Davos 2016: IMF chief Christine Lagarde to run for second term - live

Discussion in 'Market News' started by Lily, Jan 22, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
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    Rolling coverage of the third day of the World Economic Forum in Davos

    Lagarde seeks second mandate at the IMF

    8.10am GMT

    As ECB president Mario Draghi speaks in Davos, his comments on Thursday suggesting there may be further stimulus measures at the bank’s meeting in March continue to give a boost to markets.

    At the open in Europe, the FTSE 100 has jumped 80 points or 1.4%, while Germany’s Dax is up 1.9%, France’s Cac has climbed nearly 2% and Spain’s Ibex is up 2.1%.

    8.08am GMT

    The refugees heading to Europe are a challenge and an opportunity for Europe, says Mario Draghi.

    Our society will be changed by this. In which direction, we can only guess.

    It is also premature to know how long iw till take to transform this challenge into an opportunity.

    8.01am GMT

    Mario Draghi, head of the European Central Bank, is discussing the European economy now.

    He has warned that Euro governments will have to spend more to tackle the refugee crisis. In economic terms, that works out as a fiscal stimulus that could actually push up Europe’s anaemic growth rate.

    Draghi: new driver of growth will be increase of public spending to cope w #refugeecrisis-growth perspectives haven't changed #Davos2016

    7.45am GMT

    Having made her announcement, Christine Lagarde is now being congratulated by fellow Davos delegates while she snatches a quick breakfast. Two security guards just made it very clear that she’s not speaking to the press right now.

    7.43am GMT

    Lagarde’s term of office ends in July. Yesterday, Osborne said she was an ‘outstanding leader’, who would take the world economy forward.

    But she does also face the prospect of trial in a French court over the Tapie Affair, so there could be a few twists in this tale yet.

    7.38am GMT

    Breaking news from Davos- Christine Lagarde, managing director of the IMF, has said she will run for a second term.

    She made the announcement on French TV a few minutes ago, having already been nominated by several finance ministers, including George Osborne.

    “I am candidate to a new mandate. I was honoured to receive from the start of the process the backing of France, Britain, Germany, China, Korea.”

    7.37am GMT

    Super Mario Draghi seems to have done it again. Ahead of his speech to Davos the ECB president has lifted markets with his hints of further stimulus at the bank’s March meeting. Also helping was talk from Saudi Arabia of a recovery in oil prices later this year, which has pushed Brent Crude more than 5% higher to $30.81 a barrel.

    So on Wall Street the Dow Jones Industrial Average jumped... while in Asia the Nikkei soared nearly 6% and the Hang Seng 3%. A tumultuous week looks set for a positive end.

    A sharp rebound in crude oil as well as some warm words from ECB President Mario Draghi turned out to be the perfect ingredients to prompt a sharp snapback in equity markets yesterday after Wednesday’s rout, and this rebound has spilled over into the Asia session with crude oil recovering above the $30 level. The big question now is whether this marks a medium term base, or just a minor relief rally before another leg lower. Given yesterday’s rebound and the subsequent positive session in Asia there now remains the very real possibility that we could well finish the week in positive territory, and if that happens it would be a remarkable turnaround after Wednesday’s carnage.

    Our European opening calls: $FTSE 5821 up 47 $DAX 9671 up 97 $CAC 4246 up 39 $IBEX 8515 up 71 $MIB 18887 up 164

    7.23am GMT

    Good morning from Davos, where the third day of the World Economic Forum is getting underway.

    There’s a big focus on geopolitics today, with US secretary of state John Kerry giving a big keynote address.

    Related: French PM Manuel Valls says refugee crisis is 'destabilising' Europe

    SuperMario due to speak at the World Economic Forum, in Davos at 7.45am

    Continue reading...

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