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MUST READS FROM WSJ CITY
Switzerland’s Clariant and US-based Huntsman reached an agreement to merge in an all-stock deal that would create a chemicals giant worth about $14 billion, or $20 billion including debt, as companies in the industry seek ways to cut costs and boost revenue. WSJ City
Big American companies are on an earnings tear. It’s even better in Europe. The continent’s largest companies are on track to record their strongest quarter of profit growth in almost seven years, benefiting from something Europe Inc. hasn’t seen since before the global economic crisis: a willingness among consumers—and other companies—to spend again. WSJ City
After months of placid markets, many investors have probably forgotten how much they have relied in recent years on the Federal Reserve to halt any meltdown. Now that volatility has returned, the Fed may not be there anymore, writes Justin Lahart for WSJ Heard on the Street. WSJ City
US political turmoil and relative eurozone calm is narrowing the gap between US and German bond yields, writes Richard Barley for Heard on the Street. WSJ City
A relentless stream of money is flowing into technology funds this year and one strategist is asking if a mini-mania might be taking hold in the market’s most popular stocks. WSJ City
Transaction banks are sitting on piles of client data that could reshape the business of banking, according to one of the leading players in the European market. WSJ City
IN THE PAPERS
The chief of the London Stock Exchange has warned that investors could face an extra €100 billion bill if Brussels forces the clearing of euro-denominated trades away from London after Brexit. The Times (£)
A survey has revealed that Britain’s biggest retailers are more pessimistic about the prospects for the sector this year than at any time in the past five years. The Times (£)
The boss of McColls, the country’s biggest convenience store chain, is considering a possible buyout of Tesco’s One Stop chain. The Telegraph
Some senior Tories were kept in the dark over Theresa May’s ‘dementia tax’ with the manifesto pledge to shake up the social care system devised by a tight-knit group. FT (£)
A leaked copy of Facebook’s internal rulebook has shown it allows the social media giant to show videos of violent deaths and publish photographs of physical abuse and bullying. The Times (£)
MARKETS TODAY
London shares extended gains on Monday as doubts about the US political landscape continued to ease and as oil prices surged.
The FTSE 100 was recently up 0.4% while Europe’s Stoxx 600 index added 0.1% at the open.
US-focused worries faded in Asia with Donald Trump travelling in the Middle East and later this week to Europe. In addition, investors largely shrugged off further missile tests by North Korea over the weekend.
All the major stock benchmarks in the region posted gains with Australia and Hong Kong leading the charge. Sentiment was further boosted by a 1% rise in oil prices following the 9% gain over the past two weeks. Brent topped $54 a barrel while Nymex was above $51.
Looming is Thursday’s OPEC meeting at which an extension to ongoing production cuts is expected.
“We believe global oil markets are rebalancing,” said Nomura. But the bank also argued that “longer supply curbs are needed to drain excess inventories built up during years of high oil prices.”
COMING UP
Eurogroup meeting in Brussels.
May 22, 2017 at 12:48PM
from Rebecca Byrne
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