Any speech by the Bank of England governor Mark Carney will be scoured for clues as to his latest views on UK interest rates. But Carney’s comments in a speech in Berlin offer little enlightenment on that subject, being more concerned with green financing. Katie Allen reports:
Bank of England governor Mark Carney has thrown his weight behind taking the fledgling market in green investments mainstream to help cut carbon emissions and boost global economic growth at the same time.
Carney used a speech in Berlin on Thursday to highlight green finance as an opportunity to boost financial stability while also tackling climate change.
He made no reference to the Bank’s current stance on interest rates in the UK, which were cut to a record low last month to shore up the post-referendum economy. But Carney did discuss the global picture of low interest rates and how more investment in green technologies and and projects to cut emissions could help raise interest rates.
“The Bank of England has long stressed that central bank policies are not the cause of low rates but responses to them. We are actors in a play written by others,” Carney said in his Arthur Burns memorial lecture in the German capital.
That was because the level at which interest rates must ultimately settle to ensure steady inflation – the “equilibrium” interest rate - was determined by fundamental factors driving savings and investment in the global economy, he said. Those factors included technology, demographics and inequality.
Reprising his own recent comments and those of other central bankers, Carney stressed that monetary policy alone could not address the world’s economic problems.
“Long-run prosperity was never in the gift of monetary policy makers. As the 10th anniversary of the start of the crisis approaches, a consensus is growing that escaping this low-growth low-inflation trap will require a rebalancing between monetary, fiscal and structural policies,” Carney said.
On that note, it’s time to close for the day. Thanks for all your comments, and we’ll be back tomorrow.
Over in Greece protests are back on the increase with seamen beginning a two-day strike and anarchists piling the pressure on ticket inspectors by taking over their department and calling for free transport. Helena Smith reports from Athens:
The heavy price inflicted on Greece as a result of its rescue by bailout was rammed home again today as seamen – in the first of a series of autumn strikes – walked off the job in protest over pension cuts. Ferries plying routes between islands and the mainland will be stuck in ports until Saturday in a 48-hour strike that will cause havoc at a time when the country continues to enjoy a bumper tourist season. The cuts, part of reforms demanded by international lenders, have been branded “totally illegal” by seamen who are likely to continue the industrial action in the months ahead.
The walk-out came as anarchists also turned up the heat on the leftist-led government, rowdily occupying the offices of public transport ticket inspectors at the transport ministry. The protestors, part of a group that calls itself Rouvikonas, distributed leaflets that declared: “workers and passengers together for free transport.”
In a statement posted on the anti-establishment Athens IndyMedia site the group’s members said they had carried out the sit in with the express purpose of getting inspectors to not only allow free travel but “allow the poor to get away with it.”
“We call on you to reject your role, reject this work, to allow the violators to get away with it. That simple,” it said, insisting that many Greeks could simply not afford the €1.40 cost of a public transport ticket. At least ten were subsequently detained.
Increasingly, inspectors have complained of attacks on homes and cars.
This summer, the neoclassical building that houses OASA, the organisation of urban transport of Athens, was ransacked by anarchists making similar demands. Public transport, like public hospitals, has been hard hit by budget cuts with almost a third of the capital’s total fleet of buses unable to be used for lack of tyres, batteries and other spare parts.
European markets close higher
Inspired by the US Federal Reserve keeping interest rates on hold, stock markets have surged ahead, although they did close slightly below their highest levels as a bit of profit taking set in. A jump in oil prices on hopes of a deal to support crude at next week’s producers’ meeting also helped sentiment. The final scores showed:
- The FTSE 100 finished up 76.63 points or 1.12% at 6911.40
- Germany’s Dax rose 2.28% to 10,674.18
- France’s Cac closed 2.27% higher at 4509.82
- Italy’s FTSE MIB climbed 1.76% to 16,637.69
- Spain’s Ibex ended up 2.01% at 8934.9
- In Greece, the Athens market added 1.78% to 572.15
On Wall Street, the Dow Jones Industrial Average is currently 114 points or 0.6% higher.
Shortly after European Central Bank president Mario Draghi said Europe had too many banks, prompting suggestions that “zombie banks” should be left to die, we get this.
Reuters is reporting that troubled Italian bank Monte dei Paschi di Siena might end up seeking state support. It said:
European regulators expect Italian bank Monte dei Paschi di Siena will have to turn to the government for support, three euro zone officials with knowledge of the matter said, although Rome would strongly resist such a move if bondholders suffered losses.
Less than two months after the Tuscan lender announced an emergency plan to raise 5 billion euros of fresh capital, having come last in a health check of 51 European banks, there is growing concern among European regulators that the cash bid will fall short.
While the bank is determined to see through the capital raising, if it were to disappoint, it would be left with a capital hole. Now euro zone authorities are considering whether state support would have to be tapped after what bankers have described as slack interest in the bank’s share offer.
“There is clearly an execution risk to the capital raising,” said one official with knowledge of the rescue attempt, adding that the bank’s value, about one ninth the size of the planned 5 billion euro cash call, would be a turn-off for investors.
That person said a “precautionary recapitalisation by the Italian state” could be used to make up any shortfall once attempts to raise fresh cash from investors had concluded in the coming months.
Monte dei Paschi declined to comment. The Italian treasury did not want to comment for this story. A spokesman for Prime Minister Matteo Renzi said he was not aware of any expectations among European regulators that Monte dei Paschi may turn to the state for help...
On Thursday, the Italian head of the European Banking Authority Andrea Enria told a newspaper, when asked about Monte dei Paschi, that, while he could not comment on individual banks, “if state aid could be part of the solution, let’s use it.”
Markets are holding on to their early gains. Jasper Lawler, market analyst at CMC Markets, said:
The underlying message from the Federal Reserve was received loud and clear across global markets; “We’re still not hiking interest rates so go ahead and take some risk.” The risk-taking sentiment was evident in a rise in equities and commodities and a drop in the US dollar.
Portugal's recovery is slowing - IMF
Bad news for Portugal. The International Monetary Fund reckons its recovery is slowing, it needs structural reforms and the quality of its banks’ assets is weak.
At the end of a review of the country’s economy, the IMF said:
While Portugal is on a post-crisis recovery path, its economy continues to suffer from meager growth, weak investment, and competitiveness challenges. Its banking sector holds too many nonperforming loans and public debt remains high.
On the state finances the IMF said:
With low growth and low investment but high sovereign debt, what Portugal needs at this point is a cumulative fiscal consolidation of 1 percent of GDP over two years. This would offset the fiscal loosening of 2015 and what the IMF staff projects for this year.
As for structural reforms, the IMF said:
The economy had favorable tailwinds for a while, with low interest rates, a weak euro, and low oil prices, but the effect of that has washed out fairly quickly.
Now some of the structural bottlenecks need to be removed to raise potential growth.
It said the country’s energy costs and unemployment level, especially among the young, were both too high:
Portugal has to rejig its labor market, which is currently characterized by a combination of onerous and rigid permanent contracts and flexible but precarious temporary contracts. The way to do so is to make permanent contracts more flexible while improving the benefits available for those on temporary contracts, so that the two kinds of contracts converge. The goal is to bridge the gap, ensuring that there is a fair labor market for all, which boosts incentives for employment creation.
Updated
Eurozone consumer confidence edges higher
Over to the eurozone, and consumer sentiment edged higher in September despite the continuing concerns over Brexit.
The European Commission said the initial estimate of its consumer confidence indicator came in at -8.2 points from -8.5 points in August, in line with expectations. In the wider European Union the figure was -6.4 points, up 1.3 points.
Updated
US home sales unexpectedly fall in August
Well, we knew there have been mixed signals from the US economy, hence the Federal Reserve’s reluctance to raise rates this month.
Now come some weaker than expected housing figures to emphasise the point.
Existing home sales fell by 0.9% to an annual rate of 5.33m units in August, according to the National Association of Realtors. Economists had been expecting a 1.1% rise to 5.45m units.
July’s figures was revised down marginally from 5.39m to 5.38m. NAR chief economist Lawrence Yun said:
Healthy labor markets in most the country should be creating a sustained demand for home purchases. However, there’s no question that after peaking in June, sales in a majority of the country have inched backwards because inventory isn’t picking up to tame price growth and replace what’s being quickly sold.
Hopes of a meaningful sales breakthrough as a result of this summer’s historically low mortgage rates failed to materialize because supply and affordability restrictions continue to keep too many would-be buyers on the sidelines.
Oil is also on the rise, helped by comments from the Russian energy minister ahead of next week’s meeting of producers.
There have been conflicting signals as to whether Opec and other producers would be able to agree measures to support the sliding crude price. But according to Reuters, Russia’s Alexander Novak said he hoped there would be constructive talks about a cap on output. He added that Russia was ready to co-ordinate its actions on the global oil market.
That was enough to help push Brent crude 1.8% higher to $47.70 a barrel, while West Texas Intermediate has climbed 2.2% to $46.37.
Wall Street opens sharply higher
In the wake of the Federal Reserve’s decision to leave US interest rates on hold - albeit with the suggestion they may rise in December - markets are in buoyant mood.
Taking its lead from Europe and Asia, Wall Street has made a strong start to the trading day. The Dow Jones Industrial Average is currently up 133 points or 0.7%, while Nasdaq touched an intra-day high at the open, up 0.5% to 5323. The S&P 500 opened 0.4% higher.
In the UK, the FTSE 100 is up 93 points or 1.3%, heading towards the high for the year, while Germany’s Dax is 2.2% better and France’s Cac has climbed 2.4%.
Draghi: Europe has too many banks
Essentially, Mario Draghi is arguing that Europe has too many banks -- and that this is the root cause of the sector’s problems.
But he concedes that his decision to cut interest rates to record lows is also a factor.
Draghi tells his audience in Frankfurt that:
Low interest rates tend to squeeze net interest margins owing to downward rigidity in banks’ deposit rates. But overbanking is also a factor in the current low level of bank profitability. Over-capacity in some national banking sectors, and the ensuing intensity of competition, exacerbates this squeeze on margins.
Such over-capacity also means the sector does not operate at the efficient frontier, which is one reason why cost-to-income ratios remain high in some countries.
Europe’s banks really are a mess; just take Italy’s bad debt crisis, or the anxiety over Deutsche Bank.
Draghi’s solution is that banks should “review their business models to bolster profitability.”
Other, more drastic, options are available...
If we are all "overbanked" why are we spending so much taxpayer money saving them?
— Nicola Duke (@NicTrades) September 22, 2016
Let the zombie banks die
Some quotes from ECB chief Mario Draghi are hitting the wires, as he opens the annual conference of the European Systemic Risk Board in Frankfurt.
And he’s warning that overcapacity in the European banking sector is dragging back profitability.
*DRAGHI: SOME BANKS WILL HAVE TO REVIEW THEIR BUSINESS MODELS
— lemasabachthani (@lemasabachthani) September 22, 2016
ECB'S DRAGHI SAYS OVERBANKING A FACTOR IN LOW LEVEL OF BANK PROFITABILITY
— *Walter Bloomberg (@DeItaOne) September 22, 2016
ECB'S DRAGHI SAYS MARGIN AND HAIRCUT REQUIREMENTS COULD IMPROVE FINANCIAL STABILITY
— *Walter Bloomberg (@DeItaOne) September 22, 2016
US jobless claims hits two-month low
Boom! The number of Americans filing new unemployment claims has hit its lowest level in two months.
Just 252,000 US citizens filed initial claims last week, an 8,000 drop on the previous week. That’s the lowest since mid-July.
It’s also the 81st month running that the initial claims number has come in below 300,000 - which traditionally signalled a strong labour market.
This confirms what Fed chair Janet Yellen said last night, about the US employment market recovering steadily.
And prompts the obvious question.... shouldn’t you have raised interest rates by now?
Shoudda hiked https://t.co/466dDuoP2q
— Lorcan Roche Kelly (@LorcanRK) September 22, 2016
Yellen’s argument, though, is that there’s no sign of the US economy overheating yet.
Updated
Kristin Forbes also flags up that we simply don’t know how Britain’s economy will respond to the EU referendum result.
But right now, she doesn’t see any sign of a tsunami on the horizon:
She says:
Will consumers continue to be as resilient to the clouds of uncertainty about their relationship with the EU as they are to the frequent clouds and light rain outside? Will businesses continue to hire and avoid reducing their workforces? Will wages and domestic costs continue their gradual increase towards levels consistent with the 2% inflation target? How much and for how long will inflation be pushed up by the increase in import prices arising from sterling’s depreciation?
And even if the UK manages modest growth and a restrained increase in domestic prices over the next few quarters, will there be any negative events originating abroad that present risks?
Which way these winds blow will determine the appropriate stance of monetary policy in the future. For now, however, the economy is experiencing some chop, but no tsunami. The adverse winds could quickly pick up – and merit a stronger policy response. But recently they have shifted to a more favourable direction.
Updated
BoE's Forbes: Brexit vote has been 'less stormy' than expected.
Oops-A-Daisy. The Bank of England has just released a speech being given by policymaker Kristin Forbes later today, after the embargo was broken (by the Wall Street Journal, I think)
In it, Forbes says that Britain has coped better with the Brexit vote than expected -- echoing a theme in this blog today.
But she also argues that the Bank should resist easing monetary policy again. (So we shouldn’t expect her to vote to cut interest rates again this year.....)
Here’s the key section:
Moreover, the initial effect on the UK economy of the referendum has been less stormy than many expected. Uncertainty in the run-up to the vote created less drag, meaning that the UK went into the summer with more underlying momentum in domestic demand in Q2 than previously believed. The survey data has been extremely volatile – volatility that makes capital flow volatility look mild – and may continue to ebb and flow based more on political than economic news. The commercial property market and housing market are weaker (although some of this softening preceded the vote).
There is some evidence that companies are delaying major investments – which could lead to weaker employment, wages, output, and productivity growth in the future. But these forces have been partially balanced by strong consumer spending. Net exports are also poised to pick up and provide some support to the economy.
Here’s the full 20-page speech:
#BOE #MPC's Forbes says "1 am not yet convinced additional monetary easing will be necessary to support economy" https://t.co/nrGHm9lWyV.
— Howard Archer (@HowardArcherUK) September 22, 2016
#BoE Forbes' speech is 10,000 words. By the time she gets to the interest rate stuff she'll actually be in the November #MPC meeting
— Jake Cordell (@JakeCordell) September 22, 2016
Updated
Here’s a great chart from Bloomberg’s Joe Weisenthal, underlining how shares, bonds and commodities have rallied this morning.
It also shows that every major currency has gained ground against the US dollar, while the cost of insuring government (using a credit default swap) has dropped.
Literally everything on Global Macro Monitor is green rn https://t.co/tC9zTwKfrq pic.twitter.com/TowoiYy22I
— Joe Weisenthal (@TheStalwart) September 22, 2016
It’s a funny rally, really.
Every share in the German DAX index, and the French CAC, have rallied this morning, sending both indices up by around 2%.
30/30 in the DAX green
— RANsquawk (@RANsquawk) September 22, 2016
40/40 in the CAC green
34/34 in the FTSE MIB green
18/19 in the SMI green
Happy days
Britain’s FTSE 100 is still lagging a little behind, but still up 1.2% (or 85 points). Ninety shares are up, with only 10 lagging.
Miners leading the way on FTSE 100 today pic.twitter.com/lyEmKQICFV
— Jesse Riseborough (@JP_Riseborough) September 22, 2016
And the pound and the euro have both strengthened against the US dollar -- usually that pushes share prices down (because it hurts exporters).
The other curious thing is that the Federal Reserve did actually downgrade its long-term for the US economy last night (which is why it expects to raise rates more gradually).
Fed lowers long-term US GDP growth outlook to a new low of 1.8%. HT @dkberman @SoberLook pic.twitter.com/cC49voRiDp
— Jamie McGeever (@ReutersJamie) September 22, 2016
Although Brexit-related damage appears limited so far, insurance group Lloyds of London is already considering opening an office in another part of the EU.
That would let the group shelter its insurance underwriting business from any turmoil if the UK leaves the European single markets.
Where might Lloyds go? Well, Dublin, Paris and Frankfurt are all on the shortlist.
Clearly, Lloyds isn’t hanging around until Theresa May triggers Article 50 before plotting its next move.
Inga Beale, Lloyd’s chief executive, says:
“We are now focusing our attention on having in place the plans that will ensure Lloyd’s continues trading across Europe.
We are making very robust plans. We could open a subsidiary in one of the remaining EU countries that will enable us to passport.”
UK manufacturing sector healthy despite Brexit vote
Britain’s manufacturing sector is growing strongly this month, according to the latest healthcheck from the CBI.
In another survey that defies the Brexit gloom, factory bosses reported stronger order growth than usual in September.
Output expectations for the next three months hit the highest level since June too, meaning manufacturers expect to boost their output in the run-up to Christmas.
It’s a relatively small survey - based on responses from 481 firms. But CBI chief economist Rain Newton-Smith is confident that the situation looks bright:
“It’s good to see that manufacturers are enjoying a lingering summer with output running at a strong pace and manufacturers’ order books remaining solid, particularly amongst the food, drink and motor vehicles sectors,”
“Our members tell us and our surveys show that the fall in sterling has boosted international competitiveness for many businesses, with export order books remaining well above average in September, despite weakening slightly,”
#UnitedKingdom CBI Industrial Trends Orders at -5 https://t.co/K7AzWgGX3X pic.twitter.com/sz3qsOeu7m
— Trading Economics (@tEconomics) September 22, 2016
More here:
Manufacturing output continues expanding at healthy pace
Updated
Court news:
3 former #Tesco execs have all pleaded not guilty to both counts of fraud and false accounting. Case will be heard at Southwark Crown Court
— Joanna Partridge (@JoannaPartridge) September 22, 2016
Back in the City, the FTSE 100 has popped over the 6900 point mark for the first time in over a fortnight.
The blue-chip index is up a healthy 75 points, or 1.1%, at 6910, with mining shares continuing to lead the charge. BHP Billiton and Glencore have both gained 4.5% now, thanks to the drop in the dollar (pushing up metals and coal prices).
Joshua Mahony, market analyst at IG, says traders expect US interest rates to be raised in December (as the Fed hinted last night). But they’re also pleased that the Fed expects fewer rate hikes in 2017 and 2018.
European stock markets are following their US and Asian counterparts higher, as investors react to the FOMCs decision to leave rates unchanged once again. Whilst the committee decided against raising rates, it has not given up aspirations of implementing a rate rise at least once in 2016. December has seemed the likeliest month for some time, with the Fed likely to want the US election in November out of the way before such an important shift is implemented.
The shift in the Fed’s dot plot expectations from 3 to 2 hikes in 2017 is most telling. The 2015 dot plot indicated expectations of 4 hikes this year, and the big shift in expectations shows the committee is likely to implement higher rates at a much slower rate than previously forecast.
New dots vs old dots #Fed pic.twitter.com/TMUZV9zhVu
— Danske Bank Research (@Danske_Research) September 21, 2016
Updated
ECB: Brexit and China are both worries
Not to be outdone, the European Central Bank has also warned that the Brexit vote is weighing down the UK economy.
In its new Economic Bulletin, the ECB cites the EU referendum and the Chinese rebalancing as key risks
They say:
Looking ahead, global growth is expected to recover gradually. Low interest rates, improving labour markets and growing confidence support the outlook for advanced economies, although the uncertainty generated by the referendum in the United Kingdom on EU membership will weigh on demand in that country.
As regards emerging market economies, economic activity in China is expected to slow, while the outlook for large commodity exporters remains subdued, despite some tentative signs of stabilisation. Risks to the outlook for global economic activity remain on the downside.
But yet... the ECB also acknowledges that the market panic after June 23 quickly receded with ‘most asset classes recovering their losses’.
And don’t forget that the Guardian’s new Brexit Dashboard shows that fears of a recession have not come to pass.....
Important point: Although the Bank of England fears ‘challenging times’ ahead, it isn’t actually forcing Britain’s banks to set aside more capital to cope.
Economist Rupert Seggins highlights the key section:
Financial Policy Committee says UK faces challenging period for financial stability. But it's happy that banks are resilient enough for now. pic.twitter.com/xd70ZGw8vF
— Rupert Seggins (@Rupert_Seggins) September 22, 2016
The Bank of England has also given itself a pat on the back, for helping to avoid financial mayhem after the EU referendum.
Its Financial Policy Committee say today:
The financial system has demonstrated resilience to spikes in uncertainty and risk aversion. Core financial markets functioned effectively despite initial sharp price moves and particularly high volumes of transactions relative to normal levels in some markets. Bank funding conditions remained broadly stable.
That reflected the consistent building of resilience in the financial system over recent years, extensive contingency planning undertaken by the Bank of England and financial institutions in the run up to the referendum, and the co-ordinated actions taken by the Bank after the referendum.
Here’s today’s statement: Financial Policy Committee statement from its meeting, 20 September 2016
Britain faces 'challenging period' after Brexit vote
NEWSFLASH: The Bank of England has warned that Britain is facing a “challenging period” for financial stability following June’s EU referendum.
Even though the Brexit vote has not caused an immediate economic crisis, the Bank’s Financial Policy Committee is warning of troubling times ahead.
In the minutes of this week’s meeting, just released, the FPC says:
“Although financial stability has been maintained in the United Kingdom through a period of volatility ... the United Kingdom faces a challenging period of uncertainty and adjustment.”
And the FPC is also insisting that it won’t relax the rules on banks, to help them cope with the Brexit vote aftermath.
From the Bank of England, Jill Treanor reports:
The UK’s withdrawal from the European Union will not be used as a way to reduce regulation on the banking sector, policy makers from the Bank of England said on Thursday as they warned that Brexit poses a challenging period of uncertainty for financial stability.
The Bank, providing a quarterly update on the health of the financial system, also said that the closure of the help to buy scheme - which runs its three year course at the end of the year - will not lead to a drying up of mortgage lending.
Its Financial Policy Committee, chaired by the Bank’s governor Mark Carney, focused on the risks posed by Brexit and also the “high degree of political and policy uncertainty in many advanced economies”.
The record of the FPC meeting on 20 September shows the members regard the outlook for financial stability as challenging.
There is a risk borrowing costs could rise and that households will not make able to debt repayments. Commercial property prices have fallen and transactions at their lowest level since 2009, the FPC said, citing the heightened inverting about the economic outlook post-Brexit.
BoE says help to buy can be closed at year end without causing lending to dry up
— Jill Treanor (@jilltreanor) September 22, 2016
Updated
European markets hit two-week high
European stock markets have hit their highest levels in two weeks, as investors regain their nerve.
In London, the FTSE 100 has jumped by 36 points, or 0.5%, to 6871 points -- its highest level since 8 September.
Mining stocks are leading the charge, thanks to the weaker dollar – which has made commodities more valuable.
The French CAC and German DAX have both gained around 1%.
Pound gets a lift
Sterling is getting a lift this morning, and has pushing away from the crucial $1.30 mark.
The pound has gained half a cent against the US dollar to $1.3079, as the greenback loses value against a range of currencies.
Traders are selling the dollar after the Fed cut its forecasts for interest rate rises over the next two years.
FXTM Chief Market Strategist Hussein Sayed expects the Fed to maintain rates at 0.25%-0.5% until December.
“We trust the economy, yet not enough to tighten monetary policy” this was the message sent by Chair Janet Yellen to markets on Wednesday to explain the motives for keeping rates on hold in September.
Although the monetary policy decision was viewed as dovish which sent equities higher across the board and the dollar lower, the Federal Reserve has never been seen as divided so far this year.
Three out of the ten voting members dissented against the decision, calling for an immediate rate hike, this made the call for a December rate increase much stronger. Although Yellen confirmed that a November meeting is a live one, her body language didn’t really reflect high confidence and neither markets did buy it with only 12% priced in for a move in November.”
The agenda: Markets cheer Fed rate hold
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
World stock markets are enjoying a little rally today, after the US Federal Reserve left interest rates on hold -- but signalled that a hike is really quite close. Honest.
As we covered last night, Fed chair Janet Yellen painted a picture of a US economy that continues to recover, with solid job creation and little sign of inflationary pressures. But while three policymakers rebelled and voted to hike, the majority were happy to leave rates unchanged.
Yellen made some encouraging noises about the US economy, saying she was “generally pleased with how the US economy is doing.”
But with no signs of overheating, and more people rejoining the labour market, the Fed decided no to risk a recession by pushing rates up.
As Yellen put it
“The economy has a little more room to run than might have previously been thought. That is good news.”
Markets are now betting that the Fed won’t raise rates until December (although November can’t be ruled out).
So that ‘Hawkish hold’ has pleased investors, sending Asian markets up overnight. European stocks have opened higher too, after seeing Wall Street gain 1% overnight.
Connor Campbell of SpreadEx explains:
Despite there being enough to suggest a rate hike in November or, even more likely, December, the markets were buoyed by the simple fact that the Federal Reserve opted for inaction yesterday evening.
Wall Street closes higher after the Fed leaves interest rates on hold https://t.co/2B9yqXgJJI pic.twitter.com/6ZnIfjLKW1
— Graeme Wearden (@graemewearden) September 21, 2016
Also coming up today...
The Bank of England’s Financial Policy Committee is publishing its quarterly assessment of the UK, at 9.30am. This is the first one since the EU referendum vote.
At 11am, the CBI publishes its latest industrial trends report; again, we’ll be looking for signs of a Brexit effect.
Plus, the latest US weekly jobs claims (at 1.30pm BST) and home sales (3pm).
And two central bankers are speaking later...
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2pm: ECB chief Mario Draghi addresses the European Systemic Risk Boards’s annual conference
-
6.10pm: BoE governor Mark Carney gives the Arthur Burns memorial lecture in Berlin
And in the City, insurance group Lloyds of London and pub chain Mitchells & Butlers are reporting results.
Apologies for the late start. My commute was disrupted by an exploding crane.
M40 closed overnight as crane 'explodes'https://t.co/mKIcheNcVA pic.twitter.com/90z6IyXvCE
— ITV News Meridian (@itvmeridian) September 22, 2016
Updated
