Reuters Insider - Reuters Today: Optimism over Brexit deal boosts sterling; Unilever stays in London

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05/10/2018 11:43

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Source: Reuters Insider

Description: Sterling gets a boost against the dollar and the euro after
European Union's Brexit negotiators said a divorce deal was 'very close', said
sources close to the matter. Unilever has backed down from its plan to move
its headquarters from London to the Netherlands. Rising U.S. bond yields
continue to weigh on European markets as investors wait on the U.S. jobs
report. 
Short Link: https://reut.rs/2IETWJ3

Video Transcript:

Good morning and welcome to Reuters Today. I'm Angeline Ong. Optimism over
Brexit. The European Union's Brexit negotiators say a divorce deal is "very
close". This is according to two sources close to the meeting between them and
national diplomats in Brussels. But the Irish border issue remains a key
sticking point. EU Brexit negotiator Michel Barnier has been speaking with
Irish Prime Minister Leo Varadkar about his proposals for a legally sound
backstop solution for the Republic and Northern Ireland while UK Prime
Minister Theresa May has her own solutions as well. Finding a palatable
solution to all sides is key in unlocking this Brexit conundrum if all parties
want to reach some form of deal by the middle of next month at the EU summit.
Now after meeting with European Council President Donald Tusk on Thursday,
Varadkar said he was hopeful for a deal soon. br/  br/ I want to very much
agree with President Tusk in his call to get down to business, I'm very keen
to see an agreement concluded by November, if at all possible. I think that's
in the interests of Ireland, the European Union, and the UK. And I think we
all really need to get down to business over the next few weeks and make that
possible. Thank you. br/  br/ Well, Sterling's certainly getting a boost from
those optimistic comments from EU Brexit negotiators. The Pound rose to a
10-week high against the Euro and a five-day high against the Dollar. Still,
Marshall Gittler, Chief Strategist at ACLS Global says the optimism is
misplaced, adding that he did not think the other EU countries will want to
make the necessary concessions so he sees further turmoil and this will put
downward pressure on the Pound. Now the slowing demand for staff ahead of
Brexit may mean that the rise in wage growth is short-lived, that's according
to the Recruitment and Employment Confederation's latest survey. Its gauge of
permanent job starting salaries rose to 64.5 from 62.4 in August to hit its
highest level since April 2015. Recruiters say Brexit is the biggest reason
for uncertainty in the supply of labor. Now Unilever has backed down from its
plan to move its headquarters from London to the Netherlands. The maker of
Dove Soap and Ben and Jerry's ice cream said it recognized the proposal had
not received support from a significant group of shareholders. So far,
shareholders representing about 12% of the shares had publicly opposed the
move. Their main concerns were around the forced selling of their shares with
no premium. There was also a perception that the move was aimed at securing
the greater takeover protections under Dutch law. Well, let's take a look at
the movers and shakers for you. And Credit Suisse says too little has changed
at the Italian luxury company Tod's since its management shake-up, adding that
decision making still seems to be very much in the hands of its owners.
Britain's Royal Mail is among the top fallers after a profits warning and a
ratings cut earlier in the week. Credit Suisse has initiated coverage of
Signify - formerly Philips Lighting with an "underperform" rating. Now looking
a little more dapper this morning: Eutelsat shares are up by more than 5%
thanks to an upgrade by Goldman Sachs. Shares in Intu Properties soared after
a consortium, including British billionaire John Whittaker and Canada's
Brookfield Asset Management, said it was considering a bid for the shopping
center owner. And Pharol, formerly Portuguese Telecom is in favor this
morning. Its shares surging more than 5% at the open. To the broader markets
and sentiment is still being dampened by rising US bond yields, which are
trading near a 7-year high. The FTSE 100 is down 0.5%. Similar story for the
DAX in Germany and the FTSEurofirst 300. Of course, investors are treading
cautiously ahead of the all important jobs report out later today from the US,
which may provide more clues as to how fast the US might hike rates in the
future. And that's it for now. I'm Angeline Ong, and this is Reuters