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Pound hits two year low on Brexit fears - business live Pound hits two year low on Brexit fears - business live
(35 minutes later)
5.50pm GMT
17:50
European markets close broadly flat
As the long weekend approaches, stock markets had little inspiration to move in either direction so ended up virtually unchanged, with a couple of exceptions. Tony Cross, market analyst at Trustnet Direct, said:
The FTSE close on Wednesday replicated the atmosphere on trading floors across Europe as London’s leading index finished flat on the day. With little in the way of corporate news or economic data to guide them, most investors decided to stay away, possibly eager not to get left exposed ahead of the long Easter weekend.
The final scores showed:
On Wall Street, the Dow Jones Industrial Average is currently 33 points or 0.19% lower.
Meanwhile with rising US crude inventories again, Brent is down 2.5% at $40.74 a barrel.
On that note, it’s time to close for the evening. Thanks for all your comments, and we’ll be back tomorrow.
5.22pm GMT5.22pm GMT
17:2217:22
The pound continued to come under pressure on growing uncertainty over the prospect of Britain leaving the European Union. A new poll showed the lead of the Remain campaign slipping, helping push sterling to a one month low against the euro and down more than a cent at $1.4094. The US currency was also supported by a number of hawkish comments from members of the Federal Reserve, who suggested rate rises were still on the cards - perhaps even in April - despite the current market volatility.The pound continued to come under pressure on growing uncertainty over the prospect of Britain leaving the European Union. A new poll showed the lead of the Remain campaign slipping, helping push sterling to a one month low against the euro and down more than a cent at $1.4094. The US currency was also supported by a number of hawkish comments from members of the Federal Reserve, who suggested rate rises were still on the cards - perhaps even in April - despite the current market volatility.
4.15pm GMT4.15pm GMT
16:1516:15
Low oil prices have failed to give the global economy a lift and could cause serious problems, suggest IMF economists in a new blog post:Low oil prices have failed to give the global economy a lift and could cause serious problems, suggest IMF economists in a new blog post:
Oil prices have been persistently low for well over a year and a half now, but as the April 2016 World Economic Outlook will document, the widely anticipated “shot in the arm” for the global economy has yet to materialize. We argue that, paradoxically, global benefits from low prices will likely appear only after prices have recovered somewhat and advanced economies have made more progress surmounting the current low interest rate environment....Oil prices have been persistently low for well over a year and a half now, but as the April 2016 World Economic Outlook will document, the widely anticipated “shot in the arm” for the global economy has yet to materialize. We argue that, paradoxically, global benefits from low prices will likely appear only after prices have recovered somewhat and advanced economies have made more progress surmounting the current low interest rate environment....
Persistently low oil prices complicate the conduct of monetary policy, risking further inroads by unanchored inflation expectations. What is more, the current episode of historically low oil prices could ignite a variety of dislocations including corporate and sovereign defaults, dislocations that can feed back into already jittery financial markets. The possibility of such negative feedback loops makes demand support by the global community– along with a range of country-specific structural and financial-sector reforms–all the more urgent.Persistently low oil prices complicate the conduct of monetary policy, risking further inroads by unanchored inflation expectations. What is more, the current episode of historically low oil prices could ignite a variety of dislocations including corporate and sovereign defaults, dislocations that can feed back into already jittery financial markets. The possibility of such negative feedback loops makes demand support by the global community– along with a range of country-specific structural and financial-sector reforms–all the more urgent.
3.30pm GMT3.30pm GMT
15:3015:30
After the select committee meeting with EDF on a new nuclear plant at Hinckley Point, one of its MPs James Heappey has called on the French government to formally confirm the timetable for them to refinance the business. Heappey said:After the select committee meeting with EDF on a new nuclear plant at Hinckley Point, one of its MPs James Heappey has called on the French government to formally confirm the timetable for them to refinance the business. Heappey said:
This morning’s evidence session was hugely frustrating. EDF CEO Vincent de Rivaz opened by saying ‘categorically’ that Hinkley C would go ahead and seeming to confirm that a final investment decision would come in ‘early May’. But when pressed to confirm that date, he refused to do so.This morning’s evidence session was hugely frustrating. EDF CEO Vincent de Rivaz opened by saying ‘categorically’ that Hinkley C would go ahead and seeming to confirm that a final investment decision would come in ‘early May’. But when pressed to confirm that date, he refused to do so.
It is clear from his responses to our questions that despite EDF’s undoubted commitment to Hinkley, the final decision on the project is entirely in the hands of President Hollande and the French Government.It is clear from his responses to our questions that despite EDF’s undoubted commitment to Hinkley, the final decision on the project is entirely in the hands of President Hollande and the French Government.
Whatever EDF might want to do, they just don’t have the cash to do this unless the French Government agree to their re-capitalisation. EDF clearly expect this to be agreed by May but the UK Government must now seek further assurances from Paris that this timeline is realistic.Whatever EDF might want to do, they just don’t have the cash to do this unless the French Government agree to their re-capitalisation. EDF clearly expect this to be agreed by May but the UK Government must now seek further assurances from Paris that this timeline is realistic.
Here is our report on the committee hearing:Here is our report on the committee hearing:
Related: EDF refuses to set timetable for decision on Hinkley Point reactorRelated: EDF refuses to set timetable for decision on Hinkley Point reactor
2.40pm GMT2.40pm GMT
14:4014:40
Oil falls on higher than expected US inventory figuresOil falls on higher than expected US inventory figures
Crude prices, which have been supported by hopes that a meeting of producers next month can agree to freeze output to cope with the supply glut, have slipped back after new US inventory figures.Crude prices, which have been supported by hopes that a meeting of producers next month can agree to freeze output to cope with the supply glut, have slipped back after new US inventory figures.
US crude inventories rose by a much larger than forecast 9.4m barrels last week, more than three times higher than expected. Refineries cut output and imports jumped, adding to the crude stocks.US crude inventories rose by a much larger than forecast 9.4m barrels last week, more than three times higher than expected. Refineries cut output and imports jumped, adding to the crude stocks.
But gasoline stocks fell by 4.6m barrels compared to expectations of a 1.5m decline.But gasoline stocks fell by 4.6m barrels compared to expectations of a 1.5m decline.
And crude stocks at the Cushing delivery hub in Oklahoma dropped by 1.26m barrels, the first fall in seven weeks.And crude stocks at the Cushing delivery hub in Oklahoma dropped by 1.26m barrels, the first fall in seven weeks.
EIA Weekly Oil Inventories (Mar 18)Crude +9.36 Mln v +2.53 Mln exp, prev +1.32 MlnCushing -1.26 Mln v +0.34 Mln exp, prev +0.55 MlnEIA Weekly Oil Inventories (Mar 18)Crude +9.36 Mln v +2.53 Mln exp, prev +1.32 MlnCushing -1.26 Mln v +0.34 Mln exp, prev +0.55 Mln
The news has helped send Brent crude down 2.5% to $40.73 a barrel.The news has helped send Brent crude down 2.5% to $40.73 a barrel.
2.32pm GMT2.32pm GMT
14:3214:32
Over in the US , and new home sales rose 2% in February after a 7% fall in the previous month.Over in the US , and new home sales rose 2% in February after a 7% fall in the previous month.
But this was lower than the expected 3% rise, and sales fell in three of the main regions, with only the West seeing an increase, which took some of the gloss off the figures.But this was lower than the expected 3% rise, and sales fell in three of the main regions, with only the West seeing an increase, which took some of the gloss off the figures.
February sales rose to an annual rate of 512,000 compared to 502,000 in the previous month. The January figure was revised upwards from 494,000.February sales rose to an annual rate of 512,000 compared to 502,000 in the previous month. The January figure was revised upwards from 494,000.
On Wall Street, markets have taken the data in their stride, with the Dow Jones Industrial Average down just 20 points.On Wall Street, markets have taken the data in their stride, with the Dow Jones Industrial Average down just 20 points.
2.17pm GMT2.17pm GMT
14:1714:17
Here’s the opinion poll that is hitting sterling:Here’s the opinion poll that is hitting sterling:
#Remain leads #Leave by 7 points in latest ComRes poll for @itvnews Remain: 48%Leave: 41%Don't know: 11% pic.twitter.com/XFW2wFSShX#Remain leads #Leave by 7 points in latest ComRes poll for @itvnews Remain: 48%Leave: 41%Don't know: 11% pic.twitter.com/XFW2wFSShX
The polling was taken last week, on 16 March.The polling was taken last week, on 16 March.
UpdatedUpdated
at 2.18pm GMTat 2.18pm GMT
2.15pm GMT2.15pm GMT
14:1514:15
Sterling has just hit its lowest level against a basket of other currencies in more than two years. Thats’s via Reuters, who are citing data from the Bank of England.Sterling has just hit its lowest level against a basket of other currencies in more than two years. Thats’s via Reuters, who are citing data from the Bank of England.
2.09pm GMT2.09pm GMT
14:0914:09
Back to the other story of the morning... worries about the UK EU referendum.Back to the other story of the morning... worries about the UK EU referendum.
The pound is continuing to drop today, now down almost one cent against the US dollar at $1.4113.The pound is continuing to drop today, now down almost one cent against the US dollar at $1.4113.
This latest weakness is triggered by a new telephone poll from Comres, just released, which shows the Remain campaign with 48% of support, and Leave on 41%. That’s the narrowest lead since the general election of May 2015, according to Reuters.This latest weakness is triggered by a new telephone poll from Comres, just released, which shows the Remain campaign with 48% of support, and Leave on 41%. That’s the narrowest lead since the general election of May 2015, according to Reuters.
That follows the spike in sterling volatility we covered this morning, driven by new worries about Brexit.That follows the spike in sterling volatility we covered this morning, driven by new worries about Brexit.
1.46pm GMT1.46pm GMT
13:4613:46
There’s drama in the UK courts todayThere’s drama in the UK courts today
Tom Hayes, the only person jailed in the UK for conspiring to rig the Libor rate, has been ordered to pay $1.25m, or £878k, after a ‘proceeds of crime’ hearing.Tom Hayes, the only person jailed in the UK for conspiring to rig the Libor rate, has been ordered to pay $1.25m, or £878k, after a ‘proceeds of crime’ hearing.
It’s likely that Hayes, and wife Sarah, will now be forced to sell their house in Surrey.It’s likely that Hayes, and wife Sarah, will now be forced to sell their house in Surrey.
Related: Jailed Libor trader Tom Hayes must pay £878,000Related: Jailed Libor trader Tom Hayes must pay £878,000
Over at Westminster magistrates court, the alleged “flash crash trader” Navinder Singh Sarao has been told he can be extradited to the US.Over at Westminster magistrates court, the alleged “flash crash trader” Navinder Singh Sarao has been told he can be extradited to the US.
Sarao is accused of causing market turmoil on Wall Street in 2010, which briefly wiped 1,000 points off the Dow Jones industrial average.Sarao is accused of causing market turmoil on Wall Street in 2010, which briefly wiped 1,000 points off the Dow Jones industrial average.
From court, Rob Davies has the details:From court, Rob Davies has the details:
District judge Quentin Purdy at Westminster magistrates court on Wednesday ruled that Sarao’s alleged actions constituted a crime in the UK.District judge Quentin Purdy at Westminster magistrates court on Wednesday ruled that Sarao’s alleged actions constituted a crime in the UK.
The ruling means Sarao, 37, can be sent to the US to answer 22 counts of wire fraud, commodities fraud and market manipulation carrying a maximum sentence of 380 years’ imprisonment.The ruling means Sarao, 37, can be sent to the US to answer 22 counts of wire fraud, commodities fraud and market manipulation carrying a maximum sentence of 380 years’ imprisonment.
Sarao’s lawyer Richard Egan said: “We’re very disappointed. We definitely will be appealing. We think we’ve got a strong argument.”Sarao’s lawyer Richard Egan said: “We’re very disappointed. We definitely will be appealing. We think we’ve got a strong argument.”
Related: 'Flash crash trader' can be extradited to US, judge rulesRelated: 'Flash crash trader' can be extradited to US, judge rules
1.27pm GMT1.27pm GMT
13:2713:27
Energy and climate change committee member James Heappey shares our view of today’s hearing:Energy and climate change committee member James Heappey shares our view of today’s hearing:
After @CommonsECC #Hinkley session we know EDF want to do it but entirely in hands of French Govt. Their help v likely but not yet certain.After @CommonsECC #Hinkley session we know EDF want to do it but entirely in hands of French Govt. Their help v likely but not yet certain.
1.04pm GMT1.04pm GMT
13:0413:04
Good news for fans of British Home Stores.Good news for fans of British Home Stores.
The UK retailer has been rescued from closure, after its creditors voted in favour of the department store chain’s survival plan.The UK retailer has been rescued from closure, after its creditors voted in favour of the department store chain’s survival plan.
My colleague Graham Ruddick has the details:My colleague Graham Ruddick has the details:
Landlords, suppliers and other creditors approved the 88-year-old retailer’s company voluntary arrangement (CVA), an insolvency procedure, at a vital meeting in a hotel in west London on Wednesday.Landlords, suppliers and other creditors approved the 88-year-old retailer’s company voluntary arrangement (CVA), an insolvency procedure, at a vital meeting in a hotel in west London on Wednesday.
The approval of the CVA secures the short-term future of BHS’s 10,000 staff and 164 stores. However, the company still needs to restructure its pension scheme, which has a deficit of £571m and is likely to enter the Pension Protection Fund, and raise £100m so it can continue trading and fund a turnaround plan that includes modernising its shops and product range.The approval of the CVA secures the short-term future of BHS’s 10,000 staff and 164 stores. However, the company still needs to restructure its pension scheme, which has a deficit of £571m and is likely to enter the Pension Protection Fund, and raise £100m so it can continue trading and fund a turnaround plan that includes modernising its shops and product range.
The CVA involves landlords accepting sharp cuts to the rent on 87 of BHS’s 164 shops. As many as 40 of these shops could close in the next few months if a deal on the size of the rent reduction cannot be reached with property owners.The CVA involves landlords accepting sharp cuts to the rent on 87 of BHS’s 164 shops. As many as 40 of these shops could close in the next few months if a deal on the size of the rent reduction cannot be reached with property owners.
Related: BHS creditors approve rescue planRelated: BHS creditors approve rescue plan
12.50pm GMT12.50pm GMT
12:5012:50
Greenpeace chief scientist Doug Parr, who pointed to flaws in the Hinkley C project this morning, has issued a statement heavily criticising the situation:Greenpeace chief scientist Doug Parr, who pointed to flaws in the Hinkley C project this morning, has issued a statement heavily criticising the situation:
“This morning the committee began to come to terms with the fact that the UK’s energy policy has been annexed by EDF. It became very clear that Hinkley is dependant on the French state and the enthusiasm of the French and Chinese nuclear industries.“This morning the committee began to come to terms with the fact that the UK’s energy policy has been annexed by EDF. It became very clear that Hinkley is dependant on the French state and the enthusiasm of the French and Chinese nuclear industries.
This has distorted our national infrastructure planning, and has led to the UK government undermining our nascent but booming renewable energy businesses and scaring off investment. It is unconscionable that in reality the decisions pending about the future of our energy system and whether the UK meet our future carbon targets are in the hands of the French Economy Minister.”This has distorted our national infrastructure planning, and has led to the UK government undermining our nascent but booming renewable energy businesses and scaring off investment. It is unconscionable that in reality the decisions pending about the future of our energy system and whether the UK meet our future carbon targets are in the hands of the French Economy Minister.”