6 September

@Stu7Tay

6 September

Good morning, 

Planned changes to UK and US immigration policies are causing controversy either side of the Atlantic this morning.
 
A leaked Home Office document obtained by The Guardian has revealed that Britain is considering the adoption of a “more selective approach” to immigration following Brexit, placing strict curbs on all but the most highly-skilled EU migrants.
 
The 82-page document puts an onus on British businesses to “meet their needs from resident labour” or to undertake an “economic needs test” to prove any requirement for foreign labour. Those who are deemed to be in “high-skilled occupations” will be granted a permit for between three and five years, according to the report.
 
Although it has been suggested that this is merely a “discussion” document, yet to be approved by ministers, the planned reforms in what is a highly-charged policy area have already created something of a political storm for Theresa May and Amber Rudd, the home secretary.
 
They are not alone in that, because President Trump finds himself in the midst of a similar fallout, after he scrapped yet another policy introduced by Barack Obama. The president has revoked a scheme to protect young undocumented migrants from deportation, a move that prompted a rare intervention from his predecessor, who described the decision as "cruel" to young people who had “done nothing wrong”.
 
If no solution is found, the rescinding of the policy would mean so-called “Dreamers” – many of whom know no other home than America – would once again become undocumented citizens, unable to obtain work permits, health insurance, and driving licences.
 
However, the loss of things they can’t apply for – a home, a way of life, a culture – may well be the true cost for those affected.

NEWS

The Archbishop of Canterbury has claimed Britain’s economic model is brokenand that the country stands at a watershed on the direction of the economy. Justin Welby said the UK must make “fundamental choices” about the direction of the economy as the gap widens between the richest and poorest parts of the country.

Tony Hall, the director general of the BBC, will today outline plans to tackle the gender pay gap at the broadcaster, as well as the amount it pays TV and radio presenters. The intervention comes after this summer’s controversy surrounding pay at the corporation.

Theresa May is expected to abandon a manifesto pledge to cut the size of the House of Commons by 50 seats, following fears of a rebellion by Tory MPs. MPs believe redrawing constituency boundaries would cause a distraction while Brexit negotiations are underway. (£)

 

BUSINESS & ECONOMY

Takeovers and mergers involving British companies almost doubled in the last quarter, year-on-year, following a spree of businesses hunting abroad. The Office for National Statistics said that M&A activity had reached £30 billion in the second quarter of this year, almost twice that during the same period in 2016. (£)
 
Stockbroker Panmure Gordon, one of the oldest names in the City of London, has announced plans to add a new investment banking service to its offering in its first strategic overhaul since it was bought for £15.5m in April by Atlas Merchant Capital. The new division will focus on private company fundraising. (£)

Nissan has launched a longer-range version of its flagship electric vehicle, as it responds to mounting competition in the electric car market. The new ‘Leaf’ will run 150 miles on a single charge, about 40 miles more than its previous model, but still falls short of ranges offered by Tesla and GM vehicles.

MARKETS

What happened yesterday?
Continued investor caution surrounding the situation in North Korea played heavily on the  FTSE 100 again yesterday, with the index falling 38.55 points to 7,372.92 by the end of the day. That was despite spending much of the morning in positive territory.
 
On the more UK-focused FTSE 250, shares in housebuilder Redrow rose 4.3% following record results for the fourth year in a row. The biggest riser on the index was Aveva, which saw shares leap by more than a quarter following its agreed merger with the software arm of French energy group Schneider Electric. A rise in “staycations” contributed towards Halfords shares increasing by 3.7%.
 
On the currency markets, the pound rose 0.7% against the dollar to $1.3027, and was 0.5% higher against the euro at €1.0928

Finals
Barratt Developments
Diurnal Group
McCarthy & Stone
 
Interims
Faron Pharmaceuticals Oy (DI), Harworth Group, Lookup Group, PPHE Hotel Group Ltd, Silence Therapeutics, Somero Enterprises Inc. (DI), Vectura Group, WANdisco, Xaar

UK Economic Announcements
(00:01) BRC Shop Price Index

Int. Economic Announcements
(07:00) Factory Orders (GER)
(12:00) MBA Mortgage Applications (US)
(13:30) Balance of Trade (US)
(15:00) ISM Non-Manufacturing (US)

COLUMNS OF NOTE

Writing in The Guardian, Tim Montgomerie warns the Conservatives that the left have captured the values of young people. He argues that while unpopularity on schools, hospitals and housing can be rectified by policy changes, it will be much harder to overcome more fundamental differences in principles and ideals.

In The Times, Michael Burleigh argues that China is the best hope to curb North Korea, but its desire for regional stability is now at odds with international resistance to Kim Jong-un’s nuclear programme. He goes on to say that Donald Trump’s “lock and load” rhetoric only worsens a regional crisis that has the potential to kill millions. (£)

DID YOU KNOW?

If two pieces of the same type of metal touch in space, they will bond and be permanently stuck together. This effect is called cold welding.

PARLIAMENTARY HIGHLIGHTS 

TODAY

House of Commons
Oral questions
Wales
 
Prime Minister's Question Time
 
Adjournment
Knife crime - Sarah Jones

House of Lords
Oral questions
Electoral spending limits in Wales - Baroness Humphreys
Regulation of financial services - Lord Leigh of Hurley
The Prevent strand of CONTEST - Baroness Warsi
 
Legislation
Financial Guidance and Claims Bill [HL] - Committee stage (day 2) - Committee of the Whole House - Baroness Buscombe

Scottish Parliament
Portfolio Questions: Finance and the Constitution

Scottish Government Business

TOMORROW

House of Commons
Oral questions
Exiting the European Union (including Topical Questions)
 
Legislation
European Union (Withdrawal) Bill - 2nd reading (day 1) - Mr David Davis
 
Adjournment
Hive stadium and the sale of public assets - Bob Blackman

House of Lords
Oral questions
Children in care and obtaining places in state and independent boarding schools - Lord Lexden
University pension schemes - Baroness Falkner of Margravine
Reporting to Parliament on the progress of negotiations with the European Union with regard to Brexit - Lord Spicer
 
Debate
Overcrowding in UK prisons - Lord Brown of Eaton-under-Heywood
Improving digital understanding at all levels of UK society - Baroness Lane-Fox of Soho

Scottish Parliament
General Questions

First Minister's Questions

Scottish Government Business