Good morning from the WSJ City desks in London. WSJ City is the app that delivers fast, smart news on mobile for London. Download for iPhone or Android. Here’s essential reading on today’s developments.
MUST READS FROM WSJ CITY
The snap general election will give the Conservatives a chance to loosen fiscal policy, raising the odds of an interest rate hike this year, according to Morgan Stanley in a note to clients. WSJ City
May’s decision to call an election reduces the risk of the most disruptive Brexit outcomes. But May is likely to be disappointed if she really believes, as she has claimed, that securing a larger majority will give her a stronger negotiating hand with the EU, writes WSJ’s chief European commentator Simon Nixon. WSJ City
Top European Central Bank officials cautioned Wednesday against reducing the bank’s monetary stimulus too soon, suggesting the ECB will hold course at its policy meeting next week despite signs of strength in the eurozone economy. WSJ City
Unilever reported stronger underlying sales for the first quarter, as it raised prices, while headline results were helped by currency volatility. The results come as rival Nestle said its first-quarter revenue grew by 2.3% on an organic basis. WSJ City
Do bond investors know something other market participants don’t, asks Richard Barley for WSJ Heard on the Street. Government bonds are showing warning signs of gloom, but other asset classes aren’t flashing the same signals. WSJ City
At a New York event hosted by The Wall Street Journal this week, senior women in finance offered advice for companies and employees on creating equal opportunities for women – and advancing them into positions of power. Here’s some of their best advice. WSJ City
IN THE PAPERS
The Prime Minister received a boost today from the first poll taken after the snap election announcement, which shows Conservative support up to 48%. The Times (£)
Theresa May’s snap election call has left key government policies in limbo with plans for social care, employment and the gender pay gap all put on hold. FT (£)
Brussels has started to freeze out British firms from lucrative EU contracts, urging companies to move to the remaining 27 members in preparation for Brexit. FT (£)
The UK dominates the European fintech industry, with figures showing it boasts more billion-dollar firms than the rest of the continent put together. The Telegraph (£)
A report by the government’s spending watchdog has found that Amazon and eBay have failed to act against overseas sellers flouting VAT rules, helping the US tech giants avoid up to £1.5 billion in tax. The Times (£)
MARKETS TODAY
An almost 4% fall in oil prices on Wednesday will likely drag on European shares when trading gets underway this morning.
A slide in crude futures during the US session will weigh on investor sentiment in Europe, already weakened by political tensions in the region. Prices fell to their lowest level in nearly three weeks in New York after data from the EIA showed US output rose to 9.25 million barrels a day last week, the highest level since August 2015.
Although prices recovered slightly in Asian trade—Brent was last at $53.30—Wednesday’s sharp drop underscores the widespread anxiety that US shale producers are becoming more capable at churning out oil at a lower price, analysts say.
The oil price slide hit energy shares in the US, pressuring the Dow. Investors in Asia were slightly more upbeat on Thursday, with markets in the region posting modest early gains.
COMING UP
CML mortgage data, Mark Carney speaks in Washington.
April 20, 2017 at 12:22PM
from Philip Georgiadis
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