LONDON: Sterling rose around 1% on Wednesday and British government bond yields posted their biggest one-day rise in more than a month on signs that Britain and the European Union were on the brink of clinching a deal to govern trade ties.
A deal is imminent and could be agreed as early as Wednesday evening, a senior EU diplomat told Reuters.
Earlier, EU member states began to prepare procedures to put in place a new trade deal with Britain from Jan. 1, sources in the bloc said, indicating a deal was imminent.
There was no confirmation from Britain, however, and sterling eased off session highs after reports that some government officials remained cautious.
"The market is anticipating that a deal will be agreed in the next day or two," said MUG strategist Lee Hardman, adding sterling could strengthen to $1.36/$1.37
He said, however, traders would be keen to see details of any agreement, given expectations that any initial deal will be a bare bones one with specifics to be thrashed out in 2021.
"The best case scenario for the pound would be if we also see details released form the EU and UK side of things alongside the deal to try and reduce the initial disruption when we shift to a new trading arrangement."
The pound which had earlier snapped a three-day losing streak on the lifting of a French border blockage, extended gains to $1.3569, up more than 1.3% on the day. It traded around $1.3505 by 1630 GMT.
Against the euro, the pound was 0.8% at 90.28 pence , having earlier risen to 90.05 pence.
Pound rises above $1.35 on Brexit trade deal expectations
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Pound rises above $1.35 on Brexit trade deal expectations
- A deal is imminent and could be agreed as early as Wednesday evening, a senior EU diplomat told Reuters
- Earlier, EU member states began to prepare procedures to put in place a new trade deal with Britain from Jan. 1, sources in the bloc said
Second firm ends DP World investments over CEO’s Epstein ties
- British International Investment ‘shocked’ by allegations surrounding Sultan Ahmed bin Sulayem
- Decision follows in footsteps of Canadian pension fund La Caisse
LONDON: A second financial firm has axed future investments in Dubai logistics giant DP World after emails surfaced revealing close ties between its CEO and Jeffrey Epstein, Bloomberg reported.
British International Investment, a $13.6 billion UK government-owned development finance institution, followed in the footsteps of La Caisse, a major Canadian pension fund.
“We are shocked by the allegations emerging in the Epstein files regarding (DP World CEO) Sultan Ahmed bin Sulayem,” a BII spokesman said in a statement.
“In light of the allegations, we will not be making any new investments with DP World until the required actions have been taken by the company.”
The move follows the release by the US Department of Justice of a trove of emails highlighting personal ties between the CEO and Epstein.
The pair discussed the details of useful contacts in business and finance, proposed deals and made explicit reference to sexual encounters, the email exchanges show.
In 2021, BII — formerly CDC Group — said it would invest with DP World in an African platform, with initial ports in Senegal, Egypt and Somaliland. It committed $320 million to the project, with $400 million to be invested over several years.
