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Britain's factories grow at fastest pace in 1 1/2 years – live

Discussion in 'Market News' started by Lily, Nov 6, 2015.

  1. Lily

    Lily Forum Member

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    UK trade deficit narrows, while German industrial production disappoints. Non-farm payrolls out later expected to show that the US economy added 180,000 jobs in October

    10.26am GMT

    Back to the UK, where Bank of England deputy governor Nemat Shafik has said that knowing precisely when interest rates will rise is not what really matters. (Britain’s homeowners and businesses may disagree with that.) Shafik, a former deputy managing director of the International Monetary Fund, also insisted that the central bank’s system of “forward guidance” was not failing.

    Shafik, known as Minouche, defended the Bank’s failure to give any clearer signal as to when the first rate hike in years will come, and rejected claims that it was failing to give promised advance notice. She told BBC Radio 4’s Today programme:

    No, I don’t think that’s the case. Isn’t it better that the Bank of England give the public and the markets a sense of what our best collective judgment is of what is going to happen in the economy than to catch people by surprise?

    The consistent message that we have given is that future interest rate rises will be limited and gradual and I think everybody on the monetary policy committee signs up to that guidance and so far that has proven to be right. Even though I understand why people are concerned about the actual date of the first rate rise, what really matters to the economy is the path, and the path will be limited and gradual.”

    10.17am GMT

    China will lift a freeze on initial public offerings by the end of the year, removing one of its key measures of support for the stock market as equities recover from a $5 trillion rout, Bloomberg reports.

    Ronald Wan, Hong Kong-based chief executive officer told the news agency:

    There will be short-term damage to sentiment in the market. But the government has to proceed with market reform and the timing for IPOs will be better now than next year as the market seems to have some strength.”

    10.10am GMT

    Meanwhile, Hollywood star and Ballymena’s most famous son Liam Neeson has called for help for the workers who are going to lose their jobs at the Michelin tyre plant in the North Antrim town, writes Henry McDonald.

    The actor expressed outrage today over the 860 redundancies at the factory which were announced earlier this week. “It’s tragic and the fallout will be felt throughout the whole community,” Neeson said on Friday.

    I am a great believer in the character and worth ethic of my people in the North. I’ve always maintained that our wee corner of the globe is one of the world’s best kept secrets, not least in its potential for developments in all areas of industry.”

    10.05am GMT

    Lee Hopley, chief economist at EEF, the manufacturers’ organisation, said:

    While manufacturing contracted in the last quarter there are signs that some parts of industry were at least were mounting a comeback after a summer lull. Together with the sharp rebound in October’s PMI, we may yet see some more positive data readings in the remainder of 2015 but the risks, reinforced in yesterday’s Inflation report, from weaker activity in emerging markets are likely to present some headwinds for manufacturers into next year.

    Indeed, another disappointing set of trade figures for manufacturing show that these effects are already being felt with a significant fall in goods exports to China over the past three months.”

    9.57am GMT

    However, despite the latest improvement the ONS said trade was likely to make a negative contribution to Britain’s economic output in the third quarter.

    And while manufacturing was strong in September, a weak start to the third quarter meant that over the quarter as a whole the sector disappointed with a 0.4% decline, and remained in recession.

    September’s trade and industrial production figures provide further signs that the UK’s economic recovery remained unbalanced in the third quarter...

    Looking ahead, the improvement in August’s Markit/CIPS report on manufacturing in October has offered some hope that the sector may now have passed the worst. But it is still early days and we will need to see some more upbeat data before a renaissance in UK manufacturing can be declared. Accordingly, while we expect the overall economic recovery to maintain a solid pace, it is set to remain unbalanced in the near term at least.

    9.41am GMT

    There is more good news from the ONS: the UK’s trade deficit narrowed more than expected in September to £9.4bn, from a revised £10.8bn in August.

    9.40am GMT

    Here in the UK, factory output has come in stronger than expected. Manufacturing rose 0.8% in September, the biggest monthly increase since April 2014. City economists had expected a rise of 0.4%.

    Overall industrial production, which also includes mining and utilities, fell 0.2% on the month after rising 0.9% in August.

    9.32am GMT

    The dollar is rallying again boosted by comments from Atlanta Fed president Dennis Lockhart yesterday. Seen by many as a swing voter at the US central bank, he left the door wide open to a rate rise at the December meeting.

    He said at a speech in Bern, Switzerland.

    Going into that [October] meeting, I felt a successful outcome would be expectations aligning with the view that ‘liftoff’ at our upcoming December meeting is a possibility, but not a certainty. I am satisfied that was accomplished.”

    At this juncture, it’s my assessment that the US economy is likely in an above-potential growth phase, with labor markets continuing to improve, and with an underlying inflationary trend that, if not rapidly moving toward the [Fed’s] objective, is at least not moving away from that objective. I think the case for liftoff will continue to firm up.”

    9.24am GMT

    ... and the dollar could push the euro below $1.08 for the first time since April if we get a strong US jobs report at lunchtime, which would tip the odds in a favour of a Fed rate hike next month. It is currently down 0.1% at $1.0870.

    8.51am GMT

    The FTSE 100 index has started Friday flat. It’s up just 3.6 points at 6368.53 ahead of industrial output and trade figures at 9.30am.

    Eurozone indices have slipped into the red following weak German industrial production data. Germany’s Dax is down 0.2% and France’s CAC has lost 0.55%, prompted by a widening French trade deficit.

    8.42am GMT

    Talk Talk has released on update on last month’s Cyber attack. Sean Farrell writes:

    Almost 157,000 TalkTalk customers had their personal details hacked in last month’s cyber-attack on the telecoms company.

    8.25am GMT

    A day after releasing better-than-expected third-quarter results and upgrading its annual forecasts, British drugmaker AstraZeneca has unveiled a sizeable acquisition. It has agreed to buy Californian biotech ZS Pharma for $2.7bn (£1.8bn), beating off competition from Swiss firm Actelion.

    ZS Pharma is working on novel treatments for hyperkalaemia, a serious condition of elevated potassium in the bloodstream, which is typically associated with chronic kidney disease and chronic heart failure. Peak sales of the firm’s ZS-9 potassium-binding compound, which is under review by US regulators, are forecast to top $1bn.

    8.07am GMT

    ...and you can watch the John Lewis Christmas ads from the last few years here, including Monty the Penguin (2014), the Bear & the Hare (2013), the Journey (2012) and The Long Wait (2011).

    8.01am GMT

    You can watch the John Lewis Christmas ad here.

    7.57am GMT

    Genuinely set an alarm to see the John Lewis Christmas ad release not even ashamed

    How sad am I up and ready for the John Lewis Christmas ad

    7.44am GMT

    After two years of successful ads featuring cuddly animals – a bear and hare then a penguin – this year the retailer is tugging at the heartstrings with the story of a young girl, Lily, who spots an old man living in a shack on the moon through her telescope.

    The determined child tries sending him a letter and firing a note via bow and arrow, before floating him a present of a telescope tied to balloons, which finally enables them to make contact, writes Sarah Butler.

    7.42am GMT

    At 8am, the latest John Lewis Christmas ad will go live. Sarah Butler writes:

    A lonely old man living in a crater on the moon is the unlikely focus of John Lewis’s Christmas advert this year, as the department store puts a charitable spin on its latest multi-million pound campaign.

    7.36am GMT

    German industrial output posted its biggest drop in more than a year in September, data from the Economy Ministry showed this morning. Factories produced 1.1% fewer goods than in the previous month. This comes after German industrial orders fell unexpectedly in September due to cooling demand from overseas, suggesting Europe’s biggest economy is losing steam.

    The ministry said:

    After a good development in the first half, German industry is currently experiencing a light tailwind from the world economy, in particular due to a slowdown in some large emerging markets.”

    7.36am GMT

    Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

    After the excitement of Super Thursday – where the Bank of England signalled that interest rates are likely to remain on hold at their record low of 0.5% until well into next year – the attention shifts to the US today. Non-farm payrolls, the monthly employment report, are out at 1.30pm UK time.

    Continue reading...
     

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