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You can find the current article at its original source at https://www.theguardian.com/business/live/2019/dec/17/pound-brexit-cliff-edge-jobs-unemployment-wages-ftse-sterling-business-live
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| Pound tumbles amid Brexit cliff-edge fears; factory output slumps - as it happened | |
| (32 minutes later) | |
| Rolling coverage of the latest economic and financial news | Rolling coverage of the latest economic and financial news |
| Time for our closing summary. | |
| On Wall Street, the Dow Jones dipped at the open as shares in Boeing fell more than 2%. The Dow fell 14 points to 28,221.75. The S&P 500 edged up 4 points, or 0.12%, to 3,195.40 while the Nasdaq gained 15 points, or 0.17%, to 8,829.47. | |
| The UK’s FTSE 100 is down 14 points, or 0.19% at 7,505.15 as the ‘Boris bounce’ fizzled out. Housebuilders and banks are among the biggest fallers, along with Unilever, which warned of weaker-than-expected sales growth today. European stock markets are also mostly trading lower. | |
| The pound has tumbled 1.3% to $1.3160 – back towards levels seen before Thursday’s general election. The government is preparing to pass legislation that could cause a cliff-edge Brexit at the end of next year. | |
| Britain’s factories suffered their worst slump in activity since the financial crisis a decade ago. | |
| The latest UK labour market data are a bit of a mixed bag: unemployment is down and employment is up, but wage growth has slowed and job vacancies have fallen. | |
| Good-bye – we’ll be back tomorrow. | |
| An independent report has slammed the “poor culture” at Persimmon, one of the UK’s biggest housebuilders, which has come under heavy criticism for its shoddy workmanship and paying a £75m bonus to its former chief executive last year. In particular, the report highlighted the firm’s failure to install properly cavity barriers at its timber-framed houses, a key fire safety measure. | An independent report has slammed the “poor culture” at Persimmon, one of the UK’s biggest housebuilders, which has come under heavy criticism for its shoddy workmanship and paying a £75m bonus to its former chief executive last year. In particular, the report highlighted the firm’s failure to install properly cavity barriers at its timber-framed houses, a key fire safety measure. |
| The review, led by Stephanie Barwise QC of law firm Atkin Chambers, called on the company to reconsider its purpose and ambition, and to fundamentally change its culture. Persimmon commissioned the review in April and took other steps to rebuild its tarnished reputation. Its last annual profit topped £1bn, the biggest ever made by a UK housebuilder, and a big chunk of it was related to the taxpayer-funded help-to-buy scheme. | The review, led by Stephanie Barwise QC of law firm Atkin Chambers, called on the company to reconsider its purpose and ambition, and to fundamentally change its culture. Persimmon commissioned the review in April and took other steps to rebuild its tarnished reputation. Its last annual profit topped £1bn, the biggest ever made by a UK housebuilder, and a big chunk of it was related to the taxpayer-funded help-to-buy scheme. |
| The report said Persimmon’s issue with “missing or improperly fitted cavity barriers is a systemic nationwide problem, which is a manifestation of poor culture coupled with the lack of a group build process”. | The report said Persimmon’s issue with “missing or improperly fitted cavity barriers is a systemic nationwide problem, which is a manifestation of poor culture coupled with the lack of a group build process”. |
| The barriers are designed to stop fire spreading. Persimmon said it had checked 16,000 homes and fixed the majority of those affected, and is inspecting more than 500 homes a week. Two-fifths of the houses it builds every year are timber frame. | The barriers are designed to stop fire spreading. Persimmon said it had checked 16,000 homes and fixed the majority of those affected, and is inspecting more than 500 homes a week. Two-fifths of the houses it builds every year are timber frame. |
| Persimmon said it was taking the issue very seriously and had taken “extensive action,” after discovering failings at various stages in the installation of cavity barriers at some properties. There has been inadequate supervision by the company and the approved building control inspector, NHBC, it said. Persimmon appointed fire engineering firm Arup in November to assess any further steps it should take. | Persimmon said it was taking the issue very seriously and had taken “extensive action,” after discovering failings at various stages in the installation of cavity barriers at some properties. There has been inadequate supervision by the company and the approved building control inspector, NHBC, it said. Persimmon appointed fire engineering firm Arup in November to assess any further steps it should take. |
| Over here, the FTSE 100 is trading some 16 points lower at 7,502.51, a 0.22% fall. Germany’s Dax has lost 0.57% and France’s CAC is down 0.25% while Italy’s FTSE MiB has bucked the negative trend with a 0.7% rise. | Over here, the FTSE 100 is trading some 16 points lower at 7,502.51, a 0.22% fall. Germany’s Dax has lost 0.57% and France’s CAC is down 0.25% while Italy’s FTSE MiB has bucked the negative trend with a 0.7% rise. |
| The opening bell has rung on Wall Street. Stocks are largely flat, as expected, staying close to yesterday’s record closing levels. | The opening bell has rung on Wall Street. Stocks are largely flat, as expected, staying close to yesterday’s record closing levels. |
| Dow Jones down 8.39 points, or 0.03%, at 28,227.50 | Dow Jones down 8.39 points, or 0.03%, at 28,227.50 |
| S&P 500 up 3.65 points, or 0.1%, at 3,195.1 | S&P 500 up 3.65 points, or 0.1%, at 3,195.1 |
| Nasdaq up 15.49 points, or 0.18%, at 8,827.72 | Nasdaq up 15.49 points, or 0.18%, at 8,827.72 |
| The pound is still trading down 1.4% against the dollar, at $1.3147 – signalling that the ‘Boris Bounce’ is over. Investors are back to worrying that Britain will fail to agree a new trade deal with the EU by the end of next year. | The pound is still trading down 1.4% against the dollar, at $1.3147 – signalling that the ‘Boris Bounce’ is over. Investors are back to worrying that Britain will fail to agree a new trade deal with the EU by the end of next year. |
| Looking ahead to the Wall Street open, stocks are expected to open close to yesterday’s record closing levels. Boeing, however, is set for its worst open since August after the US aircraft maker decided to halt production of its grounded 737 Max plane. | Looking ahead to the Wall Street open, stocks are expected to open close to yesterday’s record closing levels. Boeing, however, is set for its worst open since August after the US aircraft maker decided to halt production of its grounded 737 Max plane. |
| Back to the US, which has released more data, this time on industrial production. Output from manufacturers, miners and utilities rose 1.1% in November, which was better than expected, and a strong bounceback from October’s decline of 0.9%. | Back to the US, which has released more data, this time on industrial production. Output from manufacturers, miners and utilities rose 1.1% in November, which was better than expected, and a strong bounceback from October’s decline of 0.9%. |
| Manufacturing alone also posted 1.1% growth, following a 0.7% drop in October. | Manufacturing alone also posted 1.1% growth, following a 0.7% drop in October. |
| Sadly, another UK retailer has gone into administration, just a week before Christmas. The online and pop-up bookseller The Book People appointed administrators at PricewaterhouseCoopers, putting almost 400 jobs at risk. | Sadly, another UK retailer has gone into administration, just a week before Christmas. The online and pop-up bookseller The Book People appointed administrators at PricewaterhouseCoopers, putting almost 400 jobs at risk. |
| At least, there will be no immediate job losses, according to the administrators, who also promised that Christmas orders already placed by customers will be fulfilled. PwC are now looking for a buyer of the business. | At least, there will be no immediate job losses, according to the administrators, who also promised that Christmas orders already placed by customers will be fulfilled. PwC are now looking for a buyer of the business. |
| My colleague Sarah Butler writes: | My colleague Sarah Butler writes: |
| He also said that the US needed to reduce its trade gap with Europe to get its global trade deficit down, and that it must find ways to sell more goods to the EU. | He also said that the US needed to reduce its trade gap with Europe to get its global trade deficit down, and that it must find ways to sell more goods to the EU. |
| The US trade representative, Robert Lighthizer, has given an interview to Fox Business Network. He said that a trade between the US and the UK is a priority for Washington and negotiations will be launched soon. | The US trade representative, Robert Lighthizer, has given an interview to Fox Business Network. He said that a trade between the US and the UK is a priority for Washington and negotiations will be launched soon. |