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| Pound hits lowest level since early January as Brexit crisis rages - business live | Pound hits lowest level since early January as Brexit crisis rages - business live |
| (32 minutes later) | |
| Neil Wilson of Markets.com agrees that the turmoil in Westminster is hurting the pound: | |
| News wires are flashing with a slew of reports suggesting the PM is about to be ousted. It seems the cabinet has now had enough and if they don’t move now Theresa May will be safe for a while longer. The pressure on the PM is intense and it’s hard to see how she can survive. We should caution though that she is the master of clinging on no matter what. | |
| For the market this opens up the prospect of more uncertainty, the potential of a Brexiter PM, a General Election and perhaps a second referendum. In other words it just makes things even more chaotic. However, we should caution that a sell the rumour, buy the fact trade may well be at work – as soon as things become clearer sterling is ripe for a bounce – the more it’s sold the riper it becomes as the trade looks increasingly crowded. | |
| Shares in UK building firms are also under heavy pressure, a clear sign that fears of a no-deal Brexit are rising. | |
| Persimmon (-5.6%), Berkeley Group (-4.2%), Barratt (-4.1%) and Taylor Wimpey (-4%) are all among the top fallers on the FTSE 100. | |
| EasyJet, which is also vulnerable to an economic shock, are down 6%. | |
| Other companies heavily exposed to the UK economy are also under the cosh - supermarket chain Sainsbury’s has lost 4%, and Royal Bank of Scotland are down 3%. | |
| The barrage of reports that Theresa May is losing support are obviously prompting traders to hit the sell button. | |
| In last half hour - 1. Cabinet minister told me it's the 'end of the line' - and they will tell PM2. Another says she can't make it beyond Mon (EU elex results are overnight Sun/Mon)3. Another says she must stay - 'no difference' whether goes now or in a few weeks | |
| My colleague Andrew Sparrow is tracking all the action at Westminster, as the PM’s future hangs in the balance...(not for the first time, of course) | My colleague Andrew Sparrow is tracking all the action at Westminster, as the PM’s future hangs in the balance...(not for the first time, of course) |
| May fails to quell Brexit plan backlash amid reports cabinet has turned against her – live news | May fails to quell Brexit plan backlash amid reports cabinet has turned against her – live news |
| These tweets sum up the crisis facing Theresa May this afternoon, and explain why the pound is sliding.... | These tweets sum up the crisis facing Theresa May this afternoon, and explain why the pound is sliding.... |
| RECAP: The situation PM faces this afternoon following conversations with sources:1. 1922 exec meets at 4 with some now hell bent on changing rules to shift PM2. Scottish Sec to see PM to discuss her future 3. Delegation of leave ministers also seeing PM to express their anger pic.twitter.com/h8XJPWaxId | RECAP: The situation PM faces this afternoon following conversations with sources:1. 1922 exec meets at 4 with some now hell bent on changing rules to shift PM2. Scottish Sec to see PM to discuss her future 3. Delegation of leave ministers also seeing PM to express their anger pic.twitter.com/h8XJPWaxId |
| More significant are plans for a group of Brexit-backing Cabinet ministers to see the PM this afternoon. One cabinet source says: "If you don't do it today, she's safe for two weeks." | More significant are plans for a group of Brexit-backing Cabinet ministers to see the PM this afternoon. One cabinet source says: "If you don't do it today, she's safe for two weeks." |
| Minister: “it’s over. You may not see the result today but it’s happened. You might have to wait till Friday for the podium but she’s done.” | Minister: “it’s over. You may not see the result today but it’s happened. You might have to wait till Friday for the podium but she’s done.” |
| The pound is coming under renewed pressure, hitting a new four-month low against the US dollar. | The pound is coming under renewed pressure, hitting a new four-month low against the US dollar. |
| Sterling fell as low as $1.2625, its lowest point since the 4th of January. It’s also down further against the euro, at €1.132. | Sterling fell as low as $1.2625, its lowest point since the 4th of January. It’s also down further against the euro, at €1.132. |
| Traders are reacting to a flurry of reports that some cabinet ministers are plotting to force Theresa May to step down, rather than allowing her to bring her Brexit vote to parliament next month. | Traders are reacting to a flurry of reports that some cabinet ministers are plotting to force Theresa May to step down, rather than allowing her to bring her Brexit vote to parliament next month. |
| The Evening Standard says plotting is underway with relish (we mentioned earlier that several ministers were late for PMQs). | The Evening Standard says plotting is underway with relish (we mentioned earlier that several ministers were late for PMQs). |
| Cabinet ministers were this afternoon discussing sending a delegation to tell Theresa May she should resign after botching her “last chance” at a Brexit deal. | Cabinet ministers were this afternoon discussing sending a delegation to tell Theresa May she should resign after botching her “last chance” at a Brexit deal. |
| At least four ministers were said to be in talks about calling time on the Prime Minister after her attempt to get cross-party backing for a new plan hit a wall of opposition. | At least four ministers were said to be in talks about calling time on the Prime Minister after her attempt to get cross-party backing for a new plan hit a wall of opposition. |
| Environment Secretary Michael Gove gave an apparent hint that a big Commons vote on the Withdrawal Agreement Bill, due in the week of June 3, should be pulled. | Environment Secretary Michael Gove gave an apparent hint that a big Commons vote on the Withdrawal Agreement Bill, due in the week of June 3, should be pulled. |
| Sources said several Cabinet ministers agreed with him that the vital Bill should be kept back for a new Tory leader to manage. | Sources said several Cabinet ministers agreed with him that the vital Bill should be kept back for a new Tory leader to manage. |
| My colleague Heather Stewart has also heard that “something’s up”, with Scottish secretary David Mundell planning to have a little chat with the PM later. | My colleague Heather Stewart has also heard that “something’s up”, with Scottish secretary David Mundell planning to have a little chat with the PM later. |
| Theresa May still doughtily defending her bill in the Chamber - but one cabinet source says, “something funny going on here... may move very fast.“ | Theresa May still doughtily defending her bill in the Chamber - but one cabinet source says, “something funny going on here... may move very fast.“ |
| Understand David Mundell has asked for a meeting with the PM later, because of concerns about how May has presented the second referendum issue. He feels any hint the government backs a PV gives the Scottish Tories a massive headache with the SNP. | Understand David Mundell has asked for a meeting with the PM later, because of concerns about how May has presented the second referendum issue. He feels any hint the government backs a PV gives the Scottish Tories a massive headache with the SNP. |
| With mobile operators shunning its phones, and ARM dramatically blocking work with the firm, Huawei’s problems are deepening. | With mobile operators shunning its phones, and ARM dramatically blocking work with the firm, Huawei’s problems are deepening. |
| The crisis escalated last week when it was placed on a US trade blacklist, preventing the firm buying goods and services from American firms without government permission. | The crisis escalated last week when it was placed on a US trade blacklist, preventing the firm buying goods and services from American firms without government permission. |
| That prompted Google to cut ties with the company on Sunday night, restricting its access to the Android operating system. Current phones shouldn’t be affected, but it could stop Huawei using Android for new handsets - a very serious blow. | That prompted Google to cut ties with the company on Sunday night, restricting its access to the Android operating system. Current phones shouldn’t be affected, but it could stop Huawei using Android for new handsets - a very serious blow. |
| Here’s our news story on EE’s decision to drop Huawei phones like a hot potato: | Here’s our news story on EE’s decision to drop Huawei phones like a hot potato: |
| EE drops Huawei phones from its 5G network launch lineup | EE drops Huawei phones from its 5G network launch lineup |
| In another blow to Huawei, two of Britain’s mobile operators have decided not to offer its handsets to customers joining their new 5G networks. | In another blow to Huawei, two of Britain’s mobile operators have decided not to offer its handsets to customers joining their new 5G networks. |
| EE announced this morning that it will launched the UK’s first ultra-fast 5G network later this month, in Belfast, Birmingham, Cardiff, Edinburgh, London, and Manchester. | EE announced this morning that it will launched the UK’s first ultra-fast 5G network later this month, in Belfast, Birmingham, Cardiff, Edinburgh, London, and Manchester. |
| It had planned to offer Huawei handsets, but has temporarily suspended that plan - following America’s ban on the company dealing with US companies. That ban could prevent Huawei updating phones running Google’s Android operating system. | It had planned to offer Huawei handsets, but has temporarily suspended that plan - following America’s ban on the company dealing with US companies. That ban could prevent Huawei updating phones running Google’s Android operating system. |
| Steve Ranger of technology site ZDNet has the details: | Steve Ranger of technology site ZDNet has the details: |
| EE CEO Marc Allera said EE had put the Huawei 5G devices “on pause” until it has more information and confidence that the handsets would be supported for the lifetime of the devices. | EE CEO Marc Allera said EE had put the Huawei 5G devices “on pause” until it has more information and confidence that the handsets would be supported for the lifetime of the devices. |
| But the vendor’s equipment is still in EE core network; the UK government is currently deciding whether Huawei kit should be allowed in the nation’s 5G networks. | But the vendor’s equipment is still in EE core network; the UK government is currently deciding whether Huawei kit should be allowed in the nation’s 5G networks. |
| Vodafone as also decided to suspend Huawei from its range for 5G handsets, with a launch planned for this summer. | Vodafone as also decided to suspend Huawei from its range for 5G handsets, with a launch planned for this summer. |
| Huawei has confirmed that ARM has suspended work with it, and blamed “politically motivated” decisions -- namely America’s decision to blacklist it last week. | Huawei has confirmed that ARM has suspended work with it, and blamed “politically motivated” decisions -- namely America’s decision to blacklist it last week. |
| A spokesperson for the Chinese tech firm says: | A spokesperson for the Chinese tech firm says: |
| “We value our close relationships with our partners, but recognize the pressure some of them are under, as a result of politically motivated decisions, | “We value our close relationships with our partners, but recognize the pressure some of them are under, as a result of politically motivated decisions, |
| We are confident this regrettable situation can be resolved and our priority remains to continue to deliver world-class technology and products to our customers around the world.” | We are confident this regrettable situation can be resolved and our priority remains to continue to deliver world-class technology and products to our customers around the world.” |
| The Financial Times reports that the ARM ban will hurt Huawei: | The Financial Times reports that the ARM ban will hurt Huawei: |
| Huawei confirmed that it had been informed over the weekend that Arm would stop doing business with it. The company’s current chip set, Kirin 980, is built on Arm designs and will not be affected for about a year, it said. | Huawei confirmed that it had been informed over the weekend that Arm would stop doing business with it. The company’s current chip set, Kirin 980, is built on Arm designs and will not be affected for about a year, it said. |
| More here: | More here: |
| Huawei describes the Kirin 380 as the “most powerful and intelligent” mobile chip of its type ever. It includes 6.9 billion transistors in an area of less than 1 square centimetre - confirming that Moore’s Law is alive and well. | Huawei describes the Kirin 380 as the “most powerful and intelligent” mobile chip of its type ever. It includes 6.9 billion transistors in an area of less than 1 square centimetre - confirming that Moore’s Law is alive and well. |
| Huawei adds: | Huawei adds: |
| Kirin 980 can quickly adapt to AI scenes such as face recognition, object recognition, object detection, image segmentation and intelligent translation with the power of a dual-core NPU achieving 4500 images per minute which is an improved 120% recognition speed. So whether it’s dancing to a fast song or quickly running in front of the camera, the Kirin 980 can focus on the joints and lines of the human body in real time | Kirin 980 can quickly adapt to AI scenes such as face recognition, object recognition, object detection, image segmentation and intelligent translation with the power of a dual-core NPU achieving 4500 images per minute which is an improved 120% recognition speed. So whether it’s dancing to a fast song or quickly running in front of the camera, the Kirin 980 can focus on the joints and lines of the human body in real time |
| ARM has issued a brief statement on the Huawei ban, saying: | ARM has issued a brief statement on the Huawei ban, saying: |
| “ARM is complying with all of the latest regulations set forth by the U.S. government. | “ARM is complying with all of the latest regulations set forth by the U.S. government. |
| No further comment at this time.” | No further comment at this time.” |
| The crisis facing Huawei has deepened today, as British chipmaker ARM suspended business with the Chinese company. | The crisis facing Huawei has deepened today, as British chipmaker ARM suspended business with the Chinese company. |
| ARM took the move after America put Huawei on its “banned entity” list, which forbids US companies to supply it with technology. | ARM took the move after America put Huawei on its “banned entity” list, which forbids US companies to supply it with technology. |
| ARM - one of the success stories of British technology in recent decades -- reportedly believes it is affected by the US ban as some of its processor designs were developed in California and Texas. | ARM - one of the success stories of British technology in recent decades -- reportedly believes it is affected by the US ban as some of its processor designs were developed in California and Texas. |
| The BBC, which broke the story, says the ban could present Huawei with “insurmountable” problems. That’s because ARM’s designs are widely used, and licensed by other semiconductor providers. | The BBC, which broke the story, says the ban could present Huawei with “insurmountable” problems. That’s because ARM’s designs are widely used, and licensed by other semiconductor providers. |
| An internal memo has told ARM employees to halt “all active contracts, support entitlements, and any pending engagements” with Huawei and its subsidiaries. | An internal memo has told ARM employees to halt “all active contracts, support entitlements, and any pending engagements” with Huawei and its subsidiaries. |
| So potentially, Huawei could be unable to use ARM-based chips in its smartphones, or network equipment. | So potentially, Huawei could be unable to use ARM-based chips in its smartphones, or network equipment. |
| An exclusive from @DaveLeeBBC - 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 | An exclusive from @DaveLeeBBC - 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 |