Drivers

• Stock market movements this week will be primarily driven by crude oil prices, foreign institutional investor (FII) trading activity, and the outcome of US-Iran diplomatic talks. • Technical-level discussions between the US and Iran are scheduled to take place this Sunday in Burgenstock, Switzerland. • Analysts indicate that the trajectory of the domestic monsoon will also be a critical factor for market performance.

Drivers suspended as prosecutors investigate group said to have been used to share and comment on CCTV imagesA group of tram drivers in Milan have been suspended from their jobs amid an investigation into a WhatsApp group in which they allegedly exchanged sexist and vulgar comments about images of female passengers.Milan prosecutors placed at least one employee of ATM, the city’s public transport firm, under investigation on Tuesday for allegedly accessing an IT system without authorisation and for hacking a CCTV system to obtain images of female passengers. Continue reading...

• China is demonstrating economic resilience supported by a solid foundation and the emergence of new growth drivers. • Recent data indicates a slowdown in certain economic indicators since the second quarter, reflecting domestic structural adjustment pressures. • Many Chinese enterprises are currently facing operational difficulties attributed to an increasingly complex international environment.

• Germany has introduced a proposal titled “Paper on the Further Development of Public Value” aimed at curbing misinformation on social media. • The plan would require social media news feeds to prioritize "reliable" news sources, which would be identified by a government-designated “public value” label. • This initiative is significant because it allows politicians in power to indirectly determine which media outlets are deemed credible and visible to the public.

Despite government pledges, more than 20 authorities will not allow gullies, citing safety, legal and parking concernsThe energy secretary, Ed Miliband, has said charger gullies to connect electric cars parked on streets will help cut costs for drivers, yet millions of UK households may be unable to use the simple technology because their local councils will still not allow charging cables to cross the pavement.Despite government promises to “slash red tape” and make it easier to put in gullies, more than 20 local authorities appear to be holding out against them. Continue reading...

• The European Central Bank (ECB) reported in its May 2026 Financial Stability Review that asset price valuations have reached particularly high levels in the technology and AI sectors. • Euro area investors hold significant exposures to these sectors, with price/earnings ratios remaining historically elevated across multiple equity markets. • Data indicates that US equity indices are currently trading at notably higher valuation levels compared to European markets.

• The European Central Bank (ECB) is analyzing a significant surge in euro area banks' price-to-book (P/B) ratios projected for 2025. • While high valuations may indicate strong earnings power, the ECB warns they could also stem from investor over-optimism and compressed equity risk premia. • This trend matters because it poses potential risks to financial stability if expectations for economic growth or return on equity are not realized.