Despite increased demand for the US dollar earlier the pound hit $1.32 earlier today. Some of the sterling bullishness stems from Parliament’s imminent Monday EU repeal vote bill tonight which converts around 12,000 EU regulations and laws when the UK leaves the EU in early 2019.
Tomorrow comes a key inflation report with more jobs data (Wednesday) and an interest rate decision from the Bank of England (Thursday). So the spotlight is very much on sterling.
Sterling may get a further lift if there’s evidence of a Monetary Policy Committee push to raise interest rates. Should more than two Committee members vote for a rate hike, expect sterling to swing higher. Either way, the story for much of this week is about sterling.
Globally, shares re-bounded today as concern over Hurricane Irma lifted with the Dow Jones climbing more than +1.1%. European shares also surged while In London the FTSE 100 closed tonight at 7,413, up +0.50% with Provident Financial and easyJet seeing +3.7% and +3.4% gains.
However Primark owner ABF slumped almost -5% following the release of full-year numbers this morning and concern on profit margins – the worst Big Board performer.
- UK FTSE 100 7,413 +0.50%
- Dow 22,008.18 +0.97%
- S&P 500 2,481.37 +0.81%
- Nasdaq 6,418.90 +0.92%
- Nikkei 225 19,545.77 +1.41%
- DAX 12,478.77 +1.42%
- CAC 40 5,178.18 +1.27%
- Gold 1,338.50 -0.92%
- Oil WTI 47.64 +0.29%
Google to fight EU 'unfair practices' fine
Google is set to appeal its €2.4bn European Commission fine from unfair search practices. Google is under some pressure to put a stop to its anti-competitive practices by the end of September. If not its parent company Alphabet faces new penalties.
The EU claims the search engine giant has abused its massive 90% domination of the global search market to promote e-commerce via its own online shopping channels.
The EU is taking a close sweep at other areas it thinks Google is taking advantage of, including its Android operating system. But this is a fight that will likely run for some time – more work for legal service players.
London still top global financial capital
Next, a boost for London as the world’s top money centre: new numbers from the Z/Yen financial centres index saw London cling to its top spot while New York fell almost 25 points – the biggest faller – as concern mounts on the effectiveness of the Trump administration.
“Despite the ongoing Brexit negotiations,” the survey noted, “London only fell two points, the smallest decline in the top ten centres. Hong Kong has moved just ahead of Singapore into third – only two points ahead on a scale of 1,000. Tokyo remains in fifth.”
Assessments for the European centres continue to fluctuate as people speculate about which centres might benefit from London leaving the EU says the report. “However, the majority of centres in the region rose with Stockholm, Copenhagen, and Vienna all showing strong rises."
Breaking news: BP has now filed officially for a an IPO of its US pipeline business BP Midstream Partners.