Yahoo Finance Pound advances as Supreme Court declares prorogation ‘void’ — latest news
Supreme Court makes unanimous judgement that prorogation of Parliament was “unlawful”
Court verdict sends pound spiking, but gains quickly pared back
European stocks fairly flat after blow from poor economic news on Monday
Thomas Cook boss under fire as Andrea Leadsom announces inquiry into travel giant’s collapse
Matthew Lynn: Thomas Cook’s demise is painful, but the truth is it will quickly be forgotten
Marks & Spencer loses yet another director
Yet another top boss has exited Marks & Spencer, as the retailer — which was kicked out of the FTSE 100 this week — struggles to keep its top team in place. Laura Onita reports:
Gordon Mowat, who is head of supply chain and logistics for the firm's troubled clothing and home arm, has been pushed out after two years in the role.
Mr Mowat is to be replaced for now by chief executive Steve Rowe's executive assistant Stephen Fitzgerald.
Read more here: Exodus at Marks & Spencer continues as another boss is ousted
Pound breaks $1.25 as dollar weakens
The US dollar has weakened in the past few minutes, helping tip the pound up to its highest level of the day — currently around $1.25.
USD on the back foot after the poor consumer confidence reading with future expectations a particular concern. GBPUSD > 1.25 EURUSD >1.10
— David Cheetham, CFA (@DavidCheetham3) September 24, 2019
The dollar is weakening in the aftermath of data that showed US consumer confidence slipped from 134.8 to 125.1, its lowest level since June.
FTSE dragging its feet as European and US stock indices grab gains
Over on Wall Street, where trading has been underway for just over half an hour, things are looking upbeat — putting the benchmark S&P back on track to reach a new record high later this week (3,025.86 is the score to beat).
Meanwhile, in Europe, pressure from miners (see 2:19pm update) has put the FTSE firmly at the bottom of the pile. It is currently trailing most of its continental rivals by about 2pc so far this month.
Round-up: VW bosses faces charges, factories brace for production slump, plus: Ben Marlow on Metro Bank’s latest headache
Here are two more stories from this afternoon:
Factories brace for biggest production slump in a decade: Pre-Brexit preparations failed to boost factory order books in September as manufacturers brace for the biggest production slump in a decade.
VW bosses face criminal charges as ‘dieselgate’ returns to haunt German car giant: “Dieselgate” has come back to haunt Volkswagen with the car giant’s chief executive and chairman charged with market manipulation by German prosecutors.
And here’s our Chief City Commentator Ben Marlow on Metro Bank:
The bank has been forced to scrap a crucial £200m bond issue after failing to drum up sufficient interest, sending its shares tumbling by up to 17pc to a new low.
A further slight dent and Metro will be come a fully signed-member of the dubious “90pc Club” companies whose shares have fallen 90pc.
Sign up to Ben’s newsletter to get the inside scoop on the City each day:
Full report: Javid run out of wiggle room as student loans blow up borrowing figures
Deputy economics editor Tim Wallace has a full report on this morning’s public sector borrowing news. He writes:
The Government borrowed almost £18bn more than previously recognised last year as new calculations on student loans, corporation tax and public sector pensions showed the deficit was 75pc bigger than first thought.
It puts the Government in a tight spot as it tries to spend more money while staying within the borrowing rules — even as the calculations shift around it, narrowing the Chancellor’s room for manoeuvre.
Market movers: Who’s up and who’s down?
Thomas Cook rival are feeling the benefit of the the tour operator’s collapse for a second day, as London-listed miners fall after Chain’s central bank downplayed the prospects for economic stimulation.
Tui, Thomas Cook’s major rival, is the biggest blue-chip riser, soaring for a second day after suggesting its course remains steady despite the fate of its competitor. Barclays analysts said they “remain cautious” about the stock, but added:
Upcoming catalysts could provide an opportunity to turn more positive, including a Brexit outcome, end of the 737 MAX grounding and evidence of market share gains from TCG's liquidation, albeit all timings are unknown.
Shares are currently up more than 6pc:
Similarly benefiting is British AIrways-owner IAG, which is sitting pretty at nearly 2pc up.
At the other end of the FTSE 100’s movers, several heavyweight miners are producing a lot of drag, after Chinese central bank governor Yi Gang said the country isn’t in a rush to provide monetary stimulus.
“We are not in a rush to roll out massive rate cuts or QE like some other central banks,” Yi said at a briefing in Beijing.
RBC analyst Tyler Broda said the mining sector was suffering from falling commodity prices. He said:
Slowing global growth rates, central bank easing and falling manufacturing PMIs are causing commodity prices to come under pressure. Rising supplies and structurally challenging conditions facing Chinese steel the are likely to continue to place pressure on the sector's leading revenue driver; iron ore.
Meanwhile, BHP yesterday pushed members of a key coal industry group to focus on ways they can cut down emissions.
Evraz, BHP, Rio Tinto, Anglo American, Antofagasta, Fresnillo and Glencore are all off currently, with Evraz the worst performer.
On the FTSE 250, AG Barr is the biggest climber — up 4.4pc despite profits falling at the Irn Bru-maker. Liberum analysts took a neutral sentiment on the stock, leaving it as a ‘gold’, but said:
AG Barr’s cash-generative business and healthy balance sheet enable the group to invest in its brands, route to market, innovation, and bolt-on M&A.
Thomas Cook rivals accused of price gouging
Swing the focus back to the week’s other big story for a moment: Thomas Cook customers with cancelled trips have accused rival holiday providers of unfairly profiting by raising their prices, report Sam Barker. He writes:
Around 600,000 Thomas Cook holidaymakers have been left strandedafter the company went into liquidation on Sunday. All future trips have been cancelled.
But those trying to find alternative holidays have found the costs increased dramatically.
Read more here: Holiday prices soar for Thomas Cook customers trying to rebook
UK is still ‘untradeable’ despite Court ruling
Reacting to the Supreme Court’s ruling, asset manager GAM’s Charles Hepwroth said:
The PM could resign — this is unlikely — or face a vote of no confidence. A general election won’t be called until after Halloween and so the government now must either get a deal before then or agree to an extension. Bottom line — nothing much has changed, the UK is still untradeable.
The Economist Intelligence Unit’s Matthew Oxenford adds:
A returned parliament, scrutinizing and undermining the government at every turn, but refusing to bring it down entirely is an unsustainable proposition, but one that the opposition wants to sustain for at least another month.
Follow the latest updates here: Boris Johnson hits back at Supreme Court ruling saying people want to ‘frustrate Brexit’ and ‘stop this country coming out of the EU’
Full report: FRC may join in on Thomas Cook probes
Here’s my colleague Harriet Russell with the full details on accountancy watchdog the FRC’s Thomas Cook statement:
The Financial Reporting Council, which is responsible for inspecting the quality of audit work, said it would work with the Insolvency Service to dig into potential audit failings that may have contributed to the company’s collapse.
An FRC spokesperson said: “In light of recent developments at Thomas Cook we are considering whether there is any case for investigation and enforcement action as a matter of urgency and in cooperation with the Insolvency Service.”
Audit giant EY signed off Thomas Cook accounts last year after taking over from fellow Big Four accounting firm PwC in 2017.
Read more here: City watchdog joins chorus calling for Thomas Cook investigation
Pound climbs steadily
The pound has shaken off its post-verdict wobbles, and is now re-approaching the levels it hit as Baroness Hale announced the Supreme Court’s decision.
Sterling is still some way below the two-month and four-month highs it reached against the dollar and euro last week. It is struggling to shake off the sharp fall that began right after Boris Johnson entered Number 10 in late July and continued through much of August.
Round-up: Hong Kong stock exchange boss opens up over LSE bid, Irn Bru-maker profits fall, Google wins EU case over privacy
Here are three of the day’s top business stories:
Hong Kong boss: I would have rejected my takeover offer for LSE: The boss of the Hong Kong stock exchange has admitted he would reject his own takeover offer if he was running the London Stock Exchange as he put forward his arguments in a public "boxing match" between the two chiefs.
Profits lose their fizz for Irn Bru maker AG Barr: Irn Bru maker AG Barr posted a “disappointing” first-half after the sugar tax and wet summer weather delivered a blow to sales and profits.
Google wins landmark right to be forgotten case: Google has won its fight against tougher “right to be forgotten” rules after Europe's top court said it does not have to remove links to sensitive personal data worldwide.
Meanwhile, MPs are moving quickly to get back to Parliament following the Supreme Court ruling:
NEW: Corbyn moves forward his conference speech to this afternoon so he too can hot foot it back to London for tomorrow morning
— Beth Rigby (@BethRigby) September 24, 2019
Audit watchdog may probe Thomas Cook collapse
Following the collapse of Thomas Cook, an spokesperson from the Financial Conduct Authority, Britain’s accountancy watchdog, has said:
In light of recent developments at Thomas Cook we are considering whether there is any case for investigation and enforcement action as a matter of urgency and in cooperation with the Insolvency Service.
Alongside the sped-up inquiry already taking place, that suggests answers may be quickly forthcoming as to what brought down the travel giant.
Of course, we already have a pretty good idea of the reasons:
VW bosses charged with illegally influencing share price
Away from the excitement at Westminster, German prosecutors have charged several top former VW executives with misleading markets over the impact of the diesel scandal, by intentionally informing markets too late about the impact of the furore.
That has rattled automaker’s shares in Germany, with VW and its majority owner Porsche both down.
More Supreme Court reaction
The pound is steadyish, at about 0.1pc to 0.15pc up on the day, around $1.246.
OANDA’s Craig Erlam says:
It’s extremely difficult to say whether the ruling will be a game changer or nothing more than a headline maker but it will certainly ramp up the Brexit theatrics, just over five weeks ahead of the end of October deadline.
Capital Economics’s Paul Dales adds:
As it stands at the moment, the best way for the Prime Minister to meet his pledge to leave the EU on 31st October is with a deal. But two big hurdles lie in his way — agreeing a deal with the EU and then getting it passed through Parliament. Both look very challenging.
Full report: Tui holds outlook after Thomas Cook’s collapse
My colleague Michael O’Dwyer has a full report on Tui’s trading update this morning, as the company absorbs the impact of Thomas Cook’s demise. He writes:
The FTSE 100 holiday company stood by its financial targets for the year to September on Tuesday, but chief executive Friedrich Joussen struck a muted tone in what one analyst called a “downbeat” update.
Tui warned its markets and airlines unit faced “a number of ongoing external challenges such as the grounding of the 737 Max aircraft, airline overcapacities and continued Brexit uncertainty”.
Read more here: Tui remains cautious despite demise of rival Thomas Cook
FTSE holds flat
It looks like the pound might need a bit longer to find a resting place, with Danske Bank analysts saying optimism about Brexit could be “fleeting”.
Its moves are gently tilting the FTSE 100 in and out of the red, but the blue-chip index is basically flat — the rest is noise.
Pound turns negative on the day again
Sterling has swung back to being flat on the day once again. Use the markets hub tool (above) to track the latest. Here are the rough figures (as of a few minutes ago):
Reaction: ‘It’s hard to see how this gets the UK and EU any closer to a deal’
Things are obviously moving quite quickly now, with the SNP and Plaid Cymru calling for Boris Johnson to resign. You can read the Supreme Court’s full judgement here.
Here are some reactions to how the pound has shifted around the Supreme Court’s decision:
Markets.com’s Neil Wilson says:
GBPUSD rallied to the session highs at 1.24885 before running out steam before the 1.25 handle and paring some of those gains to sit at 1.2470 at send time. Sterling will be exposed to more headline risk as MPs shuffle back to the Commons and we now need to see what Number 10 says about it all.
Fundamentally it’s hard to see how this gets the UK and EU any closer to a deal that will be approved by MPs, but it does really deliver a massive blow to Boris Johnson. It’s perhaps not fatal, but it’s not going to make life any easier and we are now faced with significant uncertainty of a different hue.
Monex’s George Fryer adds:
The probability of the government forcing a no-deal exit has been trimmed by the decision, but the extensive repercussions a no-deal exit would have to the UK economy continues to hang around the pound’s neck, capping any optimism.
Follow the latest political updates here: Supreme Court finds Boris Johnson's prorogation of Parliament was ‘unlawful, void and of no effect’ — Brexit latest news
Tweet: Bercow says Parliament must convene again ‘without delay’
Bercow says Commons must "convene without delay" pic.twitter.com/1jdDSuCNgr
— John Stevens (@johnestevens) September 24, 2019
Pound pares back after spike, stays up
The pound started spiking sharply on the day as Baroness Hale spoke, but has pared back now and is only about a fifth of a cent up against the dollar.
Traders may already be looking towards the bigger picture: despite a major defeat for the government, the Brexit timetable is still in place — and the perceived dangers haven’t disappeared.
Taking a wider view, the currency has levelled out after some losses yesterday. It is taking a breather from a comeback that started after it hit a 34-year low against the dollar Boris Johnson’s series of parliamentary defeats at the start of the month.
Hale: ‘Parliament has not been prorogued’
Baroness Sale has hammered in the nails, with a unanimous decision to uphold Gina Miller’s appeal. It’s now up to the Speaker (and MPs to decide what to do).
PARLIAMENT HAS NOT BEEN PROROGUED says Lady Hale. Everyone back on a train to London
— Tim Shipman (@ShippersUnbound) September 24, 2019
Parliament has not been prorogued... it is for parliament, and in particular speaker... to decide what to do next
— Cat Neilan (@CatNeilan) September 24, 2019
Hale: Prorogation was ‘extreme’ and unlawful
Baroness Hale says the court was bound to conclude based on evidence that the prorogation of parliament was unlawful. That is a massive defeat for the Government.
Wow. Massive moment. Boris broke the law in proroguing Parliament. Now Lady Hale is going to say what the effect of this is.
— Gordon Rayner (@gordonrayner) September 24, 2019
Wow. Massive moment. Boris broke the law in proroguing Parliament. Now Lady Hale is going to say what the effect of this is.
— Gordon Rayner (@gordonrayner) September 24, 2019
Hale: Supreme Court says it can review suspension
Baroness Hale says the Supreme Court’s judges unanimously agreed it can review the suspension of Parliament, and have power to limit the use of prorogation. Sterling is looking very happy, spiking up as much at 0.4pc on the day.
Supreme Court verdict: Lady Hale says the panel of 11 has decided the case is justiceable - first blow to the Government, who will see it as a legal land grab.
— Tom Newton Dunn (@tnewtondunn) September 24, 2019
(That means the PM has LOST on the FIRST limb of the case.) Lady Hale: this court has concluded this case "is about the limits on the power to advise the Queen to prorogue Parliament".
— Dominic Casciani (@BBCDomC) September 24, 2019
Pound rises as Baroness Hale lays out case
The pound is now rising steadily against the euro and the dollar, as Baroness Hale lays out the details of the process.
Supreme Court verdict interrupted by poor signal
It looks like broadcast feeds are having some serious audio issues, possibly brought on by bad weather.
Sky News’s feed (which is having issues), is available to view here.
Supreme Court sound not working.
— Andrew Neil (@afneil) September 24, 2019
Ten minutes until Supreme Court decision
You can watch along live here: Supreme Court Live
And get the latest political news here: Supreme Court to rule over the legality of Boris Johnson's five-week suspension of Parliament
Uber’s London license given two-month extension
Transport for London has delivered another blow to Uber giving the ride-hailing company a two-month private hire licence to operate in the city, meaning it will have to reapply in November, report my colleagues Matthew Field and Hannah Boland. They write:
The decision comes after Uber received a 15-month licence following a legal appeal over TfL’s move in 2017 not to grant Uber a new licence amid claims it was not a “fit and proper operator”.
Uber has since made changes to its governance and culture, TfL said, but that it was requesting additional information from the ride-hailing app before considering any further licensing application.
The new two-month license will have the same conditions that Uber was under after being granted a probationary a licence by the Chief Magistrate in June 2018.
Deficit reaction: ‘Student loan change puts the fiscal target in doubt’
Capital Economics’ Andrew Wishart has offered his take on those current account deficit figures (see 9:58am update). He writes:
The change to how student loans are counted implemented in August’s public finances data, combined with the spending increases announced in the recent Spending Round, puts the Chancellor’s fiscal target in serious doubt.
Pointing to what the data could mean for the government’s increased spending plans, he said:
Alongside the further increase in 2020/21 announced in the Spending Round, the change to how student loans are treated in the public finances statistics and high government spending in the year-to-date means it will be difficult for the government to meet its fiscal target. No doubt the Chancellor will alter the target to allow him to support the economy with fiscal stimulus, but the big picture is that following 6 years of the deficit falling, it is now on the rise again.
Sterling: the long-term view
Whatever happens at the Supreme Court today, it’s important to contextualise any shift in sterling in the longer term: we’re coming off a recent surge in the currency’s strength following a 34-year low at the start of the month, but the trend has still been pretty ugly for the pound:
UK budget deficit increases
The UK’s budget deficit has risen sharply, as the government ramps up spending again.
Figures published by the Office for National Statistics shows the deficit in the first five months of the year was 28pc higher than during the same period in 2018.
Borrowing in the financial year-to-date (April to August 2019) was £31.2 bn, £6.8 bn more than in the same period last year https://t.co/7fgzEL663gpic.twitter.com/OPdlkwc3Du
— Office for National Statistics (@ONS) September 24, 2019
The figures follow the announcement of increased spending by Chancellor Sajid Javid, as the government puts money back into the the NHS and public-sector pay after nearly a decade of austerity.
There are significant revisions in the latest ONS data, which lists the 2018-19 deficit as £41.4bn, up £17.8bn — mainly due to a change in how student loans are treated in the figures.
The ONS said:
You can read its full findings here: Public sector finances, UK: August 2019
Continuing with the UK Public Finances we are spending more with it up by 4.1% this fiscal year leading to the deficit being some £6.8 billion higher.
— Shaun Richards (@notayesmansecon) September 24, 2019
European stocks flat
Stock indices across Europe are looking fairly flat, after some sharp falls yesterday following poor manufacturing data in the eurozone.
Thomas Cook travel chaos continues
Repatriations of stranded Thomas Cook customers as part of the Government’s Operation Matterhorn are still underway. Here are some photo from overnight and today (it’s worth noting that many Thomas Cook staff appears to have gone back to work, despite the company’s collapse):
Read more here: Thomas Cook airlift brings home 15,000 passengers in first day
One hour until expected Supreme Court decision
There’s just under an hour to go until the Supreme Court is expected to issue its decision on the legality of Boris Johnson’s suspension of Parliament, with sterling sitting slightly ever-so-slightly off against the dollar and euro currently.
The decision is bounds to cause ripples either way: a Government victory, and sterling might return to its mopish slide; a defeat, and the political shockwaves might not immediately register — it could mean a lot changes quite quickly, or almost nothing moves at all. Which way thing shift might well be in MPs’ hands.
I’ll bring you the latest on what currency moves the court decision triggers here, but if you want to keep up with the latest on the political (and constitutional) side, follow the politics live blog with my colleague Danielle Sheridan here:
Card Factory develops partnerships and pays special dividend
Card Factory shares are up just over 2pc currently, having jumped as much as 8.4pc this morning after the retailer announced a special dividend in its first-half results, and said it had formed a number of new partnership, including with Aldi.
Like-for-like sales rose 1.5pc, with its online sales rose by 25pc. The company said it had opened 26 new stores net over the period, but warned of increasing costs and sector “headwinds”.
It said: “Following a successful trial across over 130 stores, we now have an agreement with Aldi to supply half of their UK estate, totalling 440 stores, from November 2019.”
Peel Hunts analysts said:
The interims were a touch below our expectations, but we won’t change FY numbers today. However, that does increase the pressure on CARD to produce a good Christmas, something that has been difficult in recent years.
The key strategic news in the statement is the upgrade of the Aldi arrangement from trial (130 stores) to roll out (440)...
...Management is trying hard to unlock value, but it’s hard yards in this industry. Momentum is flat at best here, and the shares are no more than dead money.
TUI: Still ‘assessing’ impact of Thomas Cook collapse
A potentially awkward timing for a TUI update, given its major competitor Thomas Cook dramatically imploded yesterday, but the package holiday company — fresh from a share-price surge yesterday — is up another 2pc or so this morning after saying it remained “resilient” despite its rival’s woes.
Though it warned of a “challenging market environment”, it said results would still be in line with its forecasts. It directly addressed Thomas Cook, saying:
Where TUI customers are booked on Thomas Cook Airlines flights and these are no longer operated, replacement flights will be offered. We are currently assessing the short term impact of Thomas Cook’s insolvency under the current circumstances, on the final week of our FY19 financial result.
AA meets expectations, boss says membership will return to growth
Roadside services firm AA has reported first-half results in line with its expectations, sending shares in the small-cap firm up about 2pc.
The company’s revenue rose by 2pc in the six months to the end of July, while its operating profit rose 3pc to £120m.
Chief executive Simon Breakwell said:
We are pleased to report a first-half performance in line with our expectations, with growth in trading EBITDA and strong free cash flow generation. In our Roadside business, we have stabilised our personal membership base, and are confident that this will be broadly flat this year and return to growth next year. Our Insurance business continues to generate strong rates of profitable policy growth, and we expect this to continue during the second half.
Hotel Chocolate keeps investors sweet with dividend rise
Hotel Chocolat shares are up about 3.4pc this morning, after the AIM-listed confectioner report profits before tax had risen 10pc to £10.9m for the full year.
The company upped its dividend slightly, from 1.1p per share to 1.2p.
Angus Thirlwell, its co-founder and chief executive, said:
I am pleased to report another year of significant progress for the Group with profits growing slightly ahead of expectations. In the UK, our physical locations performed well, reflecting their allure and relevance.
Peel Hunt analysts said:
Hotel Chocolat is a member of an elite club of UK retailers that can beat expectations, upgrade forecasts and opine confidently at a time of difficulty for the sector. Today’s prelims were excellent: LFL sales accelerated in H2 and the profit outcome was nicely ahead too.
Business Secretary Leadsom: I want Thomas Cook inquiry done ‘very quickly’
Andrea Leadsom, the Business Secretary, has been doing the media rounds this morning following the collapse of Thomas Cook. She told Talk Radio that she has asked the insolvency office to speed up their inquiry into the tour operator’s dramatic collapse, saying:
I’ve asked them to do that very quickly so we can get some answers
Thomas Cook collapse "incredibly sad".
Business secretary @andrealeadsom tells #Sunrise the conduct of bosses will be scrutinised as part of an investigation into the firm's collapse.
Get the latest on this story here: https://t.co/1XoNdB6a43pic.twitter.com/EBtGW2u1g8— Sky News (@SkyNews) September 24, 2019
Metro Bank shares drop to all-time low after bond sale delay
Metro Bank shares have plunged as much as 15pc this morning, hittinga new low, after it pulled a bond issue yesterday.
The high street lender’s shares have taken a further pummelling so far this morning, after a sharp drop at the end of yesterday’s session. It postponed a senior (high priority) bond sale yesterday, after its offer of a record coupon was not enough to entice investors.
Markets.com’s Neil Wilson said of decision to pull the bond sale:
It shows the kind of mire Metro is in after the accounting error and now expanding FCA investigation. It’s crazy to think it was offering 7.5pc on these notes and still couldn’t get the demand. This is a worrying sign that the bank is not able to raise fresh debt and/or capital when the going gets tough.
Barclays analyst Aman Rakkar said the pulled sale “raises immediate questions on if/how Metro can return to the market for what is a mandatory issuance before year-end in challenging market conditions.”
Thomas Cook airlift brings home 15,000 passengers in first day
Almost 15,000 tourists were repatriated to the UK on Monday as the airlift to bring home stranded Thomas Cook passengers got underway.
The Civil Aviation Authority (CAA) said that 64 flights operated to bring back more than 14,700 passengers after the 178-year-old travel company collapsed in the early hours of Monday morning.
We will have the full details here.
And here is a reminder of some of the numbers behind the company:
Pound treads water ahead of Supreme Court ruling
The pound held steady overnight ahead of this morning’s high-profile Supreme Court ruling on the legality of the Government's decision to suspend parliament ahead of the Brexit deadline in preparation for a new Queen's speech.
Sterling traded between $1.242 and $1.244 overnight as markets await the judgment from the UK’s highest court.
The judgment is scheduled to be delivered at 10.30am. You can follow it live and get all the reaction here with the Telegraph.
Fallout from Thomas Cook collapse continues
Good morning. All eyes were on Thomas Cook yesterday after it collapsed and sparked the biggest peacetime repatriation of Britons. The collapse could put some pressure on the pound by highlighting the weakness of British retailing.
This morning, traders will be looking closely at the Supreme Court ruling on whether Prime Minister Boris Johnson misled the Queen over his reasons for suspending parliament this month. The Supreme Court said it will issue its decision at 10.30am.
5 things to start your day
1) Hedge funds betting on the demise of Thomas Cook are set to pocket hundreds of millions of pounds following the travel giant’s collapse into liquidation. Speculators will profit from the tour operator’s woes after short-selling its shares and using credit default swaps (CDS) - derivatives that pay out to investors if a company defaults on its debt.
2) Profile - Peter Fankhauser: the £8m boss who couldn’t save Thomas Cook. Peter Fankhauser took the top job at Thomas Cook five years ago, stepping into the breach after Harriet Green resigned following two – sometimes controversial – years in charge.
3) Big taxes, big spending, big debt: here is what we know so far about John McDonnell and Labour's plan for an election manifesto
4) Germany is on red alert for recession following the biggest collapse in activity for its mighty industrial sector since the financial crisis. The eurozone’s largest economy relies on exports but its car industry has been punished by a slowing global economy and the fallout of the trade war between the US and China.
5) Lloyd’s of London has pledged urgent action to overhaul its culture after finding that almost one in 10 staff had witnessed sexual harassment at the City institution. A survey of more than 6,000 Lloyd’s workers laid bare the scale of the challenge facing the 333-year-old insurance market, which has been rocked by allegations of sexual harassment and bullying towards female staff.
What happened overnight
Global shares ticked up on Tuesday after US Treasury Secretary Steven Mnuchin said US-China trade talks will resume next month, but lingering concerns about slowing global growth tempered the overall appetite for riskier assets.
MSCI's broadest index of Asia-Pacific shares outside Japan moved up 0.06pc, supported by 0.4pc gains in mainland Chinese shares, while Japan's Nikkei was flat after a market holiday on Monday. In Hong Kong, the Hang Seng Index is up 0.17pc.
US stock futures gained 0.39pc, helped by comments from US Treasury Secretary Steven Mnuchin that US-China trade talks will resume next week. He later clarified that the negotiations will take place in two weeks.
Coming up today
AG Barr – best known as the maker of soft drink Irn Bru – will give its first update since issuing a profit warning two months ago. Sales are expected to be down, which the company blames on worse weather and the impact of the Government’s levy on sugar.New product launches are expected to form a core part of its management’s plans.
Card Factory, also reporting tomorrow, has not had the smoothest run lately, but an increased focus on its product range has played well with customers – though it may be offset by increased storage costs, especially if it has begun Brexit stockpiling.
Full-year results: Hotel Chocolat
Interim results: AA, AG Barr, Alliance Pharma, Card Factory, IHS Markit, Manchester United, M&C Saatchi, Moss Bros
Trading update: Park Group
Economics: Public sector borrowing (UK), house prices and consumer confidence (US)
