Reuters Insider - UK Day Ahead: Expect sparks as Britain's parliament returns from recess
02/09/2019 15:34
Click the following link to watch video: https://share.insider.thomsonreuters.com/link?entryId=0_y70cce1c&referenceId=0_y70cce1c&pageId=ReutersNews Source: Reuters Insider Description: Britain's Parliament returns from recess on Tuesday with Labour pledging legislation to stop a no-deal Brexit, amid chatter of an early election. Short Link: https://tmsnrt.rs/2NIdZLg Video Transcript: Good afternoon. I am Alanna Petroff. Welcome to your insight into Tuesday. The UK's Brexit melodrama enters a pivotal stretch, when Parliament returns from recess on Tuesday with only days to battle the government's pledge to leave the EU with or without a deal. Some reports put the number of Conservative Party rebels at 19, more than enough to push through legislation blocking a no-deal exit. But the government has threatened to de-select those MPs, which then could then make the government collapse. Prime Minister Boris Johnson has called a Cabinet meeting for later Monday amid speculation he is getting ready for an early dash to the polls. Labour leader Jeremy Corbyn pledged to work with other parties to block a no-deal scenario and called for an election. We must come together to stop no-deal. This week could be our last chance. We are working with other parties to do everything necessary to pull our country back from the brink, then we need a general election. Sterling fell over concerns that, with Parliament dissolved for an election, a no-deal Brexit could happen by default on October 31. As you can see, it's a similar picture against the Euro here, where the Pound fell to around EUR1.10. Also hurting Sterling was the release of a widely-watched survey that showed British manufacturing PMI contracted last month at the fastest pace in seven years. Let's take a look at how markets stand as we head into the close now. The export-heavy FTSE 100 is shrugging off concerns about Brexit. It's at a one-month high, led by miners. A lower Pound is good news for companies in this index that earn revenue overseas. The STOXX 600 is also seeing gains despite the implementation of fresh tariffs in the US-China trade war. The DAX is higher but only by just a little bit. It was higher much earlier today. Now it is roughly flat. Moving to company updates now. Marks & Spencer may be removed from the FTSE 100 index for the first time since 1984. M&S shares have lost about 40% of their value since the beginning of last year as it suffered along with other high street retailers. It's now ranked 112th by market capitalization in the FTSE 350. It's widely expected to lose its status on the benchmark FTSE 100. And that would force many passive investment funds to sell the shares. The results of the FTSE quarterly review will be announced after the market closes on Wednesday. On the economic front, following today's relatively poor manufacturing PMI data. On Tuesday, we get construction PMI data, which is forecast to show that that sector remains in contraction in August. And the British Retail Consortium publishes its own retail sales figures. In July, retailers reported their weakest sales growth since records began more than 20 years ago. That's it for now. I am Alanna Petroff, and this is Reuters