A survey of senior executives from the largest companies in the UK have found that more than half felt that last year’s EU referendum was already having a negative effect on their business. This is surprising in some ways as the post-vote economic data has been largely positive causing some Brexiteers to claim that there have been no adverse effects since the historic vote last June. The pound has begun the week in a quiet fashion and sits little changed on the day whilst the FTSE 100 has edged up by 12 points to trade above last week’s highs.
Brexit Bill to drive the pound
The week ahead is quiet on the economic data front for sterling, with Friday’s manufacturing production the only scheduled release of note, with the currency likely to be more sensitive to the latest developments in the Brexit saga. The Brexit Bill will go through the Committee stage in the house of Commons in the coming days, during which opposition politicians can put forward proposed amendments to be voted upon. Despite Jeremy Corbyn, the leader of the opposition, telling Labour MPs to cancel leave and prepare for a three-line whip there is a threat that the cross-party effort by MPs to avert the risk of the UK leaving the EU without a deal could fall on deaf ears. The Ipsos Mori survey of senior executives covered more than 100 of the largest 500 companies and found that 58% felt the Brexit vote was already weighing on business, and perhaps more worrying only 11% believed there had been a positive impact.
Gold stocks rise on Trump
The best performing stock on the FTSE 100 this morning is Randgold Resources (LON:RRS) which is higher by more than 3% and has moved back above the 7100 level. The rise has been caused by more upside seen in the price of Gold, with the precious metal higher once more this morning after ending Friday at its highest weekly close since early November. US president Donald Trump, whose surprise election win was the main catalyst for the sell-off seen at the end of last year, has now come to the support of Gold bugs with his erratic and unprecedented behavior since moving into the White House. Whilst his actions have been largely in keeping with what he campaigned on, the markets seem to have been surprisingly caught off-guard with this. The large scale fiscal expansion which boosted US debt yields and the dollar whilst contributing to Gold’s decline in the wake of Mr. Trump’s victory has yet to materialise and what many believed was a one way bet is now seeing a large pullback. Elsewhere banking stocks Barclays (LON:BARC) and Lloyds (LON:LLOY) are higher by 1.6% and 0.8% respectively whilst Dixons Carphone (LON:DC) sits at the foot of the index and lower by 3% at the time of writing.