Good morning! Here’s what you need to know on Friday.
The Bank of England left monetary unchanged at the December meeting of its Monetary Policy Committee. The bank left its key interest rate unchanged at 0.25%, a record low that has been in place since rates were cut in August following the UK’s vote to leave the European Union. The MPC voted 9-0 in favour of leaving rates unchanged, as well as leaving the bank’s quantitative easing programme unchanged at a maximum of £435 billion — a combination of the £375 billion of QE completed before August, and the £60 billion announced post-Brexit vote.
Britain faces a £50 billion bill for leaving the European Union. Sky News reported on Thursday night that European Commission chief negotiator, Michel Barnier, believes the UK will have to pay a “settlement fee” of up to £50bn for outstanding liabilities to the 27-nation bloc. Sky reports that the fee relates “to payments to the existing budget that the UK has already voted for, and primarily involves the pensions of British citizens who work for the EU.”
Japanese banks are ready to leave London. Several financial institutions, including Nomura and Daiwa Capital have told the government that they need clarity on the UK’s relationship with the EU or they will start moving some operations out of the capital in the next six months, according to a report from the Financial Times.
Verizon is reconsidering its $4.8 billion purchase of Yahoo, Bloomberg reported on Thursday. After Wednesday’s announcement that 1 billion Yahoo account credentials had been stolen as far back as 2013, Verizon is reportedly considering scrapping the deal entirely.
Iraq has found an ingenious way to get round the upcoming OPEC production cut. The Gulf state is selling more crude oil to its biggest customer, China’s Unipec, people familiar with the matter say, digging a deeper foothold in the global supply market just before production cuts agreed with OPEC and other producers are scheduled to kick in.
The euro hit its lowest level in more than a decade against the dollar. On Thursday, the single currency dropped below the $1.04 mark for the first time since 2003, losing more than 1.4% of its value on the day. It has since recovered somewhat, and as of 6.55 a.m. GMT (1.55 a.m. ET) is trading at $1.0437.
It is inflation day in the eurozone. Later on Friday morning we’ll get the latest data on the single currency area’s Consumer Price Index. Prior to the last few months, the eurozone had flirted with deflation, but prices have picked up a little, and inflation is expected to be 0.6% in November. That’s the same reading as in October.
Britain and South Korea have discussed collaborating on nuclear energy projects. South Korea’s energy minister Joo Hyung-hwan discussed cooperation on British nuclear energy projects in a meeting in London on Thursday with Britain’s business minister Greg Clark, South Korea’s energy ministry said in a statement.
London-based food delivery company Just Eat is continuing its recent acquisition spree, announcing Thursday it plans to spend at least £266 million to acquire two of its rivals. Just Eat said it has agreed to acquire British takeaway service Hungryhouse from German parent company Delivery Hero for a base purchase price of £200 million, with a further cash consideration of up to £40 million, based on performance.
Trivago, the hotel search platform that is majority owned by U.S. online travel firm Expedia, raised $287 million in an initial public offering (IPO) on Thursday, far below expectations, according to a person familiar with the matter. The underwhelming pricing of the Düsseldorf, Germany-based company’s offering reflects some concerns among investors, in a challenging year for technology IPOs, that it may be too reliant on a few online travel companies for its revenue.