Northern Irish Democratic Unionist Party (DUP) leader Arlene Foster and DUP member Diane Dodds hold a news conference at the European Parliament after meeting EUÕs Brexit negotiator Michel Barnier in Brussels October 9, 2018
The Northern Irish party which props up British Prime Minister Theresa May will back an amendment proposed by rebel Brexiteer lawmakers that will effectively make the European Union's backstop proposal illegal, a Telegraph newspaper reporter said.
Prominent Brexiteer Steve Baker, a former junior Brexit minister, will try to block the EU's backstop plan on Wednesday by attaching amendments to legislation passing through parliament that would effectively make the proposal illegal.
"DUP will back amendment being tabled by Tory Eurosceptics on Wednesday that will effectively make the EU’s NI backstop illegal," Steven Swinford, the Telegraph's deputy political editor, said.
"Yet another headache for No 10, with 40 Tory MP already poised to support it."
Britain's blue-chip share index was higher on Monday as a weaker U.S. dollar boosted commodities companies while positive results boosted NMC Health.The FTSE 100 was up 0.5 percent by 0938 GMT as the pound eased by 0.2 percent. European shares were boosted by gains in Italian banks after Moody's kept the country's sovereign rating stable, easing worries over a sell-off in the country's government bonds.UK mining companies were among the biggest gainers as gold prices edged towards a 2-1/2 month peak and copper rose 1 percent as the dollar eased along with improverd sentiment over political tensions and global economic growth.IG market analyst Joshua Mahony, however, said that the rise could be short-lived as the U.S.-China relationship comes under renewed pressure after U.S. Secretary of State Mike Pompeo's warning against investing in China.Fresnillo was the second-biggest gainer, up 4 percent after touching its highest since late August. Glencore was up 2 percent and Antofagasta gained 2.2 percent.Copper and platinum "have been showing signs of recovering recently, and should that be the case, we could see further upside for mining companies", David Madden, market analyst at CMC Markets UK, said in a note.Thousands take to streets in London demanding second Brexit voteBritain considering 'next steps' after Saudi Arabia admits journalist's deathFinancials provided the biggest lift to the overall market, with Lloyds Banking Group jumping 2.7 percent after the Financial Times reported that the bank is planning to double its share buyback programme to almost £2 billion next year.The move was seen as a sign of the lender's confidence even as the economic outlook remains uncertain.Positive earnings helped to lift NMC Health. The United Arab Emirates-based healthcare provider raised its full-year earnings and revenue forecasts, citing strong organic growth, and said it remained confident of achieving its longer-term margin guidance.Outside of the blue-chips, broker moves and M&A activity were in focus on the mid-cap FTSE 250, which firmed by 0.2 percent.B&M European Value Retail SA was the biggest gainer, up 5.7 percent on news of plans to buy France's Babou Stores Group.Among the losers, Cairn Energy fell 2.6 percent after Jefferies downgraded the stock to "underperform" and cut its target price, while Provident Financial dropped 2.5 percent as Barclays cut its price target after the sub-prime lender's trading update on Friday.UK could accept longer Brexit transition if EU drops backstop plan: UK ministerUK reminds China of importance of maritime law
Britain's FTSE rises on mining and financials
The euro rallied on Monday as a fall in Italian government borrowing costs after their recent surge introduced some calm into the market, while the promise of more Chinese stimulus helped offset broader political worries.Rating agency Moody's downgraded the Italian government's credit rating on Friday but unexpectedly kept the outlook at stable.That, together with comments by Deputy Prime Minister Luigi Di Maio that the government was ready to sit down with the European Union amid the ongoing row over Rome's budget, boosted demand for Italian debt after a sharp selloff in recent weeks.The euro has often fallen this year when Italian government bond yields have spiked higher.UK Brexit minister Raab says open-minded on extending post-Brexit transitionEU cannot accept temporary measure on Irish border: French ministerThe single currency rose 0.3 percent to $1.1550, hitting the day's high and away from recent lows of $1.1433.The dollar index dropped 0.3 percent to 95.472.The euro was also 0.2 percent higher at 1.1487 Swiss francs , and gained 0.2 percent versus sterling to 88.26 pence .Despite the euro's rally, analysts said it remained at the mercy of Italian developments, with a great deal of uncertainty ahead."...A full diary of risk events over the next two weeks and little to argue in favour of support from the ECB (European Central Bank) in the near future, the question remains over how far the yield gap can blow out and how this could translate back into the FX market," said Simon Derrick, chief currency strategist at BNY Mellon.Equity markets were largely in positive territory as hopes that China's tax cuts next year could be worth more than one percent of gross domestic product sparked a rally in Asian shares that fed across to Europe.That helped offset geopolitical concerns about the rift between Saudi Arabia and the West over the killing of a prominent critic of the kingdom, as well as worries about Britain securing an exit deal with the EU.Top German politicians press Siemens boss to skip Saudi conferenceItaly should not ignore damage to banks from soaring bond yields, official tells paperForex markets were largely quiet, although the more positive tone at the start of the week did buoy sentiment.For the dollar, a hawkish Federal Reserve and signs of continued strength in the U.S. economy remain key drivers."Markets will be closely watching the release of the U.S. advance GDP number on Friday for more clarity on the direction of the U.S. dollar," said Sim Moh Siong, currency strategist at Bank of Singapore.The dollar rose versus the Japanese yen. The yen fetched 112.71, down 0.2 percent on the day and off a one-month high of 111.61 touched on Oct. 15.The yen had benefited from rising risk around Brexit, the Italy budget plan and trade tensions, because investors tend to buy the Japanese currency when they are nervous.The Canadian dollar changed hands at 1.3080 on its U.S. counterpart, within striking distance of a five-week low of 1.3132 hit on Friday on the back of weaker inflation and retail sales.The Australian dollar, often considered a barometer for global risk appetite, traded at $0.7122, flat on the day.Hundreds of migrants storm Spanish enclave in North Africa, one diesEU's Barnier plays down 'backstop' checks on Northern Irish trade
Euro rallies as Italian borrowing costs enjoy big drop
An extension to Britain's post-Brexit transition period cannot be an alternative to the "backstop" agreement governing the Irish border, Ireland's foreign minister was quoted as saying on Monday by the Irish Times newspaper."There will be no withdrawal agreement without the backstop, end of story," Coveney was quoted by the newspaper as saying when asked about a suggestion by Brexit minister Dominic Raab on Sunday that an extension could be an alternative to the backstop.Raab on Sunday said he would consider an extension on the condition that it would "solve the backstop issue so that falls away then as a possibility." UK Brexit minister Raab says open-minded on extending post-Brexit transition
Ireland says Brexit transition extension can't be alternative to Irish backstop