Seven days in the Square Mile

Stockpiling due to Covid and Brexit was reported to be causing chaos in Britain’s port system. Honda paused production at its Swindon plant because of parts shortages; Tesco warned that a no deal might mean a 5% rise in food prices. With a deal hanging in the balance, currency traders were braced for volatility. But the pound passed $1.34 on Wednesday – close to its year-high – on renewed expectations of success. Global stock markets were boosted by continuing vaccine optimism and hopes of a renewed US stimulus package. The Government disclosed plans to suspend punitive tariffs against the US over aircraft subsidies – breaking ranks with the EU in an attempt to pave the way for a post-Brexit trade deal. The Bank of England faced criticism from MPs for “losing” £50bn in banknotes – possibly due to pandemic hoarding – but denied the money was “missing” claiming that bank notes by their very design are not traceable.

The holiday rental company Airbnb prepared to float in New York on Thursday, at a top-end value of $42bn. Uber ended its attempt to develop a driverless car, to focus on its core ridehailing business. Elon Musk announced plans to move Tesla production from California to Texas where his spaceflight company already has a factory. The giant commodities trader Trafigura reported the best performance in its 27-year history on the back of Covid-related turmoil – particularly in the oil industry.