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Federal Reserve is 'closely monitoring' global economy as it leaves rates on hold - business live Federal Reserve is 'closely monitoring' global economy as it leaves rates on hold - business live
(35 minutes later)
7.36pm GMT
19:36
Fed decision: instant reaction
Matthew Boesler of Bloomberg says the Fed is taking the recent stock market losses seriously, without panicking.
Clear comment from the FOMC on financial markets without going so far as it did in Sept. to suggest that economic outlook is in jeopardy
Brett House, chief economist of US investment management firm Alignvest, reckons the Fed won’t raise rates four times this year (as it had been expecting).
Mildly dovish #Fed #FOMC statement knocks out 4th 2016 rate hike; equivocates on graduals hikes vs global developments. Mkts go sideways.
Financial commentator Bobi Petrov reckons rates will remain on hold at the Fed’s next meeting, in early March.
FOMC signals no imminent change in FF rates in March closely monitors global economic and financial developments
Updated
at 7.37pm GMT
7.31pm GMT
19:31
The Fed also doesn’t see inflation roaring away this year - hardly surprising, given the oil price tumble.
Tonight’s statement says:
Inflation is expected to remain low in the near term, in part because of the further declines in energy prices, but to rise to 2 percent over the medium term as the transitory effects of declines in energy and import prices dissipate and the labor market strengthens further
7.28pm GMT
19:28
This is a useful tool, showing some of the changes to this month’s statement:
How exactly the Federal Reserve's January statement changed from December https://t.co/W3S7hz9wAK pic.twitter.com/NHdUQOVP6B
Note how jobs growth is now “strong” after this month’s blowout non-farm payroll report showed 292,000 new hirings in December.
7.22pm GMT
19:22
Stock market falls after Fed decision
Stocks are falling on Wall Street as traders digest tonight’s statement.
Not immediately clear why - but investors may be concerned that the Fed has dropped that line about economic risks being balanced.
#DOW drops 144 points in a minute following Fed's decision to keep rates unch. Unknown reason. Earlier gains wiped out. #FED JG
Dow slides nearly 130 points again, other indexes also gyrating after Fed decision https://t.co/FOojOlLKR6 pic.twitter.com/JJOeKfAbj5
One notable element of the new Fed statement -- it no longer says risks to the economy are balanced https://t.co/Zkh3znDzHQ
7.18pm GMT
19:18
There’s a significant change between this statement and December’s one. The Fed has dropped the line saying that the risks to economic activity and the labour market are “balanced”.
That suggests the Fed thinks the situation has become unbalanced....
With #Fed omitting line in statement about risks being 'balanced' regarding outlook, turns into a fairly dovish (but expected) #FOMC
7.15pm GMT
19:15
You can read the statement online, here.
7.15pm GMT
19:15
The Fed is also sticking to its view that interest rates will only rise gradually, meaning borrowing costs will remain below the long-term average for some time.
But it all depends on the data.....
However, the actual path of the federal funds rate will depend on the economic outlook as informed by incoming data.
7.14pm GMT
19:14
The decision was unanimous -- all 10 members of the Federal Reserve Open Market Committee agreed to leave borrowing costs unchanged. Again, that’s not a surprise.
7.11pm GMT
19:11
The US central bank also reckons that the American economy is continuing to heal.
The statement says:
Household spending and business fixed investment have been increasing at moderate rates in recent months, and the housing sector has improved further; however, net exports have been soft and inventory investment slowed.
A range of recent labor market indicators, including strong job gains, points to some additional decline in underutilization of labor resources
7.04pm GMT7.04pm GMT
19:0419:04
Fed is watching global economy and markets closely
The Federal Reserve says it is keeping a close eye on the global economy, and financial markets.The Federal Reserve says it is keeping a close eye on the global economy, and financial markets.
In tonight’s statement, is says:In tonight’s statement, is says:
The Committee is closely monitoring global economic and financial developments and is assessing their implications for the labor market and inflation, and for the balance of risks to the outlook.The Committee is closely monitoring global economic and financial developments and is assessing their implications for the labor market and inflation, and for the balance of risks to the outlook.
That means the Fed is considering the impact on recent market turmoil, and the fall in the oil price, on the US economy and the path of inflation.That means the Fed is considering the impact on recent market turmoil, and the fall in the oil price, on the US economy and the path of inflation.
Updated
at 7.10pm GMT
7.00pm GMT7.00pm GMT
19:0019:00
Federal Reserve leaves interest rates unchangedFederal Reserve leaves interest rates unchanged
In the least surprising news of 2016, the US central bank has left borrowing costs unchanged.In the least surprising news of 2016, the US central bank has left borrowing costs unchanged.
The policy rate remains at 0.25% to 0.5%.The policy rate remains at 0.25% to 0.5%.
US Fed: Keeps Fed Funds Range Unchanged At 0.25-0.50%US Fed: Keeps Fed Funds Range Unchanged At 0.25-0.50%
6.58pm GMT6.58pm GMT
18:5818:58
OK, it’s nearly time for the Federal Reserve to announce this month’s monetary policy decision.OK, it’s nearly time for the Federal Reserve to announce this month’s monetary policy decision.
Remember, it’s all about the Fed’s statement - Wall Street is certain that Janet Yellen isn’t going to raise interest rates again.....Remember, it’s all about the Fed’s statement - Wall Street is certain that Janet Yellen isn’t going to raise interest rates again.....
Markets price zero probability for #Fed rate hike today, only 27% probability for March hike. pic.twitter.com/PP2neJ0IZcMarkets price zero probability for #Fed rate hike today, only 27% probability for March hike. pic.twitter.com/PP2neJ0IZc
5.41pm GMT5.41pm GMT
17:4117:41
The FOMC projected 100 bps (4 quarter percent hikes) in 2015. Swaps show market pricing in 1: pic.twitter.com/XQjugbfsYUThe FOMC projected 100 bps (4 quarter percent hikes) in 2015. Swaps show market pricing in 1: pic.twitter.com/XQjugbfsYU
5.34pm GMT5.34pm GMT
17:3417:34
European markets close higherEuropean markets close higher
Ahead of the Federal Reserve’s interest rate setting meeting, and following a rise in the oil price, European shares have ended the day on a positive note.Ahead of the Federal Reserve’s interest rate setting meeting, and following a rise in the oil price, European shares have ended the day on a positive note.
With hopes of co-operation between oil producers - notable Opec and Russia - to tackle the issue of oversupply, Brent crude has jumped 3.6% to $32.96. The rise comes despite a jump in US crude inventories. The closing scores showed:With hopes of co-operation between oil producers - notable Opec and Russia - to tackle the issue of oversupply, Brent crude has jumped 3.6% to $32.96. The rise comes despite a jump in US crude inventories. The closing scores showed:
On Wall Street, the Dow Jones Industrial Average is currently 34 points or 0.22% higher.On Wall Street, the Dow Jones Industrial Average is currently 34 points or 0.22% higher.
5.02pm GMT5.02pm GMT
17:0217:02
Another reason for the day’s strength in the oil price: Russia has said it discussed co-operation with Opec over crude prices. Reuters reports:Another reason for the day’s strength in the oil price: Russia has said it discussed co-operation with Opec over crude prices. Reuters reports:
Russia’s energy ministry said possible coordination between Russia and the Organization of Petroleum Exporting Countries (OPEC) was discussed at a meeting with Russian oil companies on Wednesday.Russia’s energy ministry said possible coordination between Russia and the Organization of Petroleum Exporting Countries (OPEC) was discussed at a meeting with Russian oil companies on Wednesday.
The ministry said the discussion was related to unfavourable oil prices.The ministry said the discussion was related to unfavourable oil prices.
There is also talk of an emergency Opec meeting in February.There is also talk of an emergency Opec meeting in February.
UpdatedUpdated
at 5.11pm GMTat 5.11pm GMT
4.49pm GMT4.49pm GMT
16:4916:49
Despite its share price fall, Apple is still top of the pile in value terms:Despite its share price fall, Apple is still top of the pile in value terms:
Despite 5.2% slide in $AAPL today, it remains the world's most valuable company with a $525,600,000,000 market cap. pic.twitter.com/2piOKrtpmCDespite 5.2% slide in $AAPL today, it remains the world's most valuable company with a $525,600,000,000 market cap. pic.twitter.com/2piOKrtpmC
4.33pm GMT4.33pm GMT
16:3316:33
Markets are moving higher on the back of the improvement in the oil price. Tony Cross, market analyst at Trustnet Direct said:Markets are moving higher on the back of the improvement in the oil price. Tony Cross, market analyst at Trustnet Direct said:
The threat of the early sell-off for oil prices this morning failed to materialise with crude bouncing above the $30 mark and this has in turn lent a raft of support to equity markets on both sides of the Atlantic. Even what could at best be described as a mixed bag in terms of US oil inventory data has failed to knock sentiment so London’s FTSE-100 is rounding off the day – where we tested highs not seen for two weeks – with a bullish tone. Next up however it’s the latest Federal Reserve Open Market Committee meeting and anything that is interpreted as being overly hawkish here could readily unseat equity markets globally that are still clearly rattled by recent events.The threat of the early sell-off for oil prices this morning failed to materialise with crude bouncing above the $30 mark and this has in turn lent a raft of support to equity markets on both sides of the Atlantic. Even what could at best be described as a mixed bag in terms of US oil inventory data has failed to knock sentiment so London’s FTSE-100 is rounding off the day – where we tested highs not seen for two weeks – with a bullish tone. Next up however it’s the latest Federal Reserve Open Market Committee meeting and anything that is interpreted as being overly hawkish here could readily unseat equity markets globally that are still clearly rattled by recent events.
4.27pm GMT4.27pm GMT
16:2716:27
US crude stocks rise to new highUS crude stocks rise to new high
Elsewhere, US crude stocks rose to their highest level on record - ie back to 1930 - last week while gasoline stocks increased but inventories of distillates fell.Elsewhere, US crude stocks rose to their highest level on record - ie back to 1930 - last week while gasoline stocks increased but inventories of distillates fell.
The figure for distillates, which include heating oil, follows the cold front hitting the country in the past few days. Distillate inventories fell by 4.1m barrels compared to expectations of a near 2m fall.The figure for distillates, which include heating oil, follows the cold front hitting the country in the past few days. Distillate inventories fell by 4.1m barrels compared to expectations of a near 2m fall.
But crude stocks climbed by 8.4m barrels last week, well above expectations of a 3.3m increase, to 494.9m, the highest level since the Energy Information Administration began compiling records.But crude stocks climbed by 8.4m barrels last week, well above expectations of a 3.3m increase, to 494.9m, the highest level since the Energy Information Administration began compiling records.
Refinery crude runs fell by 551,000 barrels a day.Refinery crude runs fell by 551,000 barrels a day.
Gasoline stocks climbed by 3.5m barrels compared to forecsats of a 1.5m increase.Gasoline stocks climbed by 3.5m barrels compared to forecsats of a 1.5m increase.
But despite the rises, Brent crude is up 0.79% at $32.05 a barrel. Joshua Mahony, market analyst at IG, said:But despite the rises, Brent crude is up 0.79% at $32.05 a barrel. Joshua Mahony, market analyst at IG, said:
US crude oil inventories rose by the highest level since April 2015 last week, pushing overall oil in storage to near levels not seen in 80 years for this time of year.US crude oil inventories rose by the highest level since April 2015 last week, pushing overall oil in storage to near levels not seen in 80 years for this time of year.
Crucially, we did see domestic production fall ever so slightly. This distinction highlights the reaction in global trade, which has seen oil prices rise off the back of seemingly bearish headline data. With sentiment driven by record output from Iraq and Russia, alongside the entry of Iran on the mainstream oil market, any news that US output is starting to turn lower is certainly welcome for oil bulls.Crucially, we did see domestic production fall ever so slightly. This distinction highlights the reaction in global trade, which has seen oil prices rise off the back of seemingly bearish headline data. With sentiment driven by record output from Iraq and Russia, alongside the entry of Iran on the mainstream oil market, any news that US output is starting to turn lower is certainly welcome for oil bulls.
3.46pm GMT3.46pm GMT
15:4615:46
Here’s our take on the libor verdicts:Here’s our take on the libor verdicts:
Related: Five brokers found not guilty of Libor riggingRelated: Five brokers found not guilty of Libor rigging
3.33pm GMT3.33pm GMT
15:3315:33
Five of the six brokers were acquitted of conspiring to rig Libor, reports Reuters.Five of the six brokers were acquitted of conspiring to rig Libor, reports Reuters.
The jury also reached a not guilty verdict on one count of conspiracy to defraud for former Icap broker Darrell Read, said Reuters, but it has yet to reach a verdict on a second count. The judge has asked the jury to reach a majority verdict.The jury also reached a not guilty verdict on one count of conspiracy to defraud for former Icap broker Darrell Read, said Reuters, but it has yet to reach a verdict on a second count. The judge has asked the jury to reach a majority verdict.
3.24pm GMT3.24pm GMT
15:2415:24
The six brokers on trial were Darrell Read, Danny Wilkinson and Colin Goodman from Icap, Noel Cryan from Tullett Prebon, and Jim Gilmour and Terry Farr from RP Martin.The six brokers on trial were Darrell Read, Danny Wilkinson and Colin Goodman from Icap, Noel Cryan from Tullett Prebon, and Jim Gilmour and Terry Farr from RP Martin.
3.12pm GMT3.12pm GMT
15:1215:12
Libor brokers acquitted on fraud chargesLibor brokers acquitted on fraud charges
Five out of six brokers accused of manipulating libor bank rates have been acquitted of fraud at Southwark crown court.Five out of six brokers accused of manipulating libor bank rates have been acquitted of fraud at Southwark crown court.
A jury is still discussing one count against one of them, but the others have been freed.A jury is still discussing one count against one of them, but the others have been freed.
The six were accused of conspiring with Tom Hayes and others in a trial brought by the Serious Fraud Office which has lasted 15 weeks. But a jury took just a day to acquit them.The six were accused of conspiring with Tom Hayes and others in a trial brought by the Serious Fraud Office which has lasted 15 weeks. But a jury took just a day to acquit them.
Breaking: #Libor brokers acquitted on fraud charges. Huge loss for Serious Fraud Office. https://t.co/tvUhVfdn8HBreaking: #Libor brokers acquitted on fraud charges. Huge loss for Serious Fraud Office. https://t.co/tvUhVfdn8H
Jury still discussing one count against Darrell Read. All others unanimously freed.Jury still discussing one count against Darrell Read. All others unanimously freed.
UpdatedUpdated
at 3.43pm GMTat 3.43pm GMT
2.52pm GMT2.52pm GMT
14:5214:52
The Federal Reserve is holding its first meeting since December’s now-contentious decision to raise interest rates for the first time in nearly a decade.The Federal Reserve is holding its first meeting since December’s now-contentious decision to raise interest rates for the first time in nearly a decade.
The subsequent market turmoil, focused on a slowdown in China and the tumbling oil price, has made many wonder whether the Fed was a bit premature in pulling the rate trigger.The subsequent market turmoil, focused on a slowdown in China and the tumbling oil price, has made many wonder whether the Fed was a bit premature in pulling the rate trigger.
The Fed is highly unlikely to change rates at this meeting, and there is no press conference for Fed chair Janet Yellen to be quizzed about her thoughts on the aftermath of last month’s move. So the statement accompanying the rate decision is likely to be scrutinised for clues as to the Fed’s latest thinking.The Fed is highly unlikely to change rates at this meeting, and there is no press conference for Fed chair Janet Yellen to be quizzed about her thoughts on the aftermath of last month’s move. So the statement accompanying the rate decision is likely to be scrutinised for clues as to the Fed’s latest thinking.
It must surely acknowledge the market slump and fears of a global downturn which have increased since December, and may even hint that it no longer expects three or four more rate rises this year. The wording of its comments on the current state of the global economy will be key, but analysts are divided on what the Fed’s tone will be.It must surely acknowledge the market slump and fears of a global downturn which have increased since December, and may even hint that it no longer expects three or four more rate rises this year. The wording of its comments on the current state of the global economy will be key, but analysts are divided on what the Fed’s tone will be.
Simon Smith, chief economist at FXPro said:Simon Smith, chief economist at FXPro said:
All eyes will be back on the Federal Reserve today as they make their first interest rate decision and monetary policy statement of the year but there are no economic projections or press conference this time round, which come at the next meeting in March. We’ve seen a rise in risk appetite in this final week of January which so far has been a bit of a blood bath, although the recovery from lows in many indices has softened the blow for many investors. This has come as a result of a bounce in oil prices but also a growing expectation that central banks will have to do more to support the global economy.All eyes will be back on the Federal Reserve today as they make their first interest rate decision and monetary policy statement of the year but there are no economic projections or press conference this time round, which come at the next meeting in March. We’ve seen a rise in risk appetite in this final week of January which so far has been a bit of a blood bath, although the recovery from lows in many indices has softened the blow for many investors. This has come as a result of a bounce in oil prices but also a growing expectation that central banks will have to do more to support the global economy.
Today’s Fed meeting as a result is likely to see a more dovish tone to it, especially since the market consensus is that we will see fewer rate hikes this year than the Fed is currently pencilling in.Today’s Fed meeting as a result is likely to see a more dovish tone to it, especially since the market consensus is that we will see fewer rate hikes this year than the Fed is currently pencilling in.
Even though we saw a higher than expected rise in US consumer confidence yesterday a big warning shot has come from one of the world’s largest companies Apple which saw its first fall in revenue since 2003.Even though we saw a higher than expected rise in US consumer confidence yesterday a big warning shot has come from one of the world’s largest companies Apple which saw its first fall in revenue since 2003.
But lya Spivak, currency strategist at DailyFX, said:But lya Spivak, currency strategist at DailyFX, said:
The rate-setting FOMC committee is broadly expected to keep the benchmark lending rate unchanged this time around. Indeed, priced-in probability of an increase is a mere 14.3%. This puts the spotlight on the text of the statement accompanying the rate decision and the forward guidance contained therein.The rate-setting FOMC committee is broadly expected to keep the benchmark lending rate unchanged this time around. Indeed, priced-in probability of an increase is a mere 14.3%. This puts the spotlight on the text of the statement accompanying the rate decision and the forward guidance contained therein.
Investors appear positioned for a dovish outcome having scaled back 2016 tightening bets amid risk aversion since the beginning of the year...Investors appear positioned for a dovish outcome having scaled back 2016 tightening bets amid risk aversion since the beginning of the year...
For its part, the Fed will have to attempt a difficult balancing act. On one hand, it will have to acknowledge recent market turmoil as well as softening US growth dynamics in the final months of 2015. On the other, it will have to re-focus investors’ attention on mandate-relevant fundamentals and establish the possibility of tightening in March. This is necessary so that such a move, if deemed appropriate, does not trigger an overly violent response.For its part, the Fed will have to attempt a difficult balancing act. On one hand, it will have to acknowledge recent market turmoil as well as softening US growth dynamics in the final months of 2015. On the other, it will have to re-focus investors’ attention on mandate-relevant fundamentals and establish the possibility of tightening in March. This is necessary so that such a move, if deemed appropriate, does not trigger an overly violent response.
On balance, the case for policy normalization remains compelling. Realized and expected inflation is firming: the latest readings on core year-on-year CPI and hourly earnings growth registered at multi-year highs while 2-3 year breakeven rates have trended upward since August. On the jobs front, the unemployment rate is at the lowest level since 2008 and nonfarm payrolls growth is running at a reasonably brisk pace, with the 12-month trend average at 220k.On balance, the case for policy normalization remains compelling. Realized and expected inflation is firming: the latest readings on core year-on-year CPI and hourly earnings growth registered at multi-year highs while 2-3 year breakeven rates have trended upward since August. On the jobs front, the unemployment rate is at the lowest level since 2008 and nonfarm payrolls growth is running at a reasonably brisk pace, with the 12-month trend average at 220k.
This means that the Fed statement will have to reassure investors that it will adjust policy if market stress infects the real economy. In the same breath, it will have to explain that as of now, the projected rate hike path has not materially changed since the first post-QE rate hike in December.This means that the Fed statement will have to reassure investors that it will adjust policy if market stress infects the real economy. In the same breath, it will have to explain that as of now, the projected rate hike path has not materially changed since the first post-QE rate hike in December.
The markets’ subsequent reaction will depend on the degree of wishful thinking that traders are prepared to entertain. If they emphasize the first point – a possible result considering the dovish shift in expectations in spite of the aforementioned fundamental evidence – risk appetite is likely to strengthen. This will see the stocks rising alongside sentiment-geared currencies like the Australian and New Zealand Dollars while the greenback as well as the anti-risk Euro and Yen decline. A focus on the second point will probably deliver the opposite result.The markets’ subsequent reaction will depend on the degree of wishful thinking that traders are prepared to entertain. If they emphasize the first point – a possible result considering the dovish shift in expectations in spite of the aforementioned fundamental evidence – risk appetite is likely to strengthen. This will see the stocks rising alongside sentiment-geared currencies like the Australian and New Zealand Dollars while the greenback as well as the anti-risk Euro and Yen decline. A focus on the second point will probably deliver the opposite result.
2.36pm GMT2.36pm GMT
14:3614:36
Wall Street opens lowerWall Street opens lower
As investors await the latest US oil inventory figures and the outcome of this month’s Federal Reserve meeting, Wall Street is on the slide again.As investors await the latest US oil inventory figures and the outcome of this month’s Federal Reserve meeting, Wall Street is on the slide again.
In early trading the Dow Jones Industrial Average has fallen 113 points or 0.7%, partly due to Apple which is down 3.8% at $96.24 following its disappointing figures.In early trading the Dow Jones Industrial Average has fallen 113 points or 0.7%, partly due to Apple which is down 3.8% at $96.24 following its disappointing figures.
2.22pm GMT2.22pm GMT
14:2214:22
Ahead of the start of US trading, here are some opening calls:Ahead of the start of US trading, here are some opening calls:
US Pre-market movers: $CAPN +34.9% $RPTP +12.1% $BIIB +5.4% $SUNE +4.9% $TEX +3.2% $BBBY -2.9% $AAPL -3.1% $FCAU -5% $BA -6.7% $X -7.7%US Pre-market movers: $CAPN +34.9% $RPTP +12.1% $BIIB +5.4% $SUNE +4.9% $TEX +3.2% $BBBY -2.9% $AAPL -3.1% $FCAU -5% $BA -6.7% $X -7.7%
Note Apple is quoted as falling more than 3%.Note Apple is quoted as falling more than 3%.
2.11pm GMT
14:11
Oil has come back from its worst levels of the day, on renewed hopes that Opec and other producers such as Russia would act to stem the supply glut which has hit prices.
Brent crude is now down 0.8% at $31.52 a barrel having fallen to $30.83 earlier. But US inventory figures due later will undoubtedly have an impact on the price, not to mention the Federal Reserve rate setting meeting and any effect the US central bank’s comments have on the dollar.
Meanwhile the recovery in crude has helped support stock markets. Both the FTSE 100 and Germany’s Dax are marginally in positive territory after earlier falls, while France’s Cac is only narrowly down.
US futures are showing a 57 point decline on the Dow Jones Industrial Average after Tuesday’s 282 point surge.
Apple’s shares will of course be in focus after its disappointing update.
1.41pm GMT
13:41
Ben van Beurden is upbeat about today’s vote, despite the small revolt.
Shell’s CEO says:
“I am delighted with the positive shareholder vote and the confidence that shareholders have shown in the strategic logic of the combination of Shell and BG.
Our immediate focus is on the successful completion of the transaction and we now await the results of tomorrow’s BG shareholder vote.
Assuming BG’s shareholders approve the deal (they will), Shell will become the world’s biggest liquefied natural gas (LNG) trader.
12.53pm GMT
12:53
It’s worth reiterating that 17% of Shell shareholders opposed the BG merger at today’s vote.
That suggests that some big City investors have reservations about the deal, despite Shell chief Ben van Beurden’s best efforts to persuade them of its merits.
Standard Life was the only large investor to go public - their head of equities, David Cumming, reckoned the deal only made sense when oil was over $60 per barrel, not $30ish.
But Standard Life owned less than 2% of the company, so others have clearly found the deal too risky.
Our financial editor, Nils Pratley, reminds me that even Royal Bank of Scotland’s disastrous merger with ABN Amro in October 2007 got the support of 99% of shareholders (who then suffered huge losses). So a 17% revolt may sting, a little.
Updated
at 12.53pm GMT
12.41pm GMT
12:41
Thousands of workers at Shell and BG now face the axe, once the merger goes through.
Shell announced last month that it will cut around 2,800 positions, or some 3% of the combined company.
Related: Shell to shed further 2,800 jobs after BG takeover
12.28pm GMT
12:28
Shell shareholders approve BG deal
Newsflash from The Hague - Royal Dutch Shell shareholders have just voted in favour of its £35bn merger with rival oil firm BG.
That’s despite pressure from some shareholders to renegotiate the tie-up, which was negotiated before the oil price slumped to just $30 per barrel.
During the meeting, Shell chief executive Ben van Beurden told the meeting that the deal would be a “springboard to simplify Shell”, the Evening Standard reports.
Van Beurden also argued that a merger still made sense despite the cheaper oil price.
The deal was approved by 83% of shareholders, with 17% opposing the plan.
BG investors give their verdict tomorrow, but there’s little chance that they will block the deal.
Updated
at 1.59pm GMT
12.23pm GMT
12:23
RBS is helping to drag the London stock market down into the red today.
As traders scoff a quick sandwich (or three courses at Gaucho), the FTSE 100 is down 22 points at 5888.
RBS are the second biggest faller, down 3.8% at 251p. The only biggest faller is Anglo American, the mining company, which has shed 5.2%. Other miners are also in the red, reflecting ongoing concerns over global growth.
Other European markets are also in the red, as investors wait to hear from the US Federal Reserve at 7pm GMT (when it will surely leave interest rates unchanged).
12.02pm GMT
12:02
Here’s more reaction to RBS’s latest financial woes, via Press Association:
Russ Mould, investment director at AJ Bell, said:
“It’s another bitter pill, but putting legacy issues behind it is essential if Chancellor George Osborne is going to off-load the Government’s stake during this parliament.”
But banking analyst Gary Greenwood, at Shore Capital, said that, while “disappointing”, the latest financial charges are not unexpected.
11.42am GMT
11:42
Over in America, traders are expecting Apple’s share price to slide after it warned that revenue will fall this quarter, for the first time in 13 years.
Apple set to open 3.5% lower. HT: @sunchartist pic.twitter.com/XLGH8YhlZe
Market caps of huge companies. Will Google soon overtake Apple? pic.twitter.com/SoWrGyC9RX
11.11am GMT
11:11
RBS isn’t the only bank counting the cost of the PPI scandal today.
Santander, the Spanish financial giant, has announced it is setting aside another £450m to cover compensation to customers who were missold Payment Protection Insuranace.
The move will dent profits at Santander UK.
It could be the bank’s final bill for the scandal, but we won’t know for sure until the deadline for PPI claims in 2018.
Related: Santander sets aside another £450m as PPI still haunts UK banks
Updated
at 11.14am GMT
10.48am GMT
10:48
A wave of ‘challenger banks’ have sprung up since the financial crisis, hoping to win business from scandal-splattered big players such as Royal Bank of Scotland.
And one of them, Metro Bank, has announced plans to float on the stock market. Metro, which is losing around £10m per quarter, wants to raise £500m from shareholders.
Related: Metro Bank to pursue stock market listing in February
Random fact: Metro encourages dogs into its branches, and even lays on water bowls and doggie toys. If only bankers had spent more time doing that before the crisis, instead of churning out toxic debt and lumbering customers with PPI contracts....