The FTSE 100 jumped at the opening bell on a day when Brexit talks will finally begin after months of build-up.
The man in charge of leading the process David Davis has gone over to Brussels to start formal negotiations with his European Union counterparts, and investors will be watching like hawks for any early indications of how the talks are going.
The pound is showing no sign of being impacted by the beginning of the talks yet, with it being flat for the session at $1.2781.
Perhaps encouraged by the positive tone of comments made by David Davis and others immediately ahead of the Brexit talks today the pound is edging upwards.
Sterling is up 0.16% for the session at $1.2804
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The Co-operative Bank said that it is in ‘advanced discussions’ with investors over a rescue package.
The bank said on Monday that the talks centre on a ‘prospective equity capital raise and liability management exercise’.
The lender added that discussions are also ongoing regarding the separation of the Co-op Group pension scheme, which would clear the path for a takeover.
Reports had surfaced over the weekend that the struggling lender is close to announcing a £700 million deal that would see it dodge being wound down.
The initial thoughts of ETX capital analyst Neil Wilson –
‘Where will the pound end up? With talks getting underway today, there are several possible scenarios for sterling based on where these talks take us.’
‘Brexit talks kick the week off in fairly dramatic fashion with the UK and EU officially beginning negotiations on the divorce. The big question is what alimony is due, who gets to keep the house and car, and where the kids should live. It’s not you it’s me, Britain is saying. The EU will take its perfidious partner back any time, although with stricter rules. The trust is gone. Some think it’s better off without an unreliable spouse anyway.’
‘So it’s in this acrimonious environment that the process begins and that is going to make it tough going for investors looking for clues about whether we get a soft or hard Brexit, something that is between the two, or no Brexit. It would be easier for Britain if it knew what it wanted in the first place.’
European Union chief negotiator Michel Barnier