This morning, UK shares were down as investors assess the impact of the Northern Ireland trading deal between the U.K. and EU, announced yesterday. The "Windsor Framework" should allow "smooth trade within the United Kingdom", said Prime Minister Rishi Sunak. Products arriving from England to Northern Ireland to remain there will no longer be subject to the same controls as those destined to be exported to the Republic of Ireland. This will apply to commercial trade, as well as parcels sent by individuals. Some changes in VAT rates or other duties decided by London for the United Kingdom will apply to Northern Ireland, while restrictions on shipping animals or certain plants will be scrapped. However, Sunak must still convince Northern Ireland's DUP to back the deal.

Among stocks, Unite Group said its 2023 profit rose thanks increased rental income, and issued strong guidance for the next year.

Ocado posted a bigger pretax loss for fiscal 2022, hampered by costs pressures and investments at Ocado retail.

 

Things to read today:

Surprise Jumps in French, Spanish Inflation Heap Pressure on ECB (Bloomberg)

Brexit Deal Gives Sunak a Chance to End Years of EU Acrimony (Bloomberg)

How the ‘Windsor Framework’ changes Northern Ireland’s trading arrangements (Financial Times)