Crypto News: The London Rush: Carry on to Milan

Hi, I'm Leo from Bloomberg UK's breaking news team, catching you up on this morning's business stories.

Private equity executives spooked by Labour's plans for a higher tax on carried interest — a main source of compensation — are plotting an escape to Milan.

In this highly readable piece, my colleagues report how an Italian tax-law firm is currently fielding more calls than ever from London's wealthy managers of buyout funds.

Interestingly, Paris and Frankfurt — widely seen as the European finance hubs that benefitted most from Brexit — seem to have lost some appeal over current political uncertainties. Milan, meanwhile, is emerging as a top pick for the world's wealthy seeking to take advantage of Italy's expat-friendly tax breaks and its relatively more stable government.

Now, before we get *carried* away and rename this newsletter (does La Fretta Londinese work?), we'll have to wait and see if and how many fund managers actually go through with their plans — and whether Labour, if elected, will make any concessions.

What's your take? Ping me on X, LinkedIn or drop me an email at lkehnscherpe@bloomberg.net. Oh, and do subscribe to Bloomberg.com for unlimited access to trusted business journalism on the UK, and beyond.

Speaking of buyout funds, EQT this morning succeeded in its pursuit of Keywords Studios. The video game services company agreed to a bid that values it at about £2.1 billion.

GSK will pay as much as €1.4 billion for the full rights to mRNA flu and Covid shots it was developing with CureVac, part of the British drugmaker's effort to boost its vaccine pipeline.

And London's home rental crisis is showing early signs of easing after a surge in available properties led to the joint-smallest increase in advertised rents across Britain.

It's one day (!) until the election. Labour holds a 20.4-point lead over the Tories, according to Bloomberg's polling average.

The Tories may have been handed a last minute boost after a surprise speech from Boris Johnson at a rally in Chelsea last night – his first public appearance during the campaign. The ex-PM blasted Labour and Reform UK's Nigel Farage but stopped short of directly backing Rishi Sunak. True to form he delivered some classic one liners, and some say overshadowed Sunak's own speech.

Sunak has ramped up his attacks on Labour, while Labour is expected to spend the final day of campaigning warning voters not to risk leaving Sunak still in No 10 on Friday.

— Louise Moon

A weekend of rest cannot come fast enough for those dragged across the country over the last six weeks.

Journalists following the Conservative leader had a 2.30am wake up yesterday to visit an Ocado food distribution centre in Luton. Sunak served lobby hacks McDonald's breakfasts, fitting in nicely with the current lobby diet of beige food, coffee, and of course, San Pellegrino.

Labour, meanwhile, handed pillows to exhausted Labour staff and journalists. A welcome aid for a battle-bus nap? Sadly not. Rishi Sunak's face had been printed across the case, warning voters not to wake up to five more years of the Tories.

And hacks and staffers on the Labour bus cannot boil the kettle at the same time as putting the coffee machine on because it blows the fuse — bringing a tough choice to the forefront: bland or bitter?

— Alex Wickham and Ellen Milligan

Here's your daily snap analysis from Bloomberg UK's Markets Today blog:

UK stocks, the pound and gilts have been drifting during the election campaign, struggling to find a catalyst. That's been partly because, certainly in comparison to other political backdrops in Europe, markets have been sanguine about the outcome given the lack of any radical difference in policies nor indeed much wiggle-room in the finances for the next government.

Once the vote is out of the way, however, the catalysts have the potential to be many and varied. Earnings season will get underway and traders are betting that the Bank of England will start cutting rates in August. The latter, in particular, will change the narrative more broadly for UK assets.

That's all coming after the little matter of the election and then the policy announcements which will follow. More detail on each part of the plan for the new government will get gradually priced in, be that around broader questions on taxes and trade, or more specific impacts on individual sectors like homebuilders or water companies.

Almost certainly, the period of relative calm and quiet will make way for lots of considerations investors will have to assess.

— Sam Unsted

Check Bloomberg UK's Markets Today blog for updates all day.

Abu Dhabi's original hedge fund island has become too crowded, which is why the city expanded its financial hub's jurisdiction to a neighbouring island. What is Abu Dhabi's finance hub called?

Tip: Don't think too creatively

[Yesterday's answer: "Pooh Corner" is in Bristol.]

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