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You can find the current article at its original source at http://www.theguardian.com/business/live/2016/apr/07/us-fed-dampens-prospect-of-an-april-rate-rise-business-live
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| Version 1 | Version 2 |
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| US Fed dampens prospect of an April rate rise - business live | US Fed dampens prospect of an April rate rise - business live |
| (35 minutes later) | |
| 9.18am BST | |
| 09:18 | |
| A little more on the new M&S boss Steve Rowe. | |
| Making his debut with an underwhelming trading update, he told journalists he wants to take a straightforward approach to how he leads the business. | |
| For starters, he his getting rid of the term “general merchandise” (replacing it with “clothing and home”), which can only be a good thing. | |
| Steve Rowe on using term 'clothing and home' rather than general merchandise: 'We're going to start referring to GM in customer langauage.' | |
| Rowe might be new to the top job but he first started working for M&S at the Croydon store on Saturdays, aged 15. | |
| Read our piece - From Saturday boy to big boss - here. | |
| Despite Bolland's supposed focus on GM, sales have fallen again at M&S. Let's see if Rowe can do better. Need to simplify product offering. | |
| Blower’s retail cartoon: New M&S boss Rowe targets fashion turnaround https://t.co/VnZvMeqndb (£) | |
| Reviewing M&S clothing is like watching schoolboy football. All the Sub-brands chasing the same ball, Rowe needs to get his whistle out. | |
| 8.48am BST | 8.48am BST |
| 08:48 | 08:48 |
| New M&S boss: clothing performance 'unsatisfactory' | |
| Steve Rowe, the man newly in charge of Marks & Spencer, has given his first trading update since taking over the top job on Saturday. | Steve Rowe, the man newly in charge of Marks & Spencer, has given his first trading update since taking over the top job on Saturday. |
| Clothing sales fell again over the most recent quarter (they have risen in only quarter over the past five years). Rowe said the performance of its clothing business was “unsatisfactory” and turning it around was his “number one priority”. | Clothing sales fell again over the most recent quarter (they have risen in only quarter over the past five years). Rowe said the performance of its clothing business was “unsatisfactory” and turning it around was his “number one priority”. |
| Like-for-like clothing and home sales were down by 2.7% in the 13 weeks to 26 March. | Like-for-like clothing and home sales were down by 2.7% in the 13 weeks to 26 March. |
| Nevertheless M&S is one of the top risers on the FTSE this morning, with shares up 1.9% at 428.4p, because the City was expecting a bigger drop in clothing sales. | Nevertheless M&S is one of the top risers on the FTSE this morning, with shares up 1.9% at 428.4p, because the City was expecting a bigger drop in clothing sales. |
| Food sales were flat over the quarter. Read our full story on the trading update here. | Food sales were flat over the quarter. Read our full story on the trading update here. |
| Updated | |
| at 9.02am BST | |
| 8.29am BST | 8.29am BST |
| 08:29 | 08:29 |
| European markets open higher | European markets open higher |
| Europe’s main markets are mostly up this morning, boosted by the Fed’s signal that it is in no immediate hurry to raise rates again. | Europe’s main markets are mostly up this morning, boosted by the Fed’s signal that it is in no immediate hurry to raise rates again. |
| Brent crude oil prices rose above $40 a barrel earlier but are now down a touch at $39.82. | Brent crude oil prices rose above $40 a barrel earlier but are now down a touch at $39.82. |
| 8.12am BST | 8.12am BST |
| 08:12 | 08:12 |
| Now for some reaction to those Fed minutes. As always its a case of reading between the lines and much of the language is open to interpretation. | Now for some reaction to those Fed minutes. As always its a case of reading between the lines and much of the language is open to interpretation. |
| Steve Murphy, US economist at Capital Economics: | Steve Murphy, US economist at Capital Economics: |
| Although the minutes acknowledge that a few officials were ready to raise interest rates in April, many thought that the Fed should precede more cautiously, in particular because of worries about global downside risks. | Although the minutes acknowledge that a few officials were ready to raise interest rates in April, many thought that the Fed should precede more cautiously, in particular because of worries about global downside risks. |
| At this stage, the chances of an April rate hike are very slim, but we expect the Fed will resume raising rates in June. | At this stage, the chances of an April rate hike are very slim, but we expect the Fed will resume raising rates in June. |
| By that time, fears surrounding global risks should have faded and further increases in core inflation will have convinced officials that the pick-up is in fact genuine. Thereafter, we expect the fed funds rate will end this year at between 1.00% and 1.25%. | By that time, fears surrounding global risks should have faded and further increases in core inflation will have convinced officials that the pick-up is in fact genuine. Thereafter, we expect the fed funds rate will end this year at between 1.00% and 1.25%. |
| Michael Hewson, chief market analyst at CMC Markets UK: | Michael Hewson, chief market analyst at CMC Markets UK: |
| As suspected the US Federal Reserve’s FOMC minutes painted a picture of a divided central bank, but what was clear is that [while] there is some appetite to pull the trigger on a rate rise in April it is a sentiment that is not shared amongst the majority of the voting members on the committee. | As suspected the US Federal Reserve’s FOMC minutes painted a picture of a divided central bank, but what was clear is that [while] there is some appetite to pull the trigger on a rate rise in April it is a sentiment that is not shared amongst the majority of the voting members on the committee. |
| “A range of views” was expressed about the likelihood of a move in April, but it is clear that policymakers are concerned about the volatility that has rippled through markets for a good part of this year. | “A range of views” was expressed about the likelihood of a move in April, but it is clear that policymakers are concerned about the volatility that has rippled through markets for a good part of this year. |
| Reading between the lines this makes the prospect of a move in April unlikely and hasn’t shifted the dial higher on the odds of a June hike either, with markets assigning a 19.6% probability of a move before the publication of the minutes, and a 17.6% probability afterwards. | Reading between the lines this makes the prospect of a move in April unlikely and hasn’t shifted the dial higher on the odds of a June hike either, with markets assigning a 19.6% probability of a move before the publication of the minutes, and a 17.6% probability afterwards. |
| Mkts got no clue from Fed min's. Not as dovish as Yellen but still plus&minuses. Next hike priced for Dec, as before pic.twitter.com/0N6z2FrUd9 | Mkts got no clue from Fed min's. Not as dovish as Yellen but still plus&minuses. Next hike priced for Dec, as before pic.twitter.com/0N6z2FrUd9 |
| Fed minutes summary. pic.twitter.com/CFPJTzLtCO | Fed minutes summary. pic.twitter.com/CFPJTzLtCO |
| 7.58am BST | 7.58am BST |
| 07:58 | 07:58 |
| US Fed: April rate rise unlikely | US Fed: April rate rise unlikely |
| Good morning and welcome to our rolling coverage of the world economy, the financial markets and business. | Good morning and welcome to our rolling coverage of the world economy, the financial markets and business. |
| The US Federal Reserve is unlikely to raise interest rates at its April meeting, the latest minutes of the Federal Open Market Committee (FOMC) suggest. | The US Federal Reserve is unlikely to raise interest rates at its April meeting, the latest minutes of the Federal Open Market Committee (FOMC) suggest. |
| Chaired by Janet Yellen, the committee was clearly divided. Some members judged improving data suggested the US economy was ready for another rate hike. Others were more wary, fearful of recent trends in the global economy where risks appear to be mounting. | Chaired by Janet Yellen, the committee was clearly divided. Some members judged improving data suggested the US economy was ready for another rate hike. Others were more wary, fearful of recent trends in the global economy where risks appear to be mounting. |
| Overall, the tone was cautious: | Overall, the tone was cautious: |
| A number of participants judged that the headwinds restraining growth and holding down the neutral rate of interest were likely to subside only slowly. In light of this expectation and their assessment of the risks to the economic outlook, several expressed the view that a cautious approach to raising rates would be prudent or noted their concern that raising the target range as soon as April would signal a sense of urgency they did not think appropriate. | A number of participants judged that the headwinds restraining growth and holding down the neutral rate of interest were likely to subside only slowly. In light of this expectation and their assessment of the risks to the economic outlook, several expressed the view that a cautious approach to raising rates would be prudent or noted their concern that raising the target range as soon as April would signal a sense of urgency they did not think appropriate. |
| In contrast, some other participants indicated that an increase in the target range at the Committee’s next meeting might well be warranted if the incoming economic data remained consistent with their expectations for moderate growth in output, further strengthening of the labor market, and inflation rising to 2% over the medium term. | In contrast, some other participants indicated that an increase in the target range at the Committee’s next meeting might well be warranted if the incoming economic data remained consistent with their expectations for moderate growth in output, further strengthening of the labor market, and inflation rising to 2% over the medium term. |
| US markets rose: | US markets rose: |
| Markets this morning await the latest minutes from the European Central Bank. | Markets this morning await the latest minutes from the European Central Bank. |