WSJ City’s Brexit Briefing: UK Manufacturing Shows Resilience, Corporates Switch Bankers, Eurozone Consistency Isn’t Enough for Investors

WSJ City UK View this email in a web browser By Darren Lazarus Good afternoon from London. Here's essential reading for the City on today's Brexit developments.  The UK and eurozone economies were boosted by data that showed signs of post-Brexit vote resilience. UK manufacturing output expanded this month and total orders remained "solid," according to the Confederation of British Industry monthly Industrial Trends Survey.  Paul Hollingsworth of Capital Economics said the "relatively upbeat tone" of the survey gives another reason to be "tentatively optimistic about the extent to which the economy has taken a hit from the referendum outcome." In the eurozone, the IHS Markit said its Purchasing Managers Index rose to 53.3 in August from 53.2 the previous month. A reading above 50 signals an expansion in activity. European companies are looking for ways to protect their businesses in the aftermath of the Brexit vote. These responses include new hedging strategies and changing bankers, according to a report by US business consultant Greenwich Associates. The report, entitled The Post-Brexit Hangover, found almost half of UK corporates and a third of continental corporates with sales of more than €500 million had revisited their foreign exchange strategies since the EU referendum. Almost 40% of respondents on the continent and a quarter of those in the UK have or plan to relocate their banking business with a new provider. The eurozone economy is proving remarkably stable. But consistency these days isn't enough to get investors excited, writes WSJ Heard on the Street's Richard Barley. The latest numbers from the flash PMI confirm the trend. But European stocks aren't feeling the love. The real rush this year has been into emerging markets, which have proved more attractive by being unpopular, relatively cheap and with the promise of higher growth to come. In Europe, by contrast, investors are finding it easier to find reasons for worry rather than hope for the future. The proposed merger between the London Stock Exchange Group and Deutsche Börse has faced several hurdles since it was announced last year – including questions over whether it will withstand the Brexit vote. It now faces a new challenge: small firms. The chairman of a Dutch organisation that represents small and medium-sized enterprises has voiced fears that the exchange giant could mean Europe's smaller exchanges receive less attention from investors. IHS Markit is preparing to launch a service to help fund managers comply with new EU rules that are set to shake up the practice of paying for investment research via dealing commissions. The data giant is developing an extension of its commission management tool – which will help manage the allocation of research and execution spending on behalf of banks, investors and research providers – for release in early 2017. The move is in response to new rules under the MIFID II regulation, which is set to come into force in January 2018. Download WSJ City for iPhone here or Android here  You'll need to open this email on your mobile device to do this. And please feel free to send this newsletter to your friends and colleagues. In The Papers Homebuyers Shrug Off Brexit and Dive In – The Times Emerging Markets Party Like There's No Tomorrow – WSJ Germany's Angela Merkel Calls for More Sharing of Intelligence Information in EU – WSJ Downing Street: We Will Decide UK Tax – Financial News Markets Today After two sessions of losses, the FTSE 100 rose, led by a rally in home builder stocks and a rebound in the mining sector amid a cautious recovery in oil prices. London's benchmark stock index finished the session up 0.6%. Barratt Developments was one of the biggest gainers, with a rise of close to 5%. Shares in fellow home builder Persimmon added well over 4% after the company published earnings. Persimmon also said that it remains bullish on customer demand despite the Brexit vote. Major miners rebounded from sharp falls on Monday, despite oil prices remaining volatile. Anglo American shares rose 5.1%. Other European equity indices rose too, bolstered by fresh signs that the eurozone economy remained on solid footing even after the UK referendum. The Dow Jones Industrial Average and S&P 500 climbed, while the Nasdaq Composite kicked off the session at a new all-time high before pulling back. The pound was around 0.5% higher against the dollar at the stock market close. Market Snap at 23/08/2016 16:04:55 GMT FTSE 100 Futures 0.7% GBP/USD 0.35% EUR/USD -0.09% Brent Crude Futures 1.08% Gold -0.07% 10-year Bund Yield -0.095% Advertisement 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.