WSJ City: Brexit Vote Hits Confidence; The City's IPO Problem; Oil Deal in Doubt

Good morning from London. Here's essential reading today from WSJ City. 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. You can sign up to receive this briefing direct to your inbox here.

MUST READS FROM WSJ CITY

Optimism at UK finance firms has fallen for three straight quarters. Unsurprisingly, Brexit's to blame.

ECM bankers received a twin boost last week, but the industry is still facing major headwinds.

Energy ministers said there's more work to be done before a deal on an oil output freeze can be reached.

Brexit, terrorism, political uncertainty: Europe's struggling. But the car industry may be an exception.

Glencore shares have been on a tear this year. That's bad news for one big-name hedge fund with a short.

The FCA is upping its scrutiny of property funds following a series of suspensions after the Brexit vote.

Old tensions towards free trade are resurfacing. But the EU isn't giving in without a fight.

For banks, upgrading technology to keep up with new regulations is proving a major challenge.

City Talk: Apple goes without a lobby into European fray, Hyundai workers strike, Lanxess to buy Chemtura.

IN THE PAPERS

The City of London fears the government is shifting towards a ‘hard’ Brexit. FT (£)

Tesco faces questions from MPs amid claims the hole in its pension fund could be as much as £6.5 billion. The Times (£)

Goldman Sachs plans to lay off more than one-quarter of its investment bankers in Asia amid a slowdown in deal activity in the region. WSJ

The LSE and several investment banks are set to launch a new derivatives exchange today which will compete in interest rate futures markets dominated by Deutsche Börse and ICE. FT (£)

Forecasts compiled by the Treasury reveal that Brexit won’t dent growth at all this year, with projections back to pre-referendum levels. The Telegraph

A confidential report by the BBA suggests consumer banking will be hit by Brexit. FT (£)

The campaigns of Donald Trump and Hillary Clinton acknowledged the huge stakes of Monday’s televised presidential debate, saying the event could shape the opinions of a large number of Americans who have yet to settle on their choice in what has been a bruising presidential campaign. WSJ

MARKETS TODAY

London's FTSE 100 faces opening losses of around 0.3% on Monday amid continued caution about the state of global oil markets.

OPEC gathers for an informal meeting this week in Algiers, with production cuts likely up for discussion. On Sunday, Algeria's oil minister--one of the biggest advocates of new limits on production--said there was still a chance a deal could be sealed and warned that prices could drop back into the $30-a-barrel range if the opportunity is missed. But many oil analysts remain sceptical.

"Once bitten, twice shy. We have been burned before and we are not seeing any solid evidence that this time they will agree to a deal," said Ben Le Brun, a market analyst at the Australia-based Options Xpress.

Oil futures edged higher in Asia having suffered their biggest daily loss in two months on Friday. Brent fell almost 4% to trade below $46 a barrel. The losses dragged US stocks sharply lower and hit Asian shares this morning.

Stocks to Watch: Sanofi and Regeneron will receive a priority review from the FDA for their dermatitis treatment.

COMING UP

Mario Draghi delivers his quarterly testimony to the European Parliament's economic and monetary affairs committee. Later in the US, Hillary Clinton and Donald Trump take part in their first televised head-to-head debate.