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You can find the current article at its original source at https://www.theguardian.com/business/live/2016/jul/08/pound-steadies-as-markets-await-key-us-jobs-report-business-live
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| Markets rise as US jobs smash forecasts - business live | Markets rise as US jobs smash forecasts - business live |
| (35 minutes later) | |
| 2.40pm BST | |
| 14:40 | |
| Wall Street opens higher; Dow recovers all Brexit losses | |
| Wall Street has opened higher after non-farm payrolls jumped by 287,000 in June, the most in eight months. | |
| And the Dow Jones has now recovered all of the losses following the Brexit vote: | |
| Dow officially recovers all of its #Brexit losses.@CNBC | |
| 2.21pm BST | |
| 14:21 | |
| Goldman hires Barroso for Brexit advice | |
| Goldman Sachs has drafted in Jose Manuel Barroso, the former head of the European Commission, as an advisor as the impact of the Brexit vote unfolds. | |
| Barroso was president of the EC for a decade between 2004 and 2014. | |
| In a statement issued by GS, Michael Sherwood and Richard Gnodde, co-CEOs of Goldman Sachs International, commented on the high-profile appointment: | |
| José Manuel brings immense insights and experience to Goldman Sachs, including a deep understanding of Europe. | |
| We look forward to working with him as we continue to help our clients navigate the challenging and uncertain economic and market environment. | |
| Barroso also comments on his new role in an FT piece running online. He says he will do what he can to “mitigate the negative effects” of Britain’s decision to leave the EU. | |
| Of course I know the EU well, I also know relatively well the UK environment. If my advice can be helpful in this circumstance I’m ready to contribute, of course. | |
| Updated | |
| at 2.23pm BST | |
| 2.04pm BST | 2.04pm BST |
| 14:04 | 14:04 |
| Brexit fallout: IMF cuts eurozone growth forecast | Brexit fallout: IMF cuts eurozone growth forecast |
| The Guardian’s Katie Allen reports: | The Guardian’s Katie Allen reports: |
| The International Monetary Fund has cut its growth outlook for the eurozone on the back of the Brexit vote, warning that a new climate of uncertainty across the single currency bloc will dent confidence, fan financial market volatility and spill over into other economies. | The International Monetary Fund has cut its growth outlook for the eurozone on the back of the Brexit vote, warning that a new climate of uncertainty across the single currency bloc will dent confidence, fan financial market volatility and spill over into other economies. |
| The Fund used a regular healthcheck on the eurozone to warn it would suffer an economic slowdown and more political uncertainty as a result of last month’s referendum result. It is the latest body to warn that fresh cracks could emerge in the region as it grapples with the fallout of the UK’s decision to depart the EU. | The Fund used a regular healthcheck on the eurozone to warn it would suffer an economic slowdown and more political uncertainty as a result of last month’s referendum result. It is the latest body to warn that fresh cracks could emerge in the region as it grapples with the fallout of the UK’s decision to depart the EU. |
| GDP in the eurozone is now expected to grow 1.6% this year and just 1.4% in 2017, a slowdown from a 1.7% expansion last year, “mainly due to the negative impact of the UK referendum”, the IMF said. | GDP in the eurozone is now expected to grow 1.6% this year and just 1.4% in 2017, a slowdown from a 1.7% expansion last year, “mainly due to the negative impact of the UK referendum”, the IMF said. |
| That compares with IMF forecasts before the June vote of 1.7% growth for the eurozone this year and next. The IMF had repeatedly warned before the referendum of dire economic consequences from Brexit, much to the anger of leave campaigners. | That compares with IMF forecasts before the June vote of 1.7% growth for the eurozone this year and next. The IMF had repeatedly warned before the referendum of dire economic consequences from Brexit, much to the anger of leave campaigners. |
| The IMF said: “Looking ahead, the risks to the outlook remain firmly on the downside and are mainly political. Uncertainty will persist as long as the UK’s new status vis-à-vis the EU is not clear. | The IMF said: “Looking ahead, the risks to the outlook remain firmly on the downside and are mainly political. Uncertainty will persist as long as the UK’s new status vis-à-vis the EU is not clear. |
| “The recommendation in the staff report that collective actions should be taken to improve the governance of the economic union and make it more cohesive remains valid, and has now taken on greater urgency.” | “The recommendation in the staff report that collective actions should be taken to improve the governance of the economic union and make it more cohesive remains valid, and has now taken on greater urgency.” |
| Full story here: | Full story here: |
| Related: IMF cuts growth predictions for eurozone over post-Brexit confusion | Related: IMF cuts growth predictions for eurozone over post-Brexit confusion |
| Updated | Updated |
| at 2.07pm BST | at 2.07pm BST |
| 1.59pm BST | 1.59pm BST |
| 13:59 | 13:59 |
| The far stronger-than-expected non-farm payrolls were boosted in particular by job creation in leisure and hospitality, health care and social assistance, as well the financial sector. | The far stronger-than-expected non-farm payrolls were boosted in particular by job creation in leisure and hospitality, health care and social assistance, as well the financial sector. |
| On the downside, the Labor Department figures showed the unemployment rose to 4.9% in June from 4.7% in May. | On the downside, the Labor Department figures showed the unemployment rose to 4.9% in June from 4.7% in May. |
| My main take on the jobs release unemployment rose 347000 especially large jump 0.3% among women & blacks +.4% & particp rate rose | My main take on the jobs release unemployment rose 347000 especially large jump 0.3% among women & blacks +.4% & particp rate rose |
| 1.43pm BST | 1.43pm BST |
| 13:43 | 13:43 |
| So the non-farm payrolls were a major surprise on the upside. | So the non-farm payrolls were a major surprise on the upside. |
| But as it turns out, last month payrolls were up just 11,000! And everyone thought the original estimate of 38,000 jobs was a shocker. | But as it turns out, last month payrolls were up just 11,000! And everyone thought the original estimate of 38,000 jobs was a shocker. |
| of particular note is the 37000 rise in nfp in May despite what all the experts expected was revised down to +11000 | of particular note is the 37000 rise in nfp in May despite what all the experts expected was revised down to +11000 |
| 1.34pm BST | 1.34pm BST |
| 13:34 | 13:34 |
| Payrolls summed up nicely: | Payrolls summed up nicely: |
| It's back, baby.Payrolls grows an amazing +287k.That's huge. It's big. It's great. It's awesome. | It's back, baby.Payrolls grows an amazing +287k.That's huge. It's big. It's great. It's awesome. |
| 1.32pm BST | 1.32pm BST |
| 13:32 | 13:32 |
| Breaking: US payrolls jump more than expected | Breaking: US payrolls jump more than expected |
| US payrolls were far stronger than expected in June, rising by 287,000. | US payrolls were far stronger than expected in June, rising by 287,000. |
| It a huge leap compared with May, when 11,000 jobs were created (revised down from 38,000) and more than the 175,000 forecast by economists. More soon. | It a huge leap compared with May, when 11,000 jobs were created (revised down from 38,000) and more than the 175,000 forecast by economists. More soon. |
| Updated | Updated |
| at 1.39pm BST | at 1.39pm BST |
| 1.24pm BST | 1.24pm BST |
| 13:24 | 13:24 |
| Five minutes to go until non-farm payrolls. European markets are up ahead of the key US data. | Five minutes to go until non-farm payrolls. European markets are up ahead of the key US data. |
| The FTSE 100 was down earlier but is now up 0.2% or 16 points at 6,549. | The FTSE 100 was down earlier but is now up 0.2% or 16 points at 6,549. |
| 1.04pm BST | 1.04pm BST |
| 13:04 | 13:04 |
| Hargreaves Lansdown has commented on property funds, and the move by so many this week to block withdrawals as investors panic about the potential impact of Brexit on the property market. | Hargreaves Lansdown has commented on property funds, and the move by so many this week to block withdrawals as investors panic about the potential impact of Brexit on the property market. |
| Laith Khalaf at Hargreaves Lansdown suggests the negative view of property in the current climate might be overdone. | Laith Khalaf at Hargreaves Lansdown suggests the negative view of property in the current climate might be overdone. |
| It’s been a hectic week for property funds, but as yet we don’t know how deep the fault lines run. The mark down in asset prices is really an educated guess, and it may not be borne out by real world transactions, for better or worse, though with such sharp adjustments there appears to be a lot of bad news in the price. | It’s been a hectic week for property funds, but as yet we don’t know how deep the fault lines run. The mark down in asset prices is really an educated guess, and it may not be borne out by real world transactions, for better or worse, though with such sharp adjustments there appears to be a lot of bad news in the price. |
| Open-ended funds investing in property clearly have limitations, but long term investors in any market should be willing to tolerate periods of weakness. Selling out when prices have fallen sharply is usually a bad idea, particularly if the decision is a knee-jerk reaction. | Open-ended funds investing in property clearly have limitations, but long term investors in any market should be willing to tolerate periods of weakness. Selling out when prices have fallen sharply is usually a bad idea, particularly if the decision is a knee-jerk reaction. |
| The fundamental trends that led to the popularity of property as an asset class are still in place, with interest rates still low and gilt prices still high. Economic uncertainty casts a shadow over the sector for sure, but as yet we lack real data on what the full impact of Brexit will be. | The fundamental trends that led to the popularity of property as an asset class are still in place, with interest rates still low and gilt prices still high. Economic uncertainty casts a shadow over the sector for sure, but as yet we lack real data on what the full impact of Brexit will be. |
| 12.03pm BST | 12.03pm BST |
| 12:03 | 12:03 |
| The Greek government is poised to sell €625m of three-month treasury bills on 3 July to refinance maturing debt, the country’s debt agency PDMA said. | The Greek government is poised to sell €625m of three-month treasury bills on 3 July to refinance maturing debt, the country’s debt agency PDMA said. |
| Greece to auction 625 mln euros of 3-month T-bills on July 13 https://t.co/OFblEHVwKq pic.twitter.com/rzm8gIDWp5 | Greece to auction 625 mln euros of 3-month T-bills on July 13 https://t.co/OFblEHVwKq pic.twitter.com/rzm8gIDWp5 |
| 11.52am BST | 11.52am BST |
| 11:52 | 11:52 |
| The pound is up 0.6% against the dollar at $1.2984. | The pound is up 0.6% against the dollar at $1.2984. |
| It is also up 0.6% against the euro, at €1.1732. | It is also up 0.6% against the euro, at €1.1732. |
| 11.49am BST | 11.49am BST |
| 11:49 | 11:49 |
| Barack Obama has written a piece in today’s FT entitled “America’s alliance with Britain and Europe”. | Barack Obama has written a piece in today’s FT entitled “America’s alliance with Britain and Europe”. |
| The US President uses the piece to say the “special relationship between the US and the UK will endure”. | The US President uses the piece to say the “special relationship between the US and the UK will endure”. |
| As he seeks to provides reassurance, his latest comments on the post-Brexit world are far more upbeat than in the run-up to the referendum, when he said the UK would be at the back of the queue for a trade deal with America. | As he seeks to provides reassurance, his latest comments on the post-Brexit world are far more upbeat than in the run-up to the referendum, when he said the UK would be at the back of the queue for a trade deal with America. |
| As difficult as it will be, I am confident that the UK and the EU will be able to agree on an orderly transition to a new relationship, as all our countries stay focused on ensuring financial stability and growing the global economy. | As difficult as it will be, I am confident that the UK and the EU will be able to agree on an orderly transition to a new relationship, as all our countries stay focused on ensuring financial stability and growing the global economy. |
| And, while the relationship between the UK and the EU will change, it is worth remembering what will not change. | And, while the relationship between the UK and the EU will change, it is worth remembering what will not change. |
| The special relationship between the US and the UK will endure... Likewise, the US will continue to have an indispensable partner in the EU. | The special relationship between the US and the UK will endure... Likewise, the US will continue to have an indispensable partner in the EU. |
| The US and the EU have the largest trade and investment relationship in the world and our co-operation will be essential to stimulating global growth and reducing inequality through public investments so that globalisation delivers opportunity for all people, not just those at the top. | The US and the EU have the largest trade and investment relationship in the world and our co-operation will be essential to stimulating global growth and reducing inequality through public investments so that globalisation delivers opportunity for all people, not just those at the top. |
| Europe will remain a cornerstone of America’s engagement with the world. | Europe will remain a cornerstone of America’s engagement with the world. |
| Moreover, while Brexit creates some uncertainty, our shared prosperity will continue to rest on the rock-solid foundation of Nato. | Moreover, while Brexit creates some uncertainty, our shared prosperity will continue to rest on the rock-solid foundation of Nato. |
| 11.31am BST | 11.31am BST |
| 11:31 | 11:31 |
| Business secretary Sajid Javid is in Mumbai to meet the boss of Tata about the group’s plans for its UK steel business. | Business secretary Sajid Javid is in Mumbai to meet the boss of Tata about the group’s plans for its UK steel business. |
| It is though Tata could announce that it is putting on hold its plans for a sale of the UK business. | It is though Tata could announce that it is putting on hold its plans for a sale of the UK business. |
| Tata announced plans to sell its UK steel operation in late March, putting 11,000 jobs at risk, including 4,000 at the strip products business in Port Talbot, south Wales. | Tata announced plans to sell its UK steel operation in late March, putting 11,000 jobs at risk, including 4,000 at the strip products business in Port Talbot, south Wales. |
| It blamed cheap Chinese imports, the depressed price of steel and high energy costs for the decision to sell the business it bought in 2007. | It blamed cheap Chinese imports, the depressed price of steel and high energy costs for the decision to sell the business it bought in 2007. |
| Related: Steel industry crisis: Sajid Javid meets Tata chief in Mumbai | Related: Steel industry crisis: Sajid Javid meets Tata chief in Mumbai |
| 11.24am BST | 11.24am BST |
| 11:24 | 11:24 |
| European markets are looking a little mixed now ahead of those US payroll numbers at 1.30pm (UK time). | European markets are looking a little mixed now ahead of those US payroll numbers at 1.30pm (UK time). |
| The FTSE 100 is slightly down, while the FTSE 250 is up 1.2% at 16,092. | The FTSE 100 is slightly down, while the FTSE 250 is up 1.2% at 16,092. |
| Michael Hewson at CMC Markets says investors are hanging on to see what the jobs report brings | Michael Hewson at CMC Markets says investors are hanging on to see what the jobs report brings |
| There appears to be little incentive this morning to drive markets strongly one way or the other ahead of this afternoon’s US payrolls report. | There appears to be little incentive this morning to drive markets strongly one way or the other ahead of this afternoon’s US payrolls report. |
| We do have a slightly firmer tone with the FTSE100 underperforming somewhat due to a weaker oil price, but overall we appear to be in a holding pattern at the end of what has been a fairly turbulent week. | We do have a slightly firmer tone with the FTSE100 underperforming somewhat due to a weaker oil price, but overall we appear to be in a holding pattern at the end of what has been a fairly turbulent week. |
| 10.55am BST | 10.55am BST |
| 10:55 | 10:55 |
| More on the the risk of political contagion posed by the Brexit vote. | More on the the risk of political contagion posed by the Brexit vote. |
| Any signs of political contagion could trigger a “wild” reaction among investors according to NN Investments. | Any signs of political contagion could trigger a “wild” reaction among investors according to NN Investments. |
| There is no guarantee that investors’ emotions will not turn wild again if signs of political contagion from the UK into mainland Europe becomes more visible, or if the needed recapitalisation of the Italian banking system remains unresolved, or if headline-grabbing newsflow of suspensions of real estate funds intensifies. | There is no guarantee that investors’ emotions will not turn wild again if signs of political contagion from the UK into mainland Europe becomes more visible, or if the needed recapitalisation of the Italian banking system remains unresolved, or if headline-grabbing newsflow of suspensions of real estate funds intensifies. |
| 10.36am BST | 10.36am BST |
| 10:36 | 10:36 |
| Get news alerts on the US jobs report | Get news alerts on the US jobs report |
| The Guardian Mobile Innovation Lab will be publishing news alerts on today’s US jobs report. | The Guardian Mobile Innovation Lab will be publishing news alerts on today’s US jobs report. |
| From 1.30pm BST/8.30 am EST,they’ll be sending a series of alerts about the report’s numbers and what they mean. Web notifications are currently only available on Chrome, so if you have an Android mobile phone (Samsung, included!), we hope you’ll sign up. | From 1.30pm BST/8.30 am EST,they’ll be sending a series of alerts about the report’s numbers and what they mean. Web notifications are currently only available on Chrome, so if you have an Android mobile phone (Samsung, included!), we hope you’ll sign up. |
| Click here to sign up for the experiment. | Click here to sign up for the experiment. |
| 10.34am BST | 10.34am BST |
| 10:34 | 10:34 |
| Moody's: Political contagion across EU is greatest Brexit risk | Moody's: Political contagion across EU is greatest Brexit risk |
| Some gloomy observations this morning from Moody’s, which is warning that Brexit could topple the whole EU project. | Some gloomy observations this morning from Moody’s, which is warning that Brexit could topple the whole EU project. |
| The ratings agency says that a weaker UK and EU economy in the wake of the Brexit vote is not the key risk to the global economy. Rather it is political contagion. | The ratings agency says that a weaker UK and EU economy in the wake of the Brexit vote is not the key risk to the global economy. Rather it is political contagion. |
| The downside risks to global growth stem not from the possibility of a recession in the UK, but from the possibility that developments in the UK may give rise to increased political risk elsewhere in the EU. | The downside risks to global growth stem not from the possibility of a recession in the UK, but from the possibility that developments in the UK may give rise to increased political risk elsewhere in the EU. |
| In the long run, the potential strengthening of nationalistic and protectionist movements could have a detrimental effect on the EU, even threatening its existence. | In the long run, the potential strengthening of nationalistic and protectionist movements could have a detrimental effect on the EU, even threatening its existence. |
| The fragmentation of the trade bloc could also encourage protectionist tendencies in other countries, potentially halting the past few decades of increasing globalisation. This in turn would damage the long-term growth prospects of individual economies. | The fragmentation of the trade bloc could also encourage protectionist tendencies in other countries, potentially halting the past few decades of increasing globalisation. This in turn would damage the long-term growth prospects of individual economies. |
| The EU economy represents roughly a quarter of global GDP, making it systemically important to the world economy and the US. Therefore, if the negative risks in the EU materialize, it would have a significant consequences for global trade and growth. | The EU economy represents roughly a quarter of global GDP, making it systemically important to the world economy and the US. Therefore, if the negative risks in the EU materialize, it would have a significant consequences for global trade and growth. |
| Updated | Updated |
| at 10.35am BST | at 10.35am BST |