WSJ City: Trump’s Impact on Social Media and Banking; Allianz’s Pimco Boost

Good morning from London. Here’s essential reading for the City today from WSJ City. 

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MUST READS FROM WSJ CITY

The US election offers mixed blessings for social media giants Twitter and Facebook.

Facebook’s Zuckerberg has fought back against accusations that the site harmed political discourse.

City Talk: Allianz gets a Pimco boost, Shell’s plans for Brazil, Rusal extends gains.

The biggest Trump-related risk for Europe may be political–rather than economic–contagion.

Donald Trump supposedly doesn’t care about Wall Street. So why are banks rallying on his win?

Trump’s election could dent emerging-market enthusiasm, but Russia looks like an exception.

Trump’s transition team promised to ‘dismantle’ the Dodd-Frank law in a brief note on its website.

Wells Fargo has found cases where reports to its ethics line weren’t handled appropriately.

A Russian court upheld a decision to ban LinkedIn in the country, enforcing a personal data law.

IN THE PAPERS

Nigel Farage is to be the UK’s go-between with Donald Trump amid claims the “special relationship” with the US is faltering. The Telegraph

The Dow climbed to a record, and yields rose as investors double down on a bet that Republican control of the White House and Congress would boost fiscal spending and increase the prospects of tax cuts. WSJ

As President-elect Donald Trump prepares to move into the White House, his transition so far has relied on an unusual combination of Republican traditionalists and outsiders. WSJ

The former deputy governor of the Bank of England was warned by major lenders as early as mid-2007 that they were not submitting accurate Libors, it is alleged. The Times (£)

The Bank of England has remained cautious that the weak pound will offer a meaningful boost to UK trade, warning that companies are expected to delay investment decisions until post-Brexit trade terms are clarified. FT (£)

Donald Trump’s victory has unleashed investor bets on rising consumer prices, a trade that has been tried often in recent years with little lasting success. WSJ

A Carlyle hedge fund has lost the $400 million it invested last year in a Moroccan oil-refinery deal. WSJ

MARKETS TODAY

London shares face a lackustre start on Friday, with the FTSE 100 forecast to open flat, as the continued slide in gold prices weighs on miners.

Gold fell another $1.50 in Asia to trade around $1,257.30 a troy ounce, paring back to levels seen about three weeks ago.

The precious metal saw a spike after Donald Trump won the presidential election but fell as stocks rebounded and risk appetite returned.

“Gold is still getting caught up in the big outflows of capital back into risk markets following the election,” said Colin Cieszynski, chief market strategist at CMC Markets.

Elsewhere in Europe, the DAX and CAC are forecast to bounce back from Thursday’s losses after the Dow Industrials climbed to a new record, as investors applauded the prospects of expansive fiscal spending under a Trump administration.

The rise of 218 points in the Dow puts the 30-stock index up 7.9% for the year. The Dow has risen 2.7% since its close on Tuesday, reflecting a bet that Republican control of the White House and Congress would enable passage of a fiscal stimulus plan, tax cuts and a regulatory roll-back.

COMING UP

UK construction figures released at 9.30am