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The FTSE 250 index rebounds to a record high as election shock – business video

All day economic and financial news, as investors focused on the political drama in the UK and France

  • Latest: the FTSE 250 rallying back…
  • …but the FTSE 100 has lost all the achievements of this year
  • British firms hoping for a smooth release of the UK’
  • Pound stable after rising on Tuesday
  • Experts predict a big city tories to win in June
  • Coming soon: IMF global financial stability report at 1: 30 p.m. British summer time
  • Politics video: election 2017: Theresa may is seeking the support of MPs for the early vote – politics live

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FTSE 250 bounces back towards record high as election shock fades - business live

6.19 am EDT
06:19

Morgan Stanley: risk of uncontrolled output in the UK fell

Morgan Stanley predicts that the early General election means that the UK will almost certainly leave the single market.

But it also reduces the risk of messy British exit from the EU (assuming the polls are right and the conservatives to win a larger majority).

That’s according to a new research note from MS in the General election. Here are the highlights:

Why is it virtually eliminates remain in the single market: for the quarter and month, we expect that the “sovereignty” of the red lines in the UK, the control of the borders, courts, and laws that set forth in the “Lancaster house” speech to be put in the conservative Manifesto, effectively eliminates remain or EEA outcome. A conservative government will mean leaving the single market: either the WTO-as a result, when Britain will once again open people’s control but at the expense of economic barriers with the EU, or “clean quarter, and month” the FTA outcome where the UK will again open people’s control, while avoiding serious barriers to business with the EU.

Why this reduces the risk of a disorderly exit from the EU UK: in the base case, the UK government will have a parliamentary majority to push through difficult decisions, to seal the deal. In addition, Parliament must have time to complete negotiations the UK out of the EU before the next scheduled elections in the UK in June 2022.

FTSE 250 bounces back towards record high as election shock fades - business live

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6.03 am EDT
06:03

The FTSE 250 index bounces back from Tuesday’s slide

Back in the UK market of medium-sized companies, recovering from yesterday’s sales.

The FTSE 250, which is Packed with UK mid-cap firms jumped today by 1% to 19,491 points.

Familiar companies such as high street chain Carphone, Dixons (+3.7%), holiday firm Thomas cook (+3.3%) and builders merchants Travis Perkins (+3.5) are among the main risers.

Chris Beauchamp from spread firm IG said that FTSE 250 was “jumped out of bed,” as investors are waiting to buy UK-focused assets.

How will the shock of the announcement of elections, there is a real possibility of a rebound in UK stocks after yesterday’s drop this immersion, that the hunters prayed for the last few weeks…..

Signs of weakness in the U.S. market will give cause for concern, but overall it still looks strong updates, which indicates greater growth in the future.

It takes the FTSE 250 index back towards last week’s record high (19,525 points), claws and most of the losses on Tuesday.

FTSE 250 bounces back towards record high as election shock fades - business live

But his older brother, the FTSE 100, behind, lost all its gains this morning in 2017 after yesterday’s 2.5% drop.

Updated
at 6.05 am EDT

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5.45 am EDT
05:45

Many British firms will meet the June elections, as it should provide a little more certainty about the future.

So says Karen Briggs, head outlet UK (great post!) at KPMG, who says:

“UK PLC understands the quarter and the month of travel will be easy. We get used to a new norm, when political upheavals are common, currency shifts and the dramatic supply in the UK labour market during the transition period.

“Businesses desperately want to succeed quarter and month, but their fear has long been that the sheer scale of the negotiations means that they cannot be completed within two years. This could mean vital detail in everything from Finance, life Sciences and aviation was missed or delayed turning over the business model and influencing work.

“The term the government now caters to 2022 creates a window for a clear negotiating objectives and less impulsive implementation period. Business let’s hope it makes for a smoother exit of the UK from the EU more time to fix complex detail good Internet connection and enough time to prepare for necessary change.”

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5.29 am EDT
05:29

City traders have another market to watch….and this one shows that Theresa could win a majority of about 100 seats on the 8th of June , from 17 today.

IGSquawk
(@IGSquawk)

IG launches #UKGE2017 markets seat, predicting a Tory majority of 100 #British exit from EU#conservative 375#175 labour#LibDem 30#50 SNP
RO pic.twitter.com/9ea9Ejv7aD

19 APR 2017

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5.19 am EDT
05:19

News from Brussels: Eurozone inflation fell to 1.5% in March, compared with 2% in February.

This is mainly due to Easter falling in April, and corresponds to the earlier ‘flash’ reading.

It is rather lower than in the UK, where prices are now growing at 2.3% year-on-year, as this graph how….

FTSE 250 bounces back towards record high as election shock fades - business live
EU_Eurostat
(@EU_Eurostat)

In the Euro area annual inflation confirmed at 1.5% in March 2017 (February 2.0%) #https://t.co/vqVlXpR5ub Eurostat pic.twitter.com/8i6w25vlig

19 APR 2017

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5.01 am EDT
05:01

The UK General election: what the city says

Index Kathleen Brooks from city believes that British pound will keep protesting against the US dollar, as the British election campaign gets.

Pound may even reach $1.35 (1.28 to $today), she argues that if conservatives are likely to win a majority.

In itself, the election of Britain should not be a key factor in the UK the price of an asset, especially if Theresa may wins a convincing as it should do. These elections don’t have too much to change domestic policy, and quarter and month to happen with or without a vote on 8 June. However, if you believe the polls about the Tory lead over the labour, these elections can add confidence in the UK out of the EU’s stance positioning in the UK and domestic policy for the next 5 years, and it is good for the markets.

For GBP/USD 1.30 is now in view, and as we lead up to the election, then we could see more unwinding of GBP/short positions in US dollars, which would take us to 1.35 during the election result.

Says Viktor nossek is the Director of analytical Department of the Fund WisdomTree firm in Europe, investors expect that Teresa can do well on 8 June.

He says:

Yesterday’s sharp jump of the pound against a number of currencies including the US dollar, is the recognition that early elections will likely lead to greater political certainty, given the leadership of the conservative party in the polls.

It would be much more downside risk for the Prime Minister if she had waited another 12 months before you act, but having made the decision to hold elections on 8 June, with the mood in Britain during the quarter, and a month – this means that the tories will be able to strengthen its position and give a PM to get the political support needed to follow her agenda. This step also given the opposition little room to prepare, and require the alternative to withdraw Britain from the EU, or relaxed option.

Yutaka Miura, senior technical analyst at mizuho Securities, told Bloomberg news that the early elections in the UK unnerving investors.

The market does not like uncertainty.

Investors are already a little on edge in the French presidential elections, and now in the UK General election is creating more uncertainty in Europe.

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4.47 am EDT
04:47

This morning the list of the leading risers and the price drop on the FTSE 100.

FTSE 250 bounces back towards record high as election shock fades - business live

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4.37 am EDT
04:37

FTSE 250 bounces back towards record high as election shock fades - business live

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3.44 am EDT
03:44

Our politicians live blog up and running and monitoring all electoral activities.

Theresa may spoke on the today program, where she ruled out a second referendum, EU, and defended her decision to call a General election:

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3.40 am EDT
03:40

The FTSE 250, which is the best measure of the UK economy than the FTSE 100, it’s a little better in the morning.

She scratched 43 points, or 0.23%, yesterday lost more than 220 points.

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3.30 am EDT
03:30

FTSE 250 bounces back towards record high as election shock fades - business live
Carla Mozee
(@MWMozee)

The FTSE 100 was below the year-to-date, arrived the next day after its worst session since leaving the UK to vote. pic.twitter.com/ZXte9VnkuP

19 APR 2017

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3.27 am EDT
03:27

The pound is around 1.284 $

The pound held steady in the morning is another way of saying that he’s not done much.

Sterling was trading at $1.284 against the U.S. dollar rose to six-month high of $1.29 late last night.

FTSE 250 bounces back towards record high as election shock fades - business live
Bloomberg Leaving The UK
(@The quarter and month)

The pound remains above $1.28 after rising 2.2%, when Theresa may called for a General election https://t.co/9MLpcOUhzZ pic.twitter.com/eupNnp6FFq

19 APR 2017

Chief strategist market fxtm Hussain Sayed said that currency markets are closely focused on the pound.

Yesterday’s unexpected move, Prime Minister Theresa may has called an early election sent the pound to its highest level against the greenback since October.

400 pips from the $1.25 to $1.29] from low to high, does not reflect short-term fundamental prospects for the UK economy. But traders expect that early elections would lead to a strengthening of the powers of the negotiations with the EU under the terms of a British exit from the EU, with a softer output. Today we expect to win parliamentary support for early elections, but the reaction on the pound to be soft, given that it is already in the price.

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3.20 am EDT
03:20

Robin beat of the analytical Department of the Economist magazine believes that the low turnout could thwart hopes Theresa may for the vast majority:

Robin Beat
(@RobinBew)

#UK GOV will get a seat in the elections, but less than interviews. Partly because of what space is low. Partly due to low turnout

19 APR 2017

While the advertising magnate sir Martin Sorrell is afraid of the election can have a deterrent effect on the economy:

Dominic O’connell
(@dominicoc)

.@Sir Martin Sorrell of wpp said that the business will use early elections as “yet another reason to do nothing” @BBCr4today

19 APR 2017

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3.15 am EDT
03:15

The FTSE 100 shed all of your successes this year

The leading index of the British stock has shed all of its income in 2017 and the election is called Theresa may continues to capture the city.

The FTSE 100 fell by 17 points in early trading, adding to the 180 points he lost yesterday.

That takes the blue chips fell to a 7130 points below the closing price of 7142 to 30 December 2016. It is also the lowest level since the end of January.

FTSE 250 bounces back towards record high as election shock fades - business live

Yesterday’s drop was mainly due to the rise of the pound, as traders welcomed the early elections. A stronger pound reduces the value of the foreign income, once the cost of TNCs.

Tony Cross of the TopTradr predicts that political uncertainty will continue to weigh on the markets as long as UK elections aside.

A clear conviction of the market that the current party will win again, and with a large majority. This in turn will make for a clean break when the negotiations leaving the UK to conclude that drove the pound crosses to six-month highs.

Success in today’s vote in Parliament, which must Approve early elections is a foregone conclusion, but the risk that a vote in early June does not return the result expected. At the beginning of the survey suggests it will, but with the centrist liberal democratic party is likely to make sweeping gains diminished from their current position, they can be Internet makers again as they were in 2010. Given that they are expected to be running on the ticket that helps retain single market access, we must be prepared for further volatility as the campaign unfolds over the next seven weeks.

Updated
at 3.16 am EDT

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2.50 am EDT
02:50

Agenda: election fever and the meeting of the IMF

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the Eurozone and business.

Urban merchants came down with a double dose of election fever.

Symptoms? Worrying about what marine Le Pen could sweep the Elysee Palace, as well as thinking about how Theresa may, the extraordinary General election appeal will affect the quarter and month of negotiations.

FTSE 250 bounces back towards record high as election shock fades - business live

Presidential elections in France all right, just four days before the first round of voting.

All came to the conclusion that centrist Emmanuel macron will beat Le Pen in the second round in early may, looks shaky. With a right-winger Francois Fillon and Communist-backed Jean-Luc Mélenchon as gaining strength, it is difficult to say who exactly will qualify for valuable the top two places on Sunday.

The prospect of Le Pen and Mélenchon contesting the run-off is causing some unrest in the city.

As the correspondent Angelique Chrisafis Paris the tension among the crew Makron is:

Independent centrist who is running in his first election, was seen as the favorite, but faces a grueling last few days before the first round of presidential elections this Sunday.

The style itself as Pro-Europe progressive, he’s gone from dark-horse outsider in any of the three months ago. But as the polls narrow, and one-third of the electorate still undecided, the race is becoming more uncertain.

The supporters of macron admit that the last few days of the campaign will be tough and unpredictable. Although polls have shown that he can win the second round of elections on may 7, Makron first to make it to the finals – and this is not guaranteed.

“The new President,” said one butcher as he posed for a selfie with a macron on the market. “He hasn’t won yet!” – there was a cry from the scrum of media recording at the moment.

“You must vote first,” macron said softly.

Meanwhile, in London, today deputies should confirm the plan Theresa may for the General election on 8 June.

This shock decision sent the pound to a six-month high last night, but wiped £46 billion from the FTSE 100 index.

Snap city response is that Theresa may will qualify for most, strengthening its hand in talks quarter and month, and taking the chance of being ripped off or about the deputies or hard skeptics.

Which can reduce its chances of a final agreement to be rejected by the Parliament. But this does not necessarily mean that the UK will get a better deal.

As our financial editor, Nils pratley project says negotiating the British exit from the EU will continue to be tough:

If the delivery of “successful” leaving the UK involves the production of several pragmatic compromises, which, of course, the lesson from the initial clashes with the negotiations of the EU – you can’t blame can seek cover from hard-liners in his own party. A squeeze the next election until 2022 seem like a smart political move: he wanted to give time during the three-year transition period to the UK voters go to the polls, which could alleviate any economic shock at the time of the British exit from the EU in 2019.

So, Yes, it was fair for investors to take some comfort in the fact that the market is “soft” British exit from the EU is now easier to imagine. Just not too keen on the idea. Investment uncertainty is rarely so easily evaporate. If the election delivers a messy result – not even the tories have improved the most – what has changed?

Today…

The international monetary Fund will publish its report on global financial stability at 1.30 Moscow time. This will help to identify the biggest threats to the global economy.

We get the final estimate for Eurozone inflation for March at 10 a.m. BST (corrected).

New European sales of cars this morning (more on this later).

Fashion chain , Burberry, food and close the group , associated British foods and packaging group Bunzl misleading results.

Updated
at 5.05 am EDT

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