The been a broad decline in sterling this morning with the pound falling against all of its major peers as traders turn more negative on the currency. The largest declines can be seen against the Antipodean currencies while the GBP/USD rate has dropped back below the $1.28 mark for the first time since the EU announced last week that they would support PM May’s deal. Comments from US President Trump last night that downplayed the chances of a US-UK trade deal after Brexit have no doubt not helped the pound’s plight, but the drop is more likely due to remarks from former May Loyalist Sir Michael Fallon who claims the PM’s deal is doomed, which raises concerns further about her ability to get it through parliament.
I’m in the EU, get me out of here (sort of)
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Create account Try a demo Download mobile app Download mobile appTheresa May is expected to hold a live Brexit TV debate with leader of the opposition Jeremy Corbyn as the PM ramps up her efforts to gain support for her deal. Corbyn has said he would “relish” the opportunity to take part in the event which according to some reports could be scheduled to occur just two days before the key vote in the Commons on 11th December. The final of reality TV show I’m a Celebrity could clash with the timeslot chosen by broadcasters, leaving viewers with a choice of watching public figures squirm while attempting to perform an uncomfortable and unenviable task that provides no clear benefit - or watching celebrities in the jungle!
Stocks spike on Chinese whispers
A strong, sharp move higher in global equities faded almost as quickly as it occurred this morning as markets misinterpreted comments relating to US and Chinese trade, in what is a clear sign of the growing sensitivity to this matter heading into the G20 meetings later this week in Buenos Aires. Reports that Trump and Xi had agreed to reach a mutually beneficial agreement sparked a flurry of buying with US stock futures jumping around 1% in a matter of minutes, before the entire move was erased when it became clear these comments were referring to a telephone call at the start of the month. This matter has very much come back to the fore of investor’s minds of late with Trump stating last night that it was “highly unlikely” he would accept an offer to avert plans to raise tariffs on more than $200b of Chinese goods to 25% in January. Apple shares also handed back a steady day of gains in post-market trade as Trump hinted that he will include tariffs on iPhones and laptops imported from the far east.
