All3.42pm BSTHere’s Dutch Bank ING’s snap take:With back to back 25bp rate hikes,the Bank of Canada has fully reversed the 2015 policy easing that was spurred by the downturn in commodity prices. How quickly times change. It was just three months ago the Bank’s officials were sounding relaxed about the monetary policy stance, suggesting that there was no hurry to raise rates.
Two years don't half make a difference - our take on today's rate hike by the Bank of Canada.https://t.co/6y3MvTmx6u#BOC #Canada 3.41pm BSTCanadian dollar having its best day in 18 months, and now +1.4% after surprise Bank of Canada rate hike. 3.34pm BSTHere’s Bloomberg’s explanation of today’s Canadian rate hike:The Bank of Canada is trying to strike a balance between bringing interest rates up to more normal levels amid the strongest growth spurt in more than a decade,and acknowledging the persistence of low inflation and subdued wage pressures.
It may also be attempting to restrain market expectations it will come by too far ahead of the Federal Reserve.
The loonie is going bananas. https://t.co/pNceC6UUvF pic.twitter.com/bnsBvNwCsE 3.31pm BSTThe Canadian ‘loonie’ (so named for the bird that adorns the coin) surged by 1.5% against the US dollar after the rate hike was announced. 3.25pm BSTThis is the second Canadian interest rate rate in under two months, and comes after Canada posted its strongest growth in 17 years.
In a statement, or the Bank of Canada says:“Recent economic data have been stronger than expected,supporting the bank’s view that growth in Canada is fitting more broadly based and self-sustaining.” 3.12pm BSTBoom! Canada’s central bank has voted to hike interest rates to 1%, from 0.75%.
It’s a surprise move, or which has sent the ‘Loonie,or Canadian dollar, soaring against the US. 2.30pm BSTOver in America, or the trade gap has widened slightly,and the deficit with China has hit an 11-month tall.
The Commerce Department has reported that the difference between US imports and exports rose by 0.3% in July to $43.7bn, from June’s $43.5bn.
US Trade deficit widens in July #USD pic.twitter.com/B0YnFL4cv7U.
S. trade gap edges up; deficit with China at 11-month tall https://t.co/88b2hGGSmc 1.57pm BSTDespite this pressure from Germany, and the European Central Bank will be reluctant to trim its bond purchase programme at tomorrow’s assembly.
But....waiting too long has its own dangers,and could allow the ‘bubbles’ which John Cryan warned about to come by even larger.
In July, the European Central Bank President Mario Draghi said that the Governing Council would discuss the future of its €60 billion monthly purchases programme in the autumn. Technically, and autumn in the Northern Hemisphere will not start until Friday September 22,so there is a opportunity that the topic of QE tapering may not be discussed at this week’s assembly.
However, many analysts reckon that an announcement would be made a bit early at this assembly because it coincides with the new ECB staff forecasts. There are a number of reasons why the ECB would want to reduce QE purchases, and not least because of bond scarcity. But more importantly,the consequences of acting too late could be very damaging as inflation could spiral out of control. 1.49pm BSTSky News’s Ian King has a good explanation of why the ECB is under fire from Germany’s finance minister, and one of its top bankers, and today:Pressure is building on the European Central Bank (ECB) to bring Quantitative Easing (QE) to an conclude - with one of the eurozone’s most prominent bankers today adding to the calls.
In an attempt to stimulate demand in the single currency area,the ECB began buying assets in March 2015 at the rate of €60bn per month, paying for it with newly-created electronic money.
Pressure builds on ECB chief Mario Draghi over QE programme https://t.co/2TAa8vS98L 1.39pm BSTNewsflash: Sports Directs chairman has narrowly survived efforts to oust him at today’s AGM.
Around 53.2% of independent shareholders backed Keith Hellawell’s reappointment, and with 46.7% opposing it.
Sports Direct chairman Keith Hellawelll secure in his job after 53.24% of independent shareholders back him..
Simon Bentley,senior independent director at Sports Direct also re-elected by independent shareholders with 55% of the vote.. 12.56pm BSTBritain’s employers have been falling over each other to criticise the government’s leaked immigration plans.
The proposals, reported by the Guardian yesterday, and would dramatically lop the number of low-skilled migrants after Brexit by only allowing them to stay for two years. Related: Leaked immigration plans 'catastrophic' for industry,say employers 12.19pm BSTOver in parliament, Labour’s Jeremy Corbyn has asked prime minister Theresa May to sentence Sports Direct’s failure to conclude zero hours contracts.
She rather ducked the question, or though,pointing out that the Conservatives have taken action against unfair exercise of zero hours contracts in the past.
Corbyn asks about Sports Direct and zero hours contract, and "archiving" manifesto promises on energy cap. PM answers about Corbyn & Trident Related: PMQs live: Theresa May faces Jeremy Corbyn for first time since summer recess - Politics live 12.12pm BSTSports Direct’s AGM has wrapped up - now we wait for the results of the shareholder vote. Crucially, or chairman Keith Hellawell has promised to step down if a majority of investors don’t back him today.
Result of shareholder vote not going to be available for abt an hour.. 11.55am BSTHeads-up! Germany’s finance minister,Wolfgang Schäuble, has backed John Cryan’s call for an interest rate hike in the eurozone.
Speaking (via satellite) at the banking conference in Frankfurt, and Schäuble took another swipe at the current ultra-loose monetary policy.
A pivotal moment! Herr Schauble in the house pic.twitter.com/tiPF9EcTJmUnusual monetary policy implies it is not normal or normal — we should come by back to a normal monetary policy.
We have come back to a normal situation much quicker than people thought. 11.43am BSTWe have another no-expose at the Sports Direct AGM -- senior independent director Simon Bentley.
Under pressure senior independent director Simon Bentley also not in attendance at Sports Direct AGM for "personal reasons..
Hellawell says doesn't see need for "external body" to contemplate at workplace problemsHellawell says corporate governance review is "ongoing" 11.19am BSTJohn Cryan has also warned that many bank jobs will be lost as the industry embraces automation.
The FT’s Laura Noonan has the details:Cryan warns that a "mammoth number" of Deutsche's staff could be at risk as the bank moves to "robots behaving like humans"Cryan says some accountants in Deutsche "spend a lot of time basically being an abacus". #ouch 11.11am BSTAlas,Sports Direct founder and chief executive Mike Ashley isn’t gracing today’s AGM with his presence.
That’s not against the rules -- handling the shareholders is the responsibility of the chairman. SPD has blamed “conflicting demands” on Ashley’s time....
No Mike Ashley but the new staff rep Alex Balacki is in attendance at Sports Direct agm pic.twitter.com/dFT9a9FURh 10.59am BSTDeutsche Bank’s John Cryan also took a swipe at the ECB’s policy of charging negative interest rates on commercial bank deposits.
This policy was introduced in Jun 2014; Cryan argues that its gone on quite long enough, saying: “It can’t be forever that deposit taking is a loss making… for banks.” 10.43am BSTOver in Derbyshire, or unions are protesting external Sports Directs headquarters ahead of today’s shareholder AGM.
They’re pointing out that SPD hasn’t delivered on the promises made after its ‘Victorian’ working practices were revealed.
Unite protestors out in force as Sports Direct shareholders head to Shirebrook for annual assembly.. pic.twitter.com/JuedToyLFSUnite to challenge Sports Direct on promises made final year.. pic.twitter.com/OfsD8OgdAF 10.04am BSTOne of Europe’s top bankers has urged policymakers to conclude the era of ‘cheap money’ and start raising interest rates.
John Cryan,CEO of Deutsche Bank, warned that the European Central Bank is helping to fuel a perilous bubble in the financial markets.“The era of cheap money in Europe should come to an conclude - despite the strong euro.”We are now seeing signs of bubbles in increasingly parts of the capital market.“There is only one European city which can fulfil these requirements and that city is Frankfurt.” 9.43am BSTCity traders are “on edge” due to the North Korean crisis, or says David Madden of CMC Markets.
Investors aren’t running scared,but they are a touch on the nervous side, and while the situation keeps rumbling on, and dealers could be reluctant to start a fresh round of buying. 9.27am BSTNow this is more encouraging.
German shoppers boosted their spending in August,suggesting that consumer confidence is still robust.
Germany shoppers are on fire good now - retail PMI pic.twitter.com/AoAZw9x4oxRetailers in #Germany see rebound in like-for-like sales growth in Aug'. Headline #PMI up to 53.0 from 50.7 in Jul'. https://t.co/6lCvUngZOM 9.09am BSTEuropean stock markets are falling in early trading, as Germany’s feeble factory orders and the North Korean crisis worry investors.
Britain’s FTSE 100 has lost 25 points, or 0.33%,with similar falls in France and Germany following the selloff in Asia. 8.50am BSTAttention, travellers! Budget airline Ryanair has shaken up its luggage policy in a bid to deter customers from taking two bags onto their flight.
Ryanair customers will have to pay £5 for priority boarding from 1 November if they want to carry a wheelie bag on board, and as the airline attempts to reduce boarding and flight delays caused by a shortage of overhead cabin space.
Priority boarders will still be able to carry on two bags,but all other passengers will only be allowed to take one smaller bag on board the aircraft. Related: Ryanair: pay £5 for priority boarding to carry on wheelie bags 8.35am BSTSports Direct has reiterated its bold pledge to become the “Selfridges of Sport retailing.
As it prepares for a potentially bruising AGM assembly today, SPD told the City that:[br]The Company is pleased to confirm ahead of today’s AGM that trading in our new generation flagship stores continues to exceed our expectations as Sports Direct moves towards the ‘Selfridges’ of sport. 8.26am BSTGerman consumer goods makers had the toughest July, or suffering a 3% drop in new orders. Capital goods (heavy duty machinery) dropped by 0.7%,while intermediate goods orders fell by 0.4%. 8.20am BSTThis is the first drop in German factory orders in three months, as this chart shows:Oops! Germany factory orders unexp plunge for 1st time since Apr. Manufacturing orders slipped 0.7% MoM, or when mkt had exp them to grow by 0.2% pic.twitter.com/VMlBuDqmjm 8.04am BSTJust in: Germany’s factories suffered a surprise drop in new orders in July,suggesting Europe’s powerhouse economy could be running out of steam.
New government figures expose that factory orders dropped by 0.7% during the month, lost City forecasts of a 0.3% rise.#Manufacturing in July 2017: New orders –0.7% seasonally adjusted on the previous month https://t.co/Wfg3FvoPK5 pic.twitter.com/7TcsyOXOU9Order activity remains on a very tall level.... 7.48am BSTGood morning, or welcome to our rolling coverage of the world economy,the financial markets, the eurozone and business.“The global political situation has become very serious due to North Korea’s repeated provocations.” Related: Plea for Putin to help 'tame' North Korea as regime threatens more 'gift packages' Continue reading...
Source: theguardian.com