Here are the top business, market and economic stories you should be watching today in the UK, Europe and abroad:

Theresa May defends her Brexit deal as chaos continues

UK prime minister Theresa May is standing behind her draft Brexit agreement with the EU despite a wave of resignations from her ministers and calls for her to stand down.

May said in a speech on Thursday evening that she was determined to “see this through” and insisted that the deal she negotiated was the best one possible.

Her defiance comes despite renewed speculation on Friday that she could face a vote of no confidence from her own party.

Environment secretary Michael Gove was reportedly considering resigning after turning down the Brexit secretary job, but reports mid-morning suggest he has decided to stay. Still, Sky News also reported on Friday that party whips have been recalled to London, suggesting a confidence vote is likely.

Analysts fear the pound could fall further

The pound has stabilised against both the dollar and euro on Friday morning despite the continued political uncertainty.

Sterling is up 0.1% against the dollar to $1.28 (GBPUSD=X) in early trade and down 0.08% against the euro to €1.12 (GBPEUR=X).

However, analysts across the city are warning that the pound could have further to fall. Analysts at ING believe the pound should be 3-4% lower against the euro and dollar to properly reflect the current political risk in the UK.

Morgan Stanley analysts Hans Redeker and David Adams said in a note late on Thursday that while the pound remains “compelling” in the long term, it could go lower in the short term.

“We are watching the 1.2665 August low in GBPUSD closely, and should that fail to hold, 1.2450 may soon follow,” the pair wrote.

Rolls-Royce and Aston Martin prepare for the worst on Brexit

Heavy industry is preparing for the worst when it comes to Brexit.

The CEO of Rolls-Royce (RR.L) said in a radio interview on Friday that his company will continue to prepare for a no deal Brexit by stockpiling parts.

Warren East said: “We are going to continue with our contingency plans and that includes buffer stocks so that we have all the logistical capacity that we need to carry on running our business.”

East’s comments follow similar declarations from the CEO of luxury car maker Aston Martin (AML.L) on Thursday. Andy Palmer said the manufacturer has drawn up plans to fly car parts to the UK in the event of a no deal Brexit.

“A no-deal Brexit is a disaster. Nothing good can come of that in terms of jobs in the car industry,” Palmer told the Guardian.

European markets

European stock markets were higher on Friday morning. Britain’s FTSE 100 (^FTSE) was up 0.2%, Germany’s DAX (^GDAXI) was up 0.6%, France’s CAC 40 (^FCHI) was up 0.4%, and the Euronext 100 (^N100) was up 0.5% at midmorning.

It follows a mixed session for Asian markets overnight. Japan’s Nikkei 225 (^N225) closed down 0.5%, Hong Kong’s Hang Seng index (^HSI) was up 0.3%, and China’s benchmark Shanghai Composite (000001.SS) ended up 0.4%.

What to expect in the US

US stock futures were pointing to a lower open. S&P 500 futures (ES=F) were down 0.2%, Dow Jones Industrial Average futures (YM=F) were down 0.1%, and Nasdaq futures (NQ=F) were down 0.8%. The VIX volatility-tracking index (^VIX) was down 5%.

Viacom (VIA) is the only significant US company with corporate earnings later today.