in the S&P 500 coming and why he likes US Treasurys right now.
Norway is threatening to derail Brexit. The Nordic state's European affairs minister, Elizabeth Vik Aspaker, said her government could block the UK from trying to rejoin the single market, as it's not in Norway's interests.
Valeant jumped more than 25% after reporting mixed earnings. Shares in troubled drugmaker Valeant Pharmaceuticals went crazy after the company reported mixed earnings on Tuesday morning. Valeant earned an adjusted $1.40 per share ($1.47 expected) on revenue of $2.42 billion ($2.46 billion expected) during the second quarter. The firm did, however, beat on GAAP earnings with a loss of $0.88 (-$0.92 expected).
Bookmaker William Hill has rejected a £3.6 billion takeover offer. The company rejected an attempt by two smaller rivals, Rank Group and 888 Holdings to buy it for £3.6 billion, calling the bid highly opportunistic, and saying that it "substantially undervalues" the business.
The Bank of England is struggling to buy bonds. The bank's new bond-buying programme struggled on just its second day on Tuesday, as pension funds and insurance companies refused to sell gilts to the central bank, according to a report from the Financial Times.
Asian shares are marginally lower on Wednesday. Asian shares held near one-year highs on Wednesday as investors pared expectations slightly for a Federal Reserve interest rate increase following weak U.S. productivity data, which drove the dollar and Treasury yields lower. At 6:50 a.m. BST (1:50 a.m. ET) Japan's Nikkei is lower by 0.26%.
Oil is lower. Oil prices are marginally lower on Wednesday, with a global supply overhang weighing on markets while talk of a potential producer meeting to discuss propping up prices lent crude some support despite being met with scepticism by analysts.
The Duke of Westminster, one of Britain's most prominent landowners has died suddenly. Gerald Cavendish Grosvenor died aged 64 on Tuesday afternoon at the Royal Preston Hospital in Lancashire after he was taken ill suddenly on his northern Abbeystead Estate, a spokeswoman said. The Duke was probably best known for his ownership of much of the London district of Belgravia, as well as other central London properties, the FT reports.