FTSE LIVE: Next to cut prices if there’s a no-deal Brexit; US Fed trims rates for second time; Watchdog to probe JD Sports’ Footasylum takeover
- ‘Political storms rarely affect sales’, retailer Next claims
- US Federal Reserve cuts interest rates; UK rates expected to stay on hold
- Competition watchdog raises concern over JD Sports’ Foot Asylum takeover
Overnight, the US central bank cut interest rates for the second time since it ended its post-crisis rising cycle, amid concerns about ongoing trade wars and slowing global growth.
The Federal Reserve cut the target range for its key interest rate by 25 basis points to between 1.75 per cent and 2 per cent, as expected.
Donald Trump reacted by attacking Fed chairman Jerome Powell for lacking ‘guts.’
Back in the UK, Next’s latest half-year results reveal its store sales are continuing to fall, while online sales are surging.
Next results also cover the subject of Brexit at length, and suggest the retailer could end up cutting prices by 2 per cent in the event of a no-deal Brexit.
Later today, the Bank of England is expected to vote to keep interest rates on hold at 0.75 per cent.
In early morning trading, the FTSE 100 edged higher, while sterling is down against both the dollar and the euro.