German media reports of a possible two-year Brexit transition period – a draft text from EC president Donald Tusk suggests the EU is starting to prepare post-Brexit trade talks – saw the pound leap yesterday evening. Sterling maintained its re-booted strength overnight. At close to 7am it was up +0.43% at $1.3277.
Quite a turnaround from reports of Michel Barnier stalemate yesterday. Business leaders – including Vittorio Colao, head of Vodafone and Emma Walmsley, boss of GSK – have told Theresa May that a transition period is a priority.
Important CPI and retail sales numbers from the US emerges later on; retail sales are expected to see a lift from hurricane-impact regions, plus sales boosts for new cars and building supplies.
The euro was -0.11% down at $1.1844 earlier though there are reports of the ECB snipping quantitative easing purchases in the first half of 2018. Overnight in Asia the Nikkei accelerated past the 21,000 threshold, up +0.91% overall despite the yen rising modestly.
- UK FTSE 100 7,556.24 +0.30%
- Dow 22,841.01 -0.14%
- S&P 500 2,550.93 -0.17%
- Nasdaq 6,591.51 -0.18%
- Nikkei 225 21,183.87 +1.09%
- DAX 12,982.89 +0.09%
- CAC 40 5,360.81 -0.03%
- Gold 1,298.10 +0.12%
- Oil WTI 50.92 +0.65%
Provident losses of £80m-£120m confirmed
First, a quarterly update from Provident Financial, beset by recent profit warnings, the axing of its dividend and the exit of its chief exec. The home lender says progress to date “is in line with the recovery plan”. It’s still expecting a pre-exceptional loss for the Consumer Credit Division in the range of between £80m-£120m for 2017.
So not much change. Collections performance in September was 65%, up from 57% in August, whilst sales were approximately £6m per week lower than last year compared with £9m during August, Provident says.