Business news - live: Pound gives up gains after DUP says it will oppose freshly agreed Brexit deal
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The pound soared against the dollar and euro after the EU and UK agreed a Brexit deal this morning.
Sterling surged 0.9 per cent to $1.29 after Jean-Claude Juncker confirmed that the two sides had reached an agreement after talks went down to the wire. However, the pound later gave up the gains after Boris Johnson's DUP allies quashed his hopes of progress by declaring they will oppose the plan.
Elsewhere, WHSmith agreed a $400m deal to buy US travel retailer Marshall and RBS boosted its Brexit contingency fund to £8.2bn.
Boris Johnson agrees Brexit deal with EU
Boris Johnson has agreed a new Brexit deal with the EU, both sides of talks have confirmed.
Negotiators in Brussels struck the deal on Thursday morning – but questions remain about whether it can gain enough support back in Westminster.
"Where there is a will, there is a deal – we have one!" Jean-Claude Juncker said in a statement on Thursday morning.
"It’s a fair and balanced agreement for the EU and the UK and it is testament to our commitment to find solutions. I recommend that European Council endorses this deal."
More from Brussels correspondent Jon Stone:
Sebastien Clements, currency analyst at OFX:
“It has been a dream start to the day for Boris Johnson, as the announcement that he has agreed a new Brexit agreement with European leaders has seen GBP/USD marching towards the landmark 1.30 barrier for the first time in over 5 months.
"Having been anchored solely by Brexit sentiment for many months, the pound’s position is now extremely choppy as the market struggles to find equilibrium amongst the chaos.
"Johnson is now tasked with gaining the Democratic Unionist Party’s approval but if successful, we could see Sterling freed from its chains, and shooting up to smash through the 1.32 handle against the US dollar by the end of next week.”
Sterling set to erase gains if parliament does not pass this deal
Han Tan, market analyst at FXTM:
"If this next attempt to get the Brexit deal passed by UK lawmakers fails yet again on Saturday, the Pound is sure to unwind recent gains.
"However, a request for yet another Brexit extension, if granted, may mitigate Sterling’s fall at around the 1.22 mark against the US Dollar."
Business groups are reacting to news of the Brexit deal agreement.
Adam Marshall of the British Chambers of Commerce (BCC), said:
“Business communities will recognise the huge efforts by UK and EU negotiators to reach an agreement. Understandably, many businesses will reserve judgment until they see the detail.
“Businesses need a chance to analyse precisely what the terms of this agreement would mean for all aspects of their operations. This is particularly true for firms in and trading with Northern Ireland. As companies carefully consider the real-world implications, politicians must do the same.
“Let’s not forget, we’ve been here before. There is still a long way to go before businesses can confidently plan for the future. Companies across the UK and around the world will be paying close attention to what happens next – and whether the deal agreed can secure parliamentary support.
“For business, this deal may be the end of the beginning – but it is far from the beginning of the end of the Brexit process.”
Johnson doesn't have the votes to get this deal through, says The Independent's chief political commentator, John Rentoul.
And, there it is: confirmation the DUP has rejected Boris Johnson's Brexit deal.
It took a few minutes after the deal was announced triumphantly by the prime minister.
Party sources told The Independent that their earlier statement objecting to the prime minister's Brexit plans still stands in a blow to Mr Johnson's hopes of passing the deal in parliament.
So we're back where we started the day:
The pound is at €1.1569 having opened at €1.1574.
Against the dollar sterling's faring better, up 0.4 per cent to £1.287.
Business leaders welcome Brexit deal
Jonathan Geldart, Director General of the Institute of Directors, said:
“Business leaders will feel guarded relief at the breakthrough in Brexit talks. “Business, particularly in Northern Ireland, will want to examine the detail more fully before coming to a firm view, but they will be pleased that UK and EU leaders have made steps toward common ground. “As MPs study the draft deal, they must keep firmly in mind the damage a disorderly exit could cause businesses large and small. A further extension offers no guarantees of avoiding this outcome, but if a passable deal is in touching distance then politicians on all sides should be pragmatic about giving us the time to get there. “If the immediate choice is between leaving the EU in an orderly versus a disorderly manner, politicians must be mindful of the longer-term consequences their actions may bring to bear.”
Greene King gets green light for takeover by Hong Kong firm
The European Commission has given the go-ahead for a takeover of Greene King by Hong Kong's richest man Li Ka-Shing.
CK Asset, will buy Greene King in a deal valuing the brewer of Old Speckled Hen at £4.6bn.
Swiss commodities trader Gunvor to pay $100m in Congo bribery case
Gunvor has been ordered to pay almost $100m to settle a Swiss case linked to "bribery of public officials in the Republic of Congo and Ivory Coast between 2008 and 2011".
Gunvor has been held criminally liable for acts of corruption by failing to stop its employees and agents from bribing public officials in order to gain access to the petroleum markets in the Republic of Congo and Ivory Coast.
The Swiss Attorney general's office said: "The investigation revealed that during the period under scrutiny, Gunvor had taken no organisational measures to prevent corruption in its business activities,"
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