Good morning. The pound touched a one-week low yesterday after Boris Johnson launched a third attempt to call a general election as he tries to break the Brexit deadlock.
The currency dropped beneath the $ 1. 28 threshold for the first time in seven days as reports broke that the PM was preparing to push for a vote on a new ballot as soon as Monday, but pared back some of its losses later on. It is currently stood around $ 1. 285.
5 things to start your day
1)Amazon shares sink as it reveals first profit decline in two years: The online shopping titan also disappointed shareholders by warning that growth would slow in its busy Christmas period, sending shares down almost 9pc in late trading.
2) The revival in Britons’ pay packets isset to lose steam next yearas wage growth slows, new figures warned today. Pay analyst XpertHR’s survey of settlements at firms employing 150, 000 staff found employers expect to increase salaries at an average of 2.1pc over the next 12 months, down from 2.5pc over the past year.
3) Next shoppers will be able to buy a mobile phone or renew their O2 contracts while shopping for clothes and homeware. The high street bellwether, which has around 500 stores,has opened two O2 stores today in Next shops in Warrington and Southampton, with two more to follow next month in Swindon and Nottingham.
4)Time for a change on changing the clocks? Many campaigners claim we should leave the clocks alone and enjoy the extra daylight – and potentially increased economic productivity – that it brings. The trouble is that there tends to be more heat than (ahem) light in the arguments, and little strong evidence either way.
5) Network Rail is poised toreignite a rescue bid for part of British Steelafter takeover talks with a Turkish pension fund broke down. The track operator is preparing to step in following the failure of exclusive negotiations between Ataer Holdings and the Government, with officials now forced to open the auction up again to other bidders.
What happened overnight
Stocks in Asia were mixed as weak Amazon earnings kept a lid on positive sentiment, even as equities remained on course for a third week of gains.
Shares dipped in Shanghai and Hong Kong, while stock markets were flat in Seoul and Tokyo. Earlier, the S&P 500 Index traded above the 3, 000 level, approaching its all-time high as technology shares led gains. That optimism is now being tested after Amazon’s first profit decline in more than two years sent its shares tumbling in after-hours trading.
With US earnings season in full flow, investors are getting numerous chances to see how companies are withstanding the effects of trade tensions, slowing global economic growth and Brexit.
Investors also watched the latest developments in the ongoing trade dispute. US Vice President Mike Pence criticized China’s actions against protesters in Hong Kong while calling for greater engagement between the world’s two biggest economies.
Back home, UK Prime Minister Boris Johnson’s bid for a snap election on December 12 was on a knife edge after opposition parties said they want to rule out a no-deal Brexit first. The pound remained steady after sliding following Boris Johnson’s call for a Christmas election.
Coming up today
With third quarter results from Barclays arriving today, we might get more details of the final costs it expects to take from the end of the age of PPI. The lender has had mixed results recently, with a UK housing slowdown doing no favors to its mortgage business. It seems to have shaken off the specter of activist Edward Bramson, however, so management have more flexibility to shift up its strategy as they try to cut down on costs.
Interim results:Aon, Barclays, Glencore
Trading statement:Essentra, Hastings Group, Synthomer, Vivo Energy, WPP
Economics:IFO business climate index (Germany)
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