Pound hits $1.30 on Brexit deal hopes

Pound advances past $1.30 for first time since May as European markets climb slightly
Traders are gearing up for another week of turbulence as Brexit political drama continues
Just do Brexit, says ex-Bank of England boss Mervyn King as City braces for volatility
Prudential completes demerger of M&G
Just Eat revenues rise but it warns of consumer spending weakness
Smith & Nephew changes boss for second time in 18 months
Purplebricks new boss confesses we really took our eye off the ball in the UK
Wrap-up: FTSE ekes out gains despite pound pressure
Pound hits $1.30 on Brexit deal hopes

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Markets are closed and it was a decent day for European stocks, which almost all ended in the green.
Even the FTSE 100 managed to grab some gains, despite pressure from pound (which, when strong, tends to hit the earnings of international on the blue-chip index).
In the end, markets had little to react to on the Brexit front, but continued gains for sterling and on the FTSE 250 suggest that there is still a feeling among traders that a no-deal exit has been avoided.
Thats all for today. Ill be back tomorrow, when MPs will begin to vote on the statutory implements needed to implement Boris Johnsons Withdrawal Agreement.
More importantly (for this live blog, at least), we also have a slew of interest corporates reporting. See you then!
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Pound holds just under $1.30 as London markets close
Markets closed in London a few minutes ago, so Ill bring you a wrap-up of where things ended up shortly.
The pound has been unable to keep its grip on $1.30, so unless theres a substantial movement in the Commons (where they are deep in discussions currently), it is unlikely anything will substantially shake it from here. Plenty of time left for that though...
Woodford investors wont get Brexit bounce
Pound hits $1.30 on Brexit deal hopes

Investors in Neil Woodford's failed funds had been hoping a conclusion to Brexit would boost the value of their holdings

Jeff Gilbert
Investors in Neil Woodfords failed Equity Income fund could be denied the opportunity to benefit from any recovery in the stock market because of a change in strategy by the fund's new manager, reports Telegraph Moneys Richard Evans.
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He reports:

The funds existing quoted holdings are to be sold and the proceeds reinvested in a mixture of index-tracking instruments and cash.
Depending on the levels of cash chosen by the new managers at BlackRock, which was appointed when the funds administrator, Link, sacked Mr Woodford, investors may not get the full benefits of any rise in the markets between now and the return of the first money to savers, due in January.
Read more:Wounded Woodford investors now expected to miss out on Brexit bounce
Woodford reaction puff
Bercow: Motion will no be debated today
Over in the Commons, Speaker John Bercow has said it would berepetitive and disorderly to hold another meaningful vote today, and said it will not be allowed. The pound is fairly unaffected, still just under $1.30.
Bercow says govt failed to show "proper respect" to Commons cos it tried to bring back the same issue just 49 hours after MPs had voted on it. Paul Waugh (@paulwaugh) October 21, 2019
Javid: No Brexit economic assessment coming, says democracy cannot be measured in spreadsheets
Chancellor Sajid Javid has apparently rejected calls for the Government to disclose its economic assessments of the possible Brexit models.
Writing to the Treasury Select Committee, he refused to commit to disclosing the Treasurys numbers, despite repeated requests to do so. In his letter, he said:

My last point is to say that trust in democracy and bringing an end to the division that has characterised this [Brexit] debate over the past three years, [sic] is something that cannot be measured solely through spreadsheets or impact assessments.
Sajid Javid responds to @CommonsTreasury request for economic impact assessment of the latest Brexit deal.

In short, he doesn't commit to an economic analysis. William James (@WJames_Reuters) October 21, 2019
Rest assured I will continue to utilise spreadsheets heavily on this blog, despite the Chancellors claims.
Experian shares slip as Bottomline merger faces watchdog probe
Shares in consumer credit reporting company Experian are down slightly today, after the Competition and Markets Authority said it would begin a fully-fledged, phase 2 probe into its plans to merge with Bottomline Technologies.
Bottomline had been given the opportunity to make changes to avoid an in-depth probe, but failed to reassure the watchdog.
Northern Irish firms will have to complete export declaration forms to send goods to rest of UK under Johnson deal
Brexit Secretary Stephen Barclay was giving testimony to the House of Lords EU Committee earlier. Including among the discussion was this point, highlighted by Labour peer Stewart Wood.
This revelation confirms two things.

1. The GB-NI border inside the UK will, from a commercial point of view, feel like a real border.

2. The Govt is trying to push through a vote on the deal before the text of the Withdrawal Bill is seen for a reason: the contents are alarming Stewart Wood (@StewartWood) October 21, 2019
Awkwardly enough, Baron Wood adds, the Commons leader Jacob Rees-Mogg backed a law aimed at preventingthis exact outcome:
A reminder, given Ministers now concede Northern Irish firms will have to complete export declaration paperwork to trade inside their own country with Great Britain, what lengths Jacob Rees-Mogg went to in 2018 to prevent this outcome. Heres his amendment that became law (S55). Stewart Wood (@StewartWood) October 21, 2019
Politicos Eleni Courea adds:
To clarify: Exit summary declarations are separate from customs declarations. According to @EU_Commission, they are req when goods leave the EU customs territory: "where a customs declaration or a reexport declaration is not required, an exit summary declaration has to be lodged" Eleni Courea (@EleniCourea) October 21, 2019
US stocks advance on trade war hopes
Pound hits $1.30 on Brexit deal hopes

Wall Street has opened slightly higher

US shares have advanced at open, with the benchmark S&P 500 up about 0.45pc. The Dow Jones Industrial Average is flat, while the tech-heavy Nasdaq, which is seen as especially exposed to trade relief, is up 0.5pc.
Watchstone boosted as legal battle ends
Watchstone, the insurance firm formerly known as Quindell, will receive a major cash boost after it settled a?637m claim against it for just ?11m, my colleague Michael ODwyer writes:

The ?11m sum will be taken from a ?50m pot of cash that was being held in escrow until the dispute was resolved.
The agreement will release ?39m plus interest to Watchstone that had been tied up in a closed account pending the outcome of the case. A nine-week High Court trial had been due to start on Monday.
Read more here: Watchstone soars after ending legal battle with Slater & Gordon
Reckitt announces new chief financial officer
Pound hits $1.30 on Brexit deal hopes

A selection of products produced by Reckitt Benckiser

Stephen Hird/REUTERS
Reckitt Benckiser announced Jeff Carr as its new chief financial officer this morning, to replace Adrian Hennah, who will retire after seven years in the role.
Carrfrom his current role as CFO at food retailer Ahold Delhaize, where he has been since 2011.
Laxman Narisimhan, the consumer goods companys chief executive, said:

Jeff has a record of transformational strategic and operational leadership, consistent performance delivery, strong capital allocation discipline and with building strong teams; all of which lead to long-term shareholder value creation.

The companys shares are down about 1.5pc currently:
European shares extend gains
Some solid ground is being made on Europes stock markets today, with Brexit still on ice and signs of a possible thaw in US-Chinatensions. Wall Street is set to rise slightly when it opens in just under ten minutestime.
Pound hits $1.30 on Brexit deal hopes

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Rank Group rises after analyst says firm has significant momentum
Pound hits $1.30 on Brexit deal hopes

Rank Group operates Mecca Bingo

Jeff Gilbert
Rank Group one ofthe biggest risers on the FTSE 250 today (behind Capital & Counties), after some positive analyst commentary.
Shore Capitals Greg Johnson gave the company, which operates Grosvenor Casinos and Mecca Bingo, had been through a rewarding six months, adding that its transformation planis delivering significant momentum, that was highlighted by its first-quarter trading statement last month.
Shares are up just over 6pc currently:
Full report: Nick Candy confirms interest inCapital & Counties
My colleague Vinjeru Mkandawire has a full report on developer Nick Candys under-consideration bid for landlord Capital & Counties. She writes:

A possible bid comes as the company prepares to sell most of its Earls Court development, which is jointly owned with Transport For London.
Capco unveiled plans last year toseparate the troubled residential asset from its Covent Garden estate.
Earls Court has lost half its value over the past four years amid a downturn in Londons luxury housing market, uncertainty surrounding Brexit and rows with Hammersmith & Fulham council.
Read more here:Nick Candy confirms takeover interest inCapital & Counties
Brexit: Whats coming up?
Its another crunch/crisis/make-or-break day on the Brexit front, as the Government tries to push for a meaningful vote on Boris Johnsons Brexit deal.
The deal, which would see Northern Ireland aligned with southern Ireland on customs, and require a customs barrier in the Irish sea, was not properly put the test of a vote on Saturday.
What is the EU really thinking about the Brexit extension and MPs messing about in Parliament?
Analysis by the Telegraph suggests the PM could eke a narrow victory, but it would be close:
Meaningful vote
Speaker John Bercow will decide whether to allow a second vote on the deal at around 3:30pm. As things stand, he is unlikely to do so: the vote would be too similar to the one on Saturday, so it could be dismissed as an attempt to test the same proposals without the Letwin Amendment attached.
The Labour Party hopes to attached an amendment calling for a customs union amendment, which would bring the entire UK into a permanent and comprehensive UK-wide customs union with the EU (if the wording of a similar attempt earlier this year is followed).
DUP threaten to unite with Labour to back customs union amendment that would bring down Brexit deal
Again, that could be incredibly close, and swing entirely on how the Liberal Democrats and DUP decide to vote. If the amendment were attached, it is quite possible the Government would pull the entire vote.
Customs union vote
Sterling on track for best month since financial crisis
The pound is back over $1.30 once again, keeping it on track for its best month since 2009 (when the financial crisis was causing major money-market swings).
Optimism around foreign exchange traders, which has been high for nearly a fortnight on hopes a no-deal Brexit can be avoided, appears to have returned today: though it looks like, for now, $1.30 is about as high as anyone wants to push it.
Analysts have predicted the currency could jump to as high as $1.40 if a deal is reached.
Heres a reminder of where things stood at the end of last week:Pound rally hits a wall on volatile day of trading as Brexit deal is reached
Glaxo gets windfall from vaccines sale
GlaxoSmithKline is set to rake in more than ?800m from the sale of two travel vaccines to Danish biotechnology firm Bavarian Nordic, my colleague Hannah Uttley reports. She writes:

Offloading rabies drug Rabipur and Encepur, a vaccine for viral infection tick-borne encephalitis, will give the FTSE 100 drugmaker an upfront payment of 301m (?254m) and as much as 495min additional payments if the drugs meet certain targets.
The remainder will comefrom the sale of inventory over the duration of the supply arrangement.
Chief executive Emma Walmsley has been pushing to simplify GSKs business by spinning off and selling divisions since taking the reins in 2017.
Read more here:Glaxo set for ?800m windfall from travel vaccines sale
Net positioning against the pound has fallen since early August
Pound hits $1.30 on Brexit deal hopes

The pound has been on a wild rise since Boris Johnson become Prime Minister
With the pound at a five-month high, traders who had been short-selling the currency might have had their fingers burnt over the past couple of months.
In this form, foreign exchange shorting involves buying and selling futures positions, essentially bets on how the currency will move.
Net positioning on sterling has been downbeat for most of the past five years, hitting its highest level in 2017, and nearly reaching that point again in early August. The data show investors have cut their bets since then, in line with the pounds resurgence.
This chart shows the value of the pound against the total net futures positions: so the more negative the number of positions, the more bearish the outlook for traders.
Archway landlord told to offer rent guarantees
Pound hits $1.30 on Brexit deal hopes

A number of small businesses after based within railway arches

Heathcliff O'Malley
Britains largest small business landlord has been urged to give guarantees over rents to thousands of retailers in railway arches after the release of a tenants' charter on Monday failed to allay fears, my colleague OliverGill reports. He writes:

The Arch Company, a joint venture between investment managers Blackstone and Telereal Trillium, has been told there is a lot more to do by representatives of about 5,000 businesses amid concerns that big rent increases could force them out of business.
The agreement comes after Network Rail bundled up and sold the arches in a deal worth ?1.5bn. As part of the deal the two investment firms committed to a tenants-first charter.
Read more here:Charter for railway arches tenants fails to allay rent rise fears
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Bundesbank: German recession unlikely to be deep
Germanys Bundesbank has said it doesnt expect the country to enter a deep recession, but acknowledged Europes largest economy most likely contracted again in the second quarter.
The countrys economy shrunk by 0.1pc in the second quarter. If it slipped again over July, August and September, it will have entered a technical recession.
German GDP
In its latest monthly report, the central bank said:

German economic output could have shrunk slightly again in the third quarter of 2019. A recession in the sense of a significant, broader and long-lasting decline in output with underutilised capacity is currently not in view.
Where will the pound move from here?
With the pound now coasting along just below its five-month high of $1.30, money markets will be closely scrutinising events unfolding in Westminster.
In their Brexit briefing today, UBS analysts say:

Parliaments rejection of a deal may see the pound giving back some of its recent gains, but as investors assess the prospect of a General Election, we expect GBPUSD to settle in a 1.26 to 1.32 range. The coming days will be important for assessing sterling's upside potential beyond that range.

Heres how that would look in the longer term:
They believe a no-deal Brexitwould pull the currency down as low as $1.12, but said the chances of such an outcome are lower than they have been for many months.
Full report: Smith & Nephew boss quits after pay row
Pound hits $1.30 on Brexit deal hopes

Namal Nawana is steping down as chief executive of Smith & Nephew

Heres more onNamal Nawanas prompt exit from Smith & Nephew. My colleague Michael ODwyer reports:

Mr Nawana will step down as chief executive by mutual agreement on 31 October 2019 to pursue other opportunities outside of the UK, the FTSE 100 company said.
It was reported in June that Smith & Nephew,which can trace its roots back to 1896 at a pharmacy in Hull, was exploring switching its listing to the US, where there are fewer restrictions onexecutive pay.
Read more here:Smith & Nephew boss departs in wake of pay row
CapCo: No approach yet from Candy Ventures
Pound hits $1.30 on Brexit deal hopes

CapCo owns most of the Covent Garden area

Shomos Uddin/Getty
Capital & Counties has noted the announcement of a potential offer under considerationby Candy Ventures (see 8:47am update), but said it had not yet been approached by any party.
In a statement, CapCo said:

The Board of Capco has noted the announcement by Candy Ventures that it is in the early stages of considering a possible cash offer for thecompany. At this stage there has been no approach made to the company by Candy Ventures or any other party.
The Board has full confidence in the companys strategy and management to continue to deliver significant shareholder value. The company is well advanced in executing the separation of its two prime central London estates Covent Garden and Earls Court.
A $19 trillion global debt bubble may be about to burst
Pound hits $1.30 on Brexit deal hopes

Economists are presaging another global financial crisis
A global corporate debt time-bomb is starting to cause concern at top institutions, my colleague Tom Rees reports. He writes:

The International Monetary Fund warned on Wednesday that a$19 trillion debt pilecould be ready to blow in the next recession.
It warned in its Global Financial Stability Report that debt-at-risk money owed by companies that cannot cover interest payments with earnings would surge to 40pc of total corporate debt in eight major economies, including the UK.
The lender of last resort was stress-testing a recession half as severe as the last, but predicted that debt-to-risk levels would surpass those seen in the financial crisis.
Riskiness of global lending
Sohow did things get so bad? Read more here:Is the global $19 trillion debt timebomb on the brink of blowing up?
Thomson Reuters says succession planning just good governance
Pound hits $1.30 on Brexit deal hopes

Thomson Reuters Chief Executive Jim Smith

Chris Helgren/REUTERS
Thomson Reuters, the global business information service, had said it is fully supportive of its chief executive Jim Smith, after the Financial Times reported the company had begun searching for a successor.
The FT said search firm Spencer Stuart had been appointed to draw up a shortlist of potential candidates, with a source telling the paper that the headhunting process was still at an early stage.
In a statement released late last night, Thomson Reuters said:

The Board of Directors considers succession planning and benchmarking for all key executives a matter of good governance. Hence, the Board and management continuously assess internal candidates and work with search firms to scan the external market.

Its chairman, David Thomson, added:

The Board is fully supportive of Jim Smith and his management team.We are aligned on strategy and direction. And, we are working closely with management to achieve continued success for years to come.
Business Briefing Newsletter REFERRAL (Article)
Petra Diamonds on track for production target, but revenues slump
Pound hits $1.30 on Brexit deal hopes

Petra operates theCullinan mine in South Africa

Philip Mostert/Handout
Small-cap miner Petra Diamonds reported a 23pc decline in revenues in its first quarter results, which itblamed on lower diamond prices and volumes, as well as a poorer product mix from itsFinsch, Williamson and Koffiefontein sites.
Despite the setbacks, it said it remained on track to hit itsproduction targets.
Peel Hunt analyst Peter Mallin-Jonescalled the figures a good start, adding:

Adjusting for the seasonal inventory build, indications are that even at present prices, the group is roughly cash flow neutral, a more positive position than we feel the market has given it credit for.

Richard Duffy, Petras chief executive, said:

We have reported another quarter of solid operational performance putting us on track to achieve our full year production target of ca. 3.8 Mcts. The diamond market remains challenging, however we will benefit from the sale of the exceptional 20.08 carat Type II blue diamond from Cullinan recovered at the end of the quarter.

The company said its Project 2022 review, aimed at increasing its cash flow, was progressing well.
Its shares are currently down slightly:
Jefferies: Micro Focus could still be a good M&A target
Following an apparent confirmation that Canadian software firm Open Text will not be making a swoop for Micro Focus, analysts at Jefferies say the latter might still be a good target for an acquisition by a large firm. They write:

We believe that the business could be of interest to other mature infrastructure software vendors or to financial sponsors, which would be consistent with the company's strategic review and goal of maximizing shareholder returns.
Pound hovers near $1.30 as it loses some lift
The pound has been steady climbing since 8am, and is now up 0.7pc so far today (0.6pc on Fridays 6pm fix price). It touched $1.30 a few minutes ago its highest level since May.
Heres a reminder of how much the currency has climbed in the past two months:
Micro Focus shares drop after takeover hopes fade
Pound hits $1.30 on Brexit deal hopes

Micro Focus shares fell in August after it warned over sales

Michael Nagle/Bloomberg
Shares in software firm Micro Focus are down more than 7pc currently, after it dismissed reports that Canadian rival Open Text was weighing up a takeover bid.
Bloomberg reported Open Text was mulling an offer on Friday, but the company later said it was not considering a potential acquisition.
In an update to the City today, Micro Focus said it:

...notes the announcement by Open Text Corporation confirming that it is not considering a potential acquisition of Micro Focus.
Micro Focus share price collapsed in late August after it warned over sales.
Heres more:Micro Focus: The inside story on how one of Britain's biggest tech companies fell into turmoil
Pound rises as London takes the reins
The pound, which has spent most of the morning slightly downbeat after some initial volatility as money markets opened in Oceania and east Asia, is now slightly up on the day at around $1.296, having risen steadily since London traders arrived at their desks just over an hour ago:
Combined with a slightly advance in the Brexit-exposed FTSE 250, that suggests traders are fairly upbeat about the next potential moves in Britain exit from the European Union.
You can follow the latest from the Commons here:Brexit deal latest news: Boris Johnson braced for showdown with John Bercow over second attempt at meaningful vote
Political Correspondent Harry Yorke reports:

Boris Johnson is braced for a showdown with John Bercow amid fears that the Commons speaker could reject a fresh attempt to hold a meaningful vote on the Brexit deal.
The Speaker will this afternoon rule whether a second attempt to pass the Government's motion can go ahead following the aborted attempt on Saturday.
However, he is expected to rule that the same motion cannot be moved again, meaning that Mr Johnson will have no choice but to begin trying to push through the legislation required for the UK to leave the EU.
Why big banks are chasing fintechs
Pound hits $1.30 on Brexit deal hopes

The fintech sector could soon become overcrowded if big banks enter the fray
My colleagues James Cook and Lucy Burton have taken a close look at the fintech banking sector, where upstarts with apps and brightly-coloured cards are disrupting a space long occupied by several giant lenders.
They report:

The rise of banking apps such as Monzo, Revolut and Starling Bank have caused traditional lenders (dismissively referred to as incumbents by the start-ups keen to displace them) to take alarm.
With Monzo already amassing threemillioncustomers in the UK andRevolut gaining eight millionaround the world, traditional banks are now plotting their fight back against the upstarts.

So, who will win out the fleet-footed challengers, or the big banks?
Read more to find out:Big banks couldnt beat Monzo so they are building their own instead
Fintech | The technology transforming finance
CapCo shares jump as Candy confirms offer
Pound hits $1.30 on Brexit deal hopes

Property developer Nick Candy

Simon Dawson/Bloomberg
Shares inCapital & Counties are up around 7pc currently, after a consortium led by property developer Nick Candy confirmed it is considering a cash offer for the FTSE 250 business.
Mr Candy has held talks with Saudi Arabias Public Investment Fund over financing the deal to take over the property development company, the Sunday Times reported.
CapCo said:

There can be no certainty that any offer will be forthcoming, nor as to the terms of any such offer.

The firm, which was demerged from the group that became Intu Properties in 2010, is focused on sites in West Londonincluding around Covent Garden and Earls Court. Its market cap is about?2.3bn according to Bloomberg data, with shares around half of where they stood at their 2015 peak.
Smith & Nephew and Just Eat shares far
Shares in Smith & Nephew and Just Eat are both down this morning.
The former said it would bring in a new chief executive for the second time in 18 months, which Shore Capital analyst Adam Barker said would be taken negatively.
Meanwhile, Just Eat shares are down about 4pc after it posted higher sales but warned that softer consumer spending could hurt its results.
Prudential shares are down more than 10pc, with the drop prompted by its demerger of M&G.
European equities advance at open
European shares have opened trading slightly higher, with hopes that the US-China trade war may be nearing a resolution offsetting continued Brexit uncertainty.
Chinese Vice President Liu He saidsubstantial progress in many aspects had been made during talks over trade, laying the ground for a phase one agreement between the two warring economies.
Pound hits $1.30 on Brexit deal hopes

Bloomberg TV
Prudential completes demerger of M&G
Pound hits $1.30 on Brexit deal hopes

Britain's largest insurer spent ?350m to split from M&G

Stephen Hird/REUTERS
Prudential has completed its demerger of M&G, formerly itsUK and European savings and insurance business and fund management arm.
In an announcement this morning, the Pru said M&G shares have been admitted to the London Stock Exchange.
My colleague Harriet Russell reported last month:

Investors in Prudential will be entitled to one new share in M&G as part of the split.
There are no plans for the separate company to raise new money when it lists, nor does it plan to issue any guidance around what the shares might be worth.
Read more here:Investors set for ?1.3bn windfall as Prudential confirms date for M&G split
Paul Manduca, Chairman of Prudential, said:

This has been a complex transaction and I would like to thank everyone for their hard work. The Board believes the demerger will help Prudential and M&G to become more closely aligned to the interests of their customers and shareholders.

He added that Prudentialwishes M&G every success in its new life as an independent business.
FTSE 100 climbs slightly
The FTSE 100 has advanced cautiously at open, and is just up 0.2pc at 7,164.55.
Smith & Nephew sheds second boss in 18 months
Pound hits $1.30 on Brexit deal hopes

Smith & Nephew makes instruments for wound management and surgery

Michael Buholzer/REUTERS
Medical equipment company Smith & Nephew has announced its chief executive Namal Nawana will step down on November 1 after about a year and a half, to be replaced by Roland Diggerman.
Mr Nawana will provide advice on the transition until the end of the year. He only joined the firm in May 2018.
Smith & Nephew said the decision has been taken by mutual agreement.
Mr Nawana said:

There is clear momentum behind our strategy laid out last year, underlined by the Company's performancegenerated by our teamduring 2019. I am proud to be leaving Smith+Nephew in a strong position for the next phase of its development.

Mr Diggerman, who has spent his career in medical technology, will receive a base salary of just over ?1m a year, and be eligible for bonuses: annual Cash Incentive Plan opportunity of 150pcof base salary, annual Equity Incentive Plan opportunity of up to 65pc of base salary and Performance Share Plan awards of up to 190pc of base salary.

The company added it still sees positive momentum across the business.
Just Eat sales jump
Pound hits $1.30 on Brexit deal hopes

Just Eat is preparing for a merger with Dutch rival

Just Eat has reported a 25pc increase in revenues to ?248m and 16pc rise in sales as it prepares for a merger with rival food delivery firm
The FTSE 100-listed company said its UK sales has increased by 8pc as demands for its deliveries increased. However, it said broadly softer consumer spending backdrop and changing consumer preferences had both produced pressure.
Its board restated guidance for the full year, ahead of a annual general meeting vote in December when investors will be given the chance to vote on its merger plans.
Peter Duffy, its interim chief executive, said:

Our UK marketplace business is a strong and clear leader; however, we are seeinga structural shift, with increasing demand on our platform from customers for broader cuisine choice and more meal occasions, led by quick service restaurant chains.
Heres more on the takeover plans:US hedge fund attempts to block Just Eat ?9bn merger
Food delivery - Restaurants signed up in the UK
Agenda: Expect turbulent trading, analysts warn
Pound hits $1.30 on Brexit deal hopes

A aerial view of anti-Brexit demonstrators in London on Saturday

Good morning. City traders are bracing themselves for a bumpy week after MPs on Saturday delayed approval of Boris Johnsons Brexit deal, introducing what analysts said werelots of possible points of turbulence for the market.
Sterling is expected to take a hit this morning, wiping out some of the gains over the past week that took it close to $1.30.
Traders will also be looking ahead to tomorrow when Mr Johnson is expected to force another vote on his Brexit deal.

5 things to start your day

1) Mervyn King, the former Governor of the Bank of England, warned yesterday that Brexit has dragged on far too long and was preventing Government from addressing underlying issues within the UK economy.
Speaking at the International Monetary Funds annual meeting in Washington, Lord Kingsaid Brexit was getting in the way of tackling issues besetting the global economy, which is at risk of becoming engulfed in a great stagnation of low growth while low interest rates were encouraging high levels of debt.
2) US private equity firmAdventInternational is close to committing to guarantees with the Government to ensure its ?4bn takeover of Cobham wins ministers approval.
The undertaking come as the deadline for an investigation into the security implications about the sale of the aerospace and defence company nears.
Cobham takeover timeline
3) The American private equity owner of the Royal familys IT supplier is lining up a sale of the business, which has offered tailored services to the Queen for nearly a decade.
Pulsant is being put up for sale by buyout firm Oak Hill Capital Partners, in a deal that could fetch bids in the region of ?340m, City sources said.
4) Figures released from Rightmove today have suggested theseasonal bounce in Britain's house prices failed to materialise, as thousands of potential sellersheld off putting their homes on the market.
For more on what's going on in the market, read our piece on why the Brexit deal will reverse Britains property market slump here.
House prices growth plummeting
5) Meanwhile, in Europe, regulators areconsideringrelaxing self-driving laws under pressure from Tesla.Rulesthat limit the abilities of Autopilot, its driver-assist system, could be eased under proposals tabled by the company last month.

What happened overnight

The pound fell 0.7pcto $1.2897 after the political impasse over Brexit continued. Further volatility is expected this week as parliament gears up for a series of further votes and amendments. We'll keep you up to speed with all the latest twists and turns and what they mean for markets.
These are the main moves in markets overnight:
Japans Topix index added 0.4pc at the 3 p.m. close in Tokyo
Hong Kongs Hang Seng Index was flat
The Shanghai Composite slipped 0.4pc
Futures on the S&P 500 Index rose 0.1pc after the index lost 0.4pc on Friday

Coming up today

Its expected to be a quiet start to the week on the corporate reporting front, though we will get markets reactions to the latest Brexit twists.
Trading statement:Petra Diamonds, Trifast
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