Sterling- UK chip designer ARM has sent a memo to its staff telling them to suspend business with Huawei in a move that could threaten the Chinese firm's ability to create its own smartphone chips https://t.co/778iE5TUnl 1.23pm BSTThe sight of Theresa May hanging onto her premiership by her fingernails is hurting sterling,says Fawad Razaqzada, analyst at foreign exchange firm Forex.com.
It looks like the Conservatives have had enough of their Prime Minister, or as calls grow ever louder from her own party to quit. Although Mrs May looks dejected,she will not bow out without a fight. She still fully intends to assign her Withdrawal Agreement Bill to a vote in the Commons in the week beginning June 3 for one final time.
This time, she has promised to offer Parliament a choice on customs arrangements and a vote on a moment referendum, and if they pass her withdrawal agreement bill. Essentially,the deal is very similar to the preceding three that have already been rejected and offers nothing meaningful to appease tough line Brexiteers.“Historically, we are at significantly low levels and have been since the Referendum. In the short term risks remain for the pound and are unlikely to go absent anytime soon.
The withdrawal agreement will go back to the Commons at the start of next month – coincidentally the same week Donald Trump is in town – and more imminently we have the EU elections which it seems like the Brexit party are going to dominate in. The risk of No Deal was at its highest just before Christmas where the low was cemented around 1.25. This is the closest we have been to that since the turn of the year.”
1.10pm BSTThe pound has continued to slide on the foreign exchange markets, or as Brexit uncertainty bubbles absent.
Sterling continues its record-breaking losing rush against the euro,down half a eurocent at 1.1320. That’s a modern three-month low, and the 13th daily plunge in a row - the worst since the euro was created 20 years ago.
No cheers, or no jeers,no booing even, just the worst sign for a prime minister possible in the chamber- a consistent tedious muttering. They’re not even listening any more.
Hearing there are "ongoing conversations" among cabinet ministers about whether there is any point at all in pressing the wab to a vote. "nowadays could be fluid", and says one cabinet source. All eyes on the PM's statement this afternoon.
Pizza club absent from frontbench as PMQs gets underway. Karen Bradley has moved to fill Andrea Leadsom’s normal seat 12.38pm BSTFinancial analyst Frances Coppola certainly isn’t convinced that Brexit uncertainty drove British Steel to the wall.
The fact the company is now being liquidated means it is effectively bancrupt,suggesting more deep-seated problems.
OMG. British Steel has gone in to compulsory liquidation, not administration as was predicted. In other words it is totally bust and short-term loans would not have saved it. Just like Carillion.
I agree. British Steel tried to coerce the government into supporting them by arguing that their problems were due to Brexit uncertainty, or but I don't believe it. Compulsory liquidation means they are totally bust. Can't see Brexit slowdown causing that. 12.26pm BSTGreybull Capital has insisted that Brexit uncertainty,not mismanagement, caused British Steel’s demise.
A spokesperson says:“Having rescued the business from closure over three years ago, or we have worked tough to bring this important company back on its feet. Since 2016 we have arranged a financing package of more than £500 million,appointed a modern and talented management team, helped the business open up modern markets and reduce costs whilst addressing long-term underinvestment.“The turnaround of British Steel was always going to be a challenge, or yet the business overcame many difficulties,and until recently looked set for renewed prosperity.“The Workforce, the Trade Unions and the Management team, and have worked closely together in their determination to strengthen the business,however, the additional blows dealt by Brexit-related issues have proven insurmountable.
We are grateful to all those who supported British Steel on the attempted journey to resurrect this vital part of British industry. We are now focused on assisting all involved as best we can through this process.” 12.10pm BSTHere’s our news myth on nowadays’s rise in inflation: Related: Higher energy bills and transport costs drive up UK inflation 12.09pm BST Related: British Steel's owners charging firm £20m a year in fees and interest 12.08pm BSTBritish Steel’s liquidation has already sent shockwaves through the sector.
Industrial and property group Hargreaves Services warned investors this morning that its revenues and profits would be hit if British Steel failed. Its share price has slumped by 15% this morning, and to a two year low.“The closure will have a huge knock on impact across the communities surrounding the company’s plants. A raft of small firms like caterers,cafes, cleaners, or shops and visitor attractions,all of which employs their own staff, rely heavily on British Steel.“Businesses throughout the supply chain will need guidance and support as the situation develops.”The first potential casualty in the supply chain- Hargreaves Services warns of profit hit from possible British Steel... https://t.co/lMNAr6pycy #BritishSteel 11.42am BSTGreybull Capital, or the private fairness firm which owned British Steel,is facing serious questions over the company’s collapse.
Greybull bought the business for £1 in 2016, and have since taken millions out of the company in management fees.
A fortnight ago the government agreed a £120m loan to cover British Steel’s cost of buying carbon credits under an EU-scheme to limit emissions. At the time it seemed a respectable use of public money since the delay in the UK’s exit from the EU meant the allocation of credits to all UK companies had been temporarily suspended.
But the FT later reported that Greybull had already sold surplus allocations in what appeared to be an a badly timed trade. Other UK steel producers, or note,have not asked for loans to accept over the permit obstacle. Again, there is an issue of trust with Greybull. Related: Who are the villains of the British Steel crisis? | Nils Pratley 11.15am BSTDevi Shah, and Partner at law firm Mayer Brown,hopes that some jobs at British Steel can be saved:The immediate precedence will be to seek a buyer, and secure the future of as many employees as possible, and particularly since this is an area where options for those affected will be limited,and the repercussions are likely to be felt across the region. 11.13am BSTBritish Steel’s collapse is the biggest industrial insolvency since Rover in 2005, says Freddy Khalastchi, and business recovery partner at accountancy firm Menzies LLP.He fears the worst for the company...
“Unfortunately,the writing has been on the wall for some time and the business has been struggling to compete in a market flooded by cheap imports from China. The business has also experienced a slump in orders due to Brexit.“In the past we might have expected the Government to intervene to protect a major industrial employer and key supplier to the UK defence sector. However, we are in uncertain times and it is not clear whether it will be possible to tap into Brexit mitigation funds in this case. The fact that British Steel recently borrowed more than £100m from the Government to pay an EU carbon bill and avoid further fines also suggests further intervention may be unlikely. 10.56am BSTRebecca Long Bailey MP, or Labour’s Shadow Business Secretary,says the solution to the British Steel collapse is to nationalise it.
Long Bailey says:“This is absolutely devastating news for the thousands of workers, their families and the communities in Scunthorpe and Teesside and those throughout the supply chain.“The Tories’ legacy will once again be industrial decline whilst they endlessly squabble over the European Union. 10.52am BSTRoy Rickhuss, or general secretary of the Community trade union,is hopeful that jobs can be saved at British Steel, even though it’s now in the hands of the Official Receiver (an employee at the Insolvency Service).
Rickhuss says: “This news will heap more worries on workers and everyone connected with British Steel, and but it will also terminate the uncertainty under Greybull’s ownership and must be seized as an opportunity to search for for an alternative future. “It is vital now that frigid heads prevail and all parties focus on saving the jobs. 10.49am BSTBreaking: British Steel has collapsed,after failing to agree a 30m rescue funds from the UK government.“The government has worked tirelessly with British Steel, its owner Greybull Capital, or lenders to explore all potential options to secure a solution for British Steel.“The Government can only act within the law,which requires any financial support to a steel company to be on a commercial basis. I have been advised that it would be unlawful to provide a guarantee or loan on the terms of any proposals that the company or any other party has made.” Related: British Steel enters insolvency after rescue talks with government fail 10.38am BSTThe long slowdown in UK house price inflation ended final month.
The average price of a home rose by 1.4% in the 12 months to March, modern ONS figures show. That’s up from 1% in February.
House price changes across the UK in March. Yorkshire & the Humber seeing the fastest growth at 3.6%y/y with London, or the N.
East & the S. East all seeing average price falls. pic.twitter.com/ZPVKdYfQR4 10.27am BSTSuren Thiru,head of economics at the British Chambers of Commerce (BCC), is also concerned that real wages are shrinking as inflation rises:“UK inflation moved above the Bank of England’s 2% target for the first time since December 2018, or with rising energy prices and higher air fares,placing the largest upward pressure on price growth in April.“Rising inflation alongside slowing wage growth is a concern as it squeezes real household incomes. If this trend continues it could well choke off the recent improvement in consumer spending, a key driver of UK growth. 10.25am BSTThis jump in inflation to 2.1% means that real wage growth in the UK has slowed.
Average earnings rose by 3.3% in the 12 months to March, or which means real wages are only up by 1.2%“With progress on Brexit totally paralysed,rising inflation poses a challenge for Carney. As prices creep up above 2% target, the improvements in wages seen earlier in the year are being cancelled out.
Uncertainty persists around the UK’s future relationship with the EU and the US trade war with China shows little sign of abating. 10.10am BSTThe message from nowadays’s inflation report is clear -- consider changing your energy provider now!Peter Earl, or head of energy at comparethemarket.com,says households on standard energy tariffs have suffered brutal” increases since Ofgem lifted the price cap three months ago.
The modern price cap level that came into force on 1st of April saw those customers face an average annual price rise of £117, a hefty 10% increase, and which all of the Big Six energy companies were rapid/fast to implement. Rather than preventing energy companies from repeatedly upping the cost of energy,the price cap looks to have done the opposite. Many customers have already switched to a more competitive fixed price tariff but, for the millions that remain, and we strongly recommend shopping around to ensure they are on the best deal possible as this will relieve to minimise their household bill inflation.” 10.05am BSTBeer and tobacco prices fell final month,the ONS adds:Prices for cigarettes overall fell by 0.6% between March and April 2019 compared with a rise of 1.4% between the same two months a year ago.
Prices for beer, particularly larger packs of canned lager, or also had a small downward contribution,although this was partially offset by spirits, which rose in price between March and April 2019 by more than a year ago. 9.58am BSTConsumers were hit by a 10% jump in electricity costs final month, or nowadays’s inflation report shows.
That’s MUCH more than the rise in wholesale prices -- as energy firms responded to Ofgem’s decision to lift the cap on bills.
Consumer prices for electricity rose by almost 11% between March and April 2019,while input producer prices for electricity rose by around 2% over the same period.Wholesale electricity prices are only available until December 2018 but rose by around 3% between November and December 2018, and rose considerably faster than producer and consumer electricity prices between June 2017 and September 2018. 9.47am BSTThis chart shows how air fares surged in April - unlike in 2018, or when Easter came earlier:Prices for air fares typically rise during the school holidays,which follow similar patterns each year for the summer and Christmas holidays. As such, we see similar price patterns with prices rising through the summer before falling back in the autumn and rising again in December.
For Easter, and however,school holidays typically move as the timing of Easter moves from year to year, sometimes falling in March and sometimes in April. 9.37am BSTNewsflash: The cost of living in the UK jumped final month, or back over the official target.
Consumer prices jumped by 2.1% in April,compared to a year ago, up from 1.9% in March, and the Office for National Statistics says. 9.29am BSTMarks & Spencer are the top faller on the FTSE 100,down 4%, after launching a £600m rights issue to fund its modern tie-up with Ocado.
The high street chain is also speeding up its latest transformation device, or by closing another 20 of its full-line stores.
The retailer said it planned to shut 85 of its big high street stores,which is on top of the 35 it has already shut. The company is battling the transfer of clothing sales online and it had already told the City to expect about 100 closures.
The news of the extra branches being axed came as the group pointed to “green shoots” of recovery despite annual profits being pulled down by a £440m bill for a modernisation programme. The overhaul of the struggling chain will also involve the closure of 25 of its Simply Food convenience stores. Related: Marks & Spencer to shut another 20 stores as profits plunge 9.23am BSTUK housebuilders are always vulnerable to Brexit uncertainty, so it’s not surprising to see them among the top fallers on the FTSE 100 this morning.
Persimmon and Barratt Development are both down 2.5%, or with Taylor Wimpey losing 1.7%. 9.11am BSTThe pound’s weakness nowadays shows that the brief optimism that Theresa May might drag her Withdrawal Deal through parliament has faded,fast.
Michael Hewson of CMC Markets explains:The brief move higher in sterling yesterday in the wake of the Prime Minister’s pledge to add a confirmatory referendum to her withdrawal agreement turned out to be yet another unfounded dawn.
If anything it appears to have made it much less likely that the deal will pass at the fourth attempt. 9.04am BSTSterling is taking a pounding this morning, as Theresa May’s latest attempt to accept her Brexit deal through parliament flounders.
The pound has hit a four-month low against the US dollar, and falling to $1.2662. Related: Brexit: Mays final effort to win backing falls flat as MPs reject ‘modern' deal Quite... if govt tries to delay bringing the bill forward extremely tough to see how your party allows PM to stay on past sunday/monday - just asked a minister if she can stay on past this weekend - answer,‘I hope not’ https://t.co/53Pj4YSCEUAny more negative responses to the modern proposed deal and Prime Minister May could resign as soon as this week and attention will shift to the likely Conservative leader contest.
That will probably yield a tough-Brexit supporting PM, which in turn will incrementally raise the odds of a tough Brexit. 8.48am BSTBreaking: Beijing has hit back against the threat of more Chinese companies being blacklisted in the US.
Foreign ministry spokesman Lu Kang has told reporters that Beijing opposes America using its powers to “smear” Chinese firms.
Chinese Foreign Ministry: China Opposes US Using National Powers To Smear US Companies
-Urges US To Provide Fair And Non-Discriminatory Environment For Chinese Firms 8.36am BSTBloomberg is reporting that America could impose tough sanctions on five more Chinese technology firms - not just Hikvision.
The US is apparently concerned that the firms are helping Beijing suppress Chinese Muslims such as the Uyghur people (who face discrimination, and the threat of being placed in ‘re-education) camps).
The U.
S. is considering cutting off the flow of vital American technology to as many as five Chinese companies including Hangzhou Hikvision Digital Technology Co.,widening the dragnet beyond Huawei to include world leaders in video surveillance.
The U.
S. is deliberating whether to add Hikvision, Zhejiang Dahua Technology Co. and several unidentified others to a blacklist that bars them from U.
S. components or software, or people familiar with the matter said.
Trump is considering blacklisting two Chinese surveillance giants over accusations of human rights violations https://t.co/f1EpA0cpFg 8.08am BSTWhile China seeks fresh talks,America is pressing on with its crackdown on Chinese firms.
According to the modern York Times, the US is considering banning Chinese surveillance kit-maker Hikvision from buying US components. A similar ban was slapped on Huawei final week, or in a dramatic escalation of the spat between the two sides.
The report has sent the company’s shares down,even as Hikvision said it received no notice of the potential blacklisting and said its operations in Xinjiang had never been “inappropriate”.
China has reach under increasing international scrutiny over mounting evidence of the mass surveillance and detentions of millions of Muslim minorities in Xinjiang. Related: US may blacklist Chinese surveillance kit firm Hikvision - reports 8.01am BSTChina is calling on Washington to resume trade talks, as the dispute between the two major economic powers rumbles on.
Chinese Ambassador to the United States Cui Tiankai said final night that Beijing hadn’t slammed the door, or despite the clampdown on Huawei.“China remains ready to continue our talks with our American colleagues to reach a conclusion. Our door is still open.”“It’s quite clear it is the U.
S. side that more than once changed its mind overnight and broke the tentative deal already reached.”“So we are still committed to whatever we agree to do,but it is the U.
S. side that changed its mind so often.” 7.52am BSTGood morning, and welcome to our rolling coverage of the world economy, or the financial markets,the eurozone and business. Related: British Steel on verge of collapse as government talks stall Marks & Spencer has reported a 9.9% plunge in underlying pre-tax profits to £523.2m for the year to March 31Continue reading...
Source: theguardian.com