The main market story has centred on investor reaction to Brexit talks after Boris Johnson urged the UK to prepare for no deal.
While EU counterparts suggested negotiations would continue next week, a spokesperson for the UK prime minister essentially said the EU shouldn’t bother unless the bloc fundamentally changes its stance.
t’s been a while since Brexit has had such a rousing effect on markets. But the back and forth news first sent the pound tumbling -0.3% to 1.2869 before it recovered to 0.1% at 1.2926, before it fell again.
But sterling’s weakness helped prop up the FTSE 100 which was up nearly 1.4%.
US stocks also opened in positive territory, thanks to Covid vaccine hopes and better than expected retail sales data for September. That was despite disappointing industrial production figures.
Meanwhile, in corporate news, British Airways was fined £20m for poor customer data handling that the ICO said contributed to the security breach in autumn 2018.
John Lewis also committed £1bn to accelerate its online business and transform its shops over the next five years. It also said it’s aiming to build homes for rent at 20 sites it owns around the country as part of its new strategy to rebuild profits to £400m within five years.
Pret a Manger announced it would cut 400 jobs and close six more outlets in London after a slowdown in sales growth since September as coronavirus infection rates increased in the UK.
That’s all from us today. Thank you for reading and have a safe weekend. -KM
US stocks are climbing in part due to vaccine hopes, after pharma giant Pfizer said it may apply for emergency use of its Covid vaccine as early as November.
Pfizer chairman and chief executive Albert Bourla said:
Assuming positive data, Pfizer will apply for Emergency Authorization Use in the U.S. soon after the safety milestone is achieved in the third week of November.
All the data contained in our U.S. application would be reviewed not only by the FDA’s own scientists but also by an external panel of independent experts at a publicly held meeting convened by the agency.
Pound drops again after UK spokesman says EU talks are over
And yet again, the pound has tumbles to around-0.3% versus the dollar to 1.2881 after a spokesman for Boris Johnson reportedly said trade talks with the EU are over unless the bloc fundamentally changes its stance.
Reuters reports the spokesman as saying:
The trade talks are over: the EU have effectively ended them by saying that they do not want to change their negotiating positions.
They added:
There is no point in trade talks if the EU does not change its position. The EU effectively ended the trade talks yesterday. Only if the EU fundamentally changes its positions, will it be worth talking.
The spokesman said the EU’s chief negotiator Michel Barnier should only come to London next week if he is prepared to discuss all the issues on the basis of a legal text or is willing to discuss practicalities on travel and haulage.
It’s easy to see why sterling is struggling to settle this afternoon, given that the UK’s ‘no-deal is looming’ statement is being interpreted as a sign of concession by others.
The latest comments from EU leaders comes from Dutch prime minister Mark Rutte. Reuters reports Rutte saying that he interprets Boris Johnson’s comments as a sign that Britain is prepared to compromise.
Sterling recovers as EU raises hopes of Brexit deal
Boris Johnson’s dismal Brexit update crucially did not rule out further talks with the EU, and markets are now taking cues from European leaders who said negotiations would continue in London next week.
It’s been a roller coaster ride for the pound this afternoon. After dropping more than 0.3% following Johnson’s comments, it’s now back in positive territory and is nearly up 0.1% at 1.2926.
Pret a Manger is to cut 400 jobs and close six more outlets in London after a slowdown in sales growth since September as coronavirus infection rates increased in the UK.
The coffee and sandwich shop chain has struggled to deal with the slump in commuter numbers since the pandemic struck, with branches in the City of London particularly hard hit.
The latest redundancies come on top of nearly 2,900 job cuts and 30 shop closures announced in August.
Pret, which employs 6,500 people in the UK, where it operates 389 shops, said it would be making a “number of adjustments” within the business to reduce jobs as well as closing the additional outlets.
Clare Clough, the UK managing director of Pret, said:
It’s absolutely right that we take steps to stop the spread of the virus and tackle the new wave of infections. Sadly, the result of the rise in infections and the necessary shift in public health guidance mean that our recovery has slowed.
We’ve said all along that it’s up to Pret to decide our own future and that we must adapt to the new situation we find ourselves in. That’s why we have to make these further changes as we continue to transform our business model and prepare for the six months ahead.
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