This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/business/live/2016/may/27/markets-us-growth-figures-janet-yellen-putin-greece-live
The article has changed 19 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Markets await US GDP growth figures and Yellen speech – business live | Markets await US GDP growth figures and Yellen speech – business live |
| (35 minutes later) | |
| 9.17am BST | |
| 09:17 | |
| Janet Yellen’s comments may not come until around 5.30pm BST, or later. | |
| She’s due to speak at a lunch at Harvard, along with her predecessor Ben Bernanke. More details here. | |
| 9.06am BST | |
| 09:06 | |
| Yellen could send US dollar bulls rampaging | |
| Janet Yellen could move the markets today, when she visits Harvard to collect the Radcliffe Medal in recognition of her work. | |
| FXTM Research Analyst Lukman Otunuga says investors will be watching the Fed chair closely, for any hints that a rate hike could be close. | |
| Sentiment towards the US economy has improved this month with an impressive array of domestic data bolstering speculation that US rates could be increased in June or July. With retail sales, inflation and new homes sales exceeding forecasts, the prerequisites for another US rate hike in Q2 could be fulfilled if US GDP and next week’s NFP exceed expectations. | |
| Yellen’s comments could act as a catalyst today for Dollar bulls to rampage if she chants the same hawkish tune as the other board governors. Although the CME group Fedwatch tool displays a 26% probability that a June hike could occur, concerns over slowing global growth and persistent China woes may also disrupt the Fed’s efforts to take action. | |
| Updated | |
| at 9.17am BST | |
| 9.01am BST | |
| 09:01 | |
| Europe’s stock markets are open, but frankly there’s little happening out there. | |
| The main indices are all broadly unchanged, as investors wait for the US growth figures at 1.30pm BST. | |
| Some traders may also be pondering the long weekend (there’s a bank holiday on Monday), or wondering how England will fare against Sri Lanka in the Test Match (probably rather well). | |
| Mining shares are leading the risers in London, where the FTSE has managed to rise by 3 whole points. | |
| Tony Cross of TrustNet Direct explains: | |
| Commodity stocks are still finding favour, helped in no small part by US dollar weakness amidst the idea that the Fed may not be in a position to hike rates next month as had been earlier thought. | |
| Updated | |
| at 9.08am BST | |
| 8.48am BST | 8.48am BST |
| 08:48 | 08:48 |
| A glimmer of good news from across the Channel. | A glimmer of good news from across the Channel. |
| French consumer confidence has hit its highest level since October 2007, when the world economy was reeling from the credit crunch. | French consumer confidence has hit its highest level since October 2007, when the world economy was reeling from the credit crunch. |
| The country’s main consumer confidence gauge has jumped to 98 in May, which beats economists’ expectations of 95. That’s tantalising close to the long-term consumer confidence average of 100. | The country’s main consumer confidence gauge has jumped to 98 in May, which beats economists’ expectations of 95. That’s tantalising close to the long-term consumer confidence average of 100. |
| French shoppers are having their best month since the financial crisis https://t.co/IlsPshgm2P pic.twitter.com/0Ywl8x0Iae | French shoppers are having their best month since the financial crisis https://t.co/IlsPshgm2P pic.twitter.com/0Ywl8x0Iae |
| I do wonder, though, whether the clashes on the streets this week will hurt confidence. | I do wonder, though, whether the clashes on the streets this week will hurt confidence. |
| Tens of thousands of people have been protesting against legislation to make it easier to both hire and fire workers, prompting clashes with riot police yesterday. | Tens of thousands of people have been protesting against legislation to make it easier to both hire and fire workers, prompting clashes with riot police yesterday. |
| My colleague Angelique Chrisafis explains: | My colleague Angelique Chrisafis explains: |
| Striking French workers continued to disrupt oil refineries and nuclear power stations, halted some air traffic and trains and prevented almost all national newspapers from printing in the growing industrial action. Union activists blocked roads and bridges in northern France while some train drivers and air traffic controllers joined the action. | Striking French workers continued to disrupt oil refineries and nuclear power stations, halted some air traffic and trains and prevented almost all national newspapers from printing in the growing industrial action. Union activists blocked roads and bridges in northern France while some train drivers and air traffic controllers joined the action. |
| Related: Riot police crack down on Paris protests against labour reforms | Related: Riot police crack down on Paris protests against labour reforms |
| 8.43am BST | 8.43am BST |
| 08:43 | 08:43 |
| World leaders at the G7 meeting in Tokyo have declared that global growth is their “urgent priority”, but not actually announced any new measures to deal with it. | World leaders at the G7 meeting in Tokyo have declared that global growth is their “urgent priority”, but not actually announced any new measures to deal with it. |
| The official declaration following the meeting declares: | The official declaration following the meeting declares: |
| Global growth remains moderate and below potential, while risks of weak growth persist..... | Global growth remains moderate and below potential, while risks of weak growth persist..... |
| They then warn that growth is “moderate and uneven”, while global trade is disappointing. | They then warn that growth is “moderate and uneven”, while global trade is disappointing. |
| David Cameron, the UK PM, has also managed to get a reference to next month’s EU referendum into the communique: | David Cameron, the UK PM, has also managed to get a reference to next month’s EU referendum into the communique: |
| G7 world leaders declare: "UK exit from the EU..serious risk to growth" "would reverse trend towards greater trade" pic.twitter.com/hYifbvqw4x | G7 world leaders declare: "UK exit from the EU..serious risk to growth" "would reverse trend towards greater trade" pic.twitter.com/hYifbvqw4x |
| 8.32am BST | 8.32am BST |
| 08:32 | 08:32 |
| Japanese PM hints at delay to sales tax | Japanese PM hints at delay to sales tax |
| Japan’s stock market has gained ground today, following reports that prime minister Shinzo Abe is considering postponing one of his flagship policies. | Japan’s stock market has gained ground today, following reports that prime minister Shinzo Abe is considering postponing one of his flagship policies. |
| Abe dropped a broad hint earlier today that the planned hike in sales tax could be delayed. | Abe dropped a broad hint earlier today that the planned hike in sales tax could be delayed. |
| This tax was a crucial part of Abe’s attempts to improve Japan’s financial situation, but with the economy weak and inflation low, a rethink could be on the cards. | This tax was a crucial part of Abe’s attempts to improve Japan’s financial situation, but with the economy weak and inflation low, a rethink could be on the cards. |
| Abe told a press conference at the G7 meeting that: | Abe told a press conference at the G7 meeting that: |
| “We must reignite powerfully the engine of Abenomics. That undoubtedly would include a decision on what to do with the sales tax hike.” | “We must reignite powerfully the engine of Abenomics. That undoubtedly would include a decision on what to do with the sales tax hike.” |
| A postponement probably would help consumer confidence and economic growth. However, it would undermine Abe’s commitment to improving Japan’s troubling fiscal position (a national debt of more than 200% of GDP). | A postponement probably would help consumer confidence and economic growth. However, it would undermine Abe’s commitment to improving Japan’s troubling fiscal position (a national debt of more than 200% of GDP). |
| #Japan's Nikkei ends up 0.4% at 16834.84 on reports Abe will delay hike to sales tax. pic.twitter.com/vXm8ZMFDdv | #Japan's Nikkei ends up 0.4% at 16834.84 on reports Abe will delay hike to sales tax. pic.twitter.com/vXm8ZMFDdv |
| Updated | Updated |
| at 8.39am BST | at 8.39am BST |
| 8.13am BST | 8.13am BST |
| 08:13 | 08:13 |
| The agenda: US GDP and Yellen speech awaited | The agenda: US GDP and Yellen speech awaited |
| 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. |
| It’s Friday, and it’s a bit quiet. But there are still a few events coming up that might get the blood pumping. | It’s Friday, and it’s a bit quiet. But there are still a few events coming up that might get the blood pumping. |
| Investors are mainly waiting for the second estimate of America’s growth in the first three months of the year, at 1.30pm BST. | Investors are mainly waiting for the second estimate of America’s growth in the first three months of the year, at 1.30pm BST. |
| The first estimate was pretty dire, showing that growth slowed to an annual rate of just 0.4%. But with more data now available, economists believe we could get an upgrade to perhaps 0.9%. That’s still only a quarterly rate of around 0.2%, but it would calm fears that the US economy was faltering. | The first estimate was pretty dire, showing that growth slowed to an annual rate of just 0.4%. But with more data now available, economists believe we could get an upgrade to perhaps 0.9%. That’s still only a quarterly rate of around 0.2%, but it would calm fears that the US economy was faltering. |
| All US data is currently seen through the lens of monetary policy, and whether it’s strong enough to prompt an interest rate rise soon. | All US data is currently seen through the lens of monetary policy, and whether it’s strong enough to prompt an interest rate rise soon. |
| America’s top central banker, Janet Yellen, might have something to say about that when she visits Harvard (where she taught in the early 1970s). | America’s top central banker, Janet Yellen, might have something to say about that when she visits Harvard (where she taught in the early 1970s). |
| RBS Capital Markets explains: | RBS Capital Markets explains: |
| Yellen speaks at Harvard’s Radcliffe Day, where she will engage in “a conversation about her groundbreaking achievements.” The widespread expectation is, of course, that she will reiterate the more hawkish line taken by almost all recent Fed speakers. | Yellen speaks at Harvard’s Radcliffe Day, where she will engage in “a conversation about her groundbreaking achievements.” The widespread expectation is, of course, that she will reiterate the more hawkish line taken by almost all recent Fed speakers. |
| That event begins at 3.30pm BST, or 10.30am local time. | |
| Otherwise, the economics calendar is as bare as Old Mother Hubbard’s cupboard before payday. | Otherwise, the economics calendar is as bare as Old Mother Hubbard’s cupboard before payday. |
| But we’ll also keep one eye on Japan, where the G7 leaders meeting is wrapping up. Our G7 liveblog is here: | But we’ll also keep one eye on Japan, where the G7 leaders meeting is wrapping up. Our G7 liveblog is here: |
| Related: G7 summit: Obama makes historic visit to Hiroshima – live | Related: G7 summit: Obama makes historic visit to Hiroshima – live |
| The other eye will be on Greece, where Russian president Vladimir Putin is paying a visit to Athens (having been blackballed from the G7) . This trip will is likely to reignite concerns in Brussels that Moscow could be using austerity-gripped Greece as a lever to divide Europe. | The other eye will be on Greece, where Russian president Vladimir Putin is paying a visit to Athens (having been blackballed from the G7) . This trip will is likely to reignite concerns in Brussels that Moscow could be using austerity-gripped Greece as a lever to divide Europe. |
| Officially, the visit will deliver a “number of bilateral agreements” and will focus on trade, investment and joint energy and transport projects. | Officially, the visit will deliver a “number of bilateral agreements” and will focus on trade, investment and joint energy and transport projects. |
| We’ll be tracking all the main events through the day (and hoping the newsflow picks up a bit) | We’ll be tracking all the main events through the day (and hoping the newsflow picks up a bit) |
| Updated | Updated |
| at 9.16am BST |