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IMF chief Lagarde warns of disappointing global growth in 2016 – business live

Discussion in 'Market News' started by Lily, Dec 30, 2015.

  1. Lily

    Lily Forum Member

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    Rolling business coverage as IMF chief says rising US interest rates and Chinese slowdown are creating uncertainty

    8.32am GMT

    Veteran investor Warren Buffett is headed for his worst year relative to the rest of the US stock market since 2009, with shares in his conglomerate Berkshire Hathaway down 11% so far this year, the Financial Times reports. Berkshire has been hit by the commodities slump.

    The underperformance comes in Mr Buffett’s Golden Anniversary year at the helm, when he told investors for the first time that they should judge his record based on Berkshire’s share price, rather than just the book value of the company, which had been his preferred yardstick for decades.

    Mr Buffett urged them to make that judgment based on the long term, rather than on a single year, reflecting investing mentor Benjamin Graham’s view that the stock market may be a “weighing machine” in the long run, but in the short term it is a “voting machine”.

    8.26am GMT

    Howard Archer, chief European and UK economist at IHS Global Insight, has looked at the Nationwide house price figures.

    The stronger Nationwide data for December reinforce our belief that house prices are likely to see solid increases over the coming months. We expect house prices to rise by around 6% over 2016 amid healthy buyer interest (supported by largely decent fundamentals) and a shortage of properties.”

    8.17am GMT

    Returning to Lagarde’s comments, she wrote in a guest article for Handelsblatt:

    In many countries the financial sector still has weaknesses and in emerging markets the financial risks are increasing. All that means global growth will be disappointing and uneven in 2016.”

    8.02am GMT

    We have done a big piece on oil – “Recession, retrenchment, revolution? Impact of low crude prices on oil powers” from our correspondents around the world. Take a look.

    A glut of oil, the demise of Opec and weakening global demand combined to make 2015 the year of crashing oil prices. The cost of crude fell to levels not seen for 11 years – and the decline may have further to go.

    There have been four sharp increases in the price of oil in the past four decades – in 1973, 1979, 1990 and 2008 – and each has led to a global recession. By that measure, a lower oil price should be positive for the world economy, with lower fuel costs for consumers and businesses in those countries that import crude outweighing the losses to producing nations.

    7.53am GMT

    UK house prices rose 4.5% year-on-year in December, up from November’s annual growth rate of 3.7%, according to Nationwide. It expects the housing market to strengthen further next year, even if the Bank of England starts hiking borrowing costs from next summer.

    Nationwide chief economist Robert Gardner said:

    As we look ahead to 2016, the risks are skewed towards a modest acceleration in house price growth, at least at the national level, despite the likelihood of interest rate increases from the middle of next year.”

    7.45am GMT

    Good morning and welcome back to our live blog covering financial markets and business and economics news from around the UK and the world.

    Christine Lagarde, managing director of the International Monetary Fund, has warned that global growth will be disappointing next year. Writing in German newspaper Handelsblatt, she said the prospect of rising interest rates in the US and the economic slowdown in China are contributing to uncertainty.

    Knightsbridge is central London's worst performing housing market of 2015, with 6% fall https://t.co/eqWuPeDEHU pic.twitter.com/JsQMwNghdn

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