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You can find the current article at its original source at https://www.theguardian.com/business/live/2016/oct/06/pound-sterling-chancellor-hammond-wall-street-charm-offensive-business-live
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| Pound hits another 31-year low as chancellor Hammond launches Wall Street charm offensive – business live | Pound hits another 31-year low as chancellor Hammond launches Wall Street charm offensive – business live |
| (35 minutes later) | |
| 4.49pm BST | |
| 16:49 | |
| FTSE 100 closes below 7000 - just | |
| Just days after all the excitement about the UK’s leading index soaring through the 7000 barrier and heading towards a new high, it has sagged back below that level with a bit of a whimper. | |
| It has closed down 33.29 points at 6999.96 as the uncertainty over Britain’s exit from the European Union continued, with the trade off between migration controls and remaining in the single market still unresolved. Fears of a hard Brexit continued despite chancellor Philip Hammond maintaining the government would seek the right Brexit for both the UK and EU. | |
| Updated | |
| at 4.51pm BST | |
| 4.31pm BST | 4.31pm BST |
| 16:31 | 16:31 |
| Better than expected US weekly jobless claims - coming ahead of Friday’s non-farm payroll numbers - have renewed talk that the Federal Reserve would have leeway to raise interest rates, and thus helped push the dollar higher. | Better than expected US weekly jobless claims - coming ahead of Friday’s non-farm payroll numbers - have renewed talk that the Federal Reserve would have leeway to raise interest rates, and thus helped push the dollar higher. |
| That of course means the pound continues to be pressured, as if there were not enough negative noises around the UK currency. Jasper Lawler, market analyst at CMC Markets, said: | That of course means the pound continues to be pressured, as if there were not enough negative noises around the UK currency. Jasper Lawler, market analyst at CMC Markets, said: |
| There were three G’s selling off in markets; the Great British pound, gilts and gold. An apparent shift in UK politics under the wing of Teresa May towards an interventionist and anti-business agenda was not received well in markets. The pound slid again in what has become a relentless barrage of selling, UK government bonds were sold and the FTSE 100 underperformed its European peers. | There were three G’s selling off in markets; the Great British pound, gilts and gold. An apparent shift in UK politics under the wing of Teresa May towards an interventionist and anti-business agenda was not received well in markets. The pound slid again in what has become a relentless barrage of selling, UK government bonds were sold and the FTSE 100 underperformed its European peers. |
| Comments from the German chancellor have also been taken as another sell signal for the pound. | Comments from the German chancellor have also been taken as another sell signal for the pound. |
| German chancellor #Merkel warns Britain over #Brexit terms.#TDI2016 pic.twitter.com/9beIvuzFYe | German chancellor #Merkel warns Britain over #Brexit terms.#TDI2016 pic.twitter.com/9beIvuzFYe |
| Connor Campbell at Spreadex said: | Connor Campbell at Spreadex said: |
| It seems that we are firmly back in Brexit-dominating territory – even the mildest squawkings from the news-wire are causing pain for the pound. Today it was the turn of Angela Merkel to make sterling’s life even more difficult, the German leader resolute in her claim that freedom of movement is a must if Britain wants to stand any chance of remaining in the single market. | It seems that we are firmly back in Brexit-dominating territory – even the mildest squawkings from the news-wire are causing pain for the pound. Today it was the turn of Angela Merkel to make sterling’s life even more difficult, the German leader resolute in her claim that freedom of movement is a must if Britain wants to stand any chance of remaining in the single market. |
| This, alongside seemingly the very idea that Chancellor Phillip Hammond has had to make a trip to Wall Street to reassure US banks about London’s position as a financial hub post-Brexit, has led the pound to its latest 31 year nadir against the dollar and a 5 year low against the euro. | This, alongside seemingly the very idea that Chancellor Phillip Hammond has had to make a trip to Wall Street to reassure US banks about London’s position as a financial hub post-Brexit, has led the pound to its latest 31 year nadir against the dollar and a 5 year low against the euro. |
| At the moment the pound is down 0.8% at $1.2646 and 0.47% lower against the euro at €1.1319. | At the moment the pound is down 0.8% at $1.2646 and 0.47% lower against the euro at €1.1319. |
| Updated | Updated |
| at 4.34pm BST | at 4.34pm BST |
| 4.12pm BST | 4.12pm BST |
| 16:12 | 16:12 |
| Philip Hammond has also been on CNBC, reports Reuters: | Philip Hammond has also been on CNBC, reports Reuters: |
| Any future decision on whether the British government should approve another round of quantitative easing to spur the economy will be taken “carefully and cautiously,” finance minister Philip Hammond said on Thursday. | Any future decision on whether the British government should approve another round of quantitative easing to spur the economy will be taken “carefully and cautiously,” finance minister Philip Hammond said on Thursday. |
| “I approved a round of quantitative easing back at the beginning of August as a response to the shock that the economy had felt, but we are conscious of the impacts that QE has and we will use it carefully and cautiously,” Hammond, who is currently in New York, said in a television interview with CNBC. | “I approved a round of quantitative easing back at the beginning of August as a response to the shock that the economy had felt, but we are conscious of the impacts that QE has and we will use it carefully and cautiously,” Hammond, who is currently in New York, said in a television interview with CNBC. |
| On Wednesday British Prime Minister Theresa May said low interest rates and quantitative easing have bad side-effects. | On Wednesday British Prime Minister Theresa May said low interest rates and quantitative easing have bad side-effects. |
| 3.49pm BST | 3.49pm BST |
| 15:49 | 15:49 |
| And Reuters: | And Reuters: |
| British finance minister Philip Hammond said on Thursday that he would focus on increasing the country’s economic output by improving productivity, but that overall growth could slow as Britain barred most low-skilled European Union migrants. | British finance minister Philip Hammond said on Thursday that he would focus on increasing the country’s economic output by improving productivity, but that overall growth could slow as Britain barred most low-skilled European Union migrants. |
| “What we need to drive is a growth in GDP per capita. We need to see our economic expansion coming from an improvement in productivity, not simply from bringing ever larger numbers of low skilled people into the economy,” Hammond said in an interview with Bloomberg TV in New York. | “What we need to drive is a growth in GDP per capita. We need to see our economic expansion coming from an improvement in productivity, not simply from bringing ever larger numbers of low skilled people into the economy,” Hammond said in an interview with Bloomberg TV in New York. |
| Economic data earlier on Thursday showed British productivity continued to lag other countries after several years in which growth has been driven by a growing workforce, which includes higher numbers of EU migrants. | Economic data earlier on Thursday showed British productivity continued to lag other countries after several years in which growth has been driven by a growing workforce, which includes higher numbers of EU migrants. |
| Hammond also said Britain’s government was looking at the costs and benefits of remaining in a customs union with the EU, as being outside would have “frictional costs” for manufacturers such as carmakers. | Hammond also said Britain’s government was looking at the costs and benefits of remaining in a customs union with the EU, as being outside would have “frictional costs” for manufacturers such as carmakers. |
| 3.47pm BST | 3.47pm BST |
| 15:47 | 15:47 |
| Here’s Bloomberg’s take on their interview with chancellor Philip Hammond: | Here’s Bloomberg’s take on their interview with chancellor Philip Hammond: |
| The U.K. will use Brexit to build on historic trading relationships outside of the EU, Chancellor of the Exchequer Philip Hammond told Bloomberg TV in New York. | The U.K. will use Brexit to build on historic trading relationships outside of the EU, Chancellor of the Exchequer Philip Hammond told Bloomberg TV in New York. |
| “We want to get the right Brexit for Britain,” Hammond told Bloomberg Editor-in-Chief John Micklethwait. | “We want to get the right Brexit for Britain,” Hammond told Bloomberg Editor-in-Chief John Micklethwait. |
| He described the U.K. as “mid-Atlantic in the way it does business,” and said capitalism faced problems across the developed world. | He described the U.K. as “mid-Atlantic in the way it does business,” and said capitalism faced problems across the developed world. |
| “We have a problem, not just a British problem but a developed world problem, in keeping our populations engaged and supportive of our market capitalism economic model,” Hammond said. | “We have a problem, not just a British problem but a developed world problem, in keeping our populations engaged and supportive of our market capitalism economic model,” Hammond said. |
| Hammond, who is on a visit to U.S. to meet Wall Street bosses and attend meetings of the International Monetary Fund, said he would make protecting London’s financial sector a priority for him. | Hammond, who is on a visit to U.S. to meet Wall Street bosses and attend meetings of the International Monetary Fund, said he would make protecting London’s financial sector a priority for him. |
| “It will be one of the U.K. government’s objectives to ensure that parts of the financial services sectors that are Europe-facing are able to continue doing business in Europe.” | “It will be one of the U.K. government’s objectives to ensure that parts of the financial services sectors that are Europe-facing are able to continue doing business in Europe.” |
| There are long-term economic advantages to @Brexit, Philip Hammond says https://t.co/KAo4N8YKEB pic.twitter.com/xhHqLjzm6a | There are long-term economic advantages to @Brexit, Philip Hammond says https://t.co/KAo4N8YKEB pic.twitter.com/xhHqLjzm6a |
| Updated | Updated |
| at 3.55pm BST | at 3.55pm BST |
| 3.43pm BST | 3.43pm BST |
| 15:43 | 15:43 |
| Philip Hammond may not want to disclose whether he thinks the value of sterling is too high or too low, but he might be pleased to know it has come off its lows of the day. | Philip Hammond may not want to disclose whether he thinks the value of sterling is too high or too low, but he might be pleased to know it has come off its lows of the day. |
| The pound is currently at $1.2646, down 0.8% on the day but above the new 31 year low of $1.2623 it reached earlier. | The pound is currently at $1.2646, down 0.8% on the day but above the new 31 year low of $1.2623 it reached earlier. |
| 3.39pm BST | 3.39pm BST |
| 15:39 | 15:39 |
| Hammond backs Carney | Hammond backs Carney |
| Question: Should Mark Carney (one of Britain’s best known foreign workers) stay on longer as Bank of England governor? | Question: Should Mark Carney (one of Britain’s best known foreign workers) stay on longer as Bank of England governor? |
| I think the governor is doing a good job. The bank is fulfilling its remit very effectively. It helped us recover from the financial crisis and helped us smooth the shock that came on 23rd June. | I think the governor is doing a good job. The bank is fulfilling its remit very effectively. It helped us recover from the financial crisis and helped us smooth the shock that came on 23rd June. |
| It is Mark Carney’s decision...I would welcome his decision to stay if that’s the decision he makes. | |
| And there the interview ends. | And there the interview ends. |
| Updated | Updated |
| at 4.54pm BST | |
| 3.36pm BST | 3.36pm BST |
| 15:36 | 15:36 |
| Question: isn’t UK economy doing ok? | Question: isn’t UK economy doing ok? |
| Media is focussing on backward data. UK economy was stronger than we thought.. but the concensus of forecasters is suggesting growth will slow as we go through period of negotiation until we have certainty over our position with EU. | Media is focussing on backward data. UK economy was stronger than we thought.. but the concensus of forecasters is suggesting growth will slow as we go through period of negotiation until we have certainty over our position with EU. |
| Business investment is the key focus. Business postpones decisions if climate is uncertain. We want to bring back certainty as soon as we can. | Business investment is the key focus. Business postpones decisions if climate is uncertain. We want to bring back certainty as soon as we can. |
| 3.34pm BST | 3.34pm BST |
| 15:34 | 15:34 |
| Question: Investment outside London? | Question: Investment outside London? |
| We have a productivity problem in UK, and one of drivers is regional disparity. We are hugely underinvested in transport links [in northern region]. | We have a productivity problem in UK, and one of drivers is regional disparity. We are hugely underinvested in transport links [in northern region]. |
| We will continue to support Northern powerhouse and other regions. | We will continue to support Northern powerhouse and other regions. |
| On infrastructure, lot is done by private sector. In public sector, we have an opportunity to borrow cheaply and we have further capacity for targeted investments in productive infrastructure. But with our debt to GDP ratio we cannot have unrestrained programme of public spending. | On infrastructure, lot is done by private sector. In public sector, we have an opportunity to borrow cheaply and we have further capacity for targeted investments in productive infrastructure. But with our debt to GDP ratio we cannot have unrestrained programme of public spending. |
| After shock of Brexit decision there will be a period of uncertainty, we have to support the economy through that. | After shock of Brexit decision there will be a period of uncertainty, we have to support the economy through that. |
| 3.31pm BST | 3.31pm BST |
| 15:31 | 15:31 |
| Question: Sterling gone down since Brexit. Does UK economy work at this level? | Question: Sterling gone down since Brexit. Does UK economy work at this level? |
| We don’t target exchange rate level. Market makes its judgement, and that can change quickly. | We don’t target exchange rate level. Market makes its judgement, and that can change quickly. |
| The market determines the appropriate level and we are committed to free floating exchange rate system. | The market determines the appropriate level and we are committed to free floating exchange rate system. |
| 3.29pm BST | 3.29pm BST |
| 15:29 | 15:29 |
| UK government is pro-business - Hammond | UK government is pro-business - Hammond |
| Question: Theresa May seemed more critical of business than previous PMs. Is government anti-business? | Question: Theresa May seemed more critical of business than previous PMs. Is government anti-business? |
| Absolutely not. We are pro-business. | Absolutely not. We are pro-business. |
| But we [Western economies} have a problem in keeping populations supportive of capital market model. People feel economy is not working for them, they are losers. We have to re-engage those people who feel they do not have a stake any more. | But we [Western economies} have a problem in keeping populations supportive of capital market model. People feel economy is not working for them, they are losers. We have to re-engage those people who feel they do not have a stake any more. |
| We have to address signs of a sizeable amount of people becoming disenchanted. | We have to address signs of a sizeable amount of people becoming disenchanted. |
| We have to deal with rogue operators. We have examples in UK of companies abusing market power, abusing workers. We have to deal with that. | We have to deal with rogue operators. We have examples in UK of companies abusing market power, abusing workers. We have to deal with that. |
| PM said there is a limit to the power of government but doesn’t mean they have no power at all. They have to make sure markets work properly. Sending out strong message that best way to make people free and prosperous is to have a free liberal economy. | PM said there is a limit to the power of government but doesn’t mean they have no power at all. They have to make sure markets work properly. Sending out strong message that best way to make people free and prosperous is to have a free liberal economy. |
| Updated | Updated |
| at 3.57pm BST | at 3.57pm BST |
| 3.26pm BST | 3.26pm BST |
| 15:26 | 15:26 |
| Question: is there any economic advantage to Brexit? | Question: is there any economic advantage to Brexit? |
| In the long term yes and outside the EU we will build on historic trading links. Our economy is more mid-Atlantic than Europe. | In the long term yes and outside the EU we will build on historic trading links. Our economy is more mid-Atlantic than Europe. |
| 3.24pm BST | 3.24pm BST |
| 15:24 | 15:24 |
| One reaction so far: | One reaction so far: |
| Offhand review from one American hedge fund manager about Hammond's talk: "well, he's a good *politician." | Offhand review from one American hedge fund manager about Hammond's talk: "well, he's a good *politician." |
| 3.21pm BST | 3.21pm BST |
| 15:21 | 15:21 |
| Question: EU will say you either get migration controls or single market. From conference it appears migration is more important. | Question: EU will say you either get migration controls or single market. From conference it appears migration is more important. |
| Hammond: I don’t agree. There will be discussions and there will have to be give and take on both sides... if there is a solution that is advantageous to both sides. We don’t delude ourselves our European partners owe us any favours. | Hammond: I don’t agree. There will be discussions and there will have to be give and take on both sides... if there is a solution that is advantageous to both sides. We don’t delude ourselves our European partners owe us any favours. |
| They still want access to UK market. | They still want access to UK market. |
| It has to be a win-win solution. | It has to be a win-win solution. |
| But we have to realise the Brexit vote said implicitly that we should not have freedom of movement in way we had in the past. That is about control, not saying people from Europe cannot come into the UK. | But we have to realise the Brexit vote said implicitly that we should not have freedom of movement in way we had in the past. That is about control, not saying people from Europe cannot come into the UK. |
| This is a negotiation, we both have our starting positions and will discuss it. | This is a negotiation, we both have our starting positions and will discuss it. |
| Updated | Updated |
| at 3.22pm BST | at 3.22pm BST |
| 3.18pm BST | 3.18pm BST |
| 15:18 | 15:18 |
| We have an economy heavily integrated with the EU after forty years. | We have an economy heavily integrated with the EU after forty years. |
| One of things we have to do is analyse benefits and costs of being in a customs union. | One of things we have to do is analyse benefits and costs of being in a customs union. |