Markets rally on relief over US shutdown breakthrough – business live

8.56am GMT Hopes of an end to the US government shutdown are moving the currency markets too. The US dollar has gained 0.4% against the Japanese yen (a traditional safe haven), rising to ¥154 to the $. But the US dollar is sliding against other currencies, down 0.55% against its Australian rival. 8.44am GMT US private equity giant take over online retailer The Very Group Online retailer The Very Group has been taken over by US private equity firm Carlyle. The news, confirmed this morning, bring an end to more than 20 years under the ownership of the Barclay family. The Littlewoods and Very firm confirmed that Washington-based Carlyle – a major lender to the firm – had become its controlling shareholder, with fellow lender Abu Dhabi-based investment fund International Media Investments (IMI), continuing as a “key stakeholder”. As we reported last night, the change of control will bring to an end more than 20 years under the ownership of the Barclay family, which has been forced to give up a series of businesses – including the Telegraph newspaper, London’s Ritz hotel, and delivery company Yodel – that made them into billionaires, and one of the richest families in Britain. Related: US private equity giant poised to take over online retailer The Very Group Carlyle and IMI first became lenders to The Very Group in 2021. Robbie Feather, group chief executive of The Very Group, says: “This marks an important milestone for The Very Group as we move into an exciting new phase of growth. “We are delighted to continue to partner with Carlyle and IMI. Their continued backing provides us with a stronger foundation to execute on our strategy, increase investment in technology and the customer experience and to build on the momentum across the business.” 8.32am GMT Oil price rises The oil price is also pushing higher, reflecting hopes that the economic damage caused by the US shutdown could soon end. Brent crude, the international benchmark, is up 0.7% at just over $64 per barrel. Matt Britzman, senior equity analyst at Hargreaves Lansdown, says: The rebound comes as traders await fresh outlooks from OPEC and the IEA, hoping for clarity on supply-demand dynamics amid rising production from both OPEC and US producers. Sanctions on Russian oil remain a wild card, pushing major buyers like China and India to diversify sources, adding another layer of complexity to the market.” 8.29am GMT The pan-European Stoxx 600 index which tracks the six hundred largest companies on Europe’s stock markets, has gained 1% in early trading. Technology stocks are leading the rally, followed by the energy, industrials and consumer cyclical sectors. 8.24am GMT European markets rally too European stock markets have joined the relief rally. Germany’s DAX jumped by 1.5% at the start of trading, with France’s CAC 40 up 1.18% and Spain’s IBEX 1% higher. Richard Hunter, head of markets at interactive investor, says: “After several weeks which have left investors and the Federal Reserve in the economic darkness, some light at the end of the tunnel has lifted spirits. News of a potential end to the government shutdown, the longest on record, began to swirl on Friday which enabled the main indices to pare back most of their losses. The subsequent confirmation on Sunday that a bill had passed the first procedural hurdle has lifted Dow futures, which at this early stage are pointing to a strong opening later today. The deal has yet to pass the Senate and the House and could take several days, but is nonetheless being viewed as a welcome development. 8.15am GMT Shares in Diageo have jumped 7% as investors welcome the appointment of Dave Lewis as its new CEO. That adds around £2.6bn to Diageo’s market capitalisation, I calculate, lifting its value from £38.44bn to over £41bn. 8.12am GMT London stock market opens higher on shutdown deal hopes Britain’s stock market have jumped at the start of trading, on relief that a bipartisan deal that could end the US government shutdown has been reached. The FTSE 100 index of blue-chip shares is up 68 points, or 0.7%, at 9752 points – just 35 points away from the record high. Mining stocks, and luxury goods maker Burberry, are among the top risers. Ipek Ozkardeskaya, senior analyst at Swissquote, says the market looks calmer this morning. The news that the US government shutdown could finally come to an end lifts market sentiment, after the Senate put together the 60 votes needed to push the deal through its first stage. It’s only the opening act in what could still be a drawn-out political drama, but investors are seizing on any sign of progress to end the longest US government shutdown in history and feed on data — data they need to understand where the US economy stands, where inflation and jobs are headed, and what the Federal Reserve (Fed) should do next. 7.57am GMT Diageo names former Tesco boss Dave Lewis as chief UK drinks giant Diageo has turned to experienced retailer Sir Dave Lewis to lead its turnaround push. Lewis, the former chief executive of Tesco, has been named this morning as Diageo’s new chief executive. He succeeds Debra Crew, who stepped down “by mutual agreement” in July after a tenure including a shock profits warning, adverse global consumer trends and abandoned sales targets. Just last week, Diageo reported that weak demand in China and the US had hurt sales and profit expectations. Lewis, who must now restore investor confidence in Diageo, says: “Diageo is a world leading business with a portfolio of very strong brands, and I am delighted to be joining the team. The market faces some headwinds but there are also significant opportunities. I look forward to working with the team to face these challenges and realise some of the opportunities in a way which creates shareholder value.” Lewis has experience of turning businesses around – at Tesco, he tackled a mountain of debt and discovered a gaping black hole in its accounts. Related: ‘Tesco could have gone under’: how Dave Lewis saved the firm from disaster Lewis will step down down from his current role chairing consumer healthcare firm Haleon at the end of the year. 7.37am GMT Shutdown end could bring flurry of delayed data Once the government reopens, markets will face a surge of delayed data releases. Jim Reid, market strategist at Deutsche Bank, has told clients this morning: It looks like white smoke is finally emerging from Capitol Hill as late on Sunday night in the Senate there was a 60-40 procedural vote to advance a bill that would end the shutdown. Just about enough moderate Democrats have broken ranks with party leadership to progress a bill that would fund Agriculture, Veterans Affairs and the operations of Congress for the full-year, even if other agencies would only be funded through to January 30th. It seems to persuade the moderate Democrats to support the bill, a vote has been promised in December in extending the Affordable Care Act (ACA) subsidies that run out at year-end. The timetable from here is slightly less clear but we could get a full vote today or tomorrow assuming no procedural delays. Probability markets are starting to price in the end game with a 98% expectation that the shutdown will be over by November 30th on Polymarket, a contract high. Historical precedent from the 2013 shutdown suggests that September’s employment report could be among the first to hit the wires, potentially within three business days of reopening. We expect payrolls to rebound sharply, with headline and private payrolls both forecast at +75k, leaving the unemployment rate steady at 4.3%. So we could get this Thursday or Friday. 7.27am GMT Introduction: Markets welcome deal to end US shutdown Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy. After some jittery sessions last week, the markets are taking heart from progress to end the longest US government shutdown in history. Wall Street futures are indicating a higher open, after the US Senate voted to advance legislation to end the shutdown, with a group of breakaway Democrats reached an agreement with Republicans. This compromise bill would reauthorize funding and undo the layoffs of some employees, but doesn’t guarantee the extension of healthcare tax credits, which had been a key Democrat demand. If the Senate eventually passes the bill, the package must still be approved by the House of Representatives and sent to President Donald Trump for his signature, a process that could take several days. Related: Senate advances funding bill to end longest US government shutdown in history Relief that the 40-day shutdown could soon be over has lifted markets in Asia. Japan’s Nikkei 225 index has gained 1.2%, while MSCI’s broadest index of Asia-Pacific shares outside Japan is up 1.3%. The shutdown has hit the federal workforce, hurting many public services, and put welfare benefits for tens of millions of Americans at risk. It also created an economic fog of uncertainty as investors have been deprived of important data showing the health of the economy. The futures market indicates the US S&P 500 index could rise 0.7% when trading begins later today, while the tech-focused Nasdaq is up 1.2% in pre-market trading. Tony Sycamore, IG analyst, says: The breakthrough on the shutdown—combined with President Trump’s renewed pledge to deliver at least $2,000 in tariff-funded dividend checks to most Americans (excluding high earners)—has lifted Nasdaq 100 futures 0.60% to 25,316 in early Asian trading. While the reopening restores critical services and eases economic uncertainty, the rebate plan remains contingent on congressional approval and sufficient tariff revenue, leaving its timing and feasibility still in question. The breakthrough came after a pledge for a later Senate vote on whether to extend subsidies for Affordable Care Act health plans. Democrats within and beyond Washington denounced the compromise, concerned that it does not resolve the issue of healthcare subsidies. Democratic Senator majority leader Chuck Schumer said: “This healthcare crisis is so severe, so urgent, so devastating for families back home, that I cannot in good faith support this [resolution] that fails to address the healthcare crisis.” California’s governor, Gavin Newsom, wrote on social media. “Pathetic. This isn’t a deal. It’s a surrender. Don’t bend the knee!” The agenda 4pm GMT: House of Lords Economic Affairs Finance Bill sub-committee to hear evidence on tax policy making principles Updated at 7.42am GMT