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Pound live: Sterling plunges to 10-year low against euro on no-deal Brexit fears

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Ben Chapman
Monday 12 August 2019 16:01 BST
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What moves currency markets?

The pound rose on Monday after plunging to a 10-year low against euro overnight on the back of increasing fears that the country will leave the EU without a deal.

Shock news on Friday that the UK economy shrank 0.2 per cent helped to drag sterling to its lowest level since the financial crisis but sterling gained 0.5 per cent on Monday morning from €1.073 to €1.079.

The pound was up 0.3 per cent against the dollar to $1.1.207.

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With today's rise in the pound the FTSE 100 is down 0.3 per cent today.

The FTSE 100 which is packed full of export-driven companies, typically  falls when the pound strengthens.

ben.chapman12 August 2019 11:23
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Troubled travel company Thomas Cook is in advanced talks to raise £150m from bondholders after making "progress" over the terms of a rescue deal, the Press Association reports.

The tour operator is looking to secure the cash injection on top of a £750m deal it has already agreed with Chinese firm Fosun to attempt to secure the future of the company.

Thomas Cook has suffered recently as a result of mounting debts, reporting a £1.2bn net debt in its half-year results in May.

ben.chapman12 August 2019 11:31
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Futures on US stock markets have fallen as fears increase about the effects of a trade war between the US and China.

Some commentators have also linked the falls to news that Hong Kong airport authorities have cancelled all flights after protestors swarmed the main terminal building.

Protestors are demanding the resignation of Hong Kong leader Carrie Lam. They also want democratic elections for a successor and a probe into the police's use of force during the protests.

ben.chapman12 August 2019 11:53
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As the pound falls, gold, traditionally a safe haven in times of strife is up 0.5 per cent today to $1,505.05 per ounce.

That means it's up 6 per cent over the past 30 days as trade global tensions have grown and nearly 26 per cent over the past 12 months.

ben.chapman12 August 2019 12:24
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A poll by Nationwide found that people believe they waste nearly £450 a year on average by leaving decisions until the last minute.

Men estimate they waste £571 per year through procrastinating on decisions, versus £325 for women.

Nearly two-thirds of respondents identify themselves as procrastinators, leaving it until late to find gifts and planning holidays among other purchases.

ben.chapman12 August 2019 12:35
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The economic outlook has deteriorated worldwide as the trade dispute between the United States and China escalates, a survey shows.

Germany’s Ifo economic institute said its quarterly survey among nearly 1,200 experts in more than 110 countries showed that its measures for current conditions and economic expectations have both worsened in the third quarter.

“The experts expect significantly weaker growth in world trade,” Ifo President Clemens Fuest said.

Reuters

ben.chapman12 August 2019 12:40
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The number of empty shops in town centres has reached its highest level since 2015, figures have shown.

The national vacancy rate was 10.3 per cent in July, the highest since January 2015, according to the BRC (British Retail Consortium)-Springboard footfall and vacancies monitor.

Footfall also fell by 1.9 per cent last month, marking the worst decline for July since 2012.

Helen Dickinson, chief executive of the BRC, said retailers had faced a “challenging environment”.

ben.chapman12 August 2019 13:00
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The pound could be receiving some support from the news today that a cross-party group of MPs is developing a plan aimed at preventing Boris Johnson taking the UK out of the EU with no deal.

Secret talks are being held by rebel MPs on a plan to rip up parliament’s standing orders to give the Commons powers to stop the UK crashing out of the EU, Ashley Cowburn writes.

ben.chapman12 August 2019 16:05
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Sterling is sliding again and has now lost some of today's gains.

The pound is up 0.24 per cent against the euro at €1.077 leaving it close to its 10-year low.

Sterling is up 0.4 per cent against the dollar at $1.208.

ben.chapman12 August 2019 16:12
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The Financial Conduct Authority (FCA) is looking into claims that the share price of Burford Capital – the second-largest holding in Neil Woodford’s suspended fund – was illegally manipulated around the time of an attack by US hedge fund Muddy Waters.

Burford, which provides funding for legal action and takes a cut of the resulting settlements, saw its share value nosedive over the past week after Muddy Waters took a short position on the stock, betting that its value would fall, before publishing a damning report on the company’s financial health.

ben.chapman12 August 2019 16:25

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