Citywire for Financial Professionals
Stay connected:

View the article online at http://citywire.co.uk/money/article/a1073261

Pound jumps, FTSE falls on Brexit bill deal reports

Strong sterling weighs on FTSE 100 but domestic stocks rally amid signs of progress in UK's Brexit negotiations.

 
Pound jumps, FTSE falls on Brexit bill deal reports
 

The pound has jumped on reports the UK had reached agreement with the European Union over the Brexit 'divorce bill', paving the way for talks to begin on a trade agreement.

Reports citing EU official sources suggested the bill could reach £50 billion. Signs of progress in the Brexit negotiations helped lift the pound 0.5% higher against the dollar at $1.34, while the euro was down 0.2% against sterling at 88.6p.

That weighed on the FTSE 100, whose members rely on overseas markets for around three-quarters of their earnings. The UK blue-chip index was down 37 points, or 0.5%, at 7,424.

Stocks with high overseas earnings, like cigarette makers Imperial Brands (IMB) and British American Tobacco (BATS), fell to the bottom of the index, down 2.3% at £30.66 and 1.9% at £48.75 respectively.

Companies with a focus on the UK domestic economy meanwhile jumped. 

House builders rose to the top of the index, with risers including:

  • Berkeley (BKGH) +3.3% at £38.29;
  • Barratt Devcelopments (BDEV) +3.3% at 614.5p;
  • Taylor Wimpey (TW) +2.6% at 198.2p;
  • Persimmon (PSN) +2.5% at £26.04.

Retail stocks also made gains, with B&Q owner Kingfisher (KGF) rising 3.2% to 333.2p, Marks and Spencer (MKS) up 2.1% at 307.4p and Next (NXT) rising 1.9% to £42.95.

Banks joined them at the top of the index, with Barclays (BARC) up 3.1% at £38.23, Royal Bank of Scotland (RBS) rising 2.6% to 278.2p and Lloyds (LLOY) adding 2.4% to 66.4p.

The FTSE 250, whose companies have a greater focus on the UK domestic economy, meanwhile rose 0.4%.

Britvic (BVIC) led the way, up 8.2% at 821p after reporting a 5.1% rise in earnings.

Cineworld (CINE) meanwhile slumped 14.5% to 594p on news the cinema group was planning to buy US peer Regal Entertainment (RGC.N) for $3.6 billion (£2.7 billion).

Small cap stocks also rose, with home shopping company Findel (FDL) surging 21% to 185.3p as the home shopping company reassured investors it was on track to meet full-year expectations.

7 comments so far. Why not have your say?

Alan Tonks

Nov 29, 2017 at 16:13

You do not mean an agreement you mean a sell out!! PATHETIC

report this

John Russell

Nov 29, 2017 at 17:13

Pay to be a member, pay to leave.

What's not to like?

report this

Anthony Tinslay

Nov 29, 2017 at 17:28

From above

""Barclays (BARC + ) up 3.1% at £38.23, ""

What a pity the market is now closed for the day - they only cost me under £2 a little while ago and now seemingly worth over £38.

Wonder what price I will get in the morning?

Does nobody at Citywire check what is written?.

.

report this

RippedOff

Nov 29, 2017 at 18:20

No one mentioned a bill of £50M or anything to leave. Us Brits are club champions and if that is what the rules say then we should do the honerable thing. We are now the laughing stock of the world- foreigners cant believe we are doing this to ourselves. If we try not to pay this will tarnish our reputation further.

But Boris is still pedalling the lie of redirecting £350M/wk to the NHS. The gullable were swayed by this.

Some are still kidding themselves that we can export to EU without complying with community regulations. Watch this space!

When the actual leaving deal is known we should have a referendum to decide IN or Out.

report this

David Elliott

Nov 29, 2017 at 18:37

Our net contribution is about £7.6 billion per year (net of rebate, public sector receipts and private company receipts) Discounted at 5% 10 years of contributions come to a value today of £54billion. So we pay for a further 10 years! However, we now have to set up a whole raft of organisations to do what the EU currently does for us (e.g. drug testing, etc) and it seems a whole import/export system - maybe to the extent of about half the net contribution. That would mean that £50billion today is the equivalent of 22 years of contributions! So do we pay for a further 22 years!

report this

JohnR

Nov 29, 2017 at 19:49

It'll be fine ™

At least the NHS will be getting the £350M extra each week.

report this

RippedOff

Dec 01, 2017 at 17:11

David,

What business in their right mind would invest to break even in 22yrs (assuming your optimistic assessment is correct)!

How much did you include for EU grants, transfer of jobs to EU (eg financial sector, agricultural), loss to UK of jobs undertaken for EU by us, etc?

The Market tells the truth. When it looks like we will get an EU deal the £ jumps & vice versa! The next referendum will also be based on truth. This is why Brexitiers dont want another.

report this

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

The Citywire Guide to Investment Trusts


In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.

Watch Now

More about this:

Look up the shares

  • Berkeley Group Holdings PLC (BKGH.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Barratt Developments PLC (BDEV.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Taylor Wimpey PLC (TW.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Persimmon PLC (PSN.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Kingfisher PLC (KGF.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Marks and Spencer Group PLC (MKS.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Royal Bank of Scotland Group PLC (RBS.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Lloyds Banking Group PLC (LLOY.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Britvic PLC (BVIC.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Cineworld Group PLC (CINE.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Findel PLC (FDL.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Next PLC (NXT.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Barclays PLC (BARC.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • British American Tobacco PLC (BATS.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Imperial Brands PLC (IMB.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Archive

Today's articles

Tools from Citywire Money

From the Forums

+ Start a new discussion

Weekly email from The Lolly

Get simple, easy ways to make more from your money. Just enter your email address below

An error occured while subscribing your email. Please try again later.

Thank you for registering for your weekly newsletter from The Lolly.

Keep an eye out for us in your inbox, and please add noreply@emails.citywire.co.uk to your safe senders list so we don't get junked.

Read more...

The Accumulator: FTSE see-saws on trade war fears

by Michelle McGagh on Jun 22, 2018 at 14:57

Sorry, this link is not
quite ready yet