WSJ City: Deutsche Bank Weighs Stronger Medicine, Cash Keeps Pouring Out of European Stocks

WSJ City UK View this email in a web browser By Giles Turner Good morning from London. Here's essential reading today from WSJ City   Deutsche Bank is considering dramatic options, including selling all or part of a key business. Money has flowed out of European stock funds every week for more than six months. City Talk: Pernod profit rises; Nets seeks IPO; Sinclair Pharma COO steps down; China PMI expands. The world's largest fund manager is sticking to its view that the UK could be heading for a recession. Apple is just the beginning. European officials are eyeing the behaviour of a cadre of US tech firms. Investors could be in line for a letdown from the European Central Bank next week. Emerging market bonds in local currencies are a rare corner of yield in the world of bonds. Consumers are driving the S&P 500 to new highs, as the dynamics behind the rally have changed. Two pillars of Elon Musk's empire are facing financial crunches as he seeks to combine Tesla and SolarCity 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 government has said that Britain will seek a "unique" model with the EU after it leaves the bloc, striking a balance between access to the single market and tighter immigration controls. FT (£) The pension deficits of UK companies spiralled by another £100 billion in August alone as record low interest rates sent liabilities soaring. The Telegraph The battle for control of Poundland has taken a new turn after US activist hedge fund Elliott Capital said it had raised its stake in the retailer to 22.7%. The Times (£) UK-listed Carclo has been forced to scrap its dividend pay-out to plug a shortfall in its spiralling pension deficit, in what could be a watershed moment for British business. The Times (£) The UK accounting watchdog has fined PwC £2.3 million over its auditing of Cattles, a subprime lender. FT (£) A surge of Chinese investment in Europe is prompting European businesses to question whether Beijing's tightly controlled access to foreign investors amounts to a fair exchange. WSJ Orange has entered preliminary talks to buy a piece of Iran's largest cellular operator in what would mark the first acquisition of a stake in a major Iranian firm by a Western company since nuclear sanctions were lifted in January. WSJ Markets Today London shares are poised for cautious gains on Thursday as traders look ahead to Friday's all-important US jobs report. A strong reading on Friday "could tip the scales in favour of a possible rise in [US] borrowing costs as early as next month," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange. Markets are pricing in a 27% chance of a rate rise at the Fed's September meeting and a 55% chance of an increase by December. In Asia, stock markets were broadly weaker, with energy shares hit hard. Brent crude slid to a three-week low in New York on Wednesday following a bigger-than-expected build in oil inventories. Oil prices steadied in Asia, helped by a weaker dollar and bargain-hunting, with Brent trading just above $47 a barrel. Stocks to Watch: Pernod Ricard lifts profit, Implats narrows losses, Nets targets IPO on Nasdaq Copenhagen. Market Snap at 01/09/2016 6:48:44 GMT FTSE 100 Futures 0.41% GBP/USD 0.05% EUR/USD -0.1% Brent Crude Futures -2.75% Gold -0.02% 10-year Bund Yield -0.053% Advertisement Coming Up The manufacturing PMI is published at 9.30am BST followed by the Bank of England's Funding for Lending Scheme data. 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.