Yahoo Finance What to Watch: Pound rises on Brexit hopes, European stocks pop, and Superdry tanks
Here are the top business, market and economic stories you should be watching today in the UK, Europe and abroad:
Pound rises on Brexit hopes
The pound is stronger against the dollar and the euro on Wednesday after UK prime minister Theresa May said she would ask the EU for a longer extension to Brexit and signalled she would work with the opposition Labour party to work out a deal.
Speaking in 10 Downing Street following a seven-hour Cabinet meeting, May said on Tuesday evening that the UK needs an extension to Brexit talks which is “as short as possible” in order to leave the EU with a deal.
She added that she is offering to sit down with Labour leader Jeremy Corbyn to try to agree a plan which allows the UK to leave the EU with a deal.
The pound rallied against the euro and dollar last night in response and remains higher on Wednesday morning. Sterling is 0.1% higher against the euro to €1.17 (GBPEUR=X) and up by 0.3% against the dollar to $1.31 (GBPUSD=X).
European markets pop
European stock markets were rallying after a strong session in Asian markets thanks to trade talk hopes.
The Financial Times on Wednesday reported that the US and China are close to resolving their trade dispute, with talks set to resume today. The report helped boost Asian markets overnight, with Japan’s Nikkei 225 (^N225) closing 0.9% higher, Hong Kong’s Hang Seng index (^HSI) 1.2% better, and China’s benchmark Shanghai Composite (000001.SS) 1.2% higher.
The optimism has spilled over into Europe, with Germany’s DAX (^GDAXI) up by 0.9%, France’s CAC 40 (^FCHI) up by 0.7%, and the Euronext 100 (^N100) up by 0.6% to a 7-month high. Britain’s FTSE 100 (^FTSE) was the only laggard, with the index flat due to the surging pound which makes dollar-earning companies’ stock prices look expensive.
Superdry shares tank as board quits on founder return
Superdry shares were down 10% on Wednesday after the entire board quit in protest at the return of founder Julian Dunkerton.
Dunkerton has been pressing for a return to the struggling retailer he founded and on Wednesday was appointed interim chief executive following a shareholder vote.
Dunkerton’s election scraped over the line with 50.75% of the total proxy votes cast ahead of the general shareholder meeting. Peter Williams, the chairman of Boohoo, also became a director after he gained 50.74% approval.
Superdry chairman Peter Bamford and chief executive Euan Sutherland resigned from the board with immediate effect after the result. Finance chief Ed Barker and remuneration committee char Penny Hughes also quit.
Dunkerton said: “My co-founder James Holder and I are delighted that our fellow shareholders have responded positively to our proposals and recognised that, at our core, we have the very best interests of everyone involved with Superdry.
“I can’t wait to get started and to work with the directors, the talented staff and our partners to deliver the future of Superdry. The hard work starts now.”
AA profits slump
Pre-tax profit at roadside assistance group AA (AA.L) slumped by 60% to £53m last year.
AA’s revenues grew to £979m in the year to January, the company said. Paid personal membership numbers slipped 2% to 3.21m.
CEO Simon Breakwell said: “We recognise there is still a lot to do, but we are building from a position of strength as market leader in breakdown, with best in class customer service, a growing Insurance business and a clear plan to differentiate the AA through digital capabilities and investment in connected car solutions.”
AA shares were up by 2.3%.
What to expect in the US
US stock futures were pointing to a stronger open later today. S&P 500 futures (ES=F) were up by 0.5%, Dow Jones Industrial Average futures (YM=F) were up by 0.4%, and Nasdaq futures (NQ=F) were up by 0.6%.
