Here are the top business, market, and economic stories you should be watching today in the UK, Europe, and the rest of the world:
Shares in Asos (ASC.L) have recovered only slightly after dropping by more than 20% on Thursday after the online fashion retailer said profits would be lower than forecast.
Asos blamed “operational issues” linked to upgrading its warehouses, saying they hit sales in the US and Europe.
Because of the teething problems, Asos said on Thursday that profits were likely to be between £30m and £35m this year.
It had previously predicted profits would be £55m. Asos also cut its full-year sales growth forecast from 15% to 12%. It is the company’s third profit warning in less than a year.
Slug and Lettuce owner Stonegate Pub Company has announced an agreement to buy Britain's largest pub owner Ei for £11.27bn ($1.58bn), according to Reuters.
The company is reported to be planning to take over more than 4,000 of Ei’s pubs, sending Ei shares rising more than 40% to a decade-high as the deal was recommended by Ei’s board.
The announcement also helped other pub chains Mitchells & Butlers, Greene King, and Marston's rise between 1.1% and 2.9%, Reuters reports.
Ei, which traces its roots back to 1991, has become Britain's largest pub owner through several acquisitions, including buying former Whitbread pubs. It employs more than 1,800 people.
A UK government budget watchdog warned a no-deal Brexit will throw the economy into recession, with a “squeeze” on real household incomes as the pound’s falling value forces up prices.
The value of sterling and house prices could dip “sharply,” with imported food and other goods becoming far more expensive, government borrowing spiralling, foreign investment sliding, and firms that sell to Europe battered by new trade barriers.
The Office for Budget Responsiblity (OBR) said on Thursday that the British economy could contract by 2% in real terms by the end of 2020. This would take the UK into recession and leave real GDP 4% smaller than its previous forecast.
European and Asian markets
What to expect in the US
US stock futures were also pointing to a slightly lower open later Tuesday.