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UK retail sales soar in January - live

Discussion in 'Market News' started by Lily, Feb 19, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
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    Crude oil dips on renewed supply glut fears, with markets set to end positive week on downbeat note

    9.31am GMT

    Shoppers were out in force in January with UK retail sales up 2.3% month on month compared to expectations of a 0.8% rise.

    9.07am GMT

    How long will negative interest rates last? Bloomberg has polled a group of economists on the subject:

    CHART: Economists now expect SNB, DNB, Riksbank, BoJ & #ECB to remain in sub-zero territory until ... at least 2018. pic.twitter.com/LSmpznOpMD

    8.56am GMT

    The Dax is underperforming other European markets after worse than expected producer prices figures.

    They dropped 0.7% month on month in January compared to expectations of a 0.3% dip and a 0.5% fall in the previous month.

    Weak and worsening German PPI adds to pressure on Draghi & Co

    8.49am GMT

    As the negotiations about Britain’s future in the European Union grind on, the pressure on the pound could continue when the outcome is finally reached. Simon Smith, chief economist at FxPro, said:

    By the end of today, we should have a decent idea whether the UK is set to have a referendum on EU membership this year and also the deal on the table in terms of the UK’s revised relationship with Europe. This matters for sterling, which has certainly shown strong signs of concern so far this year. In January, it was one of the weakest currencies on the majors as the uncertainty weighed. But there could be more of this to come should the referendum date be confirmed either today or early next week. The main issue is the behaviour of overseas investors in UK assets, of which there are increasing numbers given the UK’s persistent current account deficit. January’s price action was indicative of overseas investors both lightening up on sterling exposure and also hedging their asset positions. Such action could well accelerate into a Brexit referendum mid-year, not because investors are taking a view on the outcome, more that they are reacting to the on-going uncertainty created, given that polls are not decisive either way.

    8.15am GMT

    An interesting chart from RBS on US oil production, showing a large fall in the number of active rigs but a lower drop in actual output:

    Rig count down 63%, production only down 10%. Efficiency gains and concentrating rigs in high producing areas #oil pic.twitter.com/zalDldL7yC

    8.07am GMT

    As expected, the dip in the oil price has taken the shine of what has been a good week for stock markets.

    The FTSE 100 has dipped 10 points or 0.16%, Germany’s Dax has dropped 0.4% and France’s Cac is o.07% lower. The FTSEEurofirst is off 0.23% .

    7.40am GMT

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

    A positive week on the markets is ending on a more downbeat note, with Asian markets slipping back and Europe expected to open fairly mixed.

    Our European opening calls:$FTSE 5970 down 2
    $DAX 9479 up 15
    $CAC 4244 up 4$IBEX 8291 down 4$MIB 17109 down 4

    The slowdown in the UK economy has pulled the rug out of Chancellor George Osborne’s relatively generous Autumn statement which saw him scrap plans to cut tax credits. The risk is that Mr Osborne is forced to raise taxes and/or raid pensions in the next budget after having relied too heavily on economic growth for his spending plans, which will act to further curtail future growth.

    While positive surprises in economic data are naturally positive for sterling, it has been PM David Cameron’s Brexit talks that have dictated the state of play. A weak or no deal with Europe would add to uncertainty over the referendum result and could see cable get another jolt lower to fresh six-year lows beneath 1.41.

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