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Business news - live: Pound rises as Barnier says 'optimistic' Brexit deal can be done, as Amazon's Deliveroo purchase faced competition probe

Follow live updates as Brexit talks resume and sterling volatility increases

Ben Chapman
Wednesday 16 October 2019 10:43 BST
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Brexit deal is 'still possible' in time , claims Michel Barnier

The pound slumped before recovering on a volatile morning in the currency markets as confidence about the chances of the EU and UK reaching a Brexit deal vacillated during another round of talks today.

It comes as Whitehall's spending watchdog warns that a no-deal Brexit would mean delays to goods, more crime and fewer checks on migrants.

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Asos profits have collapsed, falling nearly 70 per cent but the online retailer insists its problems are behind it.

Sterling has had a volatile morning, sliding half a percent against the dollar before gaining much of it back as markets try in vain to interpret the latest utterances on whether or not the UK and Eu will agree a Brexit deal.

ben.chapman16 October 2019 09:29
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Asos ‘problems behind them’

Asos chief executive Nick Beighton said the firm's biggest problems are in the past, as he announced full-year profits plunged 68 per cent to just £33.1m. 

He added: "This financial year was a pivotal period for Asos, where we have invested significantly and enhanced our global platform capability to drive our future growth.

"Regrettably this was more disruptive than we originally anticipated. However, having identified the root causes of our operational issues, we have made substantial progress over the last few months in resolving them.

"Whilst there remains lots of work to be done to get the business back on track, we are now in a more positive position to start the new financial year."

ben.chapman16 October 2019 09:34
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Getting Brexit done? It’s already cost UK economy almost £70bn, new report says

Brexit has already cost the UK economy almost £70bn – the equivalent of £440m a week or £840 for every household in the country each year – according to a new report from the Centre for European Reform released on Friday.

And as Boris Johnson made new concessions to Brussels in the hope of securing a withdrawal agreement, a respected think tank warned that even if a deal is reached, the uncertainty and disruption of Brexit can be expected to drag on to the middle of the 2020s or beyond, with the danger of multiple no-deal cliff-edges along the way.

Despite the prime minister’s claim that “getting Brexit done” this month will allow him to focus on domestic priorities like the NHS and crime, the Institute for Government’s Brexit programme director said that EU withdrawal can be expected to soak up the government’s “political capital and time and energy” for years to come.

ben.chapman16 October 2019 09:35
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The pound is having another volatile day

ben.chapman16 October 2019 09:36
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Asda workers opposed to new contract will hand in petition

(Press Association) Asda workers will hand in a 23,000 strong petition to the company on Wednesday opposing a controversial new contract.

The signatures will be delivered to Asda's head office in Leeds in a shopping trolley as part of a campaign by the GMB union.

The union says Asda workers have been told to sign new contracts, called contract six, which it claims will see them lose paid breaks and forced to work bank holidays, or be sacked next month.

Gary Carter, GMB national officer said: "Tens of thousands of members of the public are backing our Asda workers in their fight against these draconian contracts.

"Contract six is shocking, the changes are forcing our members to choose between looking after their families, or being able to support them. It's a disgrace.

"Today we are back in the birth place or Asda, once a proud, family company, calling on bosses to respect workers and offer them a better deal."

ben.chapman16 October 2019 09:38
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Barratt Homes shrugs off Brexit worries

One of the UK's biggest house builders says it has enough cash to deal with a hit to the property market from Brexit.

Barratt Developments said this morning that the impact of Brexit on the economy depends on what deal is done.

That is, of course, still far from certain.

Yesterday, Standard & Poor's issued one of the more gloomy forecasts on house prices. A no-deal Brexit will take 10 per cent of UK property prices - more than £700bn.

ben.chapman16 October 2019 09:55
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Inflation stable at 1.7% in September

Consumer price inflation was stable at 1.7% in September (the lowest level since December 2016).

Lower petrol prices helped keep inflation well within the Bank of England's 2 per cent target.

Furniture, household appliance and hotel rooms increased in price, official figures out this morning show.

ben.chapman16 October 2019 09:59
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Brexit: Resolving no-deal risks at UK borders may be 'out of government's control', watchdog says

Ministers have run out of time to prepare the UK border for a no-deal Brexit as resolving risks of organised crime and disruption may now be "out of the government's control", the spending watchdog has warned.

With only two weeks until the Brexit deadline, the National Audit Office (NAO) found the "most significant risks" remain unresolved, despite concerted efforts to prepare for a chaotic departure.

The critical report said the government had admitted the border would be "less than optimal" for a period of time, with potential disruption to the flow of goods and concerns that rogue operators could dodge tax and regulatory checks.

The Whitehall spending watchdog also hammered home that organised criminals "would quickly exploit any perceived weaknesses, gaps or inconsistencies in the enforcement regime".

ben.chapman16 October 2019 10:10
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Despite being blacklisted by Donald Trump's administration, Huawei has reported sales up 24.4 per cent in the third quarter compared to a year earlier.

The Chinese tech giant sold 26 per cent more smartphones according to state-backed newspaper the Global Times.

Huawei, the world's second-biggest smartphone maker, has previously said US trade restrictions could dent revenues by $10bn this year.

ben.chapman16 October 2019 10:10
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UK house prices rose 1.3 per cent ion the year to August, up from 0.8 per cent in the year to July.

ben.chapman16 October 2019 10:12

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