Seven days in the Square Mile

The pound fell after the PM announced he would suspend Parliament shortly after MPs return from summer recess, hampering attempts to block a no-deal Brexit. Sterling slid nearly 0.6% to $1.22 on the news, which keeps a significant downside risk to the pound in play. UBS, the world’s largest wealth manager with $2.5trn under management, claimed the continuing US-China trade fracas posed a heightened threat to global markets. The bank is now “underweight” in equities for the first time since 2012. At the G7 summit in Biarritz, the US and Japan reached a trade deal “in principle” and President Trump promised “a very big trade deal” with Britain. At the central bankers’ gathering in Jackson Hole, BoE governor Mark Carney called for more global monetary policy – hinting that the dollar’s days as the world’s dominant currency could be numbered. Carney also stressed the risk to the financial system posed by openended funds, which now account for $30trn of assets globally. Johnson & Johnson was ordered to pay $572m for its involvement in the ongoing opioid crisis. The case could open the door to further actions against pharma companies, distributors and retailers. At least 36 other states are filing cases against drug makers. The troubled travel firm Thomas Cook said it had agreed a rescue deal with the Chinese company Fosun, which will inject £450m in return for 75% of the tour business and 25% of the airline.