WSJ City: Gilt Tantrum Jitters, Commercial Property Conundrum, Why Central Bankers are Eyeing the 1960s

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  The speed of the moves in gilt markets is raising concerns about what might happen next. The value of UK commercial property has dropped since the Brexit vote. But by how much? City Talk: WPP profit falls, Paddy Power Betfair upgrades merger synergies, Hikma reiterates guidance. Glencore's net loss narrowed in the first half of the year putting its cost-cutting plan on track. The hunt for yield is stretching into emerging market bonds. But there isn't a lot of game to shoot. Fashion is often the art of bringing back old trends. That might be no different for central bankers. The world is awash with money. But where interest rates are negative, it's often a dead weight. London's been the best place to raise money for unlisted infrastructure projects in the past decade. The eurozone is proving remarkably stable. But consistency isn't enough to get investors excited. Efforts to pressure VW for settlements over its emissions-cheating scandal seem to be paying off. 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 A 6.2-magnitude earthquake struck central Italy early on Wednesday, causing the collapse of buildings and trapping people under rubble. WSJ Asset managers in the UK suffered their worst redemptions in at least 3 years as investors pulled roughly £5 billion from funds in July. FT (£) SABMiller said a UK court had agreed to its proposal that its two largest shareholders be treated as a separate class from the rest of its investors with regards to its pending acquisition by Anheuser-Busch InBev. WSJ Data from HM Revenue & Customs showed that almost as many houses were sold in July as in June, suggesting that buyers did not pull out of the market following the Brexit vote. FT (£) Northern Rock customers will not benefit from lower interest rates because the private equity owners of their debts haven't passed on the Bank of England's recent cut. The Times (£) Four of the world's biggest banks plan to develop a new form of digital cash to clear and settle financial trades over blockchain. FT (£) The prime minister of Flanders has offered an olive branch on Brexit, calling for a radical North Sea Union linking Britain to a number of regional states. The Telegraph Glencore has struck a fresh deal aimed at cutting its debt pile: Selling future output of gold and other metals from an Australian mine to another producer for $670 million. WSJ Iran has told members of OPEC that it would attend talks next month on oil production, delegates to the cartel said, adding to hopes for an agreement to curb output. WSJ Markets Today The FTSE 100 is expected to open in the red on Wednesday as traders brace for a tightening tilt from the Federal Reserve. Investors expect Janet Yellen to avoid roiling markets and deviate little from previous comments regarding the timing of future US interest rate rises, when she speaks on Friday at Jackson Hole. Some market participants, however, are betting that the Fed chief may be more optimistic than previously expected in her assessment of the US recovery. US stocks crept higher on continued weak volume on Tuesday. Wall Street has notched record highs this summer largely on expectations that interest rates will remain lower for longer. "There's not a lot of concern about being hit with an interest-rate increase," said Mark Watkins, regional investment manager at US Bank Wealth Management. "The Fed is still really looking at the fragile global economy and not wanting to disrupt that backdrop." In the Asian trading session, stocks were mixed, oil prices dipped and the dollar made broad-based gains in a sign of increased risk aversion. Energy industry group American Petroleum Institute said late Tuesday that data showed an increase of 4.5 million barrels in US crude stockpiles last week. Prices had risen in New York on Tuesday on speculation that Iran might co-operate with other global exporters to keep oil prices from falling. But Brent was recently trading down almost 1% at $49.52. Stocks to Watch: WPP sees slightly weaker 2H; Glencore 1H net loss narrows to $369 million; agrees $670 million deal to sell Australian gold output; Paddy Power Betfair 2Q adjusted Ebitda +33% to £122 million; Hikma Pharmaceuticals 1H pretax profit $83 million; backs FY guidance; AstraZeneca to sell small molecule antibiotics business to Pfizer. Market Snap at 24/08/2016 6:49:54 GMT FTSE 100 Futures -0.44% GBP/USD -0.22% EUR/USD -0.11% Brent Crude Futures -1.3% Gold -0.43% 10-year Bund Yield -0.092% Advertisement Coming Up The British Bankers Association issues its latest high street banking statistics, while the Council of Mortgage Lenders releases its regional mortgage market update. 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.