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MUST READS FROM WSJ CITY
The government raised its international-terrorism threat level to “critical” on Tuesday, suggesting fears of another attack as police identified the Manchester suicide bomber. Prime Minister Theresa May announced that military personnel would replace police officers guarding key places and big events around the country. London Mayor Sadiq Khan also promised more police and military personnel in the capital. WSJ City
Monday night’s deadly bomb attack raises again a problem that has confounded global-security authorities, particularly amid a spate of recent attacks across Europe: How do you protect mass gatherings from terrorism? WSJ City
Glencore said it has made an informal takeover approach to grain trader Bunge, a move that would make the Swiss mining giant a major player in the US agriculture market. Discussions may or may not take place and there is no certainty there will be a deal, Glencore said. WSJ City
Marks & Spencer reported a fall in full-year net profit amid weak clothing and other non-food sales. Its plan now? Reduce clothing and increase floor space for food. WSJ City
Moody’s Investors Service cut China’s sovereign credit rating, citing expectations that the country’s financial strength will deteriorate in coming years as debt keeps rising and the economy slows. WSJ City
A growing group of oil sleuths has sprung up to sate the market’s voracious appetite for data and intelligence. Dramatic gyrations in the price of oil in the past three years have boosted demand for such services, intensifying competition in a market that for years had been dominated by governments, oil companies and a handful of big data providers. WSJ City
Most industries need access to raw materials: In finance and markets that raw material is savings. This simple observation is often overlooked, but it is a major reason why the US has the biggest and most active capital market in the world, and why Brexit could make it harder for eurozone companies to get financing, writes WSJ’s Paul J. Davies for Heard on the Street. WSJ City
President Donald Trump’s claim that his budget will erase the deficit in 10 years relies on an accounting gimmick. His economic advisers have insisted for months that his proposal to slash tax rates can be revenue neutral, meaning the tax code will collect as much money as it does today after cutting rates because it will boost growth. WSJ City
IN THE PAPERS
The Manchester suicide bomber moved from gangs to radical Islam in recent years, according to family friends and neighbours. FT (£)
The suicide bomber had recently returned from Libya, it has emerged. The Times (£)
Barclays faces a £1.6 billion PPI mis-selling lawsuit by a US-based credit card company that bought a subprime lending business from the bank a decade ago. FT (£)
Royal Bank of Scotland’s last-minute attempt to avoid a trial over its £12 billion rights issue may have stalled last night after shareholders refused to sign up to an out- of-court settlement. The Times (£)
A new report suggests that cutting UK immigration to the tens of thousands will slow growth. FT (£)
Donald Trump faced swift resistance from Democrats and a range of Republicans on Capitol Hill after offering a 10-year plan to balance the federal budget that depends heavily on cuts to government safety-net programmes and expectations of a big gain in economic growth. WSJ
MARKETS TODAY
London shares were slightly lower at the open, extending Tuesday’s minor losses despite a persistent rally in crude oil.
“Another calm night on financial markets, but we have seen some dollar buying led by moves across the US fixed income curve, while US equities and oil plod every gradually higher,” wrote IG’s Chris Weston.
Oil prices ticked up having hit fresh one-month highs on Tuesday, extending a winning streak to five sessions on optimism that tomorrow’s OPEC meeting will result in more production cuts. Brent was recently 0.3% higher at $54.33 a barrel, adding to the 0.5% gain in the US session.
In Asia, stock investors brushed off a cut to China’s credit rating by Moody’s, and the market continued its recent rebound after US political worries hit sentiment last week.
COMING UP
Minutes from the Federal Reserve’s May meeting, due after the European close.
May 24, 2017 at 01:16PM
from Rebecca Byrne
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