Britain's housebuilder Galliford Try has added its voice to people, urging lawmakers to avoid Brexit without a deal.
In its latest financial results, the company claims that the collapse of the EU will seriously harm the economy:
We believe that the controlled deviation under the UK-EU withdrawal agreement will have no significant direct impact as supply chains and the EU and other overseas employment contracts can adapt over time as detailed future agreements are clarified.
If the UK leaves without a deal, the biggest impact we anticipate is the impact on our markets, particularly the Linden housing market, of the potential serious decline in consumer confidence and economic activity as a whole
Galliford Try adds that it has taken steps to protect its businesses from a shortage of critical materials and products, but it is "impractical to try to isolate our business entirely."
The British FTSE 100 opened 25 points higher at 7,157.
This brings him close to the four-month high of last week.
Paul Donovan of UBS Wealth Management says the hopes for a US-China trade deal are growing, especially following Donald Trump's comments.
Investors in the stock market can actually try the beautiful piece of chocolate cake on the Mar and Lago.
The enthusiasm about the prospect of a trade agreement between the US and China has led the action to come together. The hope is that not only will there be no new taxes, but some of the existing taxes can be canceled.
Sterling hovers around $ 1.29 against the US dollar this morning, roughly where it ended yesterday. However, today's inflation data can move the currency pair.
Asian markets are growing with optimism in trade
Asian markets reacted positively to Donald Trump's hint, reaching their highest levels for the past four months.
China's Shanghai Composite index rose by 2%, as optimism shows that new tariffs can be avoided.
The Japanese Nikkei rose 1.34% and Hang Seng in Hong Kong rose 1.1%.
Superior US officials, including Finance Minister Stephen Munchin, have tomorrow to hold high-level talks in Beijing. So we can be near a breakthrough.
Jim Reed, of Deutsche Bank, claims that Trump's proposal to release a "slice" at the March 1 target date moves the markets.
US negotiators hold high-level meetings with Chinese officials in Beijing this week, and flexibility in terms of deadline will reduce the pressure for immediate breakthrough.
Any delay in higher tariffs would be positive for the markets, so the news was met by a rally of capital, with cyclical and trade-dependent shares being better.
Trump: I could extend the trade deal term (maybe)
Overnight Donald Trump hinted he could extend the deadline for a trade deal with China.
The US president has revealed that the current plan – a trade deal by March 1 – can be revised if Washington and Beijing are making progress.
Trump told a cabinet meeting that:
"If we're close to a deal that we think we can get a real deal and it's over, I can see I leave it for a while.
"But in general, I'm not inclined to do it."
Unless a deal is reached, America will raise the tariff of about $ 200 billion in Chinese imports from 10% to 25%, which could have a detrimental effect on trade.
Agenda: Inflation Day in the United States and the UK
Good morning and welcome to our coverage of the global economy, the financial markets, the euro area and the business.
A double dose of data on cost of living should keep investors on their fingers this morning as the optimism about the trade war trade continues to build.
Inflation in the UK (due at 9.30 am) is expected to fall from 2.1% per year to 2%. This would give the Bank of England a rare case of actually hit the target of the Consumer Price Index – in just one month.
At normal times, the consumer price index would be a good indicator of the future rise in interest rates and hence the value of pounds. But right now, the development of Brexit – and the latest casual discussion in bars in Brussels – is likely to have a greater impact.
Inflation in the US is also expected to declineCheaper energy could lower the annual US consumer price index to just 1.5% or 1.6% today, from 1.9% in December.
But any sign of inflationary pressure that appears below the surface will worry America's central banks in the Federal Reserve as they wonder whether to raise interest rates again.
As Elsa Lyons explains from the Royal Bank of Canada,
The main inflationary dynamics in the US will be weak in the first half of 2019 – but it only depends on energy prices. At the core of this core inflation should really be solid (our economists note that demand is strong, as evidenced by strong store chain sales and very healthy income growth). The Federal Reserve has explicitly stated that it can wait until inflation is under control, so stronger inflation supports a smaller outlook and a stronger dollar.
We also receive new data on housing prices in the UK and health check of factories in the euro area.
- 9.30 GMT: UK Consumer Price Index for January
- 9:30 GMT: Housing prices in the UK for December
- 10:00 GMT: Industrial Production of the Eurozone for December
- 13:30 GMT: US Consumer Price Index for January