Stock markets slip on Donald Trump corporate tax reform jitters
Stocks pull back on Donald Trump corporate tax reforms jitters; investors worried about the reforms passing through the senate
Republican senator Marco Rubio has indicated that he will not vote for the reforms unless changes are made to child tax credits
Every stock index in Europe sinks into the red; FTSE 100 nudges down 0.2pc on a broad-based decline
No major economics releases in the UK; industrial production figures due in the US at 2.15pm (GMT)
EU summit puts Brexit back under the spotlight on the markets
With the EU27 expected to back moving talks to the next stage at today's EU summit, Brexit is back in focus on the markets this morning.
The pound is getting a few pre-summit jitters and snapped its two-day winning streak, pulling back 0.2pc against the dollar to $1.3412.
IG market analyst Joshua Mahony gave his two cents on today's action in Brussels:
"Interestingly, while the EU leaders have lauded Theresa May’s recent efforts, the fact that parliament could now vote down a final bill highlights that any back door concessions from May could come back to bite her.
"Despite the desire to kick-off trade negotiations in December, it is clear that those in the EU see March as the likeliest month to commence talks. With timelines already tight, the slower progression will heap further pressure on negotiations as they seek to obtain a transitional deal ahead of the March 2019 deadline."
Persimmon chairman resigns after pay row
The chairman of Persimmon is to quit the housebuilder following concerns over excessive executive pay at the firm.
Persimmon announced on Friday that Nicholas Wrigley intends to resign and also revealed that remuneration committee chair Jonathan Davie had left the group.
It follows investor consternation over a long-term incentive plan introduced in 2012, which could see the management share £600m depending on profit and housebuilding targets.
Chief executive Jeff Fairburn is in line for the biggest payout, which is set to top £100m.
Hopes of a Santa Rally dashed by tax reform stumbles
Tax negotiators didn’t have much trouble finding a way to lower the the top tax bracket and to start the corporate tax cut a year early. 1/2
— Marco Rubio (@marcorubio) December 14, 2017
Adding at least a few hundred $’s in refundable cuts for working families who seem to always be forgotten isn’t hard to do either 2/2
— Marco Rubio (@marcorubio) December 14, 2017
The festive spirit can prompt stocks to rally strongly in the run-up to Christmas but Republican senator Marco Rubio is this year's Scrouge and has dashed hopes of a Santa Rally.
Stocks are retreating this morning after he said that changes will be needed to be made to child tax credits before he votes for the reforms.
Vice-president Mike Pence would have the casting vote in the case of a draw in the Senate but a defeat would cause "carnage" on the markets, according to Rebecca O’Keeffe, head of investment at Interactive Investor.
She added:
"The anticipation of US tax reform has fuelled the US equity rally and given financials a major boost, so the stakes are high."
Sky and BT strike deal to sell each other's channels
Sky and BT have announced a deal that will allow the rival broadcasters to sell their channels on each others' platforms.
Under the terms of the agreement, BT will wholesale its BT Sport channels to Sky, allowing the firm to sell them directly to Sky satellite customers.
This will mean BT's live UEFA Champions League and Premier League football being made available on the Sky platform.
BT has spent north of £3.5bn on Champions League and Premier League football rights since 2012 in a bid to compete with Sky.
Agenda: Stock markets slip on Donald Trump corporate tax reform jitters
Stock markets are on the slide this morning after doubts over Donald Trump’s corporate tax reforms started to resurface across the Atlantic.
Florida’s Republican senator Marco Rubio spooked investors by saying that he will not vote for the hotly-anticipated reforms unless changes are made to child tax credits.
The Republicans have a slim two-sentator majority in the upper chamber and that will soon be trimmed down to just one after the Democrats won in a senate election in Alabama earlier this week.
Asia stock markets are sliding on profit taking mainly due to caution ahead of US tax reform ‘deadline’ next week. After benign inflation data, growth data is coming in mostly strong, keeping the #goldilocks macro narrative for equities upbeat into the end of the year. pic.twitter.com/YxLV9F0ZM1
— Holger Zschaepitz (@Schuldensuehner) December 15, 2017
The S&P 500 pulled back 0.4pc overnight while every stock index in Europe has slipped into the red this morning on the turn in sentiment with the FTSE 100 nudging down 0.2pc.
After updates from the Bank of England, Federal Reserve and ECB, it’s a quiet end to the week on the economics calendar. No major data releases are expected in the UK while in the US, industrial production figures are the main macro focus.
No FTSE 350 companies reporting.
Economics: Industrial production (US), Trade balance (EU)