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Fed leaves US rates on hold but leaves door open for December rise - live Fed leaves US rates on hold but leaves door open for December rise - live
(35 minutes later)
6.46pm GMT18:46
The Fed’s comments should please the European Central Bank, says Howard Archer of IHS Economics:
The Federal Reserve’s meeting today is the second successive central bank meeting that has delivered a kicking to the euro. The euro fell markedly against the dollar after the ECB indicated last week that further easing is firmly on the table in December including possible interest rate cuts. That saw the euro briefly dip below $1.10 after testing $1.15 a week earlier.
Now the Fed’s indication that the door is open to a US interest rate hike in December has given the euro a renewed downward jolt, which is just what the ECB wants. It has plunged back through $1.10 and is currently testing $1.09
The ECB will be delighted as it clearly wants a weaker euro to help lift eurozone inflation and boost growth
6.41pm GMT18:41
Next week’s non-farm payroll numbers and the next set of inflation numbers could be key as to whether the Fed does indeed raise rates in December, says James Knightley of ING Bank:
The Federal Reserve has played it safe and left monetary policy unchanged. Jeffrey Lacker remains the only committee member voting for an immediate 25bp rate rise.
The changes to the accompanying statement are small in number, but reasonably significant. On the dovish side, the Fed acknowledges that “the pace of jobs growth has slowed” versus being viewed as “solid” in September. However, the rest of the statement seems to try and put the most positive spin possible. Household and business spending is expanding at “solid rates” whereas previously it was only described as “increasing moderately”. They have also removed three lines about global risks possibly restraining economic activity and depressing inflation. This seems a remarkable turnaround. Furthermore, the statement specifically adds that “in determining whether it will be appropriate to raise the target range at its next meeting...” This suggests that the more hawkish element will be pushing hard for a December move should the data come in reasonably firm.
Nonetheless we do need to see quite a big improvement in the economic data and a rise in inflation to give us real confidence in our call of a rate rise at the December FOMC meeting. In terms of the upcoming numbers, next week’s labour report will be key, but with the consensus forecasting only a 177,000 rise in payrolls and the unemployment rate remaining at 5.1%, the doves are not going to be swayed much. We would probable need to see 200,000 plus readings in that and the November report and unemployment breaking 5% to realistically shift thinking.
However, there may be more support for the hawks from the CPI reports. Core inflation is rising and there are clear signs of a pick-up in service sector inflation (led by housing and medical care costs). With the negative impulse from energy prices set to shrink markedly in coming months as last year’s plunge in the oil price drops out of the annual comparison, we could see headline CPI quickly reach 1%. Indeed, even if ex-energy CPI just stays at 1.9% year on year and energy prices remain stable, headline CPI will be up to 1.6% year on year in the first quarter of 2016.
Updated at 6.42pm GMT
6.39pm GMT18:39
Here’s Deutsche Bank’s chief US economist:
#Fed makes mention of tightening at the “next meeting” depending on evolution of data; sounds like policymakers want to tighten
Updated at 6.42pm GMT
6.35pm GMT18:35
The Fed has also encouraged the thought of a December rise by inserting the phrase “at its next meeting” in the following phrase,
In determining whether it will be appropriate to raise the target range at its next meeting, the Committee will assess progress--both realized and expected--toward its objectives of maximum employment and 2 percent inflation.
In September it read: In determining how long to maintain this target range, the Committee will assess progress....
6.26pm GMT18:26
The Dow Jones Industrial Average is now in negative territory, down 13 points.
6.17pm GMT18:176.17pm GMT18:17
There is some acknowledgement in the Fed statement that the US jobs situation has deteriorated since September (the recent non-farm payroll numbers were disappointing.)There is some acknowledgement in the Fed statement that the US jobs situation has deteriorated since September (the recent non-farm payroll numbers were disappointing.)
In September the Fed said: The labor market continued to improve, with solid job gains and declining unemployment. On balance, labor market indicators show that underutilization of labor resources has diminished since early this year.In September the Fed said: The labor market continued to improve, with solid job gains and declining unemployment. On balance, labor market indicators show that underutilization of labor resources has diminished since early this year.
Now the comment is: The pace of job gains slowed and the unemployment rate held steady. Nonetheless, labor market indicators, on balance, show that underutilization of labor resources has diminished since early this year.Now the comment is: The pace of job gains slowed and the unemployment rate held steady. Nonetheless, labor market indicators, on balance, show that underutilization of labor resources has diminished since early this year.
6.12pm GMT18:126.12pm GMT18:12
One member of the Federal Reserve Open Market Committee - the Richmond Fed’s Jeffrey Lacker - even wanted to raise rates this time round.One member of the Federal Reserve Open Market Committee - the Richmond Fed’s Jeffrey Lacker - even wanted to raise rates this time round.
Here is the voting:Here is the voting:
Voting for the FOMC monetary policy action were: Janet L. Yellen, Chair; William C. Dudley, Vice Chairman; Lael Brainard; Charles L. Evans; Stanley Fischer; Dennis P. Lockhart; Jerome H. Powell; Daniel K. Tarullo; and John C. Williams. Voting against the action was Jeffrey M. Lacker, who preferred to raise the target range for the federal funds rate by 25 basis points at this meeting.Voting for the FOMC monetary policy action were: Janet L. Yellen, Chair; William C. Dudley, Vice Chairman; Lael Brainard; Charles L. Evans; Stanley Fischer; Dennis P. Lockhart; Jerome H. Powell; Daniel K. Tarullo; and John C. Williams. Voting against the action was Jeffrey M. Lacker, who preferred to raise the target range for the federal funds rate by 25 basis points at this meeting.
6.09pm GMT18:096.09pm GMT18:09
This is the comment in September which has now been removed from the statement:This is the comment in September which has now been removed from the statement:
Recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term.Recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term.
So the Fed is more hawkish than the markets had been expecting, with economists becoming - up until now - convinced there would be no rise in December. Now they are not so sure.So the Fed is more hawkish than the markets had been expecting, with economists becoming - up until now - convinced there would be no rise in December. Now they are not so sure.
The Dow Jones Industrial Average was up 130 points before the release of the statement but the gains have been trimmed and it is just 26 points better.The Dow Jones Industrial Average was up 130 points before the release of the statement but the gains have been trimmed and it is just 26 points better.
The dollar has gained ground, climbing to a two and a half month high against the Swiss franc. The pound has fallen from $1.5318 before the statement to $1.5272 while the euro is at its lowest against the US currency since mid-August.The dollar has gained ground, climbing to a two and a half month high against the Swiss franc. The pound has fallen from $1.5318 before the statement to $1.5272 while the euro is at its lowest against the US currency since mid-August.
6.02pm GMT18:026.02pm GMT18:02
But the Federal Reserve has kept the door open for a rate hike in December.But the Federal Reserve has kept the door open for a rate hike in December.
It said it was still monitoring economic and financial developments abroad, but did not repeat its September comments that global risks would have a likely impact on the US economy.It said it was still monitoring economic and financial developments abroad, but did not repeat its September comments that global risks would have a likely impact on the US economy.
The full statement is here.The full statement is here.
Updated at 6.10pm GMTUpdated at 6.10pm GMT
6.00pm GMT18:006.00pm GMT18:00
Fed keeps rates on holdFed keeps rates on hold
Breaking news:Breaking news:
As widely expected the Federal Reserve has left US interest rates on hold after this week’s policy meeting.As widely expected the Federal Reserve has left US interest rates on hold after this week’s policy meeting.
5.17pm GMT17:175.17pm GMT17:17
As a reminder, it’s been a while since the Fed last raised rates:As a reminder, it’s been a while since the Fed last raised rates:
The Federal Reserve has not raised rates in 112 months. (In the prior cycle, 49 months) https://t.co/zT1w53pukl pic.twitter.com/j614d5AXCAThe Federal Reserve has not raised rates in 112 months. (In the prior cycle, 49 months) https://t.co/zT1w53pukl pic.twitter.com/j614d5AXCA
5.06pm GMT17:065.06pm GMT17:06
European shares end higherEuropean shares end higher
Ahead of the US Federal Reserve meeting, investors seemed in a calm mood. Gold miners rose in the expectation there would be no Fed rate rise this year, helping to support the London market, while a rise in crude prices also helped support markets. The final scores showed:Ahead of the US Federal Reserve meeting, investors seemed in a calm mood. Gold miners rose in the expectation there would be no Fed rate rise this year, helping to support the London market, while a rise in crude prices also helped support markets. The final scores showed:
On Wall Street the Dow Jones Industrial Average is currently 91 points or 0.5% higher.On Wall Street the Dow Jones Industrial Average is currently 91 points or 0.5% higher.
4.21pm GMT16:214.21pm GMT16:21
And the best performing global stock market since the last #Fed meeting? #Jamaica pic.twitter.com/BsMeAwaTGTAnd the best performing global stock market since the last #Fed meeting? #Jamaica pic.twitter.com/BsMeAwaTGT
4.11pm GMT16:114.11pm GMT16:11
Oil price jumps nearly 5% after US inventory newsOil price jumps nearly 5% after US inventory news
Stock markets continue to gain ground ahead of the Fed, partly lifted by a rise in oil prices.Stock markets continue to gain ground ahead of the Fed, partly lifted by a rise in oil prices.
Brent crude is up 4.6% at $48.99, helped by news that US stocks had risen by less than expected last week. The Energy Information Administration said crude inventories were 3.4m barrels higher at 479.96m, compared to forecasts of a 3.7m increase.Brent crude is up 4.6% at $48.99, helped by news that US stocks had risen by less than expected last week. The Energy Information Administration said crude inventories were 3.4m barrels higher at 479.96m, compared to forecasts of a 3.7m increase.
This was less than the 4.1m rise posted by industry group the American Petroleum Institute. John Kilduff of Again Capital in New York told Reuters:This was less than the 4.1m rise posted by industry group the American Petroleum Institute. John Kilduff of Again Capital in New York told Reuters:
Another spectacular, large crude oil inventory build seemed to get priced into the market, and all we got was a merely large one.Another spectacular, large crude oil inventory build seemed to get priced into the market, and all we got was a merely large one.
Jasper Lawler at CMC Markets said:Jasper Lawler at CMC Markets said:
Oil prices rebounded strongly off two month lows as the build in US crude oil inventories slowed from last week to 3.4m barrels. The data was not confirmed by the API which yesterday reported a bigger than expected build of 4.1m barrels. Overall the US inventories stats are not overly bullish for oil prices but the market got a little overextended to the downside and is seeing a short-squeeze after two-month lows.Oil prices rebounded strongly off two month lows as the build in US crude oil inventories slowed from last week to 3.4m barrels. The data was not confirmed by the API which yesterday reported a bigger than expected build of 4.1m barrels. Overall the US inventories stats are not overly bullish for oil prices but the market got a little overextended to the downside and is seeing a short-squeeze after two-month lows.
3.58pm GMT15:583.58pm GMT15:58
Of course, if the Fed does by any chance raise interest rates this year after all, it will be going against the global trend.Of course, if the Fed does by any chance raise interest rates this year after all, it will be going against the global trend.
While the next move in UK rates may well be higher - albeit not yet - elsewhere the move is to cut rates. China has already done so, with a surprise move last week, while the European Central Bank hinted last week that it may consider cutting rates or expanding its QE programme in December:While the next move in UK rates may well be higher - albeit not yet - elsewhere the move is to cut rates. China has already done so, with a surprise move last week, while the European Central Bank hinted last week that it may consider cutting rates or expanding its QE programme in December:
Markets now pricing in 5bp #ECB deposit rate cut. We expect cut of 10 to 20bps in Dec. Note: https://t.co/qLTGpcyEqI pic.twitter.com/W30E5jQ1l9Markets now pricing in 5bp #ECB deposit rate cut. We expect cut of 10 to 20bps in Dec. Note: https://t.co/qLTGpcyEqI pic.twitter.com/W30E5jQ1l9
3.51pm GMT15:513.51pm GMT15:51
Today’s Fed meeting is unlikely to signal much of a policy change without a press conference for the bank’s members to explain themselves, sayd Christopher Vecchio, currency analyst at DailyFX. He said:Today’s Fed meeting is unlikely to signal much of a policy change without a press conference for the bank’s members to explain themselves, sayd Christopher Vecchio, currency analyst at DailyFX. He said:
Without a press conference or official changes to the Staff Economic Projections (and dot plot likewise), today’s meeting is more likely than not going to be a quieter one, at least by FOMC standards. The policy statement will carry a bit more weight, and even then, it’s not like Fed officials are going to ‘rock the boat’ with a material shift in policy without being able to explain/justify/pontificate about the changes in their immediate aftermath. Instead, a focus on data dependency will be the core theme we’re looking for.Without a press conference or official changes to the Staff Economic Projections (and dot plot likewise), today’s meeting is more likely than not going to be a quieter one, at least by FOMC standards. The policy statement will carry a bit more weight, and even then, it’s not like Fed officials are going to ‘rock the boat’ with a material shift in policy without being able to explain/justify/pontificate about the changes in their immediate aftermath. Instead, a focus on data dependency will be the core theme we’re looking for.
Given the fact that rate expectations for the Federal Reserve have been pushed back to March 2016, at this point, anything that fails to elicit a response from yields is insignificant; if rate expectations stay around March 2016 for the first rate move, then it’s also likely that the US dollar continues along its current trajectory.Given the fact that rate expectations for the Federal Reserve have been pushed back to March 2016, at this point, anything that fails to elicit a response from yields is insignificant; if rate expectations stay around March 2016 for the first rate move, then it’s also likely that the US dollar continues along its current trajectory.
3.33pm GMT15:333.33pm GMT15:33
The next major event on the agenda is the Federal Reserve policy decision, and as indicated earlier, the bank is expected to keep interest rates on hold.The next major event on the agenda is the Federal Reserve policy decision, and as indicated earlier, the bank is expected to keep interest rates on hold.
The Fed's expected announcement at 2 pm that it is not raising rates means we will complete a seventh year at the zero lower bound.The Fed's expected announcement at 2 pm that it is not raising rates means we will complete a seventh year at the zero lower bound.
While there are still some who think the Fed may raise rates this year, perhaps in December, the wealth of weak data from the US and elsewhere (China anyone?) means that seems increasingly unlikely.While there are still some who think the Fed may raise rates this year, perhaps in December, the wealth of weak data from the US and elsewhere (China anyone?) means that seems increasingly unlikely.
But that does not mean this evening’s announcement is not without interest. Seasoned Fed watchers will be looking for any nuances in the statement which accompanies the rate news. Michael Hewson, chief market analyst at CMC Markets UK, explains:But that does not mean this evening’s announcement is not without interest. Seasoned Fed watchers will be looking for any nuances in the statement which accompanies the rate news. Michael Hewson, chief market analyst at CMC Markets UK, explains:
While no change is expected today the statement will be closely scrutinised for any change of tone with respect to the timing of a rate rise this year. In its last statement the Fed referred to an improving labour market with solid job gains, but since then we’ve had a poor September payrolls report as well as a downward revision to the August number, raising the prospect of a softening labour market.While no change is expected today the statement will be closely scrutinised for any change of tone with respect to the timing of a rate rise this year. In its last statement the Fed referred to an improving labour market with solid job gains, but since then we’ve had a poor September payrolls report as well as a downward revision to the August number, raising the prospect of a softening labour market.
More importantly, will the committee keep the line that “risks to the outlook for economic activity and the labour market as nearly balanced,” or will they soften the language in a way that reflects the concerns of Fed governor and permanent voting member Lael Brainard in comments made recently, that economic risks are “tilted to the downside”?More importantly, will the committee keep the line that “risks to the outlook for economic activity and the labour market as nearly balanced,” or will they soften the language in a way that reflects the concerns of Fed governor and permanent voting member Lael Brainard in comments made recently, that economic risks are “tilted to the downside”?
In truth the window for raising rates this year appears to be getting ever smaller and was probably slammed shut last week in Beijing when the People’s Bank of China cut rates again for the fifth time this year, in an attempt to help boost the slowing Chinese economy so that it doesn’t miss its 7% GDP target by too much.In truth the window for raising rates this year appears to be getting ever smaller and was probably slammed shut last week in Beijing when the People’s Bank of China cut rates again for the fifth time this year, in an attempt to help boost the slowing Chinese economy so that it doesn’t miss its 7% GDP target by too much.
With the potential for yet more policy easing from the ECB at its December meeting, and the effects of a stronger US dollar starting to trickle down into US earnings numbers, it is hard to imagine a scenario where the Fed would feel comfortable raising rates at a time when GDP targets are being revised lower on an almost weekly basis, with the latest Atlanta Fed model for third quarter GDP now at 0.8%.With the potential for yet more policy easing from the ECB at its December meeting, and the effects of a stronger US dollar starting to trickle down into US earnings numbers, it is hard to imagine a scenario where the Fed would feel comfortable raising rates at a time when GDP targets are being revised lower on an almost weekly basis, with the latest Atlanta Fed model for third quarter GDP now at 0.8%.
In short if the Fed weren’t prepared to raise rates in September, they are hardly likely to now, or in six weeks’ time, given that since that meeting the data has been shown little sign of any improvement, if anything it’s been heading in the opposite direction.In short if the Fed weren’t prepared to raise rates in September, they are hardly likely to now, or in six weeks’ time, given that since that meeting the data has been shown little sign of any improvement, if anything it’s been heading in the opposite direction.
You would need to see a Lazarus like turnaround in the data, not only in the US, but also in China and Europe to increase the current odds on a December move which currently sit at 32.8%.You would need to see a Lazarus like turnaround in the data, not only in the US, but also in China and Europe to increase the current odds on a December move which currently sit at 32.8%.
Updated at 5.58pm GMTUpdated at 5.58pm GMT
3.00pm GMT15:003.00pm GMT15:00
Afternoon summary: VW's historic lossAfternoon summary: VW's historic loss
A quick recap of the main points:A quick recap of the main points:
Volkswagen has been dragged into its first quarterly loss in at least 15 years, by the cost of clearing up the emissions scandal.Volkswagen has been dragged into its first quarterly loss in at least 15 years, by the cost of clearing up the emissions scandal.
The German carmaker also warned that profits for this financial year will be substantially below its previous target, and revealed that sales were already below 2014’s levels before it admitted cheating on emission tests.The German carmaker also warned that profits for this financial year will be substantially below its previous target, and revealed that sales were already below 2014’s levels before it admitted cheating on emission tests.
VW’s new chief executive has vowed to discover exactly how the scandal occurred. Matthias Müller is now flying to China with chancellor Angela Merkel for a two-day diplomatic and trade visit.VW’s new chief executive has vowed to discover exactly how the scandal occurred. Matthias Müller is now flying to China with chancellor Angela Merkel for a two-day diplomatic and trade visit.
Related: VW chief promises 'ruthless' crackdown on culprits of emissions scandalRelated: VW chief promises 'ruthless' crackdown on culprits of emissions scandal
UK steelworkers have demonstrated outside the House of Commons, asking MPs to help the industry and stem the loss of jobs.UK steelworkers have demonstrated outside the House of Commons, asking MPs to help the industry and stem the loss of jobs.
Prime minister David Cameron has offered some hope, saying that the government will lift the ‘green taxes’ pushing up energy bills, once Brussels approves it.Prime minister David Cameron has offered some hope, saying that the government will lift the ‘green taxes’ pushing up energy bills, once Brussels approves it.
That won’t end the crisis gripping the industry, though, with demand slumping at record rates:That won’t end the crisis gripping the industry, though, with demand slumping at record rates:
The head of China's steel industry says demand is collapsing at an unprecedented rate. https://t.co/KIjkVEw6Nd pic.twitter.com/TQksYREoteThe head of China's steel industry says demand is collapsing at an unprecedented rate. https://t.co/KIjkVEw6Nd pic.twitter.com/TQksYREote
In the City, Jes Staley has played down talk that he will revive Barclays investment banking arm, after being named as the company’s new CEO this morning:In the City, Jes Staley has played down talk that he will revive Barclays investment banking arm, after being named as the company’s new CEO this morning:
Related: Barclays appoints Jes Staley as new chief executiveRelated: Barclays appoints Jes Staley as new chief executive
Sweden’s central bank has boosted its quantitative easing programme, in an attempt to ward off deflation and weaken its currency.Sweden’s central bank has boosted its quantitative easing programme, in an attempt to ward off deflation and weaken its currency.
The move helped to drive shares higher across Europe, with investors speculating that the ECB will soon announce a big new stimulus package too.The move helped to drive shares higher across Europe, with investors speculating that the ECB will soon announce a big new stimulus package too.
Here’s the state of play in the main stock markets right now, as investors wait for the US Federal Reserve’s decision on interest rates in three hours time:Here’s the state of play in the main stock markets right now, as investors wait for the US Federal Reserve’s decision on interest rates in three hours time:
Updated at 3.01pm GMTUpdated at 3.01pm GMT
2.41pm GMT14:412.41pm GMT14:41
Remember with US clocks still to go back, Fed confusion is at 6pm UK time and not 7pm this monthRemember with US clocks still to go back, Fed confusion is at 6pm UK time and not 7pm this month
1.58pm GMT13:581.58pm GMT13:58
Wall Street rises ahead of the FedWall Street rises ahead of the Fed
Shares are rallying a little in New York at the start of the day’s trading.Shares are rallying a little in New York at the start of the day’s trading.
The Dow Jones industrial average has gained 51 points, or 0.3%, to 17,632. Apple has gained 2%, as investors welcomed last night’s financial results; its best year ever.The Dow Jones industrial average has gained 51 points, or 0.3%, to 17,632. Apple has gained 2%, as investors welcomed last night’s financial results; its best year ever.
The general mood on Wall Street is quite relaxed; investors are confident that the Federal Reserve will leave interest rate unchanged at today’s meeting (the decision comes at 2pm Washington time, or 6pm GMT).The general mood on Wall Street is quite relaxed; investors are confident that the Federal Reserve will leave interest rate unchanged at today’s meeting (the decision comes at 2pm Washington time, or 6pm GMT).
Indeed, many economists believe that rates won’t rise into March 2016, given the troubles in emerging markets and signs of slowing growth in advanced economies.Indeed, many economists believe that rates won’t rise into March 2016, given the troubles in emerging markets and signs of slowing growth in advanced economies.
Morning Note: 1. Staley gets the Barclays job. 2. VW faces first loss in over 15 yrs. 3. There's a Fed meeting? pic.twitter.com/zvTxMy8T9UMorning Note: 1. Staley gets the Barclays job. 2. VW faces first loss in over 15 yrs. 3. There's a Fed meeting? pic.twitter.com/zvTxMy8T9U
1.22pm GMT13:221.22pm GMT13:22
Good news for America....Good news for America....
The US trade goods deficit has narrowed to a seven-month low of $58.6bn in September, from almost $67 in August. That’s according to a provisional estimate from the US government (we get the final figure next week).The US trade goods deficit has narrowed to a seven-month low of $58.6bn in September, from almost $67 in August. That’s according to a provisional estimate from the US government (we get the final figure next week).
It suggests that tomorrow’s US growth figures, for the last quarter, could be a little better than expected. Economists had been forecasting annualised growth of 1.5% (or around +0.4% quarter-on-quarter).It suggests that tomorrow’s US growth figures, for the last quarter, could be a little better than expected. Economists had been forecasting annualised growth of 1.5% (or around +0.4% quarter-on-quarter).
Updated at 1.23pm GMTUpdated at 1.23pm GMT
1.04pm GMT13:041.04pm GMT13:04
Steel industry welcomes move on green taxesSteel industry welcomes move on green taxes
Gareth Stace, director of UK Steel (the industry body) has welcomed the news that steel firms will soon benefit from lower energy costs (as David Cameron just announced).Gareth Stace, director of UK Steel (the industry body) has welcomed the news that steel firms will soon benefit from lower energy costs (as David Cameron just announced).
The move could help could stem the recent surge in job losses that has struck the sector.The move could help could stem the recent surge in job losses that has struck the sector.
Stace says:Stace says:
“This is a welcome commitment from the Prime Minister which reflects the urgency of the situation the sector is facing. The steel sector had asked for a full commitment to help offset the cost of high energy costs and, it now appears this will be given over the lifetime of the Parliament. This will give much needed confidence to the sector in terms of future investment.“This is a welcome commitment from the Prime Minister which reflects the urgency of the situation the sector is facing. The steel sector had asked for a full commitment to help offset the cost of high energy costs and, it now appears this will be given over the lifetime of the Parliament. This will give much needed confidence to the sector in terms of future investment.
“It is now essential that we seek state aid as soon as possible so that payments can begin immediately as promised. This will help provide the breathing space to help the sector through the current crisis.”“It is now essential that we seek state aid as soon as possible so that payments can begin immediately as promised. This will help provide the breathing space to help the sector through the current crisis.”
Updated at 1.16pm GMTUpdated at 1.16pm GMT
12.59pm GMT12:5912.59pm GMT12:59
Back in Westminster, the government has offered the beleaguered steel industry some help, as workers continued to demonstrate outside parliament.Back in Westminster, the government has offered the beleaguered steel industry some help, as workers continued to demonstrate outside parliament.
Prime Minister David Cameron told MPs that steel firms will soon be compensated for the green taxes that have pushed up their energy costs. It just needs the EU’s approval.Prime Minister David Cameron told MPs that steel firms will soon be compensated for the green taxes that have pushed up their energy costs. It just needs the EU’s approval.
Cameron said:Cameron said:
On energy costs, I can announce today that we will refund the energy intensive industries for the full amount of the policy cost they face as soon as we get the state aid judgment from Brussels.On energy costs, I can announce today that we will refund the energy intensive industries for the full amount of the policy cost they face as soon as we get the state aid judgment from Brussels.
And I can confirm that payment will be made immediately and that payment will be made throughout this Parliament - far more generous than what has been proposed by Labour.And I can confirm that payment will be made immediately and that payment will be made throughout this Parliament - far more generous than what has been proposed by Labour.
(via my colleague Rowena Mason)(via my colleague Rowena Mason)
Updated at 1.17pm GMTUpdated at 1.17pm GMT
12.23pm GMT12:2312.23pm GMT12:23
Volkswagen CFO says financial burden from scandal 'enormous but manageable'Volkswagen CFO says financial burden from scandal 'enormous but manageable'
12.08pm GMT12:0812.08pm GMT12:08
Now this is a little awkward... Matthias Müller has jumped off the conference call, to join Angela Merkel on a flight to China to drum up German exports.Now this is a little awkward... Matthias Müller has jumped off the conference call, to join Angela Merkel on a flight to China to drum up German exports.
Volkswagen CEO Matthias Müller is leaving the call now to travel to China with Merkel, leaving some analysts' questions unansweredVolkswagen CEO Matthias Müller is leaving the call now to travel to China with Merkel, leaving some analysts' questions unanswered
Well, Volkswagens attempt at transparency off to mixed start. CEO Matthias Mueller leaves conference call 30mins in to head to China...Well, Volkswagens attempt at transparency off to mixed start. CEO Matthias Mueller leaves conference call 30mins in to head to China...
12.06pm GMT12:0612.06pm GMT12:06
As flagged up this morning, Volkswagen simply doesn’t know the full cost of the emissions scandal, especially when it reaches the American courts.....As flagged up this morning, Volkswagen simply doesn’t know the full cost of the emissions scandal, especially when it reaches the American courts.....
Volkswagen CEO Müller says beyond €6.7bn cost of recall of diesel vehicles, unable to estimate cost of penalties in USVolkswagen CEO Müller says beyond €6.7bn cost of recall of diesel vehicles, unable to estimate cost of penalties in US
11.58am GMT11:5811.58am GMT11:58
VW’s CEO is hinting that some of the groups models could be ditched, as it tries to cut costs:VW’s CEO is hinting that some of the groups models could be ditched, as it tries to cut costs:
Volkswagen CEO Müller: taking a close look at today's portfolio of over 300 models. need to become leaner and take decisions fasterVolkswagen CEO Müller: taking a close look at today's portfolio of over 300 models. need to become leaner and take decisions faster
It’s not abandoning environmentally friendly units, though (just as well, given the noxious gases its diesel cars have been pumping out)It’s not abandoning environmentally friendly units, though (just as well, given the noxious gases its diesel cars have been pumping out)
Volkswagen CEO Müller: will offer more electric vehiclesVolkswagen CEO Müller: will offer more electric vehicles
11.45am GMT11:4511.45am GMT11:45
VW vows to 'ruthlessly punish' those who caused emissions scandalVW vows to 'ruthlessly punish' those who caused emissions scandal
Volkswagen is holding a conference call with analysts and journalists now, to discuss today’s historic loss (the first in at least 15 years).Volkswagen is holding a conference call with analysts and journalists now, to discuss today’s historic loss (the first in at least 15 years).
My colleague Julia Kollewe is dialled into the call, and tweeting the key points:My colleague Julia Kollewe is dialled into the call, and tweeting the key points:
Volkswagen CEO Müller kicks off conference call by apologising to shareholders - and customers - for emissions scandalVolkswagen CEO Müller kicks off conference call by apologising to shareholders - and customers - for emissions scandal
Volkswagen CEO Müller says 2,000 diesel vehicles in China affected by scandalVolkswagen CEO Müller says 2,000 diesel vehicles in China affected by scandal
Volkswagen CEO Müller says 'leaving no stone unturned to find out what happened' but adds 'care is more important than speed'Volkswagen CEO Müller says 'leaving no stone unturned to find out what happened' but adds 'care is more important than speed'
Volkswagen CEO Matthias Müller: must change our mindset, change Volkswagen cultureVolkswagen CEO Matthias Müller: must change our mindset, change Volkswagen culture
Volkswagen CEO Müller: 'will be ruthless in punishing those involved' in scandalVolkswagen CEO Müller: 'will be ruthless in punishing those involved' in scandal
Volkswagen CEO Matthias Müller speaking to analysts & journalists ahead of his trip to China with Angela Merkel, jokes he can't miss flightVolkswagen CEO Matthias Müller speaking to analysts & journalists ahead of his trip to China with Angela Merkel, jokes he can't miss flight
11.40am GMT11:4011.40am GMT11:40
John McDonnell, the shadow chancellor, told protesting steelworkers in Westminster that the Labour Party will do all it could to ensure steel workers weren’t “walked all over”.John McDonnell, the shadow chancellor, told protesting steelworkers in Westminster that the Labour Party will do all it could to ensure steel workers weren’t “walked all over”.
McDonnell also described business Secretary Sajid Javid as a ‘waste of space’ who was “passing through’ in the hope of higher things, reports David Hellier in Westminster.McDonnell also described business Secretary Sajid Javid as a ‘waste of space’ who was “passing through’ in the hope of higher things, reports David Hellier in Westminster.
McDonnell said:McDonnell said:
“He’s [Javid] told what’s needed and then completely ignores it.But there hasn’t been a single day when steel hasn’t been raised by us.’“He’s [Javid] told what’s needed and then completely ignores it.But there hasn’t been a single day when steel hasn’t been raised by us.’
“We’re up against it. They hold all the cards in their hands. But we have got to get them to do a u-turn - and I’m an expert in u-turns.”“We’re up against it. They hold all the cards in their hands. But we have got to get them to do a u-turn - and I’m an expert in u-turns.”
(McDonnell may still be bruised by his decision to first support, and then oppose, the government’s fiscal charter).(McDonnell may still be bruised by his decision to first support, and then oppose, the government’s fiscal charter).
Javid, incidentally, travelled to Brussels to call for an emergency EU meeting on the state of the steel industry and unfair trade practices. He will discuss international trading of steel with the EU’s trade commissioner, Cecilia Malmström, and meet other officials.Javid, incidentally, travelled to Brussels to call for an emergency EU meeting on the state of the steel industry and unfair trade practices. He will discuss international trading of steel with the EU’s trade commissioner, Cecilia Malmström, and meet other officials.
Updated at 11.41am GMTUpdated at 11.41am GMT
11.33am GMT11:3311.33am GMT11:33
Photos: Steelworkers urge parliament to helpPhotos: Steelworkers urge parliament to help
Steelworkers from across the UK are demonstrating outside parliament right now.Steelworkers from across the UK are demonstrating outside parliament right now.
They are urging the government to do more to protect the industry, which has announced thousands of job losses in recent weeks.They are urging the government to do more to protect the industry, which has announced thousands of job losses in recent weeks.
That includes the closure of the Redcar steel mill with the loss of 2,200 jobs, and 1,100 jobs at Tata Steel’s sites in Scunthorpe and Scotland.That includes the closure of the Redcar steel mill with the loss of 2,200 jobs, and 1,100 jobs at Tata Steel’s sites in Scunthorpe and Scotland.
The demonstration was organised by Unite, ahead of a debate on the steel crisis called by the opposition Labour party.The demonstration was organised by Unite, ahead of a debate on the steel crisis called by the opposition Labour party.
Unite assistant general secretary Tony Burke, says the government must provide more support before it’s too late.Unite assistant general secretary Tony Burke, says the government must provide more support before it’s too late.
“We have already seen the consequences of the government’s failure to act on Teesside.“We have already seen the consequences of the government’s failure to act on Teesside.
Instead of intervening to keep the coke ovens burning at Redcar, ministers sat on their hands and allowed a key industrial asset to close forever taking with it the livelihoods of thousands of people.Instead of intervening to keep the coke ovens burning at Redcar, ministers sat on their hands and allowed a key industrial asset to close forever taking with it the livelihoods of thousands of people.
“The approach by ministers so far has been to deal with the symptoms of the steel crisis, when what steel and manufacturing communities want is action that secures UK steelmaking and secures their futures.“How many more jobs need to go and how many more communities will be devastated before the government acts?“The approach by ministers so far has been to deal with the symptoms of the steel crisis, when what steel and manufacturing communities want is action that secures UK steelmaking and secures their futures.“How many more jobs need to go and how many more communities will be devastated before the government acts?
Updated at 11.34am GMTUpdated at 11.34am GMT
11.12am GMT11:1211.12am GMT11:12
Money is also pouring into Eurozone bonds this morning, as traders anticipate more stimulus measures from the European Central Bank soon:Money is also pouring into Eurozone bonds this morning, as traders anticipate more stimulus measures from the European Central Bank soon:
Italian 10-yr yield now 1.40%. Lowest since late April. Bunds +97bps. pic.twitter.com/eLTCeGIArOItalian 10-yr yield now 1.40%. Lowest since late April. Bunds +97bps. pic.twitter.com/eLTCeGIArO
11.10am GMT11:1011.10am GMT11:10
European markets rally as Sweden boosts QEEuropean markets rally as Sweden boosts QE
Across Europe, stock markets are rallying this morning as investors get the catnip smell of central bank stimulus.Across Europe, stock markets are rallying this morning as investors get the catnip smell of central bank stimulus.
The main indices are all in the green, and we can give the credit to Sweden’s central bank.The main indices are all in the green, and we can give the credit to Sweden’s central bank.
The Riksbank has announced it will ramp up its quantitative easing programme, and buy an extra 65bn krona of government bonds. That takes its QE total up to 200bn krona.The Riksbank has announced it will ramp up its quantitative easing programme, and buy an extra 65bn krona of government bonds. That takes its QE total up to 200bn krona.
It also left interest rates unchanged at the current record low of minus 0.35%.It also left interest rates unchanged at the current record low of minus 0.35%.
Ipek Ozkardeskaya, market analyst at London Capital Group, says traders are looking forward to even more cheap money flooding into the system:Ipek Ozkardeskaya, market analyst at London Capital Group, says traders are looking forward to even more cheap money flooding into the system:
The FTSE, [German] DAX and [French] CAC made a good start to the week as cheap liquidity will continue feed the market and the central banks are not ready to turn off the tap any time soon.The FTSE, [German] DAX and [French] CAC made a good start to the week as cheap liquidity will continue feed the market and the central banks are not ready to turn off the tap any time soon.
#Riksbank to splash out on its bond purchases, #Fed #BoJ https://t.co/QekLlPHhan#Riksbank to splash out on its bond purchases, #Fed #BoJ https://t.co/QekLlPHhan
Updated at 11.12am GMTUpdated at 11.12am GMT
10.09am GMT10:0910.09am GMT10:09
Alastair McCaig, Senior Market Analyst at IG, explains why VW’s shares have risen by 3% today:Alastair McCaig, Senior Market Analyst at IG, explains why VW’s shares have risen by 3% today:
Figures from Volkswagen, which cover the period since the emissions scandal broke, have resulted in the car giant posting their first quarterly loss in 15 years.Figures from Volkswagen, which cover the period since the emissions scandal broke, have resulted in the car giant posting their first quarterly loss in 15 years.
Being forward looking, investors have actually decided to focus on the positive aspects, with the shares rising so far this morning.Being forward looking, investors have actually decided to focus on the positive aspects, with the shares rising so far this morning.
Sales expectations for the year ahead are still quite robust, although the decision to suspend the launch of the latest diesel models in the Japanese market, a decision already taken in the US, does set a worrying precedent.Sales expectations for the year ahead are still quite robust, although the decision to suspend the launch of the latest diesel models in the Japanese market, a decision already taken in the US, does set a worrying precedent.
9.57am GMT09:579.57am GMT09:57
UK drivers demand answers from VolkswagenUK drivers demand answers from Volkswagen
I’ve just received a statement from UK legal firm Leigh Day, who are representing 6,500 Volkswagen owners seeking compensation from the company.I’ve just received a statement from UK legal firm Leigh Day, who are representing 6,500 Volkswagen owners seeking compensation from the company.
Bozena Michalowska Howells, lawyer at Leigh Day, says Volkswagen CEO Matthias Müller needs to give drivers more information about how the problem will be solved.Bozena Michalowska Howells, lawyer at Leigh Day, says Volkswagen CEO Matthias Müller needs to give drivers more information about how the problem will be solved.
She says:She says:
“We are nearly 6 weeks into this scandal and Volkswagen customers still do not know what is going to happen to their vehicles.“We are nearly 6 weeks into this scandal and Volkswagen customers still do not know what is going to happen to their vehicles.
“If Mr Mueller wishes to restore trust he could start by answering the specific questions we have asked him on behalf of UK drivers and start the process of setting up a compensation scheme.“If Mr Mueller wishes to restore trust he could start by answering the specific questions we have asked him on behalf of UK drivers and start the process of setting up a compensation scheme.
In our letter sent earlier this month we asked whether affected cars have valid EU type approval and what will Volkswagen be doing to compensate both owners of recently purchased vehicles, and secondhand vehicles.In our letter sent earlier this month we asked whether affected cars have valid EU type approval and what will Volkswagen be doing to compensate both owners of recently purchased vehicles, and secondhand vehicles.
We have yet to receive a response. It must be surely within his power to answer these simple questions.”We have yet to receive a response. It must be surely within his power to answer these simple questions.”
Updated at 10.10am GMTUpdated at 10.10am GMT
9.40am GMT09:409.40am GMT09:40
Sales at VW are already down compared with last year, even before customers have reacted to the news that it cheated emissions tests.Sales at VW are already down compared with last year, even before customers have reacted to the news that it cheated emissions tests.
The company sold 7.43 million vehicles between January and September, a 1.5% decline on 2014.The company sold 7.43 million vehicles between January and September, a 1.5% decline on 2014.
We can’t blame that on the diesel scandal, though - as it only broke in mid-September. Instead, VW appears to be suffering from the weakening emerging markets.We can’t blame that on the diesel scandal, though - as it only broke in mid-September. Instead, VW appears to be suffering from the weakening emerging markets.
Sales actually rose in Western Europe and the US, but suffered a “drastic decline” in South America and Eastern Europe.Sales actually rose in Western Europe and the US, but suffered a “drastic decline” in South America and Eastern Europe.
Updated at 9.42am GMTUpdated at 9.42am GMT
9.30am GMT09:309.30am GMT09:30
VW: We may face considerable financial costsVW: We may face considerable financial costs
VW has warned shareholders that it faces legal risks from the diesel emissions scandal that cannot be assessed at present”.VW has warned shareholders that it faces legal risks from the diesel emissions scandal that cannot be assessed at present”.
In today’s financial results, it cautions that:In today’s financial results, it cautions that:
The ongoing investigations mean that assessment of the circumstances is subject to estimation risk. In particular, considerable financial charges may be incurred as the legal risks crystallize.The ongoing investigations mean that assessment of the circumstances is subject to estimation risk. In particular, considerable financial charges may be incurred as the legal risks crystallize.
The €6.7bn charge set aside to cover the cost of recalling and fixing engines with cheat software is probably not be the end of the matter.....The €6.7bn charge set aside to cover the cost of recalling and fixing engines with cheat software is probably not be the end of the matter.....
9.16am GMT09:169.16am GMT09:16
Volkswagen has jumped to the top of the leaderboard on the Frankfurt stock exchange.Volkswagen has jumped to the top of the leaderboard on the Frankfurt stock exchange.
After initially plunging, shares rallied by 3% in volatile trading.After initially plunging, shares rallied by 3% in volatile trading.
Investors may be reassured that things aren’t even worse, even though VW posted a bigger loss that expected and warned that sales will be flat this year.Investors may be reassured that things aren’t even worse, even though VW posted a bigger loss that expected and warned that sales will be flat this year.
However, at €108 each, shares are still around 30% below their pre-crisis levels.However, at €108 each, shares are still around 30% below their pre-crisis levels.
#VW shares pop thanks to earnings (pic1) but the context in pic 2 shows patience required if looking for value. pic.twitter.com/68v2DMean7#VW shares pop thanks to earnings (pic1) but the context in pic 2 shows patience required if looking for value. pic.twitter.com/68v2DMean7
8.45am GMT08:458.45am GMT08:45
Porsche has warned that its profits will be lower than expected this year due to the emissions scandal.Porsche has warned that its profits will be lower than expected this year due to the emissions scandal.
. @Porsche also cuts FY profit forecast. @Porsche also cuts FY profit forecast
Porsche was acquired by Volkswagen in 2012, but still owns a 51% stake in VW (it’s complicated...) so is clearly exposed to the crisis in Wolfsburg.Porsche was acquired by Volkswagen in 2012, but still owns a 51% stake in VW (it’s complicated...) so is clearly exposed to the crisis in Wolfsburg.
Reuters has the details:Reuters has the details:
Porsche SE said on Wednesday it now expects to post a 2015 profit after tax of €0.8 to €1.8bn, mainly due to the third quarter earnings slump of Volkswagen.Porsche SE said on Wednesday it now expects to post a 2015 profit after tax of €0.8 to €1.8bn, mainly due to the third quarter earnings slump of Volkswagen.
“Porsche SE’s forecast is subject in particular to further findings in connection with the Diesel emissions issue,” the group said in a statement.“Porsche SE’s forecast is subject in particular to further findings in connection with the Diesel emissions issue,” the group said in a statement.
Updated at 8.56am GMTUpdated at 8.56am GMT
8.32am GMT08:328.32am GMT08:32
Here’s Volkswagen’s new chief, Matthias Müller, this morning’s €3.48bn loss:Here’s Volkswagen’s new chief, Matthias Müller, this morning’s €3.48bn loss:
“The figures show the core strength of the Volkswagen Group on the one hand, while on the other the initial impact of the current situation is becoming clear. We will do everything in our power to win back the trust we have lost.”“The figures show the core strength of the Volkswagen Group on the one hand, while on the other the initial impact of the current situation is becoming clear. We will do everything in our power to win back the trust we have lost.”
8.30am GMT08:308.30am GMT08:30
VW: Sales will be flat in 'challenging market'VW: Sales will be flat in 'challenging market'
More gloom -- VW has warned that it won’t achieve any sales growth this year.More gloom -- VW has warned that it won’t achieve any sales growth this year.
It says:It says:
The Volkswagen Group expects deliveries to customers in 2015 to remain on a level with the previous year in a persistently challenging market environment.The Volkswagen Group expects deliveries to customers in 2015 to remain on a level with the previous year in a persistently challenging market environment.
And it is also warning shareholders that operating profits will tumble this year:And it is also warning shareholders that operating profits will tumble this year:
Because of charges related to the irregularities in the software used for certain diesel engines, we expect 2015 operating profit for both the Group and the Passenger Cars Business Area to be down significantly year-on-year.Because of charges related to the irregularities in the software used for certain diesel engines, we expect 2015 operating profit for both the Group and the Passenger Cars Business Area to be down significantly year-on-year.
8.27am GMT08:278.27am GMT08:27
Even if you ignore the huge cost of the emissions scandal, VW’s profits are lower than a year ago.Even if you ignore the huge cost of the emissions scandal, VW’s profits are lower than a year ago.
Operating profits after special items came in at €3.206bn, lower than the €3.23bn in Q3 2014.Operating profits after special items came in at €3.206bn, lower than the €3.23bn in Q3 2014.
8.24am GMT08:248.24am GMT08:24
Volkswagen has set aside another €200m to cover the cost of the emissions scandal.Volkswagen has set aside another €200m to cover the cost of the emissions scandal.
Today’s results include ‘negative special items relating to diesel issue of €6.7bn”. It had previously announced a charge of €6.5bn.Today’s results include ‘negative special items relating to diesel issue of €6.7bn”. It had previously announced a charge of €6.5bn.
8.16am GMT08:168.16am GMT08:16
This is the first time in at least 15 years that VW has reported a quarterly loss, according to Reuters.This is the first time in at least 15 years that VW has reported a quarterly loss, according to Reuters.
Updated at 8.19am GMTUpdated at 8.19am GMT
8.09am GMT08:098.09am GMT08:09
VOLKSWAGEN REPORTS €3.48bn LOSSVOLKSWAGEN REPORTS €3.48bn LOSS
Breaking! Volkswagen has suffered a €3.48bn operating loss in the third quarter of 2015.Breaking! Volkswagen has suffered a €3.48bn operating loss in the third quarter of 2015.
As feared, the carmaker has been dragged into the red by the cost of the diesel emission scandal.As feared, the carmaker has been dragged into the red by the cost of the diesel emission scandal.
That’s even worse than the €3.26bn operational loss which analysts had expected (see opening post).That’s even worse than the €3.26bn operational loss which analysts had expected (see opening post).
The pain shows...@Volkswagen 3Q operating loss bigger than expected = Eu3.48bThe pain shows...@Volkswagen 3Q operating loss bigger than expected = Eu3.48b
That compares with a €3.23bn profit a year ago.That compares with a €3.23bn profit a year ago.
This is mainly cause by the charge for recalling and fixing 11 million vehicles worldwide.This is mainly cause by the charge for recalling and fixing 11 million vehicles worldwide.
And there’s more bad news -- VW has cut its profit forecast for for the full year to include the impact of the crisis.And there’s more bad news -- VW has cut its profit forecast for for the full year to include the impact of the crisis.
It admits that earnings before interest and tax would drop “significantly.”It admits that earnings before interest and tax would drop “significantly.”
More details to follow....More details to follow....
Updated at 10.00am GMTUpdated at 10.00am GMT
7.54am GMT07:547.54am GMT07:54
VW apologises (again) for emissions scandalVW apologises (again) for emissions scandal
Over in Tokyo, two top Volkswagen executives have said sorry for the emissions cheating scandal at the Tokyo Motor Show.Over in Tokyo, two top Volkswagen executives have said sorry for the emissions cheating scandal at the Tokyo Motor Show.
Associated Press has the details:Associated Press has the details:
Volkswagen’s new chief executive Herbert Diess apologized at the Tokyo auto show Wednesday for the automaker’s emissions-cheating scandal, promising to win back customer trust, and said it will delay the launch of a diesel vehicle in Japan.Volkswagen’s new chief executive Herbert Diess apologized at the Tokyo auto show Wednesday for the automaker’s emissions-cheating scandal, promising to win back customer trust, and said it will delay the launch of a diesel vehicle in Japan.
The head of VW’s Japan division Sven Stein, who appeared at the VW booth before Diess, bowed for several seconds in a Japanese style of apology. Diess made no bow.The head of VW’s Japan division Sven Stein, who appeared at the VW booth before Diess, bowed for several seconds in a Japanese style of apology. Diess made no bow.
“On behalf of my entire company, I’d like to apologize,” said Diess, a recent hire from BMW, stressing that the priority is to fix the problem, uncover what happened and make sure the scandal never happens again.“On behalf of my entire company, I’d like to apologize,” said Diess, a recent hire from BMW, stressing that the priority is to fix the problem, uncover what happened and make sure the scandal never happens again.
Diess added that VW will do everything possible to restore trust in the company.Diess added that VW will do everything possible to restore trust in the company.
And here’s Sven Stein’s apologetic bow:And here’s Sven Stein’s apologetic bow:
Updated at 7.59am GMTUpdated at 7.59am GMT
7.49am GMT07:497.49am GMT07:49
Will it never end? Lloyds Banking Group has set aside another £500m to cover the cost of mis-selling payment protection insurance to its customers.Will it never end? Lloyds Banking Group has set aside another £500m to cover the cost of mis-selling payment protection insurance to its customers.
That takes Lloyds’ total PPI bill to around £13.9bn (!).That takes Lloyds’ total PPI bill to around £13.9bn (!).
Updated at 7.49am GMTUpdated at 7.49am GMT
7.44am GMT07:447.44am GMT07:44
Volkswagen’s new CEO is also heading to China this week, as part of Angela Merkel’s trade delegation.Volkswagen’s new CEO is also heading to China this week, as part of Angela Merkel’s trade delegation.
Cars make up around a third of Germany’s exports to China, so Matthias Müller’s presence is an important signal to Beijing.Cars make up around a third of Germany’s exports to China, so Matthias Müller’s presence is an important signal to Beijing.
The visit comes at a crucial time for Germany, given concerns that the global economy is slowing down and hurting its manufacturing sector.The visit comes at a crucial time for Germany, given concerns that the global economy is slowing down and hurting its manufacturing sector.
Merkel is also expected to seek an update on the diesel scandal from Müller during the trip.Merkel is also expected to seek an update on the diesel scandal from Müller during the trip.
Related: VW chief to accompany Angela Merkel on trade visit to ChinaRelated: VW chief to accompany Angela Merkel on trade visit to China
7.39am GMT07:397.39am GMT07:39
Jes Staley says it’s “an honour” to become Barclays new CEO, and has pledged to improve its reputation:Jes Staley says it’s “an honour” to become Barclays new CEO, and has pledged to improve its reputation:
"We will be committed to preserving and enhancing the trust that is the foundation of Barclays’ reputation" says Staley"We will be committed to preserving and enhancing the trust that is the foundation of Barclays’ reputation" says Staley
He can also look forward to a fantastic pay package, if he gets the job right.He can also look forward to a fantastic pay package, if he gets the job right.
Staley's pay: £10.1m if all bonuses achieved, including a £2m buy-out from JP MorganStaley's pay: £10.1m if all bonuses achieved, including a £2m buy-out from JP Morgan
Updated at 7.41am GMTUpdated at 7.41am GMT
7.35am GMT07:357.35am GMT07:35
Barclays names Jes Staley as new CEOBarclays names Jes Staley as new CEO
Barclays has a new chief executive.Barclays has a new chief executive.
The bank has just announced the appointment of Jes Staley, an American investment banker with a long career on Wall Street, to fill the top job.The bank has just announced the appointment of Jes Staley, an American investment banker with a long career on Wall Street, to fill the top job.
Staley’s appointment isn’t a shock - he’d been rumoured to be the top candidate. By choosing him, Barclays appears to be rediscovering its love for investment banking:Staley’s appointment isn’t a shock - he’d been rumoured to be the top candidate. By choosing him, Barclays appears to be rediscovering its love for investment banking:
Our City editor Jill Treanor explains:Our City editor Jill Treanor explains:
The veteran investment banker spent more than 30 years at US bank JP Morgan before leaving in 2013 to join BlueMountain hedge fund.The veteran investment banker spent more than 30 years at US bank JP Morgan before leaving in 2013 to join BlueMountain hedge fund.
Staley replaces Antony Jenkins, who was ousted in July after three years attempting to restore Barclays’ fortunes after the Libor rigging crisis.Staley replaces Antony Jenkins, who was ousted in July after three years attempting to restore Barclays’ fortunes after the Libor rigging crisis.
Related: Barclays appoints Jes Staley as new chief executiveRelated: Barclays appoints Jes Staley as new chief executive
And here’s a profile of Staley, including some fascinating detail from his brother:And here’s a profile of Staley, including some fascinating detail from his brother:
Related: Jes Staley: who is the man tapped to be Barclays' next chief executive?Related: Jes Staley: who is the man tapped to be Barclays' next chief executive?
Updated at 7.37am GMTUpdated at 7.37am GMT
7.13am GMT07:137.13am GMT07:13
The Agenda: VW expected to post big loss todayThe Agenda: VW expected to post big loss 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.
How much financial trouble is Volkswagen in? We’ll get an insight this morning, when the troubled German carmaker releases financial results for the last quarter.How much financial trouble is Volkswagen in? We’ll get an insight this morning, when the troubled German carmaker releases financial results for the last quarter.
And it could be a historic moment, for all the wrong reasons. VW is expected to announce its first quarterly loss in 15 years, due to the diesel emissions scandal.And it could be a historic moment, for all the wrong reasons. VW is expected to announce its first quarterly loss in 15 years, due to the diesel emissions scandal.
According to 10 estimates compiled by Bloomberg, VW is expected to announce an operational loss of €3.26bn for the third quarter of 2015 -- a sharp reversal on the €3.23bn profit achieved a year ago.According to 10 estimates compiled by Bloomberg, VW is expected to announce an operational loss of €3.26bn for the third quarter of 2015 -- a sharp reversal on the €3.23bn profit achieved a year ago.
That’s due to the cost of cleaning up the scandal, with VW already committed to taking a €6.5bn charge to cover the cost of recalling 11 million vehicles which contain software to cheat emission tests.That’s due to the cost of cleaning up the scandal, with VW already committed to taking a €6.5bn charge to cover the cost of recalling 11 million vehicles which contain software to cheat emission tests.
And as the Wall Street Journal explains, VW faces a tough ride ahead:And as the Wall Street Journal explains, VW faces a tough ride ahead:
At a recent gathering of the company’s top echelon of executives at the Porsche plant in Leipzig, Germany, Volkswagen chief executive Matthias Müller said the company has to go through a rough patch before profit returns to precrisis levels.At a recent gathering of the company’s top echelon of executives at the Porsche plant in Leipzig, Germany, Volkswagen chief executive Matthias Müller said the company has to go through a rough patch before profit returns to precrisis levels.
“We have good prospects to shine again in two to three years,” he said.“We have good prospects to shine again in two to three years,” he said.
Investors will want more details, given the slump in VW’s share price since the scandal broke:Investors will want more details, given the slump in VW’s share price since the scandal broke:
Before his trip to China w/ Merkel, VW CEO faces investors as 1st loss in >15yrs looms. https://t.co/ghRh4VCzdd pic.twitter.com/CdSe74Hw2fBefore his trip to China w/ Merkel, VW CEO faces investors as 1st loss in >15yrs looms. https://t.co/ghRh4VCzdd pic.twitter.com/CdSe74Hw2f
Also coming up today....Also coming up today....
The City will watching financial results from Lloyds, as the UK banking season kicks off.The City will watching financial results from Lloyds, as the UK banking season kicks off.
We’ll have an eye on China, as German chancellor Angela Merkel heads to Beijing for a two-day trade mission.....We’ll have an eye on China, as German chancellor Angela Merkel heads to Beijing for a two-day trade mission.....
....and another eye on Brussels, as business secretary, Sajid Javid, travels to Brussels for high level talks with senior EU commissioners over the UK steel crisis.....and another eye on Brussels, as business secretary, Sajid Javid, travels to Brussels for high level talks with senior EU commissioners over the UK steel crisis.
And over in America, the Federal Reserve will conclude its two-day policy meeting (at 6pm GMT).And over in America, the Federal Reserve will conclude its two-day policy meeting (at 6pm GMT).
Investors don’t expect the Fed to raise interest rates today, given recent weak economic data. Also, there’s no press conference scheduled (although Janet Yellen could call an impromptu one if needed).Investors don’t expect the Fed to raise interest rates today, given recent weak economic data. Also, there’s no press conference scheduled (although Janet Yellen could call an impromptu one if needed).
We’ll be tracking all the main events through the day....We’ll be tracking all the main events through the day....
Updated at 8.04am GMTUpdated at 8.04am GMT