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You can find the current article at its original source at https://www.theguardian.com/business/live/2019/jul/29/sterling-new-two-year-low-no-deal-brexit-fears-pound-euro-us-dollar-currencies-business-live
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| Sterling hits new two-year low as ministers prepare for no-deal Brexit – business live | Sterling hits new two-year low as ministers prepare for no-deal Brexit – business live |
| (32 minutes later) | |
| The London Stock Exchange Group has also enjoyed a strong morning on the weekend’s merger talk: shares are up by 13% at the time of writing. | |
| LSE boss David Schwimmer (not that one) has been in the job for just over a year, but has clearly taken a leaf from Xavier Rolet, his predecessor, in going for big deals. | |
| As well as running the stock exchange and the FTSE Russell index group (which produces the FTSE 100 index), the LSE already has a lot of data services that fit in well with its trading technologies. | |
| Refinitiv, the data company carved out of Thomson Reuters last year, runs Eikon terminals which collect trading and financial data into one place for investors. | |
| At the other end of the scale from Sports Direct, Just Eat 22% shares have popped by 22% following the news of the proposed takeover by Dutch competitor Takeaway.com. | |
| The deal will give the new company a strong presence across the EU, and will also give it the scale to take on other well resourced rivals. | |
| The two companies do not compete directly in any of their major markets, so investors have long been pushing for a tie-up. | |
| Takeaway.com shares have risen by 3.7% to a record high after the deal. German rival Delivery Hero has gained 4.6% on the news as well. | |
| Sports Direct shares have fallen by as much as 20% after the retailer issued an extraordinary results statement on Friday that revealed massive tax bills, poor trading and a retail industry warning. | Sports Direct shares have fallen by as much as 20% after the retailer issued an extraordinary results statement on Friday that revealed massive tax bills, poor trading and a retail industry warning. |
| The results were delayed throughout the day on Friday, so this morning was the first chance investors had to react. They have not welcomed the news. | The results were delayed throughout the day on Friday, so this morning was the first chance investors had to react. They have not welcomed the news. |
| Here is your guide to what is going wrong at the retailer. Warning: there’s a lot. | Here is your guide to what is going wrong at the retailer. Warning: there’s a lot. |
| The state of Sports Direct: key points from results statement | The state of Sports Direct: key points from results statement |
| The FTSE 100 has gained 0.1% at the open, but European markets are struggling a bit more. | The FTSE 100 has gained 0.1% at the open, but European markets are struggling a bit more. |
| The Euro Stoxx 600 index is down by 0.2%, led by the 0.2% declines on Germany’s Dax and France’s Cac 40. | The Euro Stoxx 600 index is down by 0.2%, led by the 0.2% declines on Germany’s Dax and France’s Cac 40. |
| Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. | Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. |
| Boris Johnson may have achieved his ambition of getting into 10 Downing Street last week, but financial markets have served an early reminder at the start of his first full week in office that he has a daunting task ahead of him. | Boris Johnson may have achieved his ambition of getting into 10 Downing Street last week, but financial markets have served an early reminder at the start of his first full week in office that he has a daunting task ahead of him. |
| Sterling this morning hit a new two-year low against the US dollar, with one pound buying only $1.2358 in early trading following a weekend of no-deal Brexit tough talking from newly installed ministers. The pound weakened by 0.12% against the dollar and 0.1% against the euro. | Sterling this morning hit a new two-year low against the US dollar, with one pound buying only $1.2358 in early trading following a weekend of no-deal Brexit tough talking from newly installed ministers. The pound weakened by 0.12% against the dollar and 0.1% against the euro. |
| Ministers are “turbo-charging” preparations to leave the EU without a deal on 31 October according to several senior cabinet ministers, reports the Guardian’s Rowena Mason. Johnson’s new cabinet Brexit fixer, Michael Gove, warned that the government was “operating on the assumption” that Britain would leave without a deal on 31 October and it was a “very real prospect”. | Ministers are “turbo-charging” preparations to leave the EU without a deal on 31 October according to several senior cabinet ministers, reports the Guardian’s Rowena Mason. Johnson’s new cabinet Brexit fixer, Michael Gove, warned that the government was “operating on the assumption” that Britain would leave without a deal on 31 October and it was a “very real prospect”. |
| The stakes are clear for businesses in Britain. Carlos Tavares, the boss of PSA Group, used an interview last night with the Financial Times to warn that he could close the company’s factory in Ellesmere Port, which manufactures Vauxhall Astra cars, if there is a no-deal Brexit that disrupts exports from the factory. The jobs of 1,000 workers hang in the balance. | The stakes are clear for businesses in Britain. Carlos Tavares, the boss of PSA Group, used an interview last night with the Financial Times to warn that he could close the company’s factory in Ellesmere Port, which manufactures Vauxhall Astra cars, if there is a no-deal Brexit that disrupts exports from the factory. The jobs of 1,000 workers hang in the balance. |
| It seems unlikely that the EU will be willing to make material changes to the existing deal, according to Fernando Barajas, an analyst at Creditsights, a debt rating agency. “There is little sign” that the no-deal threats have made an impact on the EU’s stance. | It seems unlikely that the EU will be willing to make material changes to the existing deal, according to Fernando Barajas, an analyst at Creditsights, a debt rating agency. “There is little sign” that the no-deal threats have made an impact on the EU’s stance. |
| A general election in the near term now seems a high likelihood outcome. | A general election in the near term now seems a high likelihood outcome. |
| Yet all of the political noise has not put off the dealmakers in London. Over the weekend two large mergers have come through. The FTSE 100’s Just Eat and Dutch Takeaway.com have agreed a £8.2bn all-share deal to create one of the world’s biggest takeaway delivery players. Just Eat faces renewed competition from Amazon-backed Deliveroo and Uber Eats, and some activist investors have been pushing for a deal for some time. | Yet all of the political noise has not put off the dealmakers in London. Over the weekend two large mergers have come through. The FTSE 100’s Just Eat and Dutch Takeaway.com have agreed a £8.2bn all-share deal to create one of the world’s biggest takeaway delivery players. Just Eat faces renewed competition from Amazon-backed Deliveroo and Uber Eats, and some activist investors have been pushing for a deal for some time. |
| Another big deal on the cards is the London Stock Exchange Group’s merger with data company Refinitiv, a potential $27bn deal. A formal announcement of the terms could come this week when the LSE publishes results. | Another big deal on the cards is the London Stock Exchange Group’s merger with data company Refinitiv, a potential $27bn deal. A formal announcement of the terms could come this week when the LSE publishes results. |
| Asian markets were mixed on Monday, with shares in Japan weakening, while Australia’s benchmark ASX 200 rose by 0.95%. However, many investors will have their eyes on events later in the week, when the Federal Reserve is expected to cut interest rates for the first time in a decade. | Asian markets were mixed on Monday, with shares in Japan weakening, while Australia’s benchmark ASX 200 rose by 0.95%. However, many investors will have their eyes on events later in the week, when the Federal Reserve is expected to cut interest rates for the first time in a decade. |
| Trade talks to fix the relationship between the US and China, one of the biggest factors in the Fed’s desire to support the economy, will resume tomorrow, although few are holding out hope of a positive development. | Trade talks to fix the relationship between the US and China, one of the biggest factors in the Fed’s desire to support the economy, will resume tomorrow, although few are holding out hope of a positive development. |
| The agenda | The agenda |
| 9:30am BST: Bank of England consumer credit (June) | 9:30am BST: Bank of England consumer credit (June) |
| 9:30am BST: Bank of England mortgage approvals (June) | 9:30am BST: Bank of England mortgage approvals (June) |
| 3:30pm BST: US Dallas Fed manufacturing index (July) | 3:30pm BST: US Dallas Fed manufacturing index (July) |