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WSJ City: Deutsche Profit Collapses; Santander Profit Halves; Apple Tops Estimates

Good morning from London. Here's essential reading today from WSJ City

For updates throughout the day download WSJ City for iPhone here or Android here You’ll need to open this page on your mobile device to do this. And you can sign up to receive this briefing direct to your inbox here.

MUST READS FROM WSJ CITY

Deutsche Bank has reported that its second-quarter net income fell by a staggering 98%.

City Talk: Santander profit slides, ITV hit by higher costs, Peugeot profit more than doubles.

Apple's shares rose in late trading after earnings topped estimates. But quarterly profit fell 27%.

Twitter reported its worst ever revenue growth, sending shares tumbling more than 11% after hours.

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Deloitte has resigned as auditor of the 1MDB Malaysian government investment fund.

BlackBerry unveiled its second Android-powered phone, an attempt to revive its handset business.

BT got a break from regulators. But it still faces weakening sentiment and a widening pensions deficit.

Even before Brexit, asset management CEOs were aware that the sector faces huge challenges.

Gold could surge under a Trump presidency. But it's going to be hard to beat the Jimmy Carter rally.

Anglo American is due to report earnings this week. But have its cost-cutting efforts paid off?

What next for Marissa Mayer? She may have to wait for her next CEO opportunity.

IN THE PAPERS

Theresa May is under pressure from the trade secretary to pull out of the EU customs union, a move required to facilitate post-Brexit bilateral trade deals but would impose costs on exporters. Financial Times (£)

Workers in Britain have undergone the biggest pay cut of any leading economy since the financial crisis, matched only by Greece. Financial Times (£)

Shareholders at French energy giant EDF have approved plans to issue new shares to raise £3.4bn to pay for the nuclear plant at Hinkley Point. BBC

Dominic Chappell, the former owner of BHS, will try to repair his battered reputation on Wednesday after MPs called him the “most egregious example of individual greed”. The Telegraph

The Investment Association presented a 10-point plan over “excessive” and “ineffectual” executive pay, and said it will “rebuild trust” over bosses’ high levels of remuneration. The Telegraph

British police have urged Christian organisations to take safety precautions in the wake of the attack on a Roman Catholic church by Islamic State sympathisers in France. WSJ

MARKETS TODAY

London's FTSE 100 crept higher in early trading on a data-heavy Wednesday, as investors awaited UK GDP figures and the US Federal Reserve's interest rate decision.

A few minutes after opening, the FTSE 100 was 0.3% higher, while the more domestically-focused FTSE 250 rose 0.2%. Taylor Wimpey led the bluechip index after reporting solid earnings. Mining companies underperfomed.

Later on, the Fed is broadly expected to keep rates steady. Relatively calm financial markets and solid US jobs data, however, could encourage policymakers to signal that the door is open for an increase before the end of the year. The Dow slipped Tuesday after a handful of disappointing earnings reports. The moves added to Monday's declines, pulling the index further away from recent record highs.

Elsewhere, reports of aggressive easing measures by Japan pushed the Nikkei higher on Wednesday, and sent the yen tumbling. Chinese stocks ended lower. Oil prices continued to trade near a three-month low as high inventories of gasoline products cloud the future outlook for crude.

Stocks to Watch: Deutsche Bank profit plunges; Santander profit dented by restructuring costs; Taylor Wimpey 1H pretax profit £268.8m; St. James's Place 1H funds under management £65.6b; Tullow Oil swings to 1H net profit of $29.7m; ARM Holdings 2Q pretax profit £95.9m; ITV 1H pretax profit £309m; 3i NAV per share 538p at end of June; Airbus books new write-downs; Air France-KLM swings to net profit; Bayer revises FY16 guidance; BASF 2Q net profit €1.09b.

Up Ahead: Preliminary second quarter GDP data for the UK is due this morning. Growth is expected to slow to 1.8% year-on-year from 2%, and to 0.3% quarter-on-quarter from 0.4%. The Federal Reserve interest rate decision is due later. Current expectations suggest just an 8% chance of a rate increase.