Yahoo Finance What to watch: Pound rallies ahead of no deal vote, Dixons Carphone's £29m fine, and Morrisons results
Here are the top business, market, and economic stories you should be watching today in the UK, Europe and abroad:
Pound rallies ahead of no deal vote
The pound is recovering from Tuesday’s lows ahead of a vote this evening that could see politicians rule out a no-deal Brexit.
Sterling fell on Tuesday ahead of MPs’ rejection of prime minister Theresa May’s Brexit deal last night. On Wednesday morning, sterling was 0.3% higher against the euro to €1.16 (GBPEUR=X) and 0.4% higher against the dollar to $1.31 (GBPUSD=X).
READ MORE: Sterling falls as MPs reject May’s Brexit deal
“The action on currency markets over the past 24 hours has been characterised by sterling volatility,” said John Fahey, senior economist at AIB.
“Ahead today, Brexit and the House of Commons will once again be in the market spotlight. MPs are due to vote on the option of a no-deal Brexit. If as expected this motion is rejected, MPs are then scheduled to vote tomorrow on a short-term extension to Article 50 (i.e. delay Brexit).
“From a currency perspective, sterling could continue to experience volatility amid the heightened uncertainty.”
Import tariffs largely axed under no deal
The UK government has published details of the temporary tariff regime that would be put in place in any no-deal Brexit.
UK businesses would not pay customs duties on the majority of goods imported into the nation, with some 87% of total imports to the UK by value eligible for tariff free access.
Goods that would incur a tariff include “beef, lamb, pork, poultry and some dairy to support farmers and producers who have historically been protected through high EU tariffs.”
The UK government said in a statement the regime is intended to “minimise costs to business and consumers while protecting vulnerable industries.”
Dixons Carphone fined £29m
The Financial Conduct Authority has fined Dixons Carphone (DC.L) £29.1m for miss-selling “Geek Squad” coverage, a mobile phone insurance and technical support service.
The City watchdog said the company failed to give its Carphone Warehouse sales staff the right training to give suitable advice to customers purchasing the Geek Squad service.
Mark Steward, executive director of enforcement and market oversight at the FCA, said: “The Carphone Warehouse and its staff persuaded customers to purchase the Geek Squad product which in some cases had little to no value because the customer already had insurance cover. The high level of cancellations should have been a clear indicator to the management of mis-selling.
“Without whistleblowers coming forward, these practices may never have come to light.”
Dixons Carphone chief executive Alex Baldock said: “We’re obviously disappointed that Carphone Warehouse fell short in the past. But we’re a very different business today; as the FCA acknowledges, we’ve made significant improvements since 2015.”
Morrisons ‘turnaround on track’
The CEO of supermarket Morrisons (MRW.L) said its turnaround plan is “on track” on Wednesday as the company reported an 8.6% rise in underlying pre-tax profits to £406m for the year to 3 February.
Its results showed on a statutory basis, pre-tax profits fell 15.8% to £320m after exceptional costs. Like-for-like retail sales growth slowed to 0.6% in the final three months of the period, down from 1.3% in the third quarter.
But like-for-like sales overall rose 3.8% in the fourth quarter thanks to the wholesale division, which includes tie-ups with McColl’s and Amazon.
David Potts, chief executive of Morrisons, said: “A third consecutive year of strong sales and profit growth, and a total annual dividend up over 150% during those three years, show the Morrisons turnaround is well on track.”
Chancellor to deliver Spring Statement
Chancellor Philip Hammond will present his spring statement to the House of Commons at 12.30pm on Wednesday.
The statement is a chance for the chancellor to update MPs on how the UK’s economy has fared since the budget in October. He will announce any revised forecasts for economic growth from the Office for Budget Responsibility (OBR), the independent economic forecasting body that marks the government’s homework.
The statement from Hammond comes at a crucial period for the UK, with Brexit just weeks away and little sign of agreement on an exit deal.
The chancellor is not expected to make any major policy announcements but is likely to say that public sector borrowing is forecast to be lower than previously thought this year, despite slowing growth.
Standard Life Aberdeen reshuffle management
Keith Skeoch has been appointed sole chief executive of fund giant Standard Life Aberdeen, with former joint CEO Martin Gilbert becoming vice chairman.
The group said Gilbert will also become chairman of Aberdeen Standard Investments as well as an executive director of the board.
Standard Life Aberdeen said in his new role, Gilbert “will be able to focus solely on our strategic relationships with key clients, winning new business and realising the potential from our global network and product capabilities.”
The news came as Standard Life reported underlying pre-tax profits falling to £650m in 2018 from £660m in 2017.
European markets
European stock markets were mixed after a session in the red for Asian markets.
Britain’s FTSE 100 (^FTSE) was flat, Germany’s DAX (^GDAXI) was down by 0.1%, France’s CAC 40 (^FCHI) was up by 0.2%, and the Euronext 100 (^N100) was up by 0.2%.
Japan’s Nikkei 225 (^N225) closed down by 0.9%, Hong Kong’s Hang Seng index (^HSI) was down by 0.3%, and China’s benchmark Shanghai Composite (000001.SS) was 1% lower.
What to expect in the US
US stock futures were pointing to a lacklustre open later today. S&P 500 futures (ES=F) were flat, Dow Jones Industrial Average futures (YM=F) were down by 0.1%, and Nasdaq futures (NQ=F) were flat.
Companies reporting later today in the US include:
