Pound slumps on Brexit fallout
LONDON: The pound slumped more than one percent against the dollar and euro yesterday with post-Brexit trade talks between Britain and the European Union on a knife-edge.
LONDON: In this file photo, British one pound sterling coins and one euro coins are arranged in front of the European Union flag in a photograph in London on December 14, 2017. – AFP
Major stock markets dropped except for London, as the sliding pound boosted share prices of multinationals trading on the benchmark FTSE 100 index.
The pound was down 1.2 percent against the dollar, while the euro jumped 1.1 percent versus the British currency. The FTSE climbed 0.3 percent, while oil prices retreated about 1.0 percent. Down by around half-a-percent, sterling’s losses widened sharply after Britain’s Sun newspaper said Prime Minister Boris Johnson was willing to abandon post-Brexit trade talks with the European Union.
“International stocks like British American Tobacco, AstraZeneca, Unilever, Diageo and Imperial Brands are all helping the index. “Those companies benefit from the slide in sterling as they earn a large portion of their revenue overseas,” Madden added. The threat of a wrenching “no-deal” comes after Brussels’ chief negotiator Michel Barnier briefed ambassadors from EU member states at a pre-dawn crisis meeting, warning that divisions were still stark after talks with his UK counterpart David Frost broke up overnight.
Traders are keeping tabs on the deployment of vaccines around the world, with Britain in line to start giving jabs this week. US approval of its first drug could come as soon as Friday. Belgium, France and Spain have said jabs will begin in January for the most vulnerable. – AFP