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US economy expected to slow as rate hike expectations build - business live

Discussion in 'Market News' started by Lily, Oct 29, 2015.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
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    All the day’s economic and financial news, including the latest American GDP growth data due at 12.30pm GMT

    9.15am GMT

    It’s a black morning for Deutsche Bank staff, as new chief executive Jon Cryan wields the axe at Germany’s biggest bank.

    “We must reduce Deutsche Bank’s complexity”

    8.50am GMT

    Those disappointing results from Barclays and Royal Dutch Shell have helped to wipe almost 1% off the FTSE 100 this morning.

    The blue chip index is down 53 points at 6383, with mining stocks among the big fallers.

    Miners in the bad books again. $FTSE pic.twitter.com/U51OpSBvwc

    Helping drag the commodity sector as a whole further into the red was Shell; announcing its third quarter results less than 48 hours after revealing its latest ($2 billion) write-down in relation to its failed Carmon Creek project, the oil giant slipped to a $6.1 billion loss after the cost of ending multiple long term projects added up to a whopping $8.2 billion.

    This pushed Shell nearly 2% lower after the bell, worsening the situation in an already loss-loving sector.

    8.34am GMT

    Shares in Barclays have fallen by 3.5% in early trading, after the bank missed profit forecasts and posted a 10% drop in adjusted earnings.

    Barclays also revealed that ring-fencing its retail banking arm will cost £1bn, on top of £2.3bn bill on legal costs and compensation.

    As its new boss, Jes Staley, pledged to clean up the bank’s reputation, Barclays said it was facing £290m redress costs as a result of an internal review relating to rates for foreign exchange transactions between 2005 and 2012.

    The figures were released a day after Barclays named Staley, a US investment banker, as its new chief executive. He is on a £10m pay packet and will start on 1 December.

    Related: Barclays legal bill hits £2.3bn in nine months

    8.25am GMT

    The UK government has taken another step towards untangling itself from the banking sector, by selling more shares in Lloyds Banking Group.

    8.12am GMT

    Morgan Stanley reckons the Federal Reserve will be feeling pleased with itself:

    MS: Fed was aiming for markets to adjust to better price-in a December hike. At close-to 50/50 now, the Fed got what it was looking for.

    8.10am GMT

    Britain’s economy may be slowing down, but house prices are still rising.

    “Over the past five months annual price growth has remained in a fairly narrow range between 3% and 4%, broadly consistent with earnings growth over the longer term.

    While this bodes well for a sustainable increase in housing market activity, much will depend on whether building activity can keep pace with increasing demand.

    8.04am GMT

    This explains why the markets are taking the Federal Reserve’s comment about considering a rate rise at its “next meeting” so seriously:

    JPM's Feroli: the statement's direct reference to the 'next' mtg was the first such mention of possible action at a subsequent mtg since '99

    7.59am GMT

    Today’s US GDP report will probably show that growth has fallen back below the 2% trend rate.

    The Wall Street Journal explains:

    The economy has grown at little better than a 2% pace since the recovery began in mid-2009. That’s largely because a quarter or two of above-trend growth has been upended by a weak performance.

    If the third-quarter data turns out as economists project, growth for the year will have decelerated from last year’s 2.4% increase.

    7.53am GMT

    Before last night’s Fed meeting, investors were only pricing in a 35% chance that US borrowing costs would rise in December. It’s now a 48% chance:

    Morning Note: 1. Premier Li floats 6.5% target. 2. DB plans to scrap dividend. 3. And there was a Fed meeting... pic.twitter.com/6IZW1ryiXy

    7.49am GMT

    In a few hours we find out how badly the US economy has suffered from the problems in emerging markets, and China’s slowdown.

    7.26am GMT

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

    Today we’ll be mopping up the reaction to last night’s Federal Reserve meeting, where US policymakers floated the serious possibility of raising interest rates in December.

    “In determining whether it will be appropriate to raise the target range at its next meeting, the Committee will assess progress--both realized and expected--toward its objectives of maximum employment and 2 percent inflation.”

    A new sentence in the Fed monetary policy statement has put a December rate hike by the Fed back on the table.

    G10 currencies slid against a resurgent US dollar, while the worst was left for emerging market currencies. The Korean won, Indonesian rupiah and Malaysian ringgit saw the heaviest selling in Asia.

    #Dollar at 2-1/2-month high after Fed keeps Dec rate hike on agenda. Euro trades <$1.10. https://t.co/3tvmIjbBv3 pic.twitter.com/MEpU4ADLhJ

    Deutsche Bank posts €6bn Q3 loss.

    LATEST: Barclays 3rd-quarter adjusted pretax profit is £1.4 billion ($2.1 billion), down 13% https://t.co/CodSGQmEeQ pic.twitter.com/xNmRCIrgwm

    Oil Giant Shell Slumps To £4bn Quarterly Loss https://t.co/c7oH8bYvny pic.twitter.com/MmSaJXMYd0

    CITY AM: the 33% club #tomorrowspaperstoday pic.twitter.com/NZ6Svjjda8

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