WSJ City: Oil Giants’ Profits Beat Expectations, Brexit-Scarred Investors Shun US Election

Good morning from London. Here’s essential reading today from WSJ City. For updates throughout the day, you can download WSJ City for iPhone here or Android here. You’ll need to open this email on your mobile device to do this.  You can sign up to receive this briefing direct to your inbox here.   

MUST READS FROM WSJ CITY

Oil giants BP and Shell beat analysts’ quarterly profit estimates, as cost cutting efforts paid off.

Scarred by the Brexit vote, some foreign investors are ignoring polls and staying out of US stocks.

Dearth of buyers. Don’t hold your breath for an asset-management merger frenzy.

City Talk: Moneysupermarket on track to hit targets, Sony profit tumbles, Weir Group warns on profit.

Speculation about the return of inflation is bad news for bondholders. But not so much for the ECB.

Turned down for a bank loan? Don’t worry. A new matchmaking service kicks in today.

Donald Trump has argued that rival Hillary Clinton would worsen the gridlock in Washington.

The Department of Justice’s pledge to resolve the Clinton email investigation appears unlikely to tamp down emotions in the campaign.

The EU has proposed rules designed to keep multinationals like Apple from taking advantage of tax codes.

Investors are responding to the BoJ’s latest monetary-policy manoeuvre by sitting on the sidelines.

IN THE PAPERS

Tesco faces a £100 million claim from institutional investors over allegations that they suffered millions of pounds of losses from the grocer’s accounting scandal. The Times (£)

Research from a leading think-tank suggests Britain’s service sector will see its exports drop up to 60% after Brexit. FT (£)

BMW faces a battle with its British workforce as unions consider industrial action over plans to abandon the final-salary pension scheme. The Times (£)

The EU markets watchdog has warned that the UK faces a conflict of interest over the City, with British regulators favouring London’s interests in the run-up to Brexit. FT (£)

Rolls-Royce faces a fresh allegation it was involved in corruption to land major contracts. The Telegraph

One in three of the UK’s richest people is under investigation by the tax office, with a specialist unit probing £2 billion of potentially unpaid duties. FT (£)

None of the world’s biggest container-shipping companies is likely to post a profit this year, a top executive of French shipping giant CMA CGM said in an interview. WSJ

MARKETS TODAY

London’s FTSE 100 opened up more than 0.5%, buoyed by a sharp rise for Shell after its results, while sterling rose 0.3% against the US dollar to $1.227.

Doubts over an OPEC production deal had hit oil prices, but Brent crude was up almost 1% in early trading in London to just above $49 a barrel.

Brent fell almost 3% in New York on Monday amid concern about proposed output cuts.Morgan Stanley said in a note that the recent discussions with non-OPEC members aimed at increasing market confidence only succeeded in achieving the opposite.

Stock markets in Asia were mixed after the release of encouraging manufacturing data from China and policy decisions from the Bank of Japan and Reserve Bank of Australia. Both banks left policy unchanged as expected.

COMING UP

The UK Manufacturing Purchasing Managers’ Index is published.