What's moving markets today: May 28, 2019

By CNN Business

Updated 6:23 p.m. ET, May 28, 2019
6 Posts
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9:08 a.m. ET, May 28, 2019

Apple's iPhone sales in China could be cut in half, Citi says

From CNN Business' Jordan Valinsky

The trade war between the United States and China could cut Apple's iPhones sales in half, according to a new analyst note from Citi.

"China represents 18% of Apple sales which we believe could be cut in half," the analysts wrote, adding:

We are proactively slashing our iPhone unit sales as we believe the US/China trade situation will result in a slowdown of Apple iPhone demand in China as China residents shift their purchasing preference to China national brands.

It also lowered Apple's share price target to $205 per share from $220. The stock closed Friday at $178.97 per share.

Shares of Apple (AAPL) are slightly lower in premarket trading.

7:29 a.m. ET, May 28, 2019

New York overtakes London as world's top financial center, survey says

From CNN Business' Jordan Valinsky

The world's financial center is now located in New York City, according to a new survey of nearly 200 financial executives published by Duff & Phelps.

The American city overtakes London for the top spot, because the report said Brexit has "cast a shadow of uncertainty over the United Kingdom’s economy" and said Brexit has now "escalated to a full-blown crisis."

Moving forward, 12% of respondents expect Hong Kong to be the "world’s preeminent financial center" within the next five years — up from 3% last year. Other cities, including Shanghai and Dublin, also moved up in the rankings.

The report added:

While these individual numbers do not rise to the level of statistical significance, collectively they give further evidence of the combined effects of globalization and of Brexit, as the financial industry searches for a new EU financial center."

7:00 a.m. ET, May 28, 2019

Fintech arms race heats up with $21.5 billion takeover

From CNN Business' Matt Egan

Global Payments announced a $21.5 billion deal on Tuesday to acquire rival Total System Services. It's the latest salvo in the fintech arms race.

The all-stock transaction creates a payments giant serving 3.5 million small-to-medium-sized merchants and 1,300 financial institutions in more than 100 countries.

The marriage of Global Payments (GPN) and Total System Services (TSS), which is also known as TSYS, marks the third big takeover in the payments industry so far this year as companies adapt to an increasingly cashless world.

Read more about the deal here.

6:15 a.m. ET, May 28, 2019

Investors react to potential Fiat Chrysler-Renault mega-deal

From CNN Business' Julia Horowitz

ICYMI: France's Renault (RNLSY) is considering a merger with Fiat Chrysler (FCAU) that would create the world's third largest carmaker and reshape the global auto industry.

The French automaker said Monday that it would "study with interest" a proposal from Fiat Chrysler that would give its shareholders 50% ownership of a combined business with annual vehicle sales of 8.7 million.

The companies had been discussing ways to team up on new products and tech, but Fiat Chrysler argued Monday that a merger would be best.

Renault's shares jumped about 12% on the news Monday before coming back down slightly in early trading on Tuesday. Fiat Chrysler shares in Milan rallied 8% Monday but also dipped a bit Tuesday.

6:31 a.m. ET, May 28, 2019

Alibaba might pursue secondary listing in Hong Kong to raise $20 billion

From CNN Business' Julia Horowitz

Internet giant Alibaba (BABA) could reportedly pursue a secondary listing of its shares in Hong Kong that would raise $20 billion.

The news was first reported by Bloomberg. A source familiar with the situation told CNN Business that the company "will not rule out an option on any listing," and said the move would help Alibaba diversify its funding sources.

Alibaba's 2014 IPO in New York raised $25 billion and was the largest on record. The source said a follow-up in Hong Kong would make sense since investors there are familiar with the company.

A second listing could juice an otherwise lackluster year of stock offerings from tech companies. Shares of Uber (UBER) and Lyft (LYFT) both fell below their IPO prices following their debuts and were widely considered to be flops.

6:13 a.m. ET, May 28, 2019

Checking in on global markets

From CNN Business' Julia Horowitz

US stock futures are mixed as traders in the United States return from a holiday weekend.

The Dow is set to open roughly 17 points lower, or about 0.1%. The Nasdaq is also trending up 0.2% and the S&P 500 is poised to drop 0.2%.

Stocks in Asia edged higher Tuesday. Hong Kong's Hang Seng index jumped 0.4%, while the Shanghai Composite index rose 0.6%. Japan's Nikkei gained 0.4%.

European markets, however, are mostly down. Britain's FTSE 100 was flat in early trading after a long weekend, while stocks in Germany and France shed 0.4% and 0.5%, respectively.

US stocks will attempt to bounce back this week from losses suffered due to the US-China trade war and renewed fears about prospects for global growth. The Dow has posted five consecutive weekly declines.