Good afternoon from the WSJ City desks in London. WSJ City is the app that delivers fast, smart news for mobile for London. Download for iPhone or Android. Here’s essential reading on today’s developments.
MUST READS FROM WSJ CITY
When it comes to the euro, what doesn’t kill it should make it stronger. The existential threat posed to the single currency by the French elections has faded. The focus should move to the economy and the European Central Bank, writes Richard Barley for Heard on the Street. WSJ City
French voters are in a surly mood, and who can blame them, asks WSJ’s chief economics commentator Greg Ip. Unemployment has been around 10% for four years. Yet France’s problems long predate the euro crisis and the austerity that followed. WSJ City
Optimism about the prospects for UK exports has risen to the highest level in more than 40 years, with orders surging amid a sharp drop in the pound, according to a survey from the Confederation of British Industry. WSJ City
The Conservatives went on the attack over defence, Jeremy Corbyn stumped in Scotland and the Tory energy plan hit shares. Here’s everything you need to know from the UK election campaign trail on Monday. WSJ City
Big buyout fund managers will reap nearly $1 billion in fees a year for a recent crop of funds, as the rising size of funds continues to make management fees a lucrative income source. WSJ City
Paints giant PPG Industries again raised its offer for Dutch rival Akzo Nobel, the US firm’s third takeover attempt in a two-month long, unsolicited courtship. PPG latest offer values Akzo at €24.6 billion. WSJ City
City firms are struggling to get to grips with cyber security basics and lack the skilled expertise they need to cope. That’s according to the Financial Conduct Authority’s acting chief operating officer who previously led its approach to IT and cyber resilience. WSJ City
IN THE PAPERS
Europe’s Populists Down, Not Out – Politico
French Presidential Favorite Macron May Drive Hard Bargain in Brexit Talks – The Guardian
Liberal Democrats Promise Second Brexit Referendum – Financial Times
Nicola Sturgeon: Election Will Be ‘Two-Horse Race’ – Politico
UK Starts to Drop ‘Crazier’ Brexit Ideas, EU’s Hogan Says – Bloomberg
MARKETS TODAY
European financial markets staged a relief rally after Emmanuel Macron topped the first round of voting in the French presidential election and solidified his prospects of becoming the country’s next leader.
Europe’s Stoxx 600 index closed the day more than 2% up, a new 52-week high, with bank shares leading the way. France’s CAC 40 index surged more than 4% while London’s FTSE 100 was up more than 2%. Banks including Crédit Agricole, Société Générale and BNP Paribas were all trading more than 10% higher. The UK’s big banks also made solid gains, with Barclays, Standard Chartered and Royal Bank of Scotland all up more than 4%.
The DAX closed up 3.4% at an all-time record of 12454.9.
The euro gained, and was recently up 1.3% at $1.0858, as fears receded that the currency was facing an existentialist threat. Marine Le Pen, who is through to the final round of voting but is seen losing to Macron, has signalled she wants to pull France out of the euro.
The French result also lifted US stocks, with the S&P and Dow both up more than 0.9% by the time stocks closed in Europe. US banks were among the biggest winners.
April 24, 2017 at 09:32PM
from Darren Lazarus
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