There’s been an attempted recovery in sterling this morning, with the pound edging higher against most of its peers following on from the declines seen last week. The political backdrop remains precarious to say the least, but traders are seemingly feeling a little more upbeat as Theresa May continues to cling to power against all the odds. Today the PM is meeting business leaders in an attempt to sure up support for her withdrawal deal and while it has drawn widespread criticism, the overriding feeling amongst those in industry is that it is acceptable. Business leaders would no doubt prefer an agreement with more favourable terms but the majority seem to be behind this treaty as it at least would provide some clarity and alleviate the cloud of uncertainty that has hung overhead since the referendum back in 2016.
Barnier proposes extension to Brexit transition
The chief negotiator for the EU has proposed extending the transition period for the UK to leave the bloc until as late as 2022, in a move that will no doubt draw the ire of Brexiteers. The latest suggestion would prolong free movement of people and also see the UK continue to make payments to Brussels. Brexit will remain at the front and centre of investors minds this week ahead of the summit this Sunday, with one area of particular interest Theresa May’s leadership position. Around 25 MPs have already gone public in announcing that they have sent letters of no confidence, and the threshold of 48 needed for a leadership challenge could well be reached in the not too distant future.
Renault shares plummet as Goshn arrested
It’s been a worrying start to the week for shareholders in Renault, with the carmaker’s stock plunging by more than 12% as CEO Carlos Ghosn has been arrested, accused of a “significant” misconduct. Mr. Ghosn, who is also chairman of Nissan and Mitsubishi Motors, is one of the most prominent figures in the auto industry and is being investigated alongside fellow Nissan director Greg Kelly following a report from a whistleblower at the company. According to a report in the Asahi newspaper, Mr. Ghosn is suspected of understating his income on financial statements and has agreed to speak to Tokyo prosecutors on a voluntary basis.
