Good morning! Here’s what you need to know in markets on Friday.
1. Apple became the first US publicly traded company to reach a $1 trillion market capitalization. The milestone was hit when the company’s share price rose to $207.05 Thursday morning. It comes just days after the company reported its strongest third quarter, which spurred a 6% spike in share price Wednesday.
2. Asian stocks were steady on Friday, with gains from the tech-led rise on Wall Street capped by the latest exchange of trade threats between Beijing and Washington, while safehaven flows lifted the dollar to a two-week high. Investors also remain cautious ahead of the July U.S. jobs report due later on Friday, which will give a reading on the health of the world’s largest economy and possible clues about the pace of Federal Reserve interest rate rises.
3. President Donald Trump’s trade war is grabbing the attention of some of America’s largest companies. An analysis by CB Insights found that mentions of the word “tariff” on earnings calls hit a record high in the second quarter, even before the most recent round of threats between the US and China.
4. Two-thirds of business leaders believe the UK is “likely” to be heading for a no-deal Brexit, according to a new survey which reflects a growing concern that Theresa May will fail to strike a deal in Brussels by March next year. A Survation poll of CEOs, founders, and directors found that 66% believe that Britain is “likely” to leave the EU without a deal, with 25% of that cohort believing that it is “very likely.”
5. The Bank of England raised interest rates for just the second time since the financial crisis on Thursday, in a move widely expected by commentators and market participants alike. Britain’s central bank raised its base rate of interest from 0.5% to 0.75%, its second hike in less than a year as it continues the process of slowly normalizing monetary policy following more than a decade of unprecedented stimulus.
6. Sonos — the smart-speaker company powering sound waves in seven million homes so far — raised $1.5 billion in an initial public offering on Thursday. The Silicon Valley firm has been making high-fidelity speakers for more than 16 years. And after raising more than $450 million over the course of nine rounds on Sand Hill Road, Sonos finally made the leap to Wall Street.
7. Tesla’s CEO, Elon Musk, and CTO, JB Straubel, suggested the company may not hit its goal of making 1 million vehicles by 2020 during its second-quarter earnings call on Wednesday. After Wall Street Journal reporter Tim Higgins asked if the company still planned to make 1 million vehicles in 2020, Musk and Straubel said that was their goal, but suggested the actual number may be lower.
8. Chinese tech giant Huawei, which overtook Apple as the world’s second-largest smartphone vendor in the June quarter, said on Friday it shipped more than 95 million smartphones globally in the first six months. Huawei said its wearables posted growth of 147% during the period from a year ago, and it plans to add another 10,000 retail stores around the world before the end of 2018.
9. Shares of the commercial-real-estate giant Cushman & Wakefield rose by as much as 7% in their trading debut on Thursday. In a regulatory filing on Wednesday, the company said it priced the shares on sale at its initial public offering at $17, the midpoint of its estimated range, and raised $765 million. It sold 45 million shares.
10. Zimbabwe President Emmerson Mnangagwa said on Friday he was humbled to be elected and called for unity after a poll marred by the deaths of six people in an army crackdown on opposition protests. “This is a new beginning. Let us join hands, in peace, unity & love, & together build a new Zimbabwe for all!,” Mnangagwa said on Twitter.