Michel Barnier, European Union chief negotiator, departs from his hotel on Dec. 5, 2020, in London, England.
Hollie Adams/Getty Images
The pound slumped on Monday to its worst levels in weeks, on worries over the possibility that talks between the U.K. and the European Union over a trade deal won’t succeed.</p> <p>The pound
<a data-track-hover="QuotePeek" data-charting-symbol="CURRENCY/US/XTUP/GBPUSD" class="qt-chip negative" href="/investing/currency/GBPUSD?mod=MW_story_quote" target="_blank" rel="nofollow noopener noreferrer">GBPUSD,
<bg-quote field="percentchange" format="0,000.00%" channel="/zigman2/quotes/210561263/realtime/sampled" class="negative">-0.83%</bg-quote></a>
skidded as low as $1.3225, the lowest level since Nov. 19, from $1.3437.
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Over the weekend, U.K. Prime Minister Boris Johnson held talks with European Commission President Ursula von der Leyen, as negotiators try to reach a deal on a level playing field, dispute mechanisms, and fishing. The pair will hold another call at 4 p.m. U.K. time, or 11 a.m. Eastern, according to a spokesman for von der Leyen.</p> <p>Irish Foreign Minister Simon Coveney told Irish broadcaster RTE that the update on Monday from the EU’s chief negotiator, Michel Barnier, was “very downbeat.” The Sun reported a source close to Johnson saying he could opt for a so-called no-deal exit within hours.</p> <p> “It’s all about Brexit this morning, as tensions rise due to the lack of a deal, and rhetoric on blame and time running out rising quickly,” said analysts at Natwest Markets.</p> <p>Most analysts still expect a trade deal, despite the late jitters.</p> <p>The weakness for the pound gave a boost to the FTSE 100
<a data-track-hover="QuotePeek" data-charting-symbol="INDEX/UK/FTSE UK/UKX" class="qt-chip positive" href="/investing/index/UKX?countryCode=UK&mod=MW_story_quote" target="_blank" rel="nofollow noopener noreferrer">UKX,
<bg-quote field="percentchange" format="0,000.00%" channel="/zigman2/quotes/210598409/delayed" class="positive">+0.14%</bg-quote></a><span>,</span>
where companies that make their money outside the U.K. benefited from sterling weakness. Cigarette makers British American Tobacco
<a data-track-hover="QuotePeek" data-charting-symbol="STOCK/UK/XLON/BATS" class="qt-chip positive" href="/investing/stock/BATS?countryCode=UK&mod=MW_story_quote" target="_blank" rel="nofollow noopener noreferrer">BATS,
<bg-quote field="percentchange" format="0,000.00%" channel="/zigman2/quotes/209116881/delayed" class="positive">+4.39%</bg-quote></a>
and Imperial Brands
<a data-track-hover="QuotePeek" data-charting-symbol="STOCK/UK/XLON/IMB" class="qt-chip positive" href="/investing/stock/IMB?countryCode=UK&mod=MW_story_quote" target="_blank" rel="nofollow noopener noreferrer">IMB,
<bg-quote field="percentchange" format="0,000.00%" channel="/zigman2/quotes/208789104/delayed" class="positive">+2.97%</bg-quote></a>
both gained, as did pharmaceuticals AstraZeneca
<a data-track-hover="QuotePeek" data-charting-symbol="STOCK/UK/XLON/AZN" class="qt-chip positive" href="/investing/stock/AZN?countryCode=UK&mod=MW_story_quote" target="_blank" rel="nofollow noopener noreferrer">AZN,
<bg-quote field="percentchange" format="0,000.00%" channel="/zigman2/quotes/203048482/delayed" class="positive">+2.17%</bg-quote></a>
and GlaxoSmithKline
<a data-track-hover="QuotePeek" data-charting-symbol="STOCK/UK/XLON/GSK" class="qt-chip positive" href="/investing/stock/GSK?countryCode=UK&mod=MW_story_quote" target="_blank" rel="nofollow noopener noreferrer">GSK,
<bg-quote field="percentchange" format="0,000.00%" channel="/zigman2/quotes/200381158/delayed" class="positive">+1.54%</bg-quote></a><span>.</span>
AstraZeneca also was helped by a Morgan Stanley upgrade to overweight from equalweight.</p> <p>U.K. home builders including Berkeley Group
<a data-track-hover="QuotePeek" data-charting-symbol="STOCK/UK/XLON/BKG" class="qt-chip negative" href="/investing/stock/BKG?countryCode=UK&mod=MW_story_quote" target="_blank" rel="nofollow noopener noreferrer">BKG,
<bg-quote field="percentchange" format="0,000.00%" channel="/zigman2/quotes/202576163/delayed" class="negative">-6.70%</bg-quote></a>
and Persimmon
<a data-track-hover="QuotePeek" data-charting-symbol="STOCK/UK/XLON/PSN" class="qt-chip negative" href="/investing/stock/PSN?countryCode=UK&mod=MW_story_quote" target="_blank" rel="nofollow noopener noreferrer">PSN,
<bg-quote field="percentchange" format="0,000.00%" channel="/zigman2/quotes/206444744/delayed" class="negative">-5.26%</bg-quote></a><span>,</span>
and banks including Lloyds Banking Group
<a data-track-hover="QuotePeek" data-charting-symbol="STOCK/UK/XLON/LLOY" class="qt-chip negative" href="/investing/stock/LLOY?countryCode=UK&mod=MW_story_quote" target="_blank" rel="nofollow noopener noreferrer">LLOY,
<bg-quote field="percentchange" format="0,000.00%" channel="/zigman2/quotes/202285510/delayed" class="negative">-4.00%</bg-quote></a><span>,</span>
suffered on concerns over the U.K. economy. </p> <p>Countrywide
<a data-track-hover="QuotePeek" data-charting-symbol="STOCK/UK/XLON/CWD" class="qt-chip positive" href="/investing/stock/CWD?countryCode=UK&mod=MW_story_quote" target="_blank" rel="nofollow noopener noreferrer">CWD,
<bg-quote field="percentchange" format="0,000.00%" channel="/zigman2/quotes/203864149/delayed" class="positive">+21.57%</bg-quote></a>
jumped 19% to 304 pence as Connells, a real-estate agent, upped its offer for its rival by 30% to 325 pence per share. Private-equity firm Alchemy Partners has offered to inject £70 million and take controlling a stake in Countrywide.</p> <p>IMImobile
<a data-track-hover="QuotePeek" data-charting-symbol="STOCK/UK/XLON/IMO" class="qt-chip positive" href="/investing/stock/IMO?countryCode=UK&mod=MW_story_quote" target="_blank" rel="nofollow noopener noreferrer">IMO,
<bg-quote field="percentchange" format="0,000.00%" channel="/zigman2/quotes/206831660/delayed" class="positive">+47.33%</bg-quote></a><span>,</span>
a U.K. communications software company, jumped after networking hardware company Cisco Networks
<a data-track-hover="QuotePeek" data-charting-symbol="STOCK/US/XNAS/CSCO" class="qt-chip positive" href="/investing/stock/CSCO?mod=MW_story_quote" target="_blank" rel="nofollow noopener noreferrer">CSCO,
<bg-quote field="percentchange" format="0,000.00%" channel="/zigman2/quotes/209509471/composite" class="positive">+0.61%</bg-quote></a>
struck a £543 million deal to buy it at a 48% premium to Friday’s close.
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