The Bank of England (BoE) has warned that UK and Europe must get a Brexit transition agreement more or less in position by Christmas – or risk contingency plans being actioned. This could mean banking would be harder to regulate.
The BoE edict did little to undermine the pound overnight, up +0.06% against the dollar while the euro saw more confidence being drawn in, up +0.11% to $1.1754. However the Australian dollar buckled under weaker retail sales data – the biggest dip since early 2013 – despite more solid trade figures.
US Fed chair Janet Yellen offered some opening words at a community banking conference yesterday but there was little for the dollar to meaningfully grip onto. Meanwhile luckless Theresa May will today attempt to put her uneasy-to-watch party conference performance, not helped by coughing fits and a prankster issuing a P45, behind her as more talk surfaces over a leadership challenge. Resignation talk is starting to swirl.
Today, PMI retail figures are out from the EU shortly while US balance of trade, job numbers and factory orders follow later in the day.
- UK FTSE 100 7,467.58 -0.01%
- Dow 22,661.64 +0.09%
- S&P 500 2,537.74 +0.12%
- Nasdaq 6,534.63 +0.04%
- Nikkei 225 20,617.90 -0.04%
- DAX 12,970.52 +0.53%
- CAC 40 5,363.23 -0.08%
- Gold 1,277.60 +0.06%
- Oil WTI 49.94 -0.08%
UK September car sales wilt; DFS profits slump on consumer jitters
More signs that the UK retail economy is wilting. New figures from the Society of Motor Manufacturers and Traders, due out this morning is likely to show a -9% slump in new car sales in September.
While there has been a rash of car scrappage schemes offered recently, many consumers are struggling to overcome wages that haven’t lifted meaningfully in some time, simultaneously punished by rising inflation.