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| Pound hits 20-month low against US dollar after Brexit vote postponed – as it happened | Pound hits 20-month low against US dollar after Brexit vote postponed – as it happened |
| (32 minutes later) | |
| Following one of its most volatile trading sessions in the last few volatile years, sterling seems to have settled around $1.255 tonight, a level last seen in April 2017. | |
| So here’s a summary: | |
| The pound has dropped to its lowest level for almost two years amid the growing risks to the British economy from political paralysis over Brexit and on a no-deal scenario. | |
| Theresa May’s decision to delay the parliamentary vote on her Brexit plan to avoid an embarrassing defeat for the government sent sterling tumbling by more than 1.3% against the dollar and by more than 1.1% against the euro on the foreign exchanges. | |
| The pound slumped below $1.26 to the lowest level since April 2017 after the prime minister said her Brexit plan would have been rejected by a “significant margin” in a Commons vote pencilled in for Tuesday. Sterling was worth $1.2565 against the dollar late on Monday and €1.1050 against the euro. | |
| Neil Wilson, the chief market analyst at the financial trading company Markets.com, said the pound had experienced one of its worst [days] since the 2016 referendum, adding that “the government [had] left investors completely in the dark about what happens next”. | |
| Pound falls to lowest in almost two years amid Brexit uncertainty | |
| That’s probably all from us today. | |
| Our Politics Live blog is still tracking all the drama at Westminster: | |
| May roundly condemned by MPs after delaying Brexit vote to seek fresh backstop assurances – Politics live | |
| Good night, and thanks for reading and commenting. GW | |
| After a rough day’s trading, Britain’s FTSE 250 index has lost almost 2% of its value today. | After a rough day’s trading, Britain’s FTSE 250 index has lost almost 2% of its value today. |
| The FTSE 250, which contains UK-focused firms, shed 351 points to 17492. Holiday firm Thomas Cook shed almost 14%, housebuilder Crest Nicholson shed 8.5%, transpor group Stagecoach lost 8.3%, and Domino’s Pizza lost 8%. | The FTSE 250, which contains UK-focused firms, shed 351 points to 17492. Holiday firm Thomas Cook shed almost 14%, housebuilder Crest Nicholson shed 8.5%, transpor group Stagecoach lost 8.3%, and Domino’s Pizza lost 8%. |
| The FTSE 100, packed with internationally-focused companies, shed 53 points or 0.8% - close to last-week’s two-week low. | The FTSE 100, packed with internationally-focused companies, shed 53 points or 0.8% - close to last-week’s two-week low. |
| Fiona Cincotta, senior market analyst at City Index, says shares were hit by Theresa May’s humiliating u-turn today. | Fiona Cincotta, senior market analyst at City Index, says shares were hit by Theresa May’s humiliating u-turn today. |
| The vote was meant to be taking place after five days of intense debate in Parliament over Theresa May’s proposed Brexit deal but instead the change of plans ended up with MPs baying for blood including Jeremy Corbyn asking for the PM to “give way.” | The vote was meant to be taking place after five days of intense debate in Parliament over Theresa May’s proposed Brexit deal but instead the change of plans ended up with MPs baying for blood including Jeremy Corbyn asking for the PM to “give way.” |
| There is no clear indication about where the MPs or the Prime Minister plans to take things next. | There is no clear indication about where the MPs or the Prime Minister plans to take things next. |
| UK business groups are united in horror at events in parliament today: | UK business groups are united in horror at events in parliament today: |
| Business groups: 😡 @britishchambers: "Firms are looking on with utter dismay"😡 @CBItweets: "Yet another blow for companies desperate for clarity"😡 @IoD_Press: "Another extension of the frustration and uncertainty"😡 @the_brc: "Particularly concerning" | Business groups: 😡 @britishchambers: "Firms are looking on with utter dismay"😡 @CBItweets: "Yet another blow for companies desperate for clarity"😡 @IoD_Press: "Another extension of the frustration and uncertainty"😡 @the_brc: "Particularly concerning" |
| Theresa May has insisted several times this afternoon that she will not countenance a People’s Vote on her withdrawal deal. | Theresa May has insisted several times this afternoon that she will not countenance a People’s Vote on her withdrawal deal. |
| Instead, she insists, parliamentarians need to implement the 2016 vote -- despite some MPs reporting that constituents have urged them to reject her deal. | Instead, she insists, parliamentarians need to implement the 2016 vote -- despite some MPs reporting that constituents have urged them to reject her deal. |
| Since May’s deal was announced I’ve received over 600 letters/emails about Brexit:🥇People's Vote w/ Remain (85%)🥈Support Theresa May’s deal (8%)🥉Pro-brexit/No deal (5%)🏅Other (Norway/Canada etc.) (2%) | Since May’s deal was announced I’ve received over 600 letters/emails about Brexit:🥇People's Vote w/ Remain (85%)🥈Support Theresa May’s deal (8%)🥉Pro-brexit/No deal (5%)🏅Other (Norway/Canada etc.) (2%) |
| Charles Hepworth, investment director at wealth manager GAM, suspects that Britain could end up holding another referendum, to end the current impasse. | Charles Hepworth, investment director at wealth manager GAM, suspects that Britain could end up holding another referendum, to end the current impasse. |
| PM May is going back to Brussels on Thursday for an EU council meeting and the hope from her side is that further cosmetic concessions can be agreed around the controversial backstop, but in our view that equation does not quite seem to balance given the EU has already announced that it will not engage the UK government on further deal amendments. | PM May is going back to Brussels on Thursday for an EU council meeting and the hope from her side is that further cosmetic concessions can be agreed around the controversial backstop, but in our view that equation does not quite seem to balance given the EU has already announced that it will not engage the UK government on further deal amendments. |
| “Sterling has once again come under selling pressure, reflecting the ongoing Brexit paralysis. We believe delaying the vote is perhaps just another step towards a second referendum (which clearly cannot take place before the March deadline, but possibly could happen within perhaps six months assuming the March deadline is further extended) as we cannot see another way for this purgatory that the UK inadvertently voted for to end.” | “Sterling has once again come under selling pressure, reflecting the ongoing Brexit paralysis. We believe delaying the vote is perhaps just another step towards a second referendum (which clearly cannot take place before the March deadline, but possibly could happen within perhaps six months assuming the March deadline is further extended) as we cannot see another way for this purgatory that the UK inadvertently voted for to end.” |
| Rather than a crunch vote on Tuesday, the markets now face days of uncertainty, or quite possibly several weeks. | Rather than a crunch vote on Tuesday, the markets now face days of uncertainty, or quite possibly several weeks. |
| Theresa May is refusing to say when the delayed Meaningful Vote will take place, only that it will be held once she has secured new reassurances on the backstop. | Theresa May is refusing to say when the delayed Meaningful Vote will take place, only that it will be held once she has secured new reassurances on the backstop. |
| Hang on. What happens if the Govt never brings this deal back for a vote at all? They can’t just avoid a vote on no deal because they pulled the vote in the middle of the debate on this deal! As I was typing @JustineGreening just asked q on this but got no clear answer. https://t.co/PD0xiOMaug | Hang on. What happens if the Govt never brings this deal back for a vote at all? They can’t just avoid a vote on no deal because they pulled the vote in the middle of the debate on this deal! As I was typing @JustineGreening just asked q on this but got no clear answer. https://t.co/PD0xiOMaug |
| PM making our country look chaotic & ridiculous. 5hrs ago Ministers & No10 were insisting vote was going ahead. Now we don’t know when or even what PM wants it to be on. How can there be trust & credibility in this process if no one can trust anything Ministers are told to say? pic.twitter.com/8TU45QdKB4 | PM making our country look chaotic & ridiculous. 5hrs ago Ministers & No10 were insisting vote was going ahead. Now we don’t know when or even what PM wants it to be on. How can there be trust & credibility in this process if no one can trust anything Ministers are told to say? pic.twitter.com/8TU45QdKB4 |
| Over the past 24 hours the pound has been comfortably the worst-performing major currency in the world #Brexit pic.twitter.com/9dto4fCHUW | Over the past 24 hours the pound has been comfortably the worst-performing major currency in the world #Brexit pic.twitter.com/9dto4fCHUW |
| The cost of insuring UK government debt against default has jumped to its highest level since the EU referendum, in another sign that investors are getting jittery. | The cost of insuring UK government debt against default has jumped to its highest level since the EU referendum, in another sign that investors are getting jittery. |
| UK sovereign 5Y CDS now quoted at 38bps, widest level since the post-referendum days of July 2016 | UK sovereign 5Y CDS now quoted at 38bps, widest level since the post-referendum days of July 2016 |
| It's been a roller-coaster week for sterling but the past half hour or so takes the biscuit. Here's the pound vs the US dollar over the past week or so: pic.twitter.com/sAobl18geM | It's been a roller-coaster week for sterling but the past half hour or so takes the biscuit. Here's the pound vs the US dollar over the past week or so: pic.twitter.com/sAobl18geM |
| The pound remains on track for one of its worst days since the 2016 referendum. | The pound remains on track for one of its worst days since the 2016 referendum. |
| It’s recovering, slightly, from its lowest point today -- but still down 1.6 cents at $1.256. | It’s recovering, slightly, from its lowest point today -- but still down 1.6 cents at $1.256. |
| Lukman Otunuga, research analyst at FXTM, says the possibility that the prime minister is ousted from Downing Street is pulling sterling lower. | Lukman Otunuga, research analyst at FXTM, says the possibility that the prime minister is ousted from Downing Street is pulling sterling lower. |
| It is not just the likelihood of a no-deal Brexit that investors are factoring into their valuations of the British Pound. | It is not just the likelihood of a no-deal Brexit that investors are factoring into their valuations of the British Pound. |
| Investors are also re-pricing into the market the increased likelihood that Theresa May will once again be at threat to expectations of a leadership challenge. Another emerging danger is that the decision taken today raises the threat level that the UK is falling into a disorderly Brexit trap. | Investors are also re-pricing into the market the increased likelihood that Theresa May will once again be at threat to expectations of a leadership challenge. Another emerging danger is that the decision taken today raises the threat level that the UK is falling into a disorderly Brexit trap. |
| The news that Theresa May has kicked the Brexit vote down the parliamentary corridors will have disappointed many British business leaders. | The news that Theresa May has kicked the Brexit vote down the parliamentary corridors will have disappointed many British business leaders. |
| After two and a half years of uncertainty, UK PLC really wants Brexit sorted out. Many also fear a no-deal Brexit, especially those which haven’t (or can’t) drawn up contingency plans to protect themselves. | After two and a half years of uncertainty, UK PLC really wants Brexit sorted out. Many also fear a no-deal Brexit, especially those which haven’t (or can’t) drawn up contingency plans to protect themselves. |
| Stephen Martin, Director General of the Institute of Directors, says firms needs to know what will happen if the UK crashes out of the EU on 29 March: | Stephen Martin, Director General of the Institute of Directors, says firms needs to know what will happen if the UK crashes out of the EU on 29 March: |
| “Avoiding no deal continues to be the main priority for our members but, with Parliament seemingly gridlocked, the Government must also be much clearer about its own contingency plans, even if only regarding the areas they can control, such as imports. | “Avoiding no deal continues to be the main priority for our members but, with Parliament seemingly gridlocked, the Government must also be much clearer about its own contingency plans, even if only regarding the areas they can control, such as imports. |
| Many companies are still in the dark about what HMRC and border agencies would require the day after Brexit if there is no transition period. Partly because of a lack of information, only 14% of IoD members say they are fully prepared to manage no-deal, highlighting the scale of the challenge if a withdrawal agreement isn’t ratified.” | Many companies are still in the dark about what HMRC and border agencies would require the day after Brexit if there is no transition period. Partly because of a lack of information, only 14% of IoD members say they are fully prepared to manage no-deal, highlighting the scale of the challenge if a withdrawal agreement isn’t ratified.” |