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The euro is on a high. The day after Mario Draghi, president of the European Central Bank, proclaimed his confidence about the eurozone’s recovery, the currency and eurozone bond yields climbed to fresh peaks. The so-called Draghi effect is fuelled by speculation that monetary stimulus could be withdrawn after he said in a speech that “deflationary forces have been replaced by reflationary ones”. The currency hit a 2017 high of $1.1366, up more than 8 per cent since January, pushing the dollar index, which measures the US currency against a basket of global peers, down 0.1 per cent. Meanwhile, investor confidence in the eurozone appears to be on the up, with bankers flagging a steady pipeline of companies planning to go public. (FT)

In the news

Hong Kong’s small-cap massacre
A mysterious stock price crash in Hong Kong on Tuesday erased $6bn in capitalisation and left the worst of the fallers down 94 per cent. One independent investor has discovered a number of connections that may explain why. (FT)

Cyber attack strikes US and Europe
Petya, a large-scale ransomware attack, hit the US and Europe overnight, targeting well-known companies including WPP, Rosneft, Merck and AP Moller-Maersk. It reached Asia on Wednesday but appears to have had a limited impact. Here are the answers to seven questions about the attack. And, in case you missed it, here is the FT’s look inside the shadow arms bazaar that fuels cyber crime. (FT)

More Qatar sanctions
A Saudi-led group of Arab countries is considering new sanctions against Qatar. The United Arab Emirates’ ambassador to Russia says the bloc may ask trading partners to choose between them or Doha. (Guardian)

UK investment sector shake-up
The UK’s markets watchdog, the Financial Conduct Authority, has proposed sweeping reforms to the country’s £7tn investment market. It aims to improve fund managers’ transparency and strengthen value for money for customers. (FT)

Attack on Venezuela’s supreme court
Gunfire and grenades rained down on the court and the interior ministry from a helicopter after it was commandeered by a police pilot. The government blamed the attack on rightwing opponents trying to stage a coup. (BBC, FT))

Toshiba delays chip-unit sale
The final stages in the sale of Toshiba’s memory chip business have been thrown into disarray after Western Digital and US private equity group KKR resubmitted their joint bid for the $18bn prize. (FT)

The day ahead

Cyprus peace talks
Greek and Turkish Cypriots are once again trying to reunify their island at talks in Switzerland. (Reuters)

Bank stress tests
The US Federal Reserve will release the final results of this year’s tests. Goldman Sachs, Morgan Stanley and State Street came within a couple of percentage points of breaching required levels in the first round. Here are four things to look out for in today’s round. (FT)

Keep up with the important business, economic and political stories in the coming days with the FT’s Week Ahead.

What we’re reading

Industry’s internet-of-things digital revolution
Big established companies such as GE and Siemens are investing billions in the industrial internet — but is it enough to compete with big tech groups and start-ups? (FT)

The origins of the populist surge
Martin Wolf on how the financial crisis not only had huge costs but damaged confidence in — and the legitimacy of — financial and policymaking elites. This opened the door to the populist surge behind Brexit and Donald Trump; inequality and joblessness will fuel and sustain it. (FT)

Is the scientific publishing business bad for science?
Imagine if the New Yorker or the Economist demanded that journalists write and edit each other’s work for free, and asked the government to foot the bill. The way to make money from a scientific article looks very similar. (Guardian)

The end of the 30-second ad
The narrative format crafted for breaks between television shows does not work online, and nobody has yet figured out what will replace it. (FT)

Sips about to go down
Are wine connoisseurs scientists or charlatans? An experiment with the Oxford and Cambridge wine-tasting teams shows the answer is not so simple. (Economist)

Video of the day

Small business and India’s new sales tax
India’s general sales tax will be introduced on July 1 but is anyone ready for it? Kiran Stacey talks to small business owners to find out. (FT)


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