Good morning! Here’s what you need to know in markets on Tuesday.
1. Fashion chain Jaeger has has entered administration after failing to find a buyer, putting 700 UK jobs at risk. The struggling retailer’s directors have appointed Alix Partners to oversee the administration procedure after failing to find an appropriate buyer for the “luxury fashion” chain.
2. EU member states are set to give their blessing to stern Brexit guidelines that call on Brussels to adopt a tough stance in looming talks with the UK, reports the FT. Draft negotiation guidelines from Donald Tusk, European Council president, state that Britain will have to accept the EU’s laws, court and budget fees if it seeks a gradual transition from the single market.
3. Chris Philp MP told Business Insider that he will officially call for the reopening of a Treasury Select Committee (TSC) investigation into LIBOR rigging, after a secret recording of two former Barclays bankers emerged which links the Bank of England to the rate-fixing scandal. In the recording from 2008, obtained by the BBC’s Panorama team, one Barclays banker tells another that the central bank was pressuring huge commercial banks to keep LIBOR rates low.
4. Foreign ministers from the Group of Seven (G7) major industrialized nations met in Italy on Monday, looking to put pressure on Russia to break its ties with Syrian President Bashar al-Assad, reports Reuters. In a shift in Washington’s strategy, US missiles hit a Syrian air base last week in retaliation for what the United States and its allies say was a poison gas attack. Calling the strike a “game changer,” British Foreign Secretary Boris Johnson said support for the Syrian president “was toxifying the reputation of Russia” and suggested sanctions could be imposed on Moscow if it refused to change course.
5. Growth in retail sales appears to have slowed last month compared with a year earlier, in another sign that the biggest driver of the UK’s economy is losing steam, The Times reports. The British Retail Consortium and KPMG said that comparable retail sales fell by 1 per cent last month. Helen Dickinson, chief executive of the BRC, said that March’s sales figures were “underwhelming”, having fallen for the first time since August.
6. The UK’s Office For National Statistics publishes its Consumer Price Index, which measures inflation, at 9.30 a.m. BST (4.30 a.m. ET). Core CPI rose 2% in February compared with a year earlier, while headline CPI jumped to 2.3% year-on-year, up 0.7% month-on-month. The March consensus is for CPI inflation to hold at that level or ease to 2.2%.
7. Asian markets are down. Japan’s Nikkei closed down 0.52% due to a rise in the yen against the dollar, while the Hong Kong Hang Seng is down 0.77% at 6.30 a.m. BST (2.25 a.m. ET), and China’s Shanghai Composite is down 0.35% at the same time.
8. US oil prices were up 0.2% at above £42 ($US53), lingering near a five-week high. Oil prices are on their longest winning streak since August, due to production outages in Libya and Canada, as well as concerns over last week’s US aistrike in Syria.
9. The City of London is exploring alternative ways to access EU markets after Brexit, should a political deal prove elusive or only apply to certain financial sectors, reports the FT. Lawyers are combing through existing agreements that could allow UK-based firms to strike trading deals on a firm-by-firm basis or even for individual lines of business.
10. FTSE 250-listed JD Sports Fashion is expected to report strong full year results as it takes steps to expand across Europe and move on from a scandal at its Rochdale warehouse. In a January trading update, the sports retailer said headline profit before tax in the year to end of February will exceed market expectations of £200 million by up to 15%.
More from Business Insider UK:
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- TACO BELL CEO: We could probably fulfil customers’ No. 1 demand right now — here’s why we aren’t going to (YUM)
- Only 1 in 5 of Trump’s Twitter followers are women
- ‘He was a really sweet man’: fellow passenger defends United customer dragged off flight (UAL)
- Bill O’Reilly laughs at ‘bizarre’ United Airlines incident where a passenger was dragged off of a flight
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