19 September


19 September

Good morning,

The Prime Minster Theresa May was in Ottawa yesterday, meeting the Canadian prime minister Justin Trudeau, ahead of the UN general assembly meeting in New York and a major speech on Brexit in Florence on Friday.
After a weekend of headlines dominated by the Foreign Secretary, the prime minister took back control – for want of a better phrase – briefing journalists en route to Ottawa that, “this government is driven from the front, and we’re all going to the same destination”.  At a joint press conference with her Canadian counterpart, she will have been pleased that he called for a “seamless transition” to a new trading relationship with the UK.
Meanwhile May’s decision to move chief day-to-day Brexit negotiator Oliver Robbins to a role where he reports directly to her, rather than David Davis, suggests an attempt to bring the balance of power in Brexit negotiations back to Downing street. She told reporters the change in reporting lines was a sign that "negotiations were going into a more detailed and more intense phase".
Writing in The Telegraph today, William Hague urges all members of government to start singing from the same Brexit hymn sheet, or risk handing the reigns of power to Jeremy Corbyn. He hopes that May’s Florence speech will unite the Cabinet.
With so much riding on Friday’s speech, the prime minister will be treading a fine line as she signals the UK’s direction on Brexit.


The Times reports on a new study that indicates that the world is warming at a slower rate than previously forecasted, with scientists suggesting we can still avoid the worst effects of climate change. The Paris agreement goal to limit global warming to 1.5C above pre-industrial levels – which was dismissed at the time by many scientists as unattainable – now looks more achievable.
Theresa May and Justin Trudeau warned Boeing yesterday that both Britain and Canada may block future procurement contracts if the aerospace company continues with a competition case against Canadian rival Bombardier. May plans to raise the competition case with President Trump this week, at concern for jobs at Bombardier’s Belfast plant.
Hurricane Maria has been upgraded to a category five storm – the most serious – with sustained speeds of 160 miles per hour. Forecasters say the hurricane poses a “potentially catastrophic” threat to Caribbean islands in its path, with the Caribbean island of Dominica the first to suffer.

Business and Economy 

Bank of England governor Mark Carney delivered a speech to the International Monetary Fund in Washington yesterday, where he signalled the possibility of UK interest rate rises but indicated any changes would be “gradual” and “limited” in order to help return inflation to its 2 per cent target. He also warned that Brexit represented a “real shock” to the economy, that monetary policy could do to little to deflect.  
Ryanair has now published a full list of flights that will be cancelled between now and 28 October, with 400,000 passengers affected. The company expects to face a compensation bill of €20m plus €5m in operational costs. In a hastily arranged press conference yesterday afternoon, Ryanair CEO Michael O’Leary accepted responsibility for the mistakes but rejected any calls he should resign. For anyone wondering how a mistake on such a scale could have been made, the FT’s Lombard column imagines the conversation between the airline execs and advisers yesterday to prepare for the announcement.
US toymaker Toys “R” Us has filed for chapter 11 bankruptcy protection, as it struggles with debts and to adjust to the shift towards online shopping as well as competing with aggressive price discounting by competitors. The company has secured $3bn financing to keep its 1,600 stores operating “as usual” during the restructuring of $5bn long term debt.


What happened yesterday?

The pound dropped 0.7 per cent against the dollar following a speech by Bank of England governor Mark Carney, where he signalled the possibility of UK interest rate rises but indicated any changes would be “gradual” and “limited” in order to help return inflation to its 2 per cent target.
The FTSE 100 strengthened following the speech, recovering from a four-month low in response to the drop in the pound.
In company news, BAE systems was one of the biggest risers on the index, with shares boosted after Qatar signed a letter of intent to buy 24 Typhoon jets from the company.
Direct Line shares benefitted from speculation that Sir Peter Wood’s company Esure could be looking for a buyer.


Eagle Eye Solutions Group, Purecircle Limited (DI)


Anpario, Augean, Bango, DP Eurasia N.V. (DI), Escher Group Holdings, Flowgroup, Gulf Keystone Petroleum Ltd Com Shs (DI), Gulf Marine Services, Judges Scientific, Keywords Studios, Maxcyte (DI), NAHL Group Sinclair Pharma, Yu Group


ECO Animal Health Group, HML Holdings, Leeds Group, Miton Global Opportunities, Marlowe, Enteq Upstream, Safeland

Intl. Economic Announcements 

(09:00) Current Account (EU)
(13:30) Building Permits
(13:30) Current Account (US)
(13:30) Housing Starts (US)
(13:30) Import and Export Price Indices (US)

Columns of Note

Writing in the FT, John Thornhill argues that it’s time for the next wave of technological innovation. The iPhone has enabled the explosion of the app economy, which has allowed the smartphone to evolve in ways that Steve Jobs did not envisage. He argues, however, that this has come at a cost of the erosion of our privacy, and believes the next major transition would be to help users to control their own data, taking inspiration from the European plan published this week that envisages the creation of a data commons.
Aung San Suu Kyi broke her silence about the Rohingya crisis in Myanmar yesterday in her first public address since the UN branded army crackdown on the Rohingya minority as “ethnic cleansing”. A New Humanist piece syndicated on Capx explains the deep roots of this devastating violence.

Did you know?

Luxembourg is the world’s leading national investor in asteroid mining.

Parliamentary highlights

House of Commons
In recess until 8 October for party conference season.
House of Lords
In recess until 8 October for party conference season.

Scottish Parliament

Ministerial Statements

Delivering Social Security for Scotland’s People

Ending Homelessness Together

Scottish Government Debate:

Dignity, Equality and Human Rights for All

Scottish Parliament

Portfolio Questions
Justice and the Law Officers
Culture, Tourism and External Afairs

Scottish Labour Debate: