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You can find the current article at its original source at https://www.theguardian.com/business/live/2016/may/19/markets-us-rate-hike-uk-retail-sales-live
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| Version 1 | Version 2 |
|---|---|
| Markets hit by fears of US June rate hike – business live | Markets hit by fears of US June rate hike – business live |
| (35 minutes later) | |
| 8.38am BST | 8.38am BST |
| 08:38 | 08:38 |
| Angela Monaghan | Angela Monaghan |
| Peter Fankhauser, chief executive of Thomas Cook, is also calling for a shake-up in the school holiday system to help parents get cheaper holidays. | Peter Fankhauser, chief executive of Thomas Cook, is also calling for a shake-up in the school holiday system to help parents get cheaper holidays. |
| He tells reporters that: | He tells reporters that: |
| “UK authorities should look across the pond to Germany and Switzerland where they agree a staggered start of school holiday dates. That relieves some of the pressure. If you had an agreement from local authorities in the UK to spread the dates... that would help us as well, it would help everybody.” | “UK authorities should look across the pond to Germany and Switzerland where they agree a staggered start of school holiday dates. That relieves some of the pressure. If you had an agreement from local authorities in the UK to spread the dates... that would help us as well, it would help everybody.” |
| Fankhauser said Thomas Cook was doing “everything we can” to make holidays more affordable for families who face huge hikes in prices during the school holidays. | Fankhauser said Thomas Cook was doing “everything we can” to make holidays more affordable for families who face huge hikes in prices during the school holidays. |
| To get the best deal: “you have to start early in the cycle”, he said. | To get the best deal: “you have to start early in the cycle”, he said. |
| Last week, a UK parent won a landmark case in the High Court against his local authority, after he took his daughter away on holiday during term time. | Last week, a UK parent won a landmark case in the High Court against his local authority, after he took his daughter away on holiday during term time. |
| The ruling appeared to give the green light for parents to take their children out of state schools without permission so long as they have a good record of attendance. The government, though, quickly vowed to close this new loophole.... | |
| Updated | |
| at 8.54am BST | |
| 8.24am BST | 8.24am BST |
| 08:24 | 08:24 |
| Thomas Cook hit by terrorism fears | Thomas Cook hit by terrorism fears |
| Shares in Thomas Cook have fallen by 15% to a three-year low, after it reported a 5% drop in summer bookings. | Shares in Thomas Cook have fallen by 15% to a three-year low, after it reported a 5% drop in summer bookings. |
| The holiday company warned this morning that underlying profits will hit the bottom of analyst expectations. It reported that tourists are shunning Turkey, where a suicide bomber killed 10 Germans in an Istanbul square in January. | The holiday company warned this morning that underlying profits will hit the bottom of analyst expectations. It reported that tourists are shunning Turkey, where a suicide bomber killed 10 Germans in an Istanbul square in January. |
| Turkey had been Thomas Cook’s second most popular destination last year; in 2016, though, more tourists are choosing the Balearics (up 14%), Canaries (up 23%) and and USA (up 29%). | Turkey had been Thomas Cook’s second most popular destination last year; in 2016, though, more tourists are choosing the Balearics (up 14%), Canaries (up 23%) and and USA (up 29%). |
| Thomas Cook says: | Thomas Cook says: |
| Demand for Turkey - our second largest market last year - remains significantly below last year’s levels. This has impacted our German Airlines business in particular. | Demand for Turkey - our second largest market last year - remains significantly below last year’s levels. This has impacted our German Airlines business in particular. |
| Demand for holidays to Belgium is also down, following the Brussels terrorist attacks in March. | Demand for holidays to Belgium is also down, following the Brussels terrorist attacks in March. |
| And that sent shares down to 75p, the lowest since March 2013. | And that sent shares down to 75p, the lowest since March 2013. |
| It will be a tough summer for #ThomasCook: bookings for this year's holiday season are down 5% overall - shares down 15% in London. | It will be a tough summer for #ThomasCook: bookings for this year's holiday season are down 5% overall - shares down 15% in London. |
| Updated | Updated |
| at 8.30am BST | at 8.30am BST |
| 8.10am BST | 8.10am BST |
| 08:10 | 08:10 |
| FTSE 100 takes a dive | FTSE 100 takes a dive |
| The London stock market has shed 50 points, or 0.8%, at the start of trading. | The London stock market has shed 50 points, or 0.8%, at the start of trading. |
| Mining shares are leading the selloff, with silver miner Fresnillo sliding by 5%. | Mining shares are leading the selloff, with silver miner Fresnillo sliding by 5%. |
| That’s because the prospect of higher US interest rates is pushing up the US dollar, and driving down commodity prices. | That’s because the prospect of higher US interest rates is pushing up the US dollar, and driving down commodity prices. |
| Other European markets are also dropping, with the German DAX shedding 1% and the French CAC down 0.5%. | Other European markets are also dropping, with the German DAX shedding 1% and the French CAC down 0.5%. |
| 8.03am BST | 8.03am BST |
| 08:03 | 08:03 |
| Asian stock markets fall | Asian stock markets fall |
| Most Asian stock markets are in the red today after the Federal Reserve put a June interest rate rise on the table. | Most Asian stock markets are in the red today after the Federal Reserve put a June interest rate rise on the table. |
| The Singapore and Hong Kong indices are leading the selloff | The Singapore and Hong Kong indices are leading the selloff |
| Investors are baulked at the prospect of tightening of monetary policy, as Andrew Sullivan, sales trader at Haitong Securities explains (via Associated Press) | Investors are baulked at the prospect of tightening of monetary policy, as Andrew Sullivan, sales trader at Haitong Securities explains (via Associated Press) |
| “Markets have looked for government stimulus as a reason for investing rather than good company economics or fundamentals. Obviously therefore if there’s less chance of stimulus people are left wondering what to do. | “Markets have looked for government stimulus as a reason for investing rather than good company economics or fundamentals. Obviously therefore if there’s less chance of stimulus people are left wondering what to do. |
| “Yes it will be a shock to people, and I’m sure there will be a knee jerk reaction but the reality is we are nowhere near normal rates.” | “Yes it will be a shock to people, and I’m sure there will be a knee jerk reaction but the reality is we are nowhere near normal rates.” |
| Only Japan has avoided any damage -- because Tokyo traders are pleased to see the yen weakening against the US dollar. | Only Japan has avoided any damage -- because Tokyo traders are pleased to see the yen weakening against the US dollar. |
| 7.31am BST | 7.31am BST |
| 07:31 | 07:31 |
| The Agenda: Fed's June warning looms over City | The Agenda: Fed's June warning looms over City |
| Good morning, and welcome to our rolling coverage of the world economy, the financial market, the eurozone and business. | Good morning, and welcome to our rolling coverage of the world economy, the financial market, the eurozone and business. |
| Coming up today... | Coming up today... |
| We’ll be tracking the reaction to last night’s Federal Reserve minutes, which showed that America’s central bank could be ready to raise interest rates next month. | We’ll be tracking the reaction to last night’s Federal Reserve minutes, which showed that America’s central bank could be ready to raise interest rates next month. |
| The Fed surprised investors by revealing that many policymakers believe a June rate hike is appropriate, if economic data over the next few weeks justifies it. | The Fed surprised investors by revealing that many policymakers believe a June rate hike is appropriate, if economic data over the next few weeks justifies it. |
| As we covered in last night’s liveblog, the minutes of April’s meeting showed that: | As we covered in last night’s liveblog, the minutes of April’s meeting showed that: |
| “Most participants judged that if incoming data were consistent with economic growth picking up in the second quarter, labor market conditions continuing to strengthen and inflation making progress toward the [Fed’s] 2% objective, then it likely would be appropriate for the [Fed] to increase the target range for the federal funds rate in June.” | “Most participants judged that if incoming data were consistent with economic growth picking up in the second quarter, labor market conditions continuing to strengthen and inflation making progress toward the [Fed’s] 2% objective, then it likely would be appropriate for the [Fed] to increase the target range for the federal funds rate in June.” |
| And that has sent investors scrambling to adjust their expectations - as many had only expected one rate rise in 2016, or even none at all. | And that has sent investors scrambling to adjust their expectations - as many had only expected one rate rise in 2016, or even none at all. |
| Related: Interest rates could rise as soon as June, Federal Reserve suggests | Related: Interest rates could rise as soon as June, Federal Reserve suggests |
| The minutes also sent the dollar spiking last night, and is likely to weigh on European markets today. | The minutes also sent the dollar spiking last night, and is likely to weigh on European markets today. |
| Our European opening calls:$FTSE 6109 down 57$DAX 9887 down 56$CAC 4293 down 26$IBEX 8727 down 48$MIB 17611 down 102 | Our European opening calls:$FTSE 6109 down 57$DAX 9887 down 56$CAC 4293 down 26$IBEX 8727 down 48$MIB 17611 down 102 |
| Also coming up today … | Also coming up today … |
| **Today highlights**UK Retail Sales, ECB Minutes, Initial Jobless Claims, Fed's Fischer, Dudley and BoE's Vlieghe | **Today highlights**UK Retail Sales, ECB Minutes, Initial Jobless Claims, Fed's Fischer, Dudley and BoE's Vlieghe |
| There’s quite a flurry of financial results this morning, including: Thomas Cook, Mothercare, Bloomsbury Publishing, Royal Mail, drinks firm Britvic, construction firm Balfour Beatty, financial services group Hargreaves Lansdown and asset manager 3i. We’ll pick the most interesting bits out... | There’s quite a flurry of financial results this morning, including: Thomas Cook, Mothercare, Bloomsbury Publishing, Royal Mail, drinks firm Britvic, construction firm Balfour Beatty, financial services group Hargreaves Lansdown and asset manager 3i. We’ll pick the most interesting bits out... |
| There could be fireworks in Germany today, where Deutsche Bank is holding its AGM: | There could be fireworks in Germany today, where Deutsche Bank is holding its AGM: |
| Deutsche Bank faces angry shareholders at today's AGM as stocks have underperformed under chairman Achleitner. pic.twitter.com/QV8wbv14TK | Deutsche Bank faces angry shareholders at today's AGM as stocks have underperformed under chairman Achleitner. pic.twitter.com/QV8wbv14TK |
| And leading finance minister are heading to Japan, for a G7 meeting, but I don’t think there’s any action today. | And leading finance minister are heading to Japan, for a G7 meeting, but I don’t think there’s any action today. |
| Updated | Updated |
| at 8.07am BST | at 8.07am BST |