Econintersect: Here are some of the headlines we found to help you start your day. For more headlines see our afternoon feature for GEI members, What We Read Today, which has many more headlines and a number of article discussions to keep you abreast of what we have found interesting.
Oil prices stabilize after Brexit vote, but refined products glut looms (Reuters) Oil prices stabilized on Monday as market participants better absorbed the shock of last week's vote in Great Britain to leave the European Union and recognized the referendum would have little effect on global fuel demand. Brent crude futures were trading at $48.76 a barrel by 0650 GMT on Monday, up 35 cents from their last settlement. U.S. crude was up 18 cents at $47.81 a barrel. But there is growing concern about a surplus of refined petroleum products. Morgan Stanley, in a note to clients:
"For near term oil, we remain most concerned about product oversupply, China demand, the macro outlook, and the likely return of production."
Investors Map Post-Brexit Strategies Amid Global Market Upheaval (Bloomberg) Britain's vote to leave the European Union almost a quarter century after its creation with the Maastricht Treaty left global markets in disarray Friday. Today, investors start to figure out the way forward. European equities are likely to bear the downdraft's brunt. If this shock plays out similar to the reaction to the 2011 Fukushima nuclear disaster, recovery might be seen in a matter of a few moths.
Brexit another 'adjustment' central banks face in safeguarding global growth: BIS (The Business Times) The prospect of the United Kingdom leaving the European Union represents another risk that central banks around the world now have to contend with, even as they work together to guide a fragile global economic recovery. Terming Friday's results of a UK referendum that favoured a UK-EU split, or "Brexit", as an "additional adjustment", Jaime Caruana, general manager of the Bank for International Settlements (BIS), said on Sunday:
"The world economy conveys a sense of unfinished adjustment and fragile confidence."
Chile beat Argentina on penalties to win Copa América - as it happened (The Guardian) Chile defeated Argentina in a 4-2 shoot-out after 120 minutes of scoreless play. In the shoot-out, Lionel Messi put his penalty attempt high over the bar - but the miss really didn't matter with a 2 goal final margin. Columbia captured third 1-0 over the U.S. who sank to fourth.
" ... treat the Brexit bedlam as a reminder to avoid parochial complacency, at all costs. Just because an event takes place thousands of miles away, there's no guarantee it's not going to have an impact on your portfolio. After all, the ostrich sticking his head in the sand remains visible, and vulnerable, to everything heading his way, even if he can't see it coming.":
Investor George Soros calls for reconstruction of EU after 'Brexit' vote (Reuters) Billionaire investor George Soros on Saturday called for thorough reconstruction of the European Union in order to save it, even though he warned that Britain's vote to leave the bloc makes "disintegration of the EU practically irreversible". Soros, who warned of financial meltdown if Britain voted to leave the EU before Thursday's referendum, also said the effects of the decision will likely damage Britain.
London's standing in global finance at risk as City faces loss of 'EU passport' (The Guardian) Banks based in London rely on an "EU passport" to operate freely across Europe's financial markets while having most of their staff and operations in the UK capital. But François Villeroy de Galhau, a member of the governing council of the European Central Bank, warned that the City could no longer expect to enjoy a similar arrangement in the future. International banking activities now in London are likely to move to the continent.
Spanish election: PP wins most seats but deadlock remains (BBC News) The conservative People's Party (PP) of acting Prime Minister Mariano Rajoy has won most seats in Spain's parliamentary election but is short of a majority. They increased the number of seats by 15 to 137. A majority requires 176 seats. Spain's other main party, the Socialist PSOE, is in second place. The left-wing Unidos Podemos alliance and centre-right Ciudadanos are third and fourth. The vote has failed to break six months of political deadlock since December's inconclusive poll. But Mr Rajoy said he had a right to resume office.
Switzerland Facts (Anonymous) Forwarded by John O'Donnell.
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