(Alliance News) - The UK and EU are on the threshold of striking a post-Brexit trade deal, PA reports.
An announcement is expected on Christmas Eve, but talks were continuing through the night on the details of an agreement.
The development came as Britain and the EU were believed to have made progress on resolving issues including fishing rights and the "level playing field" measures aimed at preventing unfair competition.
The expected deal comes with just days left before the current trading arrangements expire on December 31.
UK Prime Minister Boris Johnson led a late-night call with Cabinet ministers to update them on the situation.
Johnson has been in close contact with European Commission president Ursula von der Leyen in recent days as top-level efforts intensified to get a deal over the line.
The pair are expected to have a further call on Christmas Eve to agree the deal.
European Commission spokesman Eric Mamer suggested an announcement could come early on Christmas Eve.
"Work will continue throughout the night," he said shortly after midnight.
"Grabbing some sleep is recommended to all Brexit-watchers at this point. It will hopefully be an early start tomorrow morning…"
The UK side expected talks over the legal text of the deal – reportedly around 2,000 pages long – to continue into the early hours.
The pound was lifted by the news, rising back toward the USD1.36 level seen last week.
Here is what you need to know at the London market open on Thursday:
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MARKETS
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FTSE 100: called up 27.65 points, 0.4%, at 6,523.40
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Hang Seng: up 0.2% at 26,386.56
Nikkei 225: closed up 0.5% at 26,668.35
DJIA: closed up 114.32 points, or 0.4%, at 30,129.83
S&P 500: closed up 2.75 points, or 0.1%, at 3,690.01
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GBP: up at USD1.3578 (USD1.3525)
EUR: up at USD1.2208 (USD1.2195)
Gold: up at USD1,876.90 per ounce (USD1,872.05)
Oil (Brent): up at USD51.36 a barrel (USD51.03)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Thursday's Key Economic Events still to come
Germany financial markets closed for Christmas Eve
1230 GMT UK and Ireland financial markets close early for Christmas Eve
1300 EST US financial market close early for Christmas Eve
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South Africa's health department has warned of stricter lockdown measures to contain the exponential spread of Covid-19, with the country looking set to exceed the peak of a first wave of the disease in "the coming days". The country, facing a second wave of infections driven by a new variant of coronavirus, recorded 14,046 new Covid-19 cases, bringing the cumulative total to 954,258, the latest official data showed on Wednesday. An additional 411 coronavirus-related deaths lifted the total tally to 25,657. Several countries including the UK - which has detected another new variant of the Covid-19 there from South Africa - have imposed travel bans on South Africa. "This indicates that the virus continues to spread exponentially. Indeed the rate of spread is much faster than the first wave, and we will surpass the peak of the first wave in the coming days," the South African health department said in a statement late on Wednesday.
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Talks have stalled between the EU and China on an investment agreement that had appeared to be in its final phase. The EU-China investment agreement, seven years in the making, would ensure that European companies in China can compete with domestic firms on a level playing field. It would also safeguard Chinese companies' access to European markets. China has made new concessions for European companies to gain access to its market, but there are still many differences remaining, according to the latest draft seen by dpa on Thursday. Both sides had been aiming for at least a basic agreement by the end of the year.
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US President Donald Trump warned Iran over repeated rocket attacks on the country's embassy in Baghdad, Iraq, saying he would not tolerate any deaths of US personnel. "Some friendly health advice to Iran: If one American is killed, I will hold Iran responsible. Think it over," Trump said on Twitter, charging that the rockets used in recent attacks came from Iran. Iranian-backed Shia groups in Iraq are being blamed for the rocket attacks, but Tehran denies the allegations. Foreign Minister Mohammad Javad Zarif tweeted that Trump was attempting to "divert attention from catastrophic failures at home," attaching a graphic showing Covid-19 death tolls in the US.
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BROKER RATING CHANGES
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none reported
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COMPANIES - FTSE 100
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BHP Group said Samarco Mineracao has met the licensing requirements to restart operations at its Germano mine complex in Minas Gerais and its Ubu complex in Espirito Santo, Brazil. BHP Billiton Brasil and Vale each hold a 50% interest in Samarco. Samarco's operations were suspended following the catastrophic failure of the Fundao tailings dam in November 2015. BHP said Samarco's gradual restart of operations incorporates concentrator 3 at the Germano complex and pelletising plant 4 at Ubu, as well as a new system of tailings disposal combining a confined pit and tailings filtering system for dry stacking. Samarco expects initially to produce approximately 8 million tonnes of iron ore pellets per annum. The dam collapse in the city of Mariana had resulted in 19 deaths and forced hundreds from their homes. Considered the worst environmental disaster in Brazilian history, it left 250,000 people without drinking water and killed thousands of fish. An estimated 60 million cubic meters of waste flooded rivers and eventually flowed into the Atlantic Ocean.
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COMPANIES - FTSE 250
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Network International noted a recent reported by short seller ShadowFall Research. "We take any critique of the company seriously. While we believe many of the issues raised have already been addressed, the historical nature of certain statements in the report means that a full response will take some time," said Network International, adding it expects to publish a response by the end of January. The payment solutions provider said it remains confident in its strategy and the long-term fundamentals of its markets. ShadowFall, in a report on Wednesday stating it was short Network International shares, alleged that the firm "pulled on many strings to present as good numbers as it could" ahead of its IPO in 2019, and claimed there is a "rising risk" of debt covenant breach.
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COMPANIES - MAIN MARKET AND AIM
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Allied Minds said portfolio company Orbital Sidekick has conditionally secured USD16.0 million in a Series A Preferred financing round led by Singapore-based investment firm Temasek. Allied Minds committed USD2.5 million in the funding round, with participants also including new investors. "Proceeds from this financing will allow Orbital Sidekick to focus on scaling its business and growing its sales pipeline to more rapidly bring its products to market and enable it to launch two additional advanced hyperspectral imaging satellites to support its customers," said Allied Minds.
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SDCL Energy Efficiency Income Trust has agreed to buy a series of portfolios of US commercial and industrial solar and energy storage projects, together with a 50% interest in the platform that has created them, for USD150 million. SDCL Energy Efficiency will buy four portfolios totalling over 175 megawatts and a 50% interest in Onyx Renewable Partners and its follow-on pipeline from funds managed by Blackstone. Blackstone will retain a 50% stake in Onyx. "The Onyx projects are well aligned to SEEIT's investment policy as they increase the supply of renewable energy generated on-site and help to reduce greenhouse gas emissions arising from the supply, distribution and consumption of energy," the company said.
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Yourgene Health said it has been added to the UK government's approved Covid-19 private testing providers list for the Test to Release scheme for international arrivals to the UK, and also for general testing. The company added that it has conducted in silico analysis studies into the new coronavirus strain, with results showing the performance of its test should be unaffected.
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COMPANIES - GLOBAL
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Anheuser-Busch InBev said it has agreed to issue a minority stake in its US metal container plants to an Apollo-led investment consortium, while retaining operational control. The Leuven, Belgium-based brewer said the group led by Apollo Global Management will acquire a 49.9% minority stake in its US-based metal container plants for USD3 billion. AB InBev said it will retain operational control of the plants. AB InBev said the transaction will allow it to create additional shareholder value by optimising its business at an attractive price and generate proceeds to repay debt, it said. In addition, AB InBev said it will have the right, but not the obligation, to reacquire the minority stake beginning on the fifth anniversary of the close of the transaction. The transaction is expected to close by January 8.
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Thursday's Shareholder Meetings
88 Energy Ltd - GM
Origo Partners PLC - AGM
Zambeef Products PLC - AGM
Sportech PLC - GM re Global Tote business sale
MelodyVR Group PLC - GM re reverse takeover of Napster
Amiad Water Systems Ltd - AGM
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By Tom Waite; thomaslwaite@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
