This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.theguardian.com/business/live/2015/sep/03/markets-european-central-bank-mario-draghi-inflation-live
The article has changed 22 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Markets rally ahead of European Central Bank meeting - business live | Markets rally ahead of European Central Bank meeting - business live |
| (34 minutes later) | |
| 8.20am BST08:20 | |
| Overnight, the International Monetary Fund has warned that the downside risks to global growth have risen, partly due to the slowdown in China. | |
| In a new report, ahead of the G20 finance ministers meeting in Ankara this weekend, the Fund said: | |
| Near-term downside risks for emerging economies have increased, given the combination of China’s growth transition, lower commodity prices, potential adverse corporate balance sheet and funding challenges related to a dollar appreciation, and capital flow reversals and disruptive asset price shifts. | |
| Risks to growth include financial market volatility, declining commodity prices & depreciating EMs currencies. #G20 http://t.co/sHBUAx62c0 | |
| The IMF also warned that global interest rates may have to stay low for even longer -- a signal to the Federal Reserve not to hike borrowing costs this month? | |
| Related: IMF: China slowdown could keep global interest rates low | |
| 8.13am BST08:13 | |
| Most mornings recently, we’ve been glued to the twists and turns on the Chinese stock market. Not today, though. | |
| The Shanghai index is closed until Monday, so Beijing could hold a parade to mark its victory over Japan and the end of the second world war. And what an event it was, with masses of tanks, planes and troops on display. | |
| Russia’s Vladimir Putin was there too; Britain, curiously, was represented by Ken Clarke MP, the long-serving former minister. | |
| For the Brits Ken Clarke has turned up. Didn't seem overly keen to have the official photo. pic.twitter.com/nyum4nUE1n | |
| My colleague Claire Phipps live-blogged the whole thing: | |
| Related: China military parade commemorates second world war victory – as it happened | |
| And Tom Phillips tweeted from Tiananmen Square: | |
| Xi, Putin aaaand Jiang Zemin out on balcony. Big gasp for last guy pic.twitter.com/V6Pcau9d8D | |
| If you think you're melting imagine these guys... pic.twitter.com/33uUpcCkE1 | |
| Tanks rolling into Tiananmen pic.twitter.com/IokDotmPXx | |
| Updated at 8.16am BST | |
| 7.54am BST07:54 | |
| After some tough days, Asia’s markets are staging a modest recovery today. | |
| Japan’s Nikkei jumped by 0.7%, following three days of losses, and there are also gains in South Korea and India. | |
| But there are still concerns over how the region will fare, given the turbulence in China. | |
| Angus Nicholson of IG reports “growing concern” about the Japanese banking sector, which may have made some reckless loans. | |
| In the face of poor growth prospects in Japan, banks aggressively began lending to emerging Asian nations. With the massive falls seen in emerging market currencies over the past twelve months or so, defaults on these loans have been soaring. This is likely to be a major headwind to the performance of the Nikkei over the coming months as well. | |
| Updated at 7.55am BST | |
| 7.36am BST07:36 | 7.36am BST07:36 |
| Introduction: ECB may cut forecasts today | Introduction: ECB may cut forecasts today |
| Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. | Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. |
| It’s European Central Bank day. President Mario Draghi and the governing council are gathering in Frankfurt to set monetary policy, and discuss the state of Europe’s economy. | It’s European Central Bank day. President Mario Draghi and the governing council are gathering in Frankfurt to set monetary policy, and discuss the state of Europe’s economy. |
| Economists believe the central bank could downgrade its inflation forecast, with price pressures stubbornly low and growth still somewhat sluggish. | Economists believe the central bank could downgrade its inflation forecast, with price pressures stubbornly low and growth still somewhat sluggish. |
| Draghi may also hint that the ECB could launch future stimulus measures, if inflation doesn’t pick up soon. It’s currently just 0.2%, compared to a target of just below 2%. | Draghi may also hint that the ECB could launch future stimulus measures, if inflation doesn’t pick up soon. It’s currently just 0.2%, compared to a target of just below 2%. |
| And he’ll also field a few questions about Greece, where the banking sector is still gripped by capital controls. | And he’ll also field a few questions about Greece, where the banking sector is still gripped by capital controls. |
| Draghi is quite capable of talking the euro down if he fancies it, and the prospect of a dovish performance from the ECB chief will push shares higher this morning: | Draghi is quite capable of talking the euro down if he fancies it, and the prospect of a dovish performance from the ECB chief will push shares higher this morning: |
| Ian Williams of stockbroker Peel Hunt says: | Ian Williams of stockbroker Peel Hunt says: |
| Investors will be looking to ECB President Draghi for more supportive comments later today. | Investors will be looking to ECB President Draghi for more supportive comments later today. |
| Our European opening calls: $FTSE 6130 up 47 $DAX 10134 up 86 $CAC 4590 up 35 $IBEX 10027 up 89 $MIB 21765 up 153 | Our European opening calls: $FTSE 6130 up 47 $DAX 10134 up 86 $CAC 4590 up 35 $IBEX 10027 up 89 $MIB 21765 up 153 |
| Today’s agenda: | Today’s agenda: |
| Sweden’s central bank is also meeting today. It could potentially cut interest rates deeper into negative territory to spur inflation. | Sweden’s central bank is also meeting today. It could potentially cut interest rates deeper into negative territory to spur inflation. |
| New PMI surveys of the world’s service sector are released today, which will show if growth eased in August. | |
| We also find out how many Americans claimed unemployment benefit last week, ahead of tomorrow’s eagerly awaited Non-Farm Payroll report. | |
| I’ll be tracking all the main events though the day. | I’ll be tracking all the main events though the day. |
| Updated at 7.55am BST |