Pound recovers some ground after hitting eight week low
Worries about Brexit, as well as a second Scottish referendum, sent the pound to an eight week low of $1.2106 against the dollar. The US currency was also boosted by the prospect of a rate rise from the Federal Reserve on Wednesday.
But sterling has since recovered from its lows, although it is still down 0.47% at $1.2160. Against the euro, the pound has fallen 0.29% to €1.1435 having earlier been as low as €1.1382. Joshua Mahony, market analyst at IG, said:
Despite the fact that the pound is hugely undervalued by historical standards, the uncertainty surrounding the future of the UK means we find little to be bullish about for the pound as we face confrontational negotiations. One could be excused for feeling we have had quite enough referendums over the past year, yet with Scotland seeking a second vote, there are plenty of reasons to question what the UK will look like in just over two years’ time.
On that note, it is time to close for the evening. Thanks for all your comments, and we’ll be back tomorrow.
European markets edge lower
A fall in the oil price, uncertainty over Brexit and a second Scottish referendum along with some caution ahead of an expected US interest rate rise on Wednesday and the Dutch election left equity markets in Europe lower on the day. Commodity companies came under pressure on the back of the drop in crude prices, while banks were also unwanted. Royal Bank of Scotland and Lloyds Banking Group were particularly weak on the renewed concerns about Scottish independence. The French market dropped back on the latest twist in the presidential campaign while Italy and Spain also struggled. The final scores showed:
- The FTSE 100 finished down 0.13% or 9.23 points at 7357.85
- Germany’s Dax dipped 0.01% to 11,988.79
- France’s Cac closed 0.51% lower at 4974.26
- Italy’s FTSE MIB fell 0.86% to 19,537.40
- Spain’s Ibex ended down 0.91% at 9905.1
- In Greece, the Athens market dropped 1.89% to 638.92
On Wall Street, the Dow Jones Industrial Average is currently down 41 points or 0.2%.
Updated
Scottish independence would be negative for UK rating - Fitch
A second Scottish referendum which lead to a vote for independence would be “a negative credit shock” for the UK economy and public finances, and could lead to a rating downgrade, according to a new report by Fitch.
The agency, which has a AA rating with a negative outlook on the UK, said:
We believe Scottish independence would have adverse effects on the UK public finances and economy and so would be credit negative for the UK, as we have previously stated. Key uncertainties include the impact on the future trade relationship between the two countries, the financial sector and Scotland’s currency arrangements.
Scottish independence would lead to an increase in the ratio of UK government debt to GDP. The UK government stated ahead of the September 2014 referendum that it would in all circumstances honour its issued stock of UK debt if Scotland voted for independence. This would lead to a one-off increase of around 8% of GDP in the UK gross public debt ratio as Scotland dropped out of UK GDP, on the basis of latest estimates of UK and Scottish GDP.
At the same time, we would assume that Scotland would be responsible for a proportionate share of existing public debt in the form of a long-term bilateral loan, giving the UK an off-setting claim on Scotland. This UK asset would be taken into account in our judgement of the overall position and sustainability of the UK’s public finances.
We recognise that a wide range of outcomes from Brexit is possible and we will continue to assess the UK sovereign rating as developments unfold. The Negative Outlook on the UK’s ‘AA’ sovereign rating reflects the heightened uncertainty following the Brexit vote and the long-term challenge for the UK to reduce public debt.
Updated
Ahead of this week’s meeting of G20 finance ministers in Baden-Baden, the International Monetary Fund has called on the major economies to preserve the benefits of trade and avoid protectionism.
With US president Trump showing protectionist tendencies and a propensity to rip up trade agreements, the IMF called for countries with trade and current account surpluses to work with countries with deficits to reduce these imbalances.
IMF managing director Christine Lagarde said the global economy was improving but “it would be a mistake to assume that it will automatically return to rude health.” She added:
In fact, there has rarely been a period when policy choices have mattered more for what comes next, especially since there are still considerable risks to the outlook...
Above all, we should collectively avoid self-inflicted injuries. This requires steering clear of policies that would seriously undermine trade, migration, capital flows, and the sharing of technologies across borders. Such measures would hurt the productivity, incomes, and living standards of all citizens.
European markets have edged back from their lows and are now virtually unchanged, with the exception of France.
The FTSE 100 is down just 0.08%, while Germany’s Dax has dipped 0.02%.
But France’s Cac has fallen 0.49% as the rightwing French presidential candidate François Fillon was been placed under formal investigation for misuse of public funds. See our full report here:
Updated
Worries about a new Scottish referendum appear to be at least part of the reason for a slump in Royal Bank of Scotland and Lloyds Banking Group.
RBS, down around 3% at the moment, and Lloyds, nearly 2% lower, both said they would relocate to England if the Scots voted for independence at the last referendum in 2014. Shore Capital analyst Gary Greenwood told Reuters:
[They] both have sizeable Scottish operations, so it depends what...ultimately happens there and whether [Scotland] actually exits the UK and stays part of Europe.
Back with oil, and the price is continuing to slide. Brent crude is now down 1.7% at $50.47 while West Texas Intermediate has fallen 2% to $47.40 after Saudi Arabia pumped more oil than expected in February. Fawad Razaqzada, market analyst at Forex.com, said:
After a significant drop last week, oil prices tried to stabilise themselves at the start of this week as both contracts ended Monday’s session slightly higher. Among other things, short-covering was the reason behind the slightly firmer oil prices then. Brent and WTI started Tuesday’s session on the front foot.
However, they turned lower again by mid-morning before going into a mini free fall by midday. The latest drop was apparently in response to the OPEC’s monthly oil report. While the OPEC acknowledged that compliance with the supply adjustments by OPEC and some non-OPEC producers supported prices and it raised its global oil demand forecast for 2017, it also raised its estimates for oil production from outside of the cartel. In the US, shale producers have ramped up drilling activity and increased oil output in response to higher prices. This has put serious question marks over the OPEC’s attempts to balance the oil market.
The bad weather in New York seems unlikely to hold back the Federal Reserve from raising US interest rates at the end of its two day meeting. Defying the elements, the Fed’s latest gathering has apparently begun:
FOMC MEETING STARTED AS SCHEDULED AT 10 A.M., FED SAYS
— zerohedge (@zerohedge) March 14, 2017
And most analysts do indeed now expect an increase in borrowing costs following the recent strong economic data. Jordan Hiscott, chief trader at ayondo markets, said:
It’s almost certain we will see an increase in interest rates from the Federal Reserve tomorrow. The question now is not if they will increase, but by how much. The US economy added 235,000 jobs in February from non-farm payroll data, confirming a positive outlook for the US economy. Additionally, Wall Street is up 5% since the beginning of 2017 which is an impressive performance by any measure.
There is much discussion about whether this uptrend can continue with the possibility of the highest interest rates since 2007...We have a generation of investors who have become accustomed to investments trends with the back drop of an extremely accommodative monetary policy from the FED. Going forward, with possible three rate increases for 2017 alone, I predict we will see trepidation for the equity markets in general.
Eric Lascelles, chief economist at RBC Global Asset Management, agreed a rate rise was pretty much set in stone:
Markets have fully priced the outcome, Fed speakers have shouted it from the rooftops and the aforementioned job figures confirm the continuation of American economic vibrancy.
Because this is a “major” Fed meeting, with press conference and updated projections, there will be plenty of opportunities for the Fed to signal if it still believes three total tightening efforts are still appropriate for 2017, with another three scheduled for 2018. There is a risk that they upgrade this plan given economic strength. But our suspicion is that they won’t, as the market already has a lot to digest given the sudden uptick in the pace of tightening from once per year to – for the moment – once per quarter.
The Fed’s economic growth projections should inch a little higher, though the extreme uncertainty surrounding U.S. fiscal policy suggests that any such movement should be tentative.
A snowy day on Wall Street
The US stock market has opened cautiously, with the Dow Jones industrial average and the S&P 500 index both dropping by around 0.2%.
Energy stocks are down, following today’s drop in the oil price. Financial stocks are also in the red, while consumer-focused shares are up.
Traders face a struggle to get to their desks today, due to the snow that has hit New York, and beyond.
Chris Beauchamp of IG predicts a quiet day on Wall Street....
US markets could well feel the effect of the blizzard that has descended on New York in the past few hours. We could be in for a volume-light session, compounding the probability of another snooze-fest for US markets ahead of tomorrow’s Fed decision.
New York's “Fearless Girl” statue stands her ground against the Wall Street bull, even in the snow https://t.co/66S1V9KFJ6 pic.twitter.com/bSMjVJ78kN
— CNN (@CNN) March 14, 2017
Updated
Our economics editor, Larry Elliott, says Charlotte Hogg did the right thing by resigning -- and believes the Bank of England has lessons to learn over the affair.
Hogg has done the right thing in resigning quickly. Better that than a long, drawn-out process that would eventually have ended with the same result. She was damaged goods.
This incident shows that the system of oversight by the Treasury committee has worked. The grilling of Anthony Habgood, chairman of the Bank of England court, was forensic and showed MPs at their best.
As the report noted, Hogg’s departure raises wider concerns. The fact that Habgood had no inkling of Hogg’s failure to disclose her brother’s job suggests the Bank’s governance is not all it should have been.
Perhaps the most troubling aspect of the whole affair is that Habgood seemed to assume that because Hogg was an all-round good egg from a distinguished family he didn’t need to ask too many questions.
While the pound dips, the US dollar is strengthening as investors anticipate the first US interest rate rise of 2017 tomorrow afternoon.
Even the snow hitting the east cost of America isn’t likely to prevent the US Federal Reserve hiking borrowing costs, in response to the latest solid economic data.
Chris Saint, senior analyst at Hargreaves Lansdown, says:
“The pound’s initial resilience to Nicola Sturgeon’s confirmation that she will push for a second vote on Scottish independence dwindled in early morning trade today, with sterling slipping to 8-week lows against the US dollar near the $1.21 mark.
News that any new referendum won’t happen until late next year at the earliest may have softened the initial impact, but the UK’s looming political challenges are still driving sentiment with reports suggesting Theresa May will trigger Article 50 in the final week of March after getting the green light to initiate formal Brexit proceedings from Parliament last night. Meanwhile, expectations that the Fed will lift US interest rates tomorrow and prime markets for more to follow later in the year are also lending support to the dollar.”
Oil hits new 2017 low
The oil price has taken another slide today, after Saudi Arabia revealed that it boosted production levels last month.
New figures supplied to the Opec cartel show that Saudi pumped more than 10 million barrels per day in February. That means it has reversed some of the curbs it promised last November, when Opec agreed a historic deal to cut production.
#BREAKING: #SaudiArabia tells #OPEC it lifted #oil production in February back above the key 10 million barrels a day level #OOTT pic.twitter.com/ESdMSrBsEO
— Javier Blas (@JavierBlas2) March 14, 2017
The news has knocked 1% off the cost of a barrel of Brent crude oil, which has dropped to $50.85 per barrel for the first time in four months.
Updated
Here’s Jill Treanor’s story about Charlotte Hogg’s resignation:
Charlotte Hogg’s departure is a big blow to efforts to get more women into top jobs at the Bank of England.
Bloomberg’s Jill Ward points out that men have dominated the monetary policy committee since it was created almost 20 years ago:
Hogg's departure means the @bankofengland will lose 3 women from the MPC in the space of 4 months. There have only been 7 in its history pic.twitter.com/hdhqEwZgig
— Jill Ward (@jillianfward) March 14, 2017
The previous deputy governor, Minouche Shafik, is moving to run the London School of Economics, while professor Kristen Forbes is leaving the MPC in June when her first term expires.
Updated
Having helped to prompt the end of Charlotte Hogg’s career at the Bank of England, Andrew Tyrie MP has now welcomed her resignation.
In a statement, the chair of the Treasury committee says:
“This is a regrettable business with no winners. Ms Hogg has acted in the best interest of the institution for which she has been working. This is welcome.
“It is also welcome that the Bank has responded immediately by announcing an internal review. The Bank’s governance is already in much better shape than it was a few years ago. It is something to which the Governor and Court has been committed for some time. But there is clearly more to do.
“The Treasury Committee will be examining the conclusions of this work in due course.”
As well as criticising Hogg’s competence, today’s report from the Treasury committee didn’t cover the rest of the BoE in any glory.
This exchange with BoE court chairman Anthony Habgood, during last week’s session, was particularly excruciating:
Updated
The financial markets have known for nine months that Britain was going to trigger the process of leaving the EU. But it seems that Brexit may not be ‘priced in’.
George Saravelos, currency strategist at Deutsche Bank, believes that sterling could fall much further, and close to parity with the US dollar:
“I think the market is slowly starting to realise that Brexit is anything but priced in.”
“How can you price in an event of incredible complexity that has never happened before? We remain very bearish on the pound — our forecast is for a move close to $1.05.”
Speaking of Brexit, one of the major groups in the European Parliament has backed a petition calling for UK citizens to be allowed to retain their EU citizenship rights after the break-up.
No better backer for our petition for EU Citizenship rights than their promoter, @GuyVerhofstadt! Sign up here https://t.co/gL2TN4tmOz pic.twitter.com/FXooW8Neu8
— Jo Maugham QC (@JolyonMaugham) March 14, 2017
ALDE is the Alliance of Liberals and Democrats, led by former Belgian PM Guy Verhofstadt. He’s the European Parliament’s chief Brexit negotiator, and has warned that any Brexit deal could be voted down unless EU citizens in Britain get the right to remain.
Updated
Back in the markets, the pound is still bobbing around an eight-week low as traders worry about Brexit, and a possible second vote on Scottish independence.
Sterling is down almost one cent right now, at $1.2127. Against the euro, it’s lost over half a eurocent at €1.141.
Theresa May is due to update parliament about last week’s European Council summit later today; a chance for MPs to express their views and concerns about Brexit.
So far today, former UKIP leader Nigel Farage has voiced his disappointment that article 50 isn’t being triggered today, while the UK government has warned that an independent Scotland would have to join the EU.
Our Politics Live blog has all the details:
Nicola Sturgeon’s dramatic call for a new vote on Scottish independence is a serious complication to the Brexit story, says Mihir Kapadia, CEO of Sun Global Investments.
The complex issue of Brexit has been further affected by the additional twist of the call for a second Scottish Independence Referendum. The previous Scottish Referendum was supposed to have settled the issue for a generation but the SNP now claims that Brexit decision has changed this, as 62% of Scots voted to remain in the EU. This complicates the task facing the UK government as they have won parliamentary authority to trigger Article 50, to initiate the process for pulling out of the EU.
Further to last night’s developments, the pound has now slumped into a two month low, at $1.2125. The lower pound is proving to be good for UK exports but inflation which is already showing signs of a significant revival could be boosted further.”
Gin, bike helmets and soya milk added to inflation basket
On a lighter note, gin and bicycle helmets are being included in the basket of goods used to track UK inflation.
Both items were dropped over a decade ago, but have been brought back to reflect changing consumer habits.
The Office for National Statistics says that:
Gin consumption [is] on the rise, partly thanks to the significant growth in the number of small gin producers.
Bicycle helmets are also returning to the basket after a 12-year absence, following the significant increase in the popularity of cycling due to sporting successes by British cyclists in the Olympics and the Tour De France.
The ONS has also added “no dairy milk” items, such as soya, rice and oat milk; these “Free From” items have all risen in popularity in recent years.
Basic mobile phone handsets have been dropped from the basket.
In another tweak, the stats body has stopped tracking the price of child’s swings, and replaced them with child’s scooters. It’s another attempt to better measure what parents spend money on:
The number of price quotes collected for the swing has been falling reflecting its availability in shops particularly in the winter months and the change is an attempt to improve coverage of outdoor play equipment particularly in those winter months.
More details here: Consumer price inflation basket of goods and services: 2017
Charlotte Hogg's resignation letter
Oh wow. Charlotte Hogg actually offered to resign last week, when she also admitted to MPs that she’s failed to report her brother’s role at Barclays.
The Bank has just published Hogg’s resignation letter, in which she insists she made an “honest mistake” by not fully complying with the BoE’s code of conduct (which she helped to draw up).
She also reiterates that she never shared any information with her brother , but recognises that saying sorry isn’t enough.
Here’s the letter, dated yesterday (suggesting she resigned last night, after MPs met to discuss the issue before drawing up this morning’s report).
Labour MP Angela Eagle says Hogg has made the right decision:
She had no option after ignoring banks own disclosure rules: Charlotte Hogg resigns from new Bank of England role https://t.co/38KJ2r4QYF
— Angela Eagle (@angelaeagle) March 14, 2017
Here’s some instant reaction to Charlotte Hogg’s resignation, from the BBC’s business editor Kamal Ahmed:
Charlotte Hogg, talked of as a possible first female governor of the Bank, quits @bankofengland after critical report by TSC
— Kamal Ahmed (@bbckamal) March 14, 2017
And here’s our political editor Heather Stewart:
Blimey: this is very embarrassing for Bank of England boss Mark Carney: Hogg is his handpicked lieutenant. https://t.co/0KavsUQsjL
— Heather Stewart (@GuardianHeather) March 14, 2017
Charlotte Hogg has resigned
NEWSFLASH: Charlotte Hogg has resigned from the Bank of England, following the scathing report from the Treasury committee.
In a statement, the BoE says it accepted her resignation with deep regret.
Anthony Habgood, Chair of Court, says:
“In her time at the Bank, Charlotte Hogg has made a huge contribution in areas such as professionalising and modernising the management and operations of the Bank, leading the implementation of the strategic plan, championing diversity and driving forward the Bank’s understanding of key issues such as Fintech and Operational Risk. No one who knows her doubts her track record or her integrity. While Charlotte’s decision by any measure exceeds the standard that would be expected in the private sector or would be required under statute, it is understandable in the circumstances and she has taken it with the best interests of the Bank at heart.”
Mark Carney, Governor of the Bank, says he also “deeply regrets” her decision:
“While I fully respect her decision taken in accordance with her view of what was the best for this institution, I deeply regret that Charlotte Hogg has chosen to resign from the Bank of England.”
“Since Charlotte joined the Bank almost four years ago, she has transformed its management and operations. Drawing on her extensive private sector experience and her unrelenting commitment to excellence, she has led a broad range of initiatives to build a more open and inclusive institution, to overhaul our IT systems, and to change fundamentally how the Bank develops, manages and rewards its dedicated public servants.
Along the way, she has inspired countless colleagues at the Bank and attracted a new cohort of professionals to it. The combination of Charlotte’s unique skills and drive were exceptionally well suited to lead similar transformations of our markets and banking responsibilities, particularly given the growing importance of FinTech, operational excellence and the management of cyber risk.”
Charlotte Hogg is under serious pressure now, following the Treasury Committee’s ruling that she lacks the competence to be deputy governor.
Wes Streeting, another member of the committee, says she should step down.
Treasury Cttee unanimous in view that Charlotte Hogg's "professional competence falls short
— Wes Streeting MP (@wesstreeting) March 14, 2017
of the very high standards required" for BoE D-G
Charlotte Hogg should now withdraw from her appointment as Deputy Governor.
— Wes Streeting MP (@wesstreeting) March 14, 2017
MPs: Charlotte Hogg lacks competence to be Bank of England deputy governor
Newsflash: The Treasury Committee has just declared that Charlotte Hogg, the new deputy governor of the Bank of England, has fallen short of the ‘highest standards’ required for the role.
In a new report, MPs have criticised Hogg for not reporting that her brother Quintin works for Barclays, when she joined the Bank in 2013 as chief operating officer.
Hogg only revealed this breach of the code of conduct last week, having initially told the committee that she had reported all possible conflicts of interest.
And the Treasury Committee has now concluded that this means Hogg is not up to the job of deputy governor – a very serious rebuke.
Here’s the key conclusion from its report:
In its Report on 2 March, the Committee concluded that Ms Hogg had the professional competence necessary to fulfil the role of Deputy Governor for Markets and Banking. Had it known then what has since been disclosed, it would have taken a different view.
Professional competence for this role includes an ability to follow the rules, particularly those that one has had a hand in writing and enforcing; an understanding of why those rules are important; and an awareness of the risks arising from actual and potential conflicts of interest, and the perceptions of conflict. Ms Hogg’s oral and written evidence has given the Committee grounds for concern on all three counts.
The Committee considers that her professional competence falls short of the very high standards required to fulfil the additional responsibilities of Deputy Governor for Markets and Banking.
John Mann MP, a member of the committee, says this is its strongest ever ruling.
Charlotte Hogg: strongest opinion ever made by a Treasury Committee: knowing what we know now, we would not have approved her. Unanimous.
— John Mann (@JohnMannMP) March 14, 2017
Updated
The British Chambers of Commerce has added to the jitters in the City this morning.
Although the BCC has raised its growth forecast for 2017, it also cut its forecasts for 2018 and predicted that consumer spending will falter as inflation rises.
BCC's Head of Economics @Suren_Thiru comments on the #BCCForecast published today https://t.co/ljDQKulmXR pic.twitter.com/5DE3HwvFCD
— BCC (@britishchambers) March 14, 2017
More here:
Foreign exchange traders are starting to get “spooked” by the prospect of two years of Brexit negotiations, warns Kathleen Brooks of City Index.
Parliament may have passed the Brexit Bill, but a source at the PM’s office said that Article 50 won’t be triggered today, instead we will have to wait until the end of March, when Dutch elections and the EU’s 60th birthday celebrations are out of the way.
The pound has taken a sharp drop in early Tuesday trading, in fairness liquidity has been thin, however, it suggests that the reality of the UK’s divorce from Europe and two years of horse-trading to agree trade deals is beginning to spook the FX market.
Naeem Aslam of Think Markets says “sterling has dropped like a rock” this morning, as traders wake up to the reality that the UK will trigger article 50 this month.
Theresa May is heading towards hard Brexit negotiations with an attitude that she has nothing to lose.
The biggest fear on the street is what will her EU partners will say and how they are going to treat this matter given that Brexit is about to become a reality.
FTSE 250 hits another record high
Britain’s FTSE 250 index, which contains many medium-sized UK companies, hit a fresh all-time high in early trading.
A cheaper pound boosts the value of UK companies’ overseas earnings, and also makes them more vulnerable to takeover bids from foreign rivals.
Scottish independence vote also weighs on the pound
Financial experts believe that Scotland’s push for a new referendum on independence is also hitting the pound today.
Theresa May tried to slap down the idea yesterday, claiming the Scottish Government was playing politics by requesting a second vote.
But the City is concerned that the United Kingdom’s future is also in doubt, as the PM starts the devilishly complicated task of exiting the EU.
Investors must consider whether the vote will happen, whether it will be before or after Brexit, and what the result might be.
Carsten Nickel of Teneo Intelligence says:
The many questions surrounding the latest Scottish push for independence will further add to the already elevated levels of uncertainty. The coming days will likely see both pro- and anti-independence activists starting to work with strong assumptions about the consequences of a potential Scottish break-away, painting their positive or negative views as “inevitable”.
Here’s Adam Cole of Royal Bank of Canada:
The government’s stance on calls for a second Scottish referendum is still evolving, but reports in the media overnight (The Times) suggest PM May is “preparing to reject” the call.
Mike van Dulken of Accendo Markets agrees that the prospect of a second Scottish independence vote is pushing sterling down this morning.
GBP back under pressure from Brexit (Art 50, Scot indyref2), expectations of more dovish BoE, still hawkish Fed. A lIttle boost for #ftse100 pic.twitter.com/UWAjmYMcS2
— Mike van Dulken (@Accendo_Mike) March 14, 2017
Updated
Pound hits eight-week low as Brexit looms
The prospect of Britain triggering its exit from the European Union this month has hit sterling this morning.
The pound has shed almost a cent against the US dollar in early trading, hitting $1.2125.
That’s sterling’s lowest point since mid-January, when Theresa May declared that Britain would leave the single market. It’s around 19% weaker than before last June’s Brexit vote.
The pound is also down around 0.6% against the euro, at €1.140.
Traders appear to be responding to last night’s developments in Westminster, where MPs gave their approval to Theresa May’s Brexit bill.
That gives the prime minister the power to formally trigger article 50 of the Lisbon Treaty, and ends the tussle between the House of Commons and the House of Lords.
The Lords had pushed, in vain, for the government to grant residency rights to EU nationals and guarantee MPs a vote on the final Brexit deal.
Labour’s leader in the Lords, Lady Smith, told the Guardian that the Upper House realised there was no hope of changing MPs minds over this issue.
She said:
“If I thought there was a foot in the door or a glimmer of hope that we could change this bill, I would fight it tooth and nail, but it doesn’t seem to be the case.
Brexit won’t be formally triggered today, but the government is adamant it will happen by the end of the month.
The agenda: Fed starts meeting, UK inflation basket updated
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
America’s central bank begins its two-day policy meeting today, where policymakers are widely expected to raise borrowing costs for the first time this year.
The Federal Reserve meeting is taking place in a chilly New York, as a blizzard strikes the North East of America.
That may prevent some Wall Street traders getting to work, but it shouldn’t prevent the Fed taking its decisions or holding a press conference tomorrow night. Investors will be keen to see how hawkish Fed chair Janet Yellen sounds, for clues on how many interest rates may come this year.
In the UK, we’re about to find out which products have been added to the basket of goods used to calculate inflation, and which have been turfed out. The ONS will reveal all at 9.30am GMT.
In Europe, the Dutch election race is reaching a climax. Voters head to the polls tomorrow, after watching prime minister Mark Rutte and far-right populist Geert Wilders clash in a TV debate last night.
The escalating row between the Netherlands and Turkey, following a ban on Turkish ministers campaigning in the country, has added an extra level of tension and drama and put migration firmly in the spotlight (just where Wilders wants it).
And in the City, online supermarket chain Ocado and copper producer Antofagasta are reporting results.
We’ll be tracking all the main events through the day....
