Themes from October
Sterling ended October 2016 very weak at just $1.221 and €1.114 despite speculation that the Bank of England will put off any further cuts to interest rates owing to the inflationary impact of the weak currency.
UK Government consented to a third runway at Heathrow airport. The new runway will be complete by 2025 and involve the demolition of 783 homes. Foreign Secretary Boris Johnson has claimed the project is “undeliverable”.
EU & Canada signed the “Comprehensive Economic & Trade Agreement” concluding seven years of negotiations. It is the first such agreement concluded between the EU bloc and another G7 country.
Bank of England Governor Mark Carney has said the decision to stay on as Governor for his full eight year term is his alone to take.
Non OPEC countries struggled to agree to commit to production cuts at early consultations in Vienna, ahead of the regular OPEC meeting on November 30th.
Barclays reported Q3 pre-tax profits of £2.9bn after an additional £600m charge for PPI. There was a positive £10bn drop in non-core assets to £44bn.
Sports Direct extended its share buyback to £261.4m or c. 15% of its outstanding shares. The repurchased shares will be held in treasury.
RBS booked a Q3 loss of £469m after additional £425m in litigation and conduct costs. Operating profit at £1.33bn was ahead of expectations.