Good afternoon 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
George Soros has called for the European Union to use Brexit as ‘a catalyst’ for introducing far-reaching reforms. The billionaire investor, who was a keynote speaker at the Brussels Economic Forum, also warned that the UK’s exit from the European Union will be an ‘immensely damaging process.’ WSJ City
Pimco has been gazing into its crystal ball again, and the world’s biggest bond fund manager doesn’t like what it sees. The global economy faces a 70% chance of recession within the next three to five years, the company’s chief strategists said in their annual secular outlook, adding that they are dialling down risk in their portfolios. WSJ City
Paint giant PPG Industries dropped its $27.6 billion dollar takeover pursuit of Akzo Nobel, ending an unusually bitter trans-Atlantic stand-off pitting two of the world’s oldest industrial companies against each other. WSJ City
The Bank of England faces the possibility of strike action for the first time since the central bank was founded in the 17th century. The Unite trade union said staff in the maintenance, reception and facilities departments were protesting at a ‘derisory pay settlement.’ WSJ City
Emerging markets are the calmest they have been in nearly three years, helping to draw a surge of funds from abroad and boosting returns in a sector that many investors once viewed as notoriously turbulent. WSJ City
British manufacturing activity continued to expand at a solid clip in May with orders growing, business optimism increasing and job creation rising at the fastest pace in three years, according to a Markit/CIPS survey. WSJ City
The European Commission has cleared the way for the multi-billion-dollar government rescue of one of Italy’s biggest and most fragile banks by approving a restructuring plan for the troubled lender. WSJ City
Matthew Elliott, who led the official campaign to take the UK out of the European Union in last year’s referendum, has joined UK stockbroker Shore Capital as a senior political adviser in its capital markets business. WSJ City
IN THE PAPERS
May’s UK Election Gamble Imperilled ─ The Wall Street Journal
Why the Pollsters Can’t Agree on UK Election ─ Politico
UK Comes Bottom of G-7 Growth League As Canada Takes Lead ─ The Guardian
Amber Rudd’s Rise Through Britain’s Great Offices of State ─ Financial Times
UK Pollsters See May Upping Majority Even as Lead Shrinks ─ Bloomberg
Macron’s Party on Course for Majority in Parliament ─ The Times
MARKETS TODAY
European stocks broke a five-day losing streak, ending the day up 0.4%, while US markets were helped by a stabilisation in oil prices.
The S&P 500 was recently trading up 0.4%, as oil prices rose after two sessions of declines. The price of crude oil was up 1.2% to $48.89 a barrel on the back of declining US inventories. Crude-oil stockpiles fell by 6.4 million barrels to 509.9 million barrel during the week ended May 26, according to the US Energy Information Agency.
In the UK, the FTSE 100 rose 0.3%, while the pound was little changed at $1.290. A report from Markit/CIPS showed UK manufacturing activity slowed slightly in May but beat forecasts, as orders and employment levels increased.
Private equity firm 3i Group rose more than 3% to be one of the top gainers on the FTSE 100 after Barclays reiterated its overweight recommendation. Shares in Mediclinic fell around 3.5%, lagging all other firms, as Jefferies issued a bearish note on the private hospital and clinic operator.
June 01, 2017 at 09:46PM
from Darren Lazarus
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