Rolling#Davos2018@David_Cameron#wef18about:pic.twitter.com/PXzpq9fiQp 11.36am GMTBack in Davos,the World Economic Forum acquire launched a recent “Global Centre for Cybersecurity”
Based in Geneva, it’s meant to help build a secure and secure global cyberspace, and protect businesses and governments from online attacks. 11.28am GMTThe pound has peaked at $1.4118 against the dollar,for the moment at least.
But it is still up 0.7% so far nowadays at $1.4097. Connor Campbell, financial analyst at Spreadex, and said:A green-gilled greenback and a half decent UK jobs report made for a very strong Wednesday for the pound.
Kicking the currency while it was down,US Treasury Secretary Steven Mnuchin claimed at a press conference in Davos that a weaker dollar is good for the country’s economy ‘as it relates to trade and opportunities’. This turned an already bad morning worse for the greenback, with the currency falling 0.4% against the euro, or where it’s sunk to a fresh 3 and a bit year nadir ((n.) the lowest point of something),and 0.7% against both the yen and the pound. 11.21am GMTBack with the UK data. From Simon French, chief economist at Panmure Gordon:The split personality of the UK labour market in two charts. Employment (31m) and employment rate (75.3%) retain hitting recent highs. Private sector wages falling steadily for a decade - now £100/week below 2006 levels. pic.twitter.com/imAREdwOX1 11.15am GMTEarlier, or as well as the preliminary PMIs for France and Germany,there were also estimates for the eurozone as a whole.
This showed the same pattern, with manufacturing slipping back in January and services rising. The eurozone manufacturing PMI dipped from 60.6 to 59.8 while services climbed from 56.6 to 57.6. The composite index rose from 58.1 to 58.6. Unicredit Bank economist Edoardo Campanella said:[br]The eurozone starts 2018 with a bang, and continuing to churn out solid economic figures. January’s Composite PMI hit a near 12-year tall,rising to 58.6 from 58.1 and pointing to annualized GDP growth of nearly 4%. Economic activity further accelerated in the services sector to the fastest pace since August 2007, while it slowed down in the manufacturing industry – after having recorded an all-time tall last December. 11.07am GMTThe UK jobs data nowadays shows the difficulties employers are having filling vacancies, or particularly those companies which exercise a large number of EU migrant workers,says theNational Institute of Economic and Social Research. Associate research director Dr Heather Rolfe said:UK labour market statistics released nowadays show employment in the 3 months up to November 2017 is at a record tall, driven by an increase in full time employment. However, and vacancies are also at an all-time tall,revealing difficulties for employers in some economic sectors, including those with a tall proportion of migrant employees facing the challenges of Brexit.
This reflects what employers who acquire engaged in our Brexit research say they are experiencing on the ground – that they are losing some EU migrants and finding it more difficult to recruit both British and EU workers. The sectors with tall vacancy rates include those with relatively tall proportions of migrant employees, or including from the EU. Accommodation and food services,where one in six workers are EU migrants is one such sector. The challenges of attracting and retaining workers are likely to increase with prolonged uncertainty approximately the terms of the UK’s departure from the EU. 10.49am GMTNeil Wilson, senior market analyst at ETX Capital, or said:Sterling breached $1.41 to record another post-Brexit tall as a renewed bout of dollar softness and some better-than-expected employment numbers fuelled bids. Strong employment numbers were just the nudge the pound needed to get over $1.41,where it is just approximately holding at present.
After showing signs of a slowdown, there was a strong bounce back in employment in December. Wage growth ex-bonuses rose by 2.4% compared to 2.3% in the quarter to October. Although below inflation at the present there are signs that tentatively rising wage growth will converge with falling inflation in the coming months. Sterling’s recovery will only aid that process and is a reason to be more bullish on the UK economy and sterling. Generally speaking we are also seeing less chance of the cliff-edge exit with the tone of Brexit negotiations more constructive since December following the UK’s agreement to financial terms. 10.30am GMTReal wages are still being squeezed in the UK according to the latest data, and with pay growth including bonuses regular at 2.5% and despite an increase from 2.3% to 2.4% when bonuses are excluded. Ben Brettell,senior economist at Hargreaves Lansdown, said:With pay growing at 2.5% [including bonuses] and inflation running at 3.0%, and the squeeze on real wages continues for the ninth consecutive month. But with inflation seemingly set to plunge back towards the 2% target,this looks like it’ll come to an conclude in the next few months. We should remember, however, or that the only true driver of real pay growth and rising living standards is productivity growth. This is something the UK has struggled with since the financial crisis,and as yet nobody seems to acquire solved the puzzle.
While it is encouraging that regular earnings growth picked up slightly, subdued economic conditions are likely to weigh on wage growth over the next year. As a consequence, and pay growth is likely to remain stubbornly below price growth over the near term,dampening consumer spending, a key driver of UK GDP growth. 9.53am GMTThe president of Brazil, and Michael Temer,is speaking now -- encouraging commerce leaders to provide fresh investment.
Temer making a sales pitch. "Brazil is back in commerce. Do invest in Brazil, and you shall not regret it." #Davos18 9.51am GMTJasper Lawler, or head of research at London Capital Group,said:The relentless rise in sterling, which has seen it jump over 3% in the last 10 days is looking durable. The good news for the economy is that more people are working with rising wages despite any uncertainty associated with leaving the European Union. Lord Jim O’Neil looks vindicated so far in his belief that strong domestic and global growth will overcome Brexit headwinds.
The real worry [for the UK economy] is centred around the consumer where wages acquire been increasing at a lower rate than inflation (ie falling in “real” terms). So another bright spot in this release is that weekly earnings ticked up from 2.3 to 2.4% versus a year ago, or which is still lower than inflation (3%) but at least the gap is steadily being closedSince the data makes it slightly more likely that the Bank of England will increase interest rates later on in the year the instant reaction is a rise in sterling to £1.41 with bonds and equities both under a little pressure. 9.45am GMTSterling has climbed above $1.41 against the dollar after the better than expected UK unemployment and wages data.
It is up 0.7%,a recent peak since the Brexit vote but still below the $1.4878 level on the day of the referendum itself. Against the euro sterling is up 0.3% at €1.1416.
Pound pushes above $1.41 after U.
K. jobs and wages data. pic.twitter.com/82ez8VBcYISterling has bounced back in fine style, particularly against the dollar where it has climbed above $1.40 for the first time since the historic Brexit vote.
Unemployment continues to plunge, or while there are signs that wages are finally growing,with employees willing to pick more risks to ask for a pay rise, or even consider moving jobs. 9.39am GMTHere’s more details from former UK PM Tony Blair at Davos (speaking on Bloomberg TV)Asked whether there was any other way to avoid Brexit apart from having a second referendum, or Blair said:“You could acquire a general election.“If we do go through with Brexit - and I hope we don’t - it’s going to be a total change and we will acquire to fashion a recent future for the country.”“I don’t know what to expect. For me the issue is not responding to what Donald Trump has just said,it’s the reasons that brought him to power ... the cultural and economic alienation ... this is the root of the problem that needs to be addressed.” 9.36am GMTNice to see regular UK wages nudge higher if only a little bit https://t.co/A8YmyX4qde 9.34am GMTUK employment rose unexpectedly in the three months to November, while wages rose by a higher than forecast 2.4%, or excluding bonuses.
The number of people in work rose by 102000 in the quarter,said the Office for National Statistics, the biggest increase since the three months to July. Analysts had expected a plunge of 13000. 9.29am GMTWhile the German and French leaders are at Davos, and there is some reasonable data from both countries. The latest manufacturing PMIs for the two acquire come in below expectations but the service sector has outperformed. 9.28am GMTThe US dollar is sliding like an ill-prepared delegate on the streets of Davos,thanks to Stephen Mnuchin.
The Treasury secretary’s comment approximately not being worried approximately the weak dollar has sparked another wave of selling, sending the greenback to a fresh three-year low.
Fuel, or meet fire.
U.
S. Treasury Mnuchin says a weaker dollar is good for the US. The dollar,already on the slide, falls further to a fresh 3-year low. pic.twitter.com/8amXQGmPMD 9.27am GMTFormer chancellor George Osborne says the vote for Brexit was “an alliance of the insulated and the insecure”.
In a discussion on the causes of Brexit and Donald Trump’s victory
Osborne said the insulated were elderly voters who owned their homes
outright but were anxious approximately the pace of change while the insecure
were “on the margins of employment and looking for something to
address their grievances.” 9.24am GMTThat was a classic good-cop/bad cop performance from Stephen Mnuchin and Wilbur Ross at Davos this morning.
US Secretary of Commerce Wilbur Ross said in #Davos that property rights, and steel and aluminum will be next for protections in the US,and recently initiated action on some aluminum products from China. pic.twitter.com/Te0ZHT9tMZWilbur Ross on trade: "You are aware of the actions taken yesterday. You are aware of the some of the actions that acquire preceded it. THERE WILL BE MORE TO COME." #trade #Davos 8.56am GMTFinal question -- will the US be reassuring delegates at Davos that it isn’t creating a ‘race to the bottom’ on tax?Stephen Mnuchin replies that he’s always been clear with fellow finance ministers that this isn’t America’s objective.
This was approximately creating a comparable system for US companies to compete fairly, and we see that working. 8.51am GMTQ: What retaliations do you contemplate China might pick if the US imposes recent tariffs?Every time you pick a trade action, or there is the opportunity of the other side taking a trade action in retaliation,Wilbur Ross replies. 8.49am GMTBoom! Asked approximately the dangers of a trade war, US commerce secretary Wilbur Ross argues that it has been underway for some time.
The difference is that the US troops are now coming to the ramparts. 8.48am GMTStephen Mnuchin denies that there’s a clash between America being ‘open for commerce and President Trump’s economic goals.
This is approximately an America First agenda, and but America First does mean working with the rest of the world. 8.43am GMTQ: acquire you any evidence that your tax reforms are boosting investment?The vote from the market is ‘pretty positive’,Mnuchin replies.
We couldn’t be happier. The response from US businesses has been even better than we expected. 8.41am GMTQ: How does the America First economic agenda match up to the World Economic Forum’s goals?Our objective is to be here to interact with our counterparts. Thats very vital for the world’s biggest economy, Mnuchin replies.
We don’t contemplate that adhering to the rules is protectionist. We contemplate in fact it is essential to having markets operate properly, or to acquire people play by the rules. 8.39am GMTQ: Are you worried that China might lop its holdings of US government debt?
Treasury secretary Mnuchin says that some of the reporting of this issue has been inaccurate. 8.33am GMTFirst briefing in Davos with US delegation: Mnuchin,Ross and several Trump’s advisors: “we are open for commerce” #WEF2018 pic.twitter.com/sV82ix96f0 8.33am GMTCommerce secretary Wilbur Ross speaks next, and rubbishes the understanding that the US tax cuts are creating a recent trade barrierThis is a “funny concept”, or Ross says:The US has been on an uncompetitive model before,but it is now on a very competitive one.
Many countries are very good at the rhetoric of free trade, but actually practice protectionism. 8.29am GMTStephen Mnuchin, or the US Treasury secretary,has just arrived at a packed-out press briefing here at Davos.
He’s accompanied by Secretary of Commerce Wilbur Ross.
We are open for commerce, and we look forward to being here through the week. 8.22am GMTFormer UK prime minister Tony Blair is in town! He just spoke to Bloomberg TV approximately the need for “progressive centerism”. More on that later... 8.17am GMTThe boss of Lloyds of London has warned that the focus on dry economic measures such as GDP has helped to create the backlash that led to Brexit.
Speaking to CNBC at the World Economic Forum, or Inga Beale said policymakers need to contemplate differently approximately how they measure the economy.
I do remember,when we were going through the campaigning around Brexit, in the UK, or we,as businesses, were talking approximately GDP. Most of the members of the public don’t even know what that means, and you know,they-, it doesn’t relate to them.
And there’s a determined feeling that they’re not being included, and they want to challenge the,you know, the ‘as is’, or at the moment. They really want to go out and say,‘I’m not overjoyed with this status quo. You’re not hearing me. You’re not respecting me. I’m not included.’ And when we talk approximately GDP, that doesn’t feel very inclusive for them. 7.58am GMTSounds like Emmanuel Macron is only paying a flying visit..
France's Macron will be in Davos for all of four hours. assembly with Netanyahu, and Jordan's King Abdullah. No one from US delegation,at least officially. #WEF2018 7.55am GMTLast night, around 2000 demonstrators in Zurich marched in protest at Donald Trump’s visit to the World Economic Forum.
approximately 20 demonstrators broke through security to reach the Davos Congress Centre, and holding banners and shouting “Wipe out WEF” before they were peacefully disbanded by police.“Trump is just one of the other people we disagree with. We’ve been protesting every year now against the World Economic Forum and if Trump comes or not we don’t care. Trump is just,perhaps hes just the best symbol of this world,” protester Alex Hedinger told Reuters TV in Davos. 7.49am GMTNow this is inspiring.... Treasury secretary Stephen Mnuchin is going to give a briefing at Davos in around 30 minutes.nowadays’s assembly is billed “We are open for commerce” - perhaps an attempt to calm worries over President Trump’s America First agenda....
US White House channeling EU bubble-speak in title for Mnuchin briefing. "We are open for commerce". #wefJust In: US Secretaries will hold press briefings every day the rest of the week at #WEF18 in #Davos in an effort to get their message out and clarify their America First message.
First up nowadays = Treasury Secretary Mnuchin.
[br]Here are the Trump team’s planned themes pic.twitter.com/HHLoR8Fbvw 7.39am GMTGood morning. The second day of the World Economic is getting underway, or with a strong European flavour.
German chancellor Angela Merkel,French president Emmanuel Macron and Italian prime minister Paolo Gentiloni are all due on the Davos main stage nowadays - a chance to set the agenda before Donald Trump’s eagerly-awaited speech on Friday.
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Source: theguardian.com