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Markets fall ahead of Bank of England interest rate decision – business live Markets fall ahead of Bank of England interest rate decision – business live
(35 minutes later)
10.21am BST
10:21
The US Federal Reserve must take some blame for today’s selloff.
Last night, the Fed cited weakening economic growth as one reason for leaving interest rates on hold.
And that has dampened the mood in the City, says Chris Beauchamp of City firm IG:
There has been little to comfort investors over the past 24 hours, which is why yesterday’s gains have withered on the vine. The Fed meeting was perhaps their best hope, but even here Janet Yellen was not able to offer much in the way of good news.
10.01am BST10.01am BST
10:0110:01
After two hours of trading, every European stock market has lost ground.After two hours of trading, every European stock market has lost ground.
Worries about the global economy, and central bankers’ ability to stimulate growth, are hitting shares -- along with Brexit concerns.Worries about the global economy, and central bankers’ ability to stimulate growth, are hitting shares -- along with Brexit concerns.
Avtar Sandu, senior commodities manager at Phillip Futures in Singapore, told Reuters:Avtar Sandu, senior commodities manager at Phillip Futures in Singapore, told Reuters:
The market is going to be soft until next week. The fear is that if the British actually decide to leave the EU there may be some sort of contagion.The market is going to be soft until next week. The fear is that if the British actually decide to leave the EU there may be some sort of contagion.
Investors are also alarmed by the big moves in Japan overnight, with shares sliding and the yen soaring.Investors are also alarmed by the big moves in Japan overnight, with shares sliding and the yen soaring.
Sea of red on #Markets ahead of #BoE decision -will Mark Carney speak out against #EUreferendum again? Japan markets tumble 3% after no moveSea of red on #Markets ahead of #BoE decision -will Mark Carney speak out against #EUreferendum again? Japan markets tumble 3% after no move
9.39am BST9.39am BST
09:3909:39
UK retail sales smash forecastsUK retail sales smash forecasts
Boom! UK retail sales jumped by 0.9% last month, beating forecasts of a 0.2% rise.Boom! UK retail sales jumped by 0.9% last month, beating forecasts of a 0.2% rise.
A surge in clothing sales led the recovery, according to the Office for National Statistics.A surge in clothing sales led the recovery, according to the Office for National Statistics.
Sales were 6.0% higher than a year ago, the biggest jump since September 2015.Sales were 6.0% higher than a year ago, the biggest jump since September 2015.
Clothing sales jumped by 4.3% during the month, the biggest rise in two years. Brits may have splashed out on new summer outfits as the sun made a rare (if brief) appearance through the clouds.Clothing sales jumped by 4.3% during the month, the biggest rise in two years. Brits may have splashed out on new summer outfits as the sun made a rare (if brief) appearance through the clouds.
This doesn’t suggest shoppers are hunkering back in fear that Britain is about to leave the EU. Unless....This doesn’t suggest shoppers are hunkering back in fear that Britain is about to leave the EU. Unless....
*U.K. MAY RETAIL SALES RISE 0.9%; MEDIAN EST. 0.2% GAINNotable rises in tinned food, duct tape, bottled water and shortwave radios.*U.K. MAY RETAIL SALES RISE 0.9%; MEDIAN EST. 0.2% GAINNotable rises in tinned food, duct tape, bottled water and shortwave radios.
Dear @ONS was the surge in UK Retail Sales due to purchases of tinned food and spades for digging underground shelters? #BrexitDear @ONS was the surge in UK Retail Sales due to purchases of tinned food and spades for digging underground shelters? #Brexit
UpdatedUpdated
at 9.44am BSTat 9.44am BST
9.35am BST9.35am BST
09:3509:35
The European Central Bank has warned that Britain’s referendum as a threat to the eurozone economy.The European Central Bank has warned that Britain’s referendum as a threat to the eurozone economy.
In its monthly economic outlook, released this morning, the ECB says:In its monthly economic outlook, released this morning, the ECB says:
Downside risks continue to relate to developments in the global economy, to the upcoming British referendum on EU membership and to other geopolitical risks.Downside risks continue to relate to developments in the global economy, to the upcoming British referendum on EU membership and to other geopolitical risks.
The ECB is also worried about the global economy, cautioning that:The ECB is also worried about the global economy, cautioning that:
....the outlook for emerging market economies remains more uncertain as growth in China decelerates and commodity-exporting countries adjust to lower commodity prices.....the outlook for emerging market economies remains more uncertain as growth in China decelerates and commodity-exporting countries adjust to lower commodity prices.
9.21am BST9.21am BST
09:2109:21
Pound down (a bit)Pound down (a bit)
The pound is weakening this morning, but it’s not a full-blown rout.The pound is weakening this morning, but it’s not a full-blown rout.
Sterling is down around half a cent against the US dollar at $1.415, and a similar amount against the euro at €1.256.Sterling is down around half a cent against the US dollar at $1.415, and a similar amount against the euro at €1.256.
That’s a fairly muted reaction to this new IPSOS MORI poll putting Leave ahead.That’s a fairly muted reaction to this new IPSOS MORI poll putting Leave ahead.
It’s being published in the Evening Standard today, which says:It’s being published in the Evening Standard today, which says:
It is the first time since David Cameron pledged the referendum in January 2013 that Vote Leave have come out ahead in the respected monthly Ipsos MORI telephone survey, which is exclusive to the Evening Standard.It is the first time since David Cameron pledged the referendum in January 2013 that Vote Leave have come out ahead in the respected monthly Ipsos MORI telephone survey, which is exclusive to the Evening Standard.
Immigration has overtaken the economy as the most important issue to how the public will vote, which is a significant boost to Boris Johnson and the Leave campaign.Immigration has overtaken the economy as the most important issue to how the public will vote, which is a significant boost to Boris Johnson and the Leave campaign.
LEAVE SENSATION: Our shock @IpsosMORI phone poll finds Remain six ponts behind https://t.co/8dgF0CQ0jNLEAVE SENSATION: Our shock @IpsosMORI phone poll finds Remain six ponts behind https://t.co/8dgF0CQ0jN
Another 'why isn't sterling down more' moment.Another 'why isn't sterling down more' moment.
9.08am BST9.08am BST
09:0809:08
Just in.... a new opinion poll, putting giving the Leave campaign in the lead by 53% to 47%.Just in.... a new opinion poll, putting giving the Leave campaign in the lead by 53% to 47%.
That’s a significant turnaround compared with last month:That’s a significant turnaround compared with last month:
Significant collapse in REMAIN vote with LEAVE now on 53%, finds @IpsosMORI pic.twitter.com/gJaRF4CxotSignificant collapse in REMAIN vote with LEAVE now on 53%, finds @IpsosMORI pic.twitter.com/gJaRF4Cxot
9.06am BST9.06am BST
09:0609:06
All this criticism from the Leave campaign probably won’t prevent the Bank of England from citing Brexit fears in the official minutes of this week’s MPC meeting.All this criticism from the Leave campaign probably won’t prevent the Bank of England from citing Brexit fears in the official minutes of this week’s MPC meeting.
It would be odd, frankly, if they ignored it, given the recent volatility.It would be odd, frankly, if they ignored it, given the recent volatility.
Conner Campbell of SpreadEx reckons it could spark a deeper selloff.Conner Campbell of SpreadEx reckons it could spark a deeper selloff.
The FTSE could well see its losses intensify as the day goes on with the Bank of England set to stoke those Brexit-fearing fires later this morning with a firmer warning against leaving the EU (the central bank is also expected to unsurprisingly keep interest rates on hold).The FTSE could well see its losses intensify as the day goes on with the Bank of England set to stoke those Brexit-fearing fires later this morning with a firmer warning against leaving the EU (the central bank is also expected to unsurprisingly keep interest rates on hold).
Mark Carney faced a lot of criticism last time he expressed an opinion on the referendum, so expect an apoplectic reaction from Vote Leave (and perhaps another fall from the pound) as Thursday continues.Mark Carney faced a lot of criticism last time he expressed an opinion on the referendum, so expect an apoplectic reaction from Vote Leave (and perhaps another fall from the pound) as Thursday continues.
8.40am BST8.40am BST
08:4008:40
Crumbs, the Bank of England is really under fire from the Brexit camp.Crumbs, the Bank of England is really under fire from the Brexit camp.
Bernard Jenkin MP, a director of the Vote Leave campaign, has written to governor Mark Carney warning him not to breach the pre-referendum “purdah” rules by talking about the referendum.Bernard Jenkin MP, a director of the Vote Leave campaign, has written to governor Mark Carney warning him not to breach the pre-referendum “purdah” rules by talking about the referendum.
Clearly Carney’s warning that Brexit was the biggest domestic risk to the UK economy, and could trigger a recession, has riled Leave campaigners.Clearly Carney’s warning that Brexit was the biggest domestic risk to the UK economy, and could trigger a recession, has riled Leave campaigners.
But Carney has hit back, telling Jenkin that the Bank has simply been following its statutory duty to the UK people.But Carney has hit back, telling Jenkin that the Bank has simply been following its statutory duty to the UK people.
“All of the public comments that I, or other Bank officials, have made regarding issues related to the referendum have been limited to factors that affect the Bank’s statutory responsibilities and have been entirely consistent with our remits.”“All of the public comments that I, or other Bank officials, have made regarding issues related to the referendum have been limited to factors that affect the Bank’s statutory responsibilities and have been entirely consistent with our remits.”
And he finished with a zinger:And he finished with a zinger:
*Serious* shade from Carney. https://t.co/L9iElg8xHl #EUref pic.twitter.com/WM770kCtAB*Serious* shade from Carney. https://t.co/L9iElg8xHl #EUref pic.twitter.com/WM770kCtAB
More here.More here.
Great BBC scoop, confirmed by Bank of England https://t.co/zVct2tWcJOGreat BBC scoop, confirmed by Bank of England https://t.co/zVct2tWcJO
UpdatedUpdated
at 8.50am BSTat 8.50am BST
8.34am BST8.34am BST
08:3408:34
Bank of England criticisedBank of England criticised
Prime minister David Cameron has leapt to the Bank of England’s defence, after a volley of criticism from senior grandees.Prime minister David Cameron has leapt to the Bank of England’s defence, after a volley of criticism from senior grandees.
Former chancellors Lord Lamont and Lord Lawson and ex-Tory leaders Iain Duncan Smith and Lord Howard accused the BoE, and the Treasury, of peddling “phoney forecasts” about the dangers of Brexit.Former chancellors Lord Lamont and Lord Lawson and ex-Tory leaders Iain Duncan Smith and Lord Howard accused the BoE, and the Treasury, of peddling “phoney forecasts” about the dangers of Brexit.
The quartet declared:The quartet declared:
“There has been startling dishonesty in the economic debate, with a woeful failure on the part of the Bank of England, the Treasury and other official sources to present a fair and balanced analysis.“There has been startling dishonesty in the economic debate, with a woeful failure on the part of the Bank of England, the Treasury and other official sources to present a fair and balanced analysis.
“They have been peddling phoney forecasts and scare stories to back up the attempts of David Cameron and George Osborne to frighten the electorate into voting Remain.”“They have been peddling phoney forecasts and scare stories to back up the attempts of David Cameron and George Osborne to frighten the electorate into voting Remain.”
Cameron (whose Remain campaign has relied on dire economic warnings), has hit back:Cameron (whose Remain campaign has relied on dire economic warnings), has hit back:
1/2. It's deeply concerning that the Leave campaign is criticising the independent Bank of England.1/2. It's deeply concerning that the Leave campaign is criticising the independent Bank of England.
2/2. We should listen to experts when they warn us of the dangers to our economy of leaving the European Union.2/2. We should listen to experts when they warn us of the dangers to our economy of leaving the European Union.
8.15am BST8.15am BST
08:1508:15
Mike van Dulken of Accendo Markets says:Mike van Dulken of Accendo Markets says:
Brexit fears continue to intensify a week out from the referendum, with the Federal Reserve again citing it as a headwind last night.Brexit fears continue to intensify a week out from the referendum, with the Federal Reserve again citing it as a headwind last night.
The markets struggling to shrug off risk aversion sending bond prices higher and yields ever lower or more negative.The markets struggling to shrug off risk aversion sending bond prices higher and yields ever lower or more negative.
And he fears the FTSE 100 could continue to slide, perhaps losing another 400 points to 5,500:And he fears the FTSE 100 could continue to slide, perhaps losing another 400 points to 5,500:
#FTSE100 failure to conquer 6000 yday means we could revisit Feb lows 5500 via a 400pt bearish flag pattern pic.twitter.com/HhuYhxyEh4#FTSE100 failure to conquer 6000 yday means we could revisit Feb lows 5500 via a 400pt bearish flag pattern pic.twitter.com/HhuYhxyEh4
8.12am BST8.12am BST
08:1208:12
FTSE 100 hits near four-month lowFTSE 100 hits near four-month low
European stock markets have opened in the red, hit by the familiar cocktail of economic worries and Brexit angst.European stock markets have opened in the red, hit by the familiar cocktail of economic worries and Brexit angst.
In London, the FTSE 100 has dropped by 50 points, or 0.85%, to 5916. That erases yesterday’s recovery, and is the lowest point since 24 February.In London, the FTSE 100 has dropped by 50 points, or 0.85%, to 5916. That erases yesterday’s recovery, and is the lowest point since 24 February.
It means the index has lost around £100bn of value in the last week alone.It means the index has lost around £100bn of value in the last week alone.
Mining stocks and banks are among the biggest fallers in the City.Mining stocks and banks are among the biggest fallers in the City.
The French, German, Spanish and Italian markets have all dropped by over 1%, with traders fretting about how their economies will suffer if Britain leaves the EU.The French, German, Spanish and Italian markets have all dropped by over 1%, with traders fretting about how their economies will suffer if Britain leaves the EU.
8.03am BST8.03am BST
08:0308:03
Nikkei tumbles and yen soars after BoJ decisionNikkei tumbles and yen soars after BoJ decision
The Tokyo stock market has tumbled by 3% today, after the Bank of Japan left its stimulus programme on hold ahead of the Brexit referendum.The Tokyo stock market has tumbled by 3% today, after the Bank of Japan left its stimulus programme on hold ahead of the Brexit referendum.
Hopes that the BoJ might announce fresh stimulus measures were dashed. Instead, policymakers voted to continue expanding the monetary base at an annual rate of about 80 billion yen.Hopes that the BoJ might announce fresh stimulus measures were dashed. Instead, policymakers voted to continue expanding the monetary base at an annual rate of about 80 billion yen.
That hit stocks, but also triggered a rush of money into the yen.That hit stocks, but also triggered a rush of money into the yen.
Japan’s currency smashed through the ¥104 mark against the US dollar for the first time since August 2014, trading as strongly as ¥103.98 to $1.Japan’s currency smashed through the ¥104 mark against the US dollar for the first time since August 2014, trading as strongly as ¥103.98 to $1.
That will alarm top brass in Tokyo, who would rather see a rather weaker currency (to push up inflation away from around zero)That will alarm top brass in Tokyo, who would rather see a rather weaker currency (to push up inflation away from around zero)
Live scenes from the BOJ as USDJPY cracks 104.00 for the first time since August 2014 pic.twitter.com/I9xPEQGCnqLive scenes from the BOJ as USDJPY cracks 104.00 for the first time since August 2014 pic.twitter.com/I9xPEQGCnq
The BoJ also singled out next week’s EU referendum as a key geopolitical threat to the Japanese economy, along with the “European debt problem”.The BoJ also singled out next week’s EU referendum as a key geopolitical threat to the Japanese economy, along with the “European debt problem”.
No action from #BoJ. Yen soars, #Nikkei closes down 3%. Will their hand be forced if #Brexit fears drives up the value of the yen further?No action from #BoJ. Yen soars, #Nikkei closes down 3%. Will their hand be forced if #Brexit fears drives up the value of the yen further?
UpdatedUpdated
at 8.04am BSTat 8.04am BST
7.51am BST7.51am BST
07:5107:51
The agenda: One last Brexit warning from the Bank of England?The agenda: One last Brexit warning from the Bank of England?
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 Bank of England day. At noon, the Monetary Policy Committee will release its latest decision on interest rates, and say whether is is taking any fresh steps to stimulate the economy.It’s Bank of England day. At noon, the Monetary Policy Committee will release its latest decision on interest rates, and say whether is is taking any fresh steps to stimulate the economy.
No changes are expected. But instead, the MPC is likely to release a fresh warning about the risks posed by next week’s EU referendum. The minutes of this month’s meeting could also highlight the harm already caused by Brexit uncertainty.No changes are expected. But instead, the MPC is likely to release a fresh warning about the risks posed by next week’s EU referendum. The minutes of this month’s meeting could also highlight the harm already caused by Brexit uncertainty.
The financial markets are already in a nervous mood today, after the US Federal Reserve slashed its forecasts for interest rate hikes – and pinned some of the blame on the UK’s referendum vote.The financial markets are already in a nervous mood today, after the US Federal Reserve slashed its forecasts for interest rate hikes – and pinned some of the blame on the UK’s referendum vote.
Related: Federal Reserve puts interest rates rise on hold and blames BrexitRelated: Federal Reserve puts interest rates rise on hold and blames Brexit
Also coming up today:Also coming up today:
We’ll be tracking all the main events through the day....We’ll be tracking all the main events through the day....
UpdatedUpdated
at 7.51am BSTat 7.51am BST