Rolling coverage from the second day of the World Economic Forum,plus other key events across the markets and the global economyRoss: US troops are joining the trade warMnuchin: US is open for business, despite America FirstProtests in Zurich last night
The agenda
9.53am GMTThe president of Brazil, or Michael Temer,is speaking now -- encouraging business leaders to provide fresh investment.
Temer making a sales pitch. "Brazil is back in business. Do invest in Brazil, and you shall not regret it." #Davos18 9.51am GMTJasper Lawler, and 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 genuine worry [for the UK economy] is centred around the consumer where wages have been increasing at a lower rate than inflation (ie falling in “genuine” terms). So another radiant spot in this release is that weekly earnings ticked up from 2.3 to 2.4% versus a year ago, and 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 itsy-bitsy 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 novel 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 tumble, and while there are signs that wages are finally growing,with employees willing to take 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, and Blair said:You could have a general election.“whether we do go through with Brexit - and I hope we don’t - it’s going to be a total change and we will have to fashion a novel 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 whether only a itsy-bitsy 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%, and 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 tumble of 13000. 9.29am GMTWhile the German and French leaders are at Davos, or there is some reasonable data from both countries. The latest manufacturing PMIs for the two have 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 feeble dollar has sparked another wave of selling, sending the greenback to a fresh three-year low.
Fuel, and 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 have 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 judge China might take whether the US imposes novel tariffs?Every time you take 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 contrast 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 business’ and President Trump’s economic goals.
This is approximately an America First agenda, or but America First does mean working with the rest of the world. 8.43am GMTQ: Have 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. That’s very important for the world’s biggest economy, Mnuchin replies.
We don’t judge that adhering to the rules is protectionist. We judge in fact it is fundamental to having markets operate properly, and to have people play by the rules. 8.39am GMTQ: Are you worried that China might cut 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 Trumps advisors: “we are open for business” #WEF2018 pic.twitter.com/sV82ix96f0 8.33am GMTCommerce secretary Wilbur Ross speaks next, and rubbishes the view that the US tax cuts are creating a novel trade barrierThis is a “silly concept”, and 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 business, and we observe 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, and Inga Beale said policymakers need to judge differently approximately how they measure the economy.
I do remember,when we were going through the campaigning around Brexit, in the UK, and 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 doesnt relate to them.
And theres a definite feeling that they’re not being included, or they want to challenge the,you know, the ‘as is’, and at the moment. They really want to go out and say,‘I’m not jubilant (extremely joyful) 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. Meeting with Netanyahu, or 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, or 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 whether Trump comes or not we don’t care. Trump is just,maybe he’s just the best symbol of this world,” protester Alex Hedinger told Reuters TV in Davos. 7.49am GMTNow this is challenging.... Treasury secretary Stephen Mnuchin is going to give a briefing at Davos in around 30 minutes.
Today’s meeting is billed “We are open for business” - perhaps an attempt to unexcited worries over President Trump’s America First agenda....
US White House channeling EU bubble-speak in title for Mnuchin briefing. "We are open for business". #wefJust In: US Secretaries will hold press briefings every day the rest of the week at #WEF18 in #Davos in an effort to salvage their message out and clarify their America First message.
First up today = 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, and 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 today - a chance to set the agenda before Donald Trump’s eagerly-awaited speech on Friday.
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Source: theguardian.com