Pound climbs to second-highest level since Brexit vote – as it happened

Sterling rises above $1.43 ahead of key UK data this week, while rouble stabilises following steep drop earlier. Markets tense after western air strikes on Syria and ahead of anticipated new US sanctions against Russia

2.49pm BST

Wall Street has opened higher, as fears of an escalating conflict in Syria faded.

2.27pm BST

Since Trump became president in January 2017, the dollar has weakened substantially against most major currencies, including China's yuan and, until the US sanctions against Russia in the last few weeks, the rouble.

Against the yuan, the dollar has fallen 8.6% since 20 January 2017, Reuters data show. It has risen 4.5% against the rouble, although it was down 4% against the Russian currency until new US sanctions on seven Russian oligarchs were announced 1 1/2 weeks ago.

2.21pm BST

Back to currencies. US president Donald Trump has tweeted

Russia and China are playing the Currency Devaluation game as the U.S. keeps raising interest rates. Not acceptable!

1.59pm BST

In Greece, the central government ran up a primary budget surplus of a2.3bn in the first three months of the year, beating its target, Reuters reports.

According to finance ministry data, the surplus was boosted by higher tax revenues. The government was targeting a primary budget surplus, which excludes debt servicing costs, of a1.09bn.

1.50pm BST

While the pound is still up nearly half a percent against the dollar, Russia's rouble has stabilised following a steep drop earlier in the day.

The dollar now buys 62.33 units of the Russian currency, compared with 63.15 in early London trading.

1.34pm BST

Over in the US, retail sales bounced back in March after three months of falling sales, with households buying cars and other big-ticket items.

The Commerce Department said retail sales rose 0.6% last month from the previous month, following declines of 0.1% and 0.2% in February and January respectively. Sales were up 4.5% from a year earlier.

1.31pm BST

Bookmaker Betway has suspended betting on the next governor of the Bank of England after a flurry of bets on Andrew Bailey. The next governor, who will succeed Mark Carney in June 2019, is expected to be announced towards the end of the year.

Bailey, the chief executive of the Financial Conduct Authority had been relatively unfancied at 9/1, but the online bookie received a sudden influx of bets on him succeeding Carney and has suspended betting as a result.

There had been some speculation that Andrew Bailey was a leading candidate to replace Mark Carney as the new Governor of the Bank of England and in the last few days we've seen huge support for him taking the role.

The current Chief Executive of the Financial Conduct Authority was available at 9/1, but as a result of the weight of support towards him, we've had no choice but to suspend the market.

1.07pm BST

China's president Xi Jinping has said rising protectionism adds risks and uncertainty to the world economy, according to state media. His comments were made to Klaus Schwab, founder and executive chairman of the World Economic Forum.

Xi also said it was necessary for both sides to strengthen cooperation and work together to find new driving forces for global economic growth.

12.57pm BST

Sterling has climbed above $1.43 for the first time since 25 January, and only the second time since the Brexit vote in June 2016.

The pound climbed as high as $1.4318, up 0.54%, as technical meetings between UK and EU negotiators got under way in Brussels, followed by talks over the Irish border issue on Wednesday.

12.39pm BST

Octavio Marenzi, CEO of capital markets management at consultancy Opimas, has sent us his thoughts on Bank of America's first-quarter results.

We are seeing a very favorable environment for banking currently and Bank of America's earnings reflect this. Overall, BofA's results are good, and pushed RoE [return on equity] above 10%, even if they are not as strong as arch-rival JPMorgan's.

Consumer Banking and Wealth Management registered solid, sustainable growth in revenues. However, investment banking fees pulled Global Banking into slightly negative territory. BofA's results in fixed-income trading were not as strong as we expected and declined compared to Q1 last year, but handily beat the last quarter of 2017.

Bank of America said first-quarter profit rose, continuing the string of better-than-expected earnings from the nation's biggest banks https://t.co/YfduviGDv8

12.32pm BST

EU foreign ministers have threatened to impose new economic sanctions on Syria over the recent chemical attack on civilians in Ghouta near Damascus, but held off from joining anticipated new US sanctions against Russia.

The 28 foreign ministers said in a joint statement after talks in Luxembourg:

The European Union will continue to consider further restrictive measures against Syria as long as the repression continues.

12.24pm BST

In the US, the bank earnings season continues. Bank of America has reported a 34% rise in first-quarter profit after the lender benefited from higher interest rates.

The second-biggest US bank by assets said net income rose to a record $6.5bn in the three months to March from $4.5bn a year earlier. Earnings per share climbed to 62 cents from 45 cents. Wall Street analysts had expected 59 cents per share.

Strong client activity, coupled with a growing global economy and solid US consumer activity, led to record quarterly earnings.

11.24am BST

Connor Campbell, financial analyst at Spreadex, has looked at the Footsie.

The FTSE was dealing with duel pressures this Monday, both in its commodity sector losses and the success of sterling.

While the rest of the markets held strong, the FTSE dropped 35 points to send it towards a one week low. Part of that decline is being informed by the chunky drop suffered by BP and Shell, which slipped 1.5% and 0.8% respectively. That's because Brent Crude itself fell 1.2%, the black stuff in retreat in response following the contrast between the actually military engagement seen in Syria over the weekend and the supply-worrying rhetoric used by Trump last week.

But that's not the only thing upsetting the FTSE - the index also had to deal with the pound's latest increase. Against the dollar sterling shot up half a percent, sending cable above $1.43 to its highest price in almost a year and a half. The currency was less robust against the euro, and even then it lifted it towards a fresh 11 month peak.

11.20am BST

Stock markets have got off to a (cautiously) positive start to the week despite air strikes carried out by the US, UK and France in Syria over the weekend, in response to a chemical weapons attack a couple of weeks ago. The missile strikes had been well-flagged and Russia did not retaliate.

10.50am BST

The US is due to announce new economic sanctions against Russia today aimed at companies that are believed to be involved in equipment linked to chemical weapons, according to Nikki Haley, the US ambassador to the United Nations.

The EU has already imposed a range of economic sanctions on the Assad regime, cutting off most diplomatic and economic sanctions, but with very limited impact.

10.46am BST

It appears unlikely that the European Union will join the US in imposing new sanctions on Russia or Syria over the chemical weapons attack that prompted the first co-ordinated western air strikes in Syria at the weekend.

EU foreign ministers are putting the emphasis on diplomacy at a meeting in Luxembourg.

We have to keep pushing to get a ceasefire and humanitarian aid through the [UN] Security Council and eventually a peace process.

The only solution is a peace process through the Security Council.

It is very important to stress [the strikes are] not an attempt to change the tide of the war in Syria or to have a regime change.

I'm afraid the Syrian war will go on its horrible, miserable way. But it was the world saying that we've had enough of the use of chemical weapons.

10.39am BST

Sterling has touched an intra-day high of $1.4304 against the dollar, up 0.5%, the highest level since 25 January.

Stock market futures are still suggesting a higher open on Wall Street, with the Dow and the S&P 500 seen opening 0.6% while the Nasdaq is expected to rise 0.7%.

10.37am BST

The EU has called on Russia and Iran to use their influence on the Syrian government to prevent it from using chemical weapons again.

The EU said in comments released to a meeting of the global chemical weapons watchdog, seen by Reuters:

The EU calls upon all countries, notably Russia and Iran, to use their influence to prevent any further use of chemical weapons, notably by the Syrian regime.

10.21am BST

And here is our story on Wetherspoon closing all its social media accounts, a move that has been met with scepticism. Matthew Weaver writes:

The pub chain's decision was reportedly in response to the trolling of some MPs, but many commentators suspected it was a publicity stunt by the chairman, Tim Martin.

Related: JD Wetherspoon closes all social media accounts

10.19am BST

Commercial real estate agency and consultancy Colliers International says 15 major UK retailers or restaurant groups have gone into CVA (company voluntary arrangement) or administration in the past 12 months.

Colliers has calculated that around 12,000 jobs have been lost or are on the line. The most recent business failure was Conviviality, the company behind Bargain Booze and Wine Rack.

We wonder how many more retailers are going to get into trouble or people lose their jobs before someone decides to tackle the problem properly.

These figures are as bad, if not worse than the crash of 2008/9 when 16 companies went into administration- 12 in 2008 and 4 in 2009- and we are only in April now.

10.16am BST

Data from Visa card released overnight shows a steep fall in consumers on Britain's high streets in March. The number of people visiting UK shops dropped 6% compared with the same month last year, the biggest fall in shopper numbers since the end of 2010.

Related: UK retailers see 6% drop in shopper numbers in March

9.53am BST

UK pub chain JD Wetherspoon is shutting all its social media accounts in protest against the mis-use of personal data and the failure to tackle online bullying.

Wetherspoon said it was closing Twitter, Facebook and Instagram accounts for its head office and almost 900 pubs in Britain and Ireland.

It's becoming increasingly obvious that people spend too much time on Twitter, Instagram and Facebook, and struggle to control the compulsion.

I don't believe that closing these accounts will affect our business whatsoever, and this is the overwhelming view of our pub managers.

9.39am BST

Sterling has fared better than the dollar. The pound is up 0.28% to $1.4276, continuing a two-week rally against the dollar that saw it push towards a new post-Brexit referendum high on Friday.

Against the euro, sterling has slipped 0.1% to 86.49p but remains at its highest level since late May 2017.

With markets almost fully discounting a BOE rate hike, this week's run of monthly indicators are anticipated to give the hike a green light.

9.33am BST

Japan and China agree that a trade war will have serious consequences for the world economy, Japan's foreign minister Taro Kono has said today following high-level talks between the two countries.

Kono told reporters after the first such dialogue in nearly eight years, according to Reuters:

We have shared understanding that a trade war, no matter which country has brought it about, would have a very large impact on the prosperity of the international economy.

9.28am BST

On currency markets, the dollar is struggling. It is flat against a broad basket of major currencies but has weakened 0.3% so far this month, and lost 2.5% since the start of the year.

The euro is steady, trading at around $1.23.

The military strikes were well telegraphed and we are seeing a continuation in the broad market theme from lat week of a weaker dollar and favourable conditions for risk taking.

9.23am BST

European stock markets have given up some of their earlier gains.

9.13am BST

The rouble and Russian stocks are heading lower, dragged down by the threat of new US sanctions and falling oil prices.

Washington said on Sunday it would impose further sanctions against Russia on Monday over Moscow's support for Syrian president Bashar al-Assad. Details are expected later today.

8.57am BST

Shire's sale of its oncology business includes leukaemia therapy Oncaspar, the rights to pancreatic cancer treatment Onyvyde outside the US and other drugs in development.

Jefferies analysts Peter Welford, David Steinberg and Lucy Codrington believe the deal will boost Shire's negotiating position in any talks with Japan's biggest drugmaker Takeda, which has disclosed that it is considering a bid.

We see the possible strategic fit given the company's focus therapeutic areas of oncology, gastrointestinal and neuroscience, with Shire bolstering the latter two franchises. Furthermore, Shire's leading global position in rare diseases would likely be attractive for most large pharma/biotech, particularly given the long duration assets in immunoglobulin and enzyme replacement therapy

Hence, we presume Takeda would need a significant equity raise to acquire Shire, suggesting a "merger" is perhaps better terminology, which may raise hurdles to the successful completion of any future deal.

8.40am BST

Analysts are cautious about whether WPP will be broken up, now that Sorrell is gone. Citi analysts Thomas Singlehurst and Catherine O'Neill reckon the main question is whether a new WPP chief executive goes for a "quick fix" or sticks with the existing "slow fix".

In the last year, WPP has been seen by many to be losing its way. Against the backdrop of an improving macro environment, organic growth has been slowing. In practice this slowdown has been happening for years and has a multitude of explanatory factors. Anyone coming in to take over the CEO role at WPP will be entirely focused on turning this round. The debate is now whether a new CEO goes for a Quick Fix vs. (the existing) Slow Fix.

8.37am BST

Paul Richards, media analyst at Numis, says Sorrell will be hard to replace with one person.

The succession has led to questions over the size and scope of WPP and we can see a change of management accelerating the current process of reducing overlap and increasing flexibility.

WPP has bought other holding companies (Y&R, Grey, Cordiant) as well as agencies and accordingly has grown to employ over 200,000 people in 400 businesses across 3,000 offices in 112 countries. In response to industry pressures including clients in-sourcing activity, pressure on CPG and structural challenges from the duopoly of Facebook & Google, WPP was already working to simplify its business and increase flexibility.

We expect a new CEO to continue and accelerate this process and a strategic review could lead to the group slimming its operations by a quarter to a third in our view.

8.32am BST

Sorrell is free to start a new advertising venture because he has never had a non-compete agreement, the Financial Times reports.

In a farewell note to staff, Sir Martin underscored the role WPP had played in his career, saying the company was "not just a matter of life or death, it was, is and will be more important than that". He also hinted at his next step when he signed off saying: "Back to the future."

1975

8.19am BST

European stock markets have opened higher, apart from the London stock market which has slipped slightly.

8.10am BST

Shares in Whitbread have surged nearly 8%, replacing Shire as the top riser on the FTSE 100 index in early trading. Whitbread is under mounting pressure from hedge funds to break up its business by spinning off the Costa Coffee chain, after activist investor Elliott Advisors built up a stake of more than 6%.

Related: Hedge funds pressure Whitbread to spin off Costa Coffee

8.03am BST

Shares in Shire have opened 2.6% on the news, making it the biggest riser on the FTSE 100.

Shares in WPP have dropped 5% after the departure of chief executive Sir Martin Sorrell.

8.01am BST

London-listed drugmaker Shire, which specialises in rare diseases, is selling its oncology business to French drugmaker Servier for $2.4bn. The division generated revenues of $262m last year.

Shire, which is a potential bid target for Japan's biggest drugmaker Takeda, said it would consider returning the proceeds of the sale to shareholders through a share buyback.

While the oncology business has delivered high growth and profitability, we have concluded that it is not core to Shire's longer-term strategy. We will continue to evaluate our portfolio for opportunities to unlock further value and sharpen our focus on rare disease leadership with selective disposals of non-strategic assets.

The proceeds from the transaction increase optionality and Shire's Board will consider returning the proceeds of the sale to shareholders through a shareholder-approved share buyback after the current offer period regarding Takeda's possible offer for Shire concludes.

7.39am BST

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

Following another week of gains last week, with Germany's Dax and the UK's FTSE 100 index hitting six-week highs on Friday, European stock markets are set to open higher today. US stock futures are also up, pointing to a higher open on Wall Street later.

One of the main concerns last week was around the extent of the response by the US backed coalition on president Assad of Syria's forces and any Russian reaction to it. The firing of over 100 cruise missiles over the weekend on various targets, with little in the way of casualties, appears to be tempered with relief that while it may reduce the risk of an escalation in the short term, it in no way means that we might not get a counter response further down the line. As such markets here in Europe look set to open cautiously higher this morning after shares traded slightly firmer in Asia.

The US also appears to be complementing its military approach by focusing on the additional sanctions route, after UN ambassador Nikki Haley announced that further sanctions were being discussed on Russian companies who have dealings with Assad and the use of chemical weapons, with details likely to be announced by US Treasury Secretary Steve Mnuchin later today.

CITY AM: Good Fortune #tomorrowspaperstoday pic.twitter.com/GnnX6G47GA

FINANCIAL TIMES: Trump vows to follow air strikes with more sanctions #tomorrowspaperstoday pic.twitter.com/Ce3UbhXOXJ