WSJ City: Brexit Impact ‘Modest’ for Services Sector, Central Bankers and Silly Metaphors, Brexit Brainstorming

WSJ City UK View this email in a web browser By Josie Cox Good morning from London. Here's essential reading today from WSJ City  Optimism fell sharply in the services sector. But the actual slowdown in business has been 'modest.' Policy makers have calmed the markets. But distortions are rife and the exit is looking difficult. The Fed chairwoman is trying to convince the market a rate rise is coming. But investors aren't listening. Investment banking giants Goldman Sachs and Morgan Stanley are reinventing themselves. This is how. Bazookas! Sinks! Aggressive doves! Turns out nobody loves silly metaphors more than central bankers. City Talk: BHP defends Samarco Report, Petrofac swings to profit, EU to rule Apple's tax deal illegal. Week Ahead: European and US jobs data, UK manufacturing PMIs and what else to watch for this week. Cabinet members are to take part in a Brexit brainstorming session at the prime minister's rural retreat. German savers are leaving the security of savings banks. Their preferred alternative? Home safes. An Alphabet official has exited Uber's board amid increasing competition between the two companies. Oreo maker Mondelez has ended its pursuit of Hershey after the latter rebuffed its latest acquisition offer. 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.  In The Papers The European Union's anti-trust regulator is poised to rule as soon as Tuesday that Apple's tax arrangements with Ireland have breached the bloc's state-aid rules. WSJ The head of the CBI has said it's time for regulators to let the City of London be more competitive and allow it to fend off post-Brexit challengers from Europe. FT (£) Poland has become the latest European country to attempt to lure some of Britain's biggest banks overseas in the wake of the Brexit vote. FT (£) Foreign investment in the UK boomed last year, boosting Britain's growth prospects. The Telegraph Marks & Spencer's new boss is considering scaling back the retailer's overseas operations under plans to boost growth in the UK. The Telegraph Britain has threatened to review its security ties with France should the French try to shift the Calais border back across the Channel. The Times (£) Advisers to the Co-operative Bank could recommend the winding down and eventual closure of the lender as it embarks on a review of its future. The Times (£) European privacy regulators are investigating messaging service WhatsApp's plan to share user information including phone numbers with its parent, Facebook, adding to pressure on both sides of the Atlantic over the social media firm's privacy practices. WSJ Markets Today Shares in London are forecast to open in the red on Tuesday as traders return to their desks after the bank holiday. Investors could be swayed by Monday's retreat in Europe although the rebound in US stocks is likely to cap any major losses. Monday's broad gains in New York wiped out the previous session's losses, which came after Janet Yellen said the case for an interest rate increase had improved. Stocks in Asia caught the updraft from Wall Street's higher close, with most markets in positive territory on Tuesday. Oil and metal prices pulled back from recent losses, lifting miners and oil stocks in the region. Brent was trading around $49.40 a barrel. The dollar pared gains slightly as investors reined in bets on higher US interest rates in the coming months. Federal funds futures, which are used to place bets on central bank policy, show that investors now see a 21% chance of a rate increase at the Fed's September meeting, down from 33% on Friday. More broadly, trading is expected to remain choppy until the release of non-farm payrolls data this week, which could further shed light on the timeline for a Fed rate increase. Stocks to Watch: CMA refers Diebold, Wincor Nixdorf merger for investigation; Bunzl reports rise in first half earnings; Shell to sell interest in Gulf of Mexico; F-Pace sets record as fastest-selling Jaguar in company's history; F1 profits accelerate 30% on plummeting pound; German cities bemoan loss of taxes from Volkswagen. Market Snap at 30/08/2016 6:50:29 GMT FTSE 100 Futures -0.28% GBP/USD -0.31% EUR/USD -0.21% Brent Crude Futures 0.02% Gold -0.21% 10-year Bund Yield -0.071% Advertisement Coming Up The Bank of England is due to issue its monthly Money and Credit report, covering lending to both individuals and businesses in July. Follow WSJ City Follow WSJ Unsubscribe• Newsletters & Alerts• Contact Us• Privacy Policy• Cookie Policy SUBSCRIBE FOR FULL ACCESS TO WSJ.COM SIGN UP FOR THIS NEWSLETTER You are currently subscribed as jasajuejejeje@gmail.com For further assistance, please contact Customer Service at support@wsj.com Copyright 2016 Dow Jones & Company, Inc. All Rights Reserved.