Pound hits 34-year low ahead of Brexit showdown – live updates

Good morning. The pound is at its lowest in two-and-a-half years against the US dollar, fetching just over $ 1. 20.

Traders have taken fright at the growing likelihood of a no-deal Brexit and the possibility of a general election in October.

Sit tight, as we’ll have plenty more on that today with politicians returning to Westminster for a showdown between Prime Minister Boris Johnson and those opposed to no-deal.

5 things to start your day

1)Factories suffer biggest contraction in seven years(as sector ‘nears recession’) . Factories struggled to pull out of a deepening downturn triggered by a global trade war and no-deal Brexit worries. Demand is sinking both in the UK and overseas.

2)Investors question appointing Micro Focus boss asnew De La Rue chairman. UK software company Micro Focus had more than £ 1bn wiped off its value last week after it warned it would miss revenue targets but that has not stopped its chairman taking on a similar role at De La Rue, the struggling banknote maker.

3)Thethree chartsthat show Trump is losing the trade war with China. If trade wars are “good and easy to win” then why is Donald Trump starting to lose his battle with China?

4)Eurotunnel is‘ready for Brexit no matter the outcome’, says its operator Getlink. But whether Brexit goes smoothly at the Channel Tunnel will depend on how strictly the French government chooses to implement EU border controls according to the Freight Transport Association.

5)Augustretail sales flatlinein ‘incredibly disappointing month’. Consumers tightened their belts in the face of continuing political and economic uncertainty. The new figures were released today.

What happened overnight

Asian stocks were mixed overnight as investors waited to see if Chinese and American officials can schedule a planned meeting this month to continue trade talks.

Sterling slumped to its lowest in more than two-and-a-half years with the UKfacing a showdown in Parliament over Brexit.

Cash markets for both US stocks and bonds were closed yesterday for the Labor Day holiday. Treasury yields ticked higher and the dollar strengthened.

Elsewhere, crude oil slipped below $ 55 a barrel amid concerns a hurricane battering the US southeast coast and an economic slowdown from the trade war may dent demand.

Coming up today

We have a smattering of corporate updates today. Investors in the Restaurant Group will get a taste of how itstakeover of Wagamamais panning out when the company reveals its interim results.

Full-year results:Craneware

Interims:Gamma Communications, Highland Gold, Impact Healthcare, India Capital Growth Fund, IQE, Restaurant Group, STV

Trading statement:Severfield, DS Smith

Economics:Construction PMI (UK), BRC sales (UK), ISM manufacture and prices paid (US)