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| Pound dives after Brexit resignations | |
| (35 minutes later) | |
| Sterling has fallen sharply after Cabinet ministers Dominic Raab and Esther McVey quit over Prime Minister Theresa May's draft Brexit deal. | |
| The pound fell nearly 1% against the dollar to $1.2864 and dropped more than 1% against the euro to €1.1369. | The pound fell nearly 1% against the dollar to $1.2864 and dropped more than 1% against the euro to €1.1369. |
| On Wednesday, Theresa May had secured Cabinet backing for the draft Brexit agreement with Brussels. | On Wednesday, Theresa May had secured Cabinet backing for the draft Brexit agreement with Brussels. |
| Business had generally welcomed the agreement, as it avoided the prospect of a cliff-edge Brexit. | Business had generally welcomed the agreement, as it avoided the prospect of a cliff-edge Brexit. |
| Pound vs US dollar | Pound vs US dollar |
| What has happened to the pound? | What has happened to the pound? |
| Initially the pound rallied on Wednesday after the Prime Minister announced she had the backing of the cabinet for her Brexit withdrawal plan. | Initially the pound rallied on Wednesday after the Prime Minister announced she had the backing of the cabinet for her Brexit withdrawal plan. |
| It followed a volatile day's trading while the outcome of Theresa May's five-hour meeting with cabinet colleagues remained unclear. | It followed a volatile day's trading while the outcome of Theresa May's five-hour meeting with cabinet colleagues remained unclear. |
| Sterling had fallen to $1.28 at one point, but then rose to $1.30 following the announcement, before falling back slightly. | Sterling had fallen to $1.28 at one point, but then rose to $1.30 following the announcement, before falling back slightly. |
| However, on Thursday morning sterling fell after Northern Ireland Minister Shailesh Vara quit in protest over the agreement, and then dropped sharply when Brexit Secretary Mr Raab resigned. Shortly afterwards, Work and Pensions Secretary Ms McVey also stepped down. | |
| What does big business make of the agreement? | What does big business make of the agreement? |
| The agreement includes a 21-month transition period, with a unilateral right for the UK to extend that, which was described as "very positive for business" by James Stewart, head of Brexit at KPMG UK | The agreement includes a 21-month transition period, with a unilateral right for the UK to extend that, which was described as "very positive for business" by James Stewart, head of Brexit at KPMG UK |
| Northern Ireland also has the guarantee of a "friction-free" customs border with the Republic of Ireland. | Northern Ireland also has the guarantee of a "friction-free" customs border with the Republic of Ireland. |
| The CBI described the agreement as a "compromise, including for business" but it unreservedly welcomed the "step back from the cliff-edge". | The CBI described the agreement as a "compromise, including for business" but it unreservedly welcomed the "step back from the cliff-edge". |
| The prospect of a no-deal Brexit had been "daunting business really from straight after the referendum", CBI director general Carolyn Fairbairn told the BBC. | The prospect of a no-deal Brexit had been "daunting business really from straight after the referendum", CBI director general Carolyn Fairbairn told the BBC. |
| "We know that millions and millions of pounds has been spent on contingency planning - if this agreement continues, the button can be unpressed and we will see a fillip from that." | "We know that millions and millions of pounds has been spent on contingency planning - if this agreement continues, the button can be unpressed and we will see a fillip from that." |
| "The second plus of where we got to yesterday is there is a possible path to frictionless trade now in terms of negotiating the final deal. | "The second plus of where we got to yesterday is there is a possible path to frictionless trade now in terms of negotiating the final deal. |
| "I don't think anyone thinks the transition or the backstop is the answer, so this has to be used as a route to a final deal with frictionless trade and access for services." | "I don't think anyone thinks the transition or the backstop is the answer, so this has to be used as a route to a final deal with frictionless trade and access for services." |
| However, she did sound a note of caution. "It's not the end of the road - there's a hard slog ahead to get that final deal that will work for the country," | However, she did sound a note of caution. "It's not the end of the road - there's a hard slog ahead to get that final deal that will work for the country," |
| So is everyone happy? | So is everyone happy? |
| Dr Gerard Lyons, chief economic strategist at Netwealth Investment and chief economic adviser to Boris Johnson while he was Mayor of London, says the draft Brexit withdrawal deal is not something to cheer about. | Dr Gerard Lyons, chief economic strategist at Netwealth Investment and chief economic adviser to Boris Johnson while he was Mayor of London, says the draft Brexit withdrawal deal is not something to cheer about. |
| "Whilst it has avoided the cliff edge, I think it's important we don't bury our heads in the sands here and view this as a 'good' deal - this is still disappointing," he told the BBC's Today programme. | "Whilst it has avoided the cliff edge, I think it's important we don't bury our heads in the sands here and view this as a 'good' deal - this is still disappointing," he told the BBC's Today programme. |
| "To make a success of Brexit, we've got to get three things right - our relationship with the EU, our position with the rest of the world, and our domestic economic and financial agenda. | "To make a success of Brexit, we've got to get three things right - our relationship with the EU, our position with the rest of the world, and our domestic economic and financial agenda. |
| "The biggest single problem with this divorce settlement is it ties our hands on two of those three areas - our ability to position ourselves globally, and our domestic economic agenda." | "The biggest single problem with this divorce settlement is it ties our hands on two of those three areas - our ability to position ourselves globally, and our domestic economic agenda." |
| However, he added: "The important thing is to look at the service sector and what's good is that the financial sector is still positioned quite well but that's as much because the European Union very much recognises that the City of London is going to remain the major financial centre of Europe." | However, he added: "The important thing is to look at the service sector and what's good is that the financial sector is still positioned quite well but that's as much because the European Union very much recognises that the City of London is going to remain the major financial centre of Europe." |