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Mark Carney: central banks not to blame for rising inequality Mark Carney: central banks not to blame for rising inequality - as it happened
(35 minutes later)
6.11pm GMT
18:11
The weaker than expected UK inflation figures have put pressure on the pound again, pushing it lower against the dollar and the euro.
Sterling is currently down 0.4% at $1.2433 against the dollar, and the same amount lower against the euro at €1.1585.
Meanwhile the dollar itself is on the rise after the latest US economic data - stronger than expected retail sales - pointed once more to an interest rate rise next month.
On that note, it’s time to close for the evening. Thanks for all your comments, and we’ll be back tomorrow.
5.30pm GMT5.30pm GMT
17:3017:30
European markets edge higherEuropean markets edge higher
Despite the Dow Jones Industrial Average slipping back after several days of gains, European markets ended the day in positive territory. The UK market was helped by weaker than expected inflation figures, which pushed back the chances of an interest rate rise from the Bank of England. Joshua Mahony, market analyst at IG, said:Despite the Dow Jones Industrial Average slipping back after several days of gains, European markets ended the day in positive territory. The UK market was helped by weaker than expected inflation figures, which pushed back the chances of an interest rate rise from the Bank of England. Joshua Mahony, market analyst at IG, said:
Stock markets rose once more today, as hopes of a high growth period based on substantial fiscal stimulus continued to stoke the embers of last week’s US election... we have seen energy stocks grab some respite today, as crude prices rose in the wake of a fresh charge from OPEC to find a means to ensure the output cut comes to fruition.Stock markets rose once more today, as hopes of a high growth period based on substantial fiscal stimulus continued to stoke the embers of last week’s US election... we have seen energy stocks grab some respite today, as crude prices rose in the wake of a fresh charge from OPEC to find a means to ensure the output cut comes to fruition.
The final scores in Europe showed:The final scores in Europe showed:
On Wall Street, the Dow Jones Industrial Average is currently down 26 points or 0.14%.On Wall Street, the Dow Jones Industrial Average is currently down 26 points or 0.14%.
5.01pm GMT5.01pm GMT
17:0117:01
Elsewhere, crude has been buoyed by renewed talk that oil producers are trying to pave the way for an agreement on curbing output later this month. Brent crude is currently up 4% at $46.24 a barrel while West Texas Intermediate has jumped 4.4% to $45.24.Elsewhere, crude has been buoyed by renewed talk that oil producers are trying to pave the way for an agreement on curbing output later this month. Brent crude is currently up 4% at $46.24 a barrel while West Texas Intermediate has jumped 4.4% to $45.24.
Reuters has reported that Saudi energy minister Khalid al-Falih is expected to travel to Qatar this week for a meeting with producers. The outline of a deal to limit output was agreed by Opec in Algiers in September, but the details have proved difficult to agree.Reuters has reported that Saudi energy minister Khalid al-Falih is expected to travel to Qatar this week for a meeting with producers. The outline of a deal to limit output was agreed by Opec in Algiers in September, but the details have proved difficult to agree.
UpdatedUpdated
at 5.07pm GMTat 5.07pm GMT
4.55pm GMT4.55pm GMT
16:5516:55
Helena SmithHelena Smith
Not everyone is happy with Barack Obama’s presence in Greece. Helena Smith reports:Not everyone is happy with Barack Obama’s presence in Greece. Helena Smith reports:
Thousands of protestors have taken to the streets in a mass display of opposition against Obama.Thousands of protestors have taken to the streets in a mass display of opposition against Obama.
Despite a government ban on protestors taking place during the 29-hour period the US president is expected to be in the Greek capital as many as 3,000 people, many communists and hardline leftists, have defied the order to gather in central Athens and march towards the US embassy.Despite a government ban on protestors taking place during the 29-hour period the US president is expected to be in the Greek capital as many as 3,000 people, many communists and hardline leftists, have defied the order to gather in central Athens and march towards the US embassy.
Some are carrying placards proclaiming “unwanted,” others decrying “capitalism and imperialism.” Riot police have been dispatched with organisers, including Panaghiotis Lafazanis, the former energy minister and far left leader of the pro-drachma, breakaway Popular Unity party, denouncing the prohibition as “illegal and provocative” as Greece prepares to mark the November 17 anniversary commemorating the 1973 Polytechnic uprising against US-backed military rule.Some are carrying placards proclaiming “unwanted,” others decrying “capitalism and imperialism.” Riot police have been dispatched with organisers, including Panaghiotis Lafazanis, the former energy minister and far left leader of the pro-drachma, breakaway Popular Unity party, denouncing the prohibition as “illegal and provocative” as Greece prepares to mark the November 17 anniversary commemorating the 1973 Polytechnic uprising against US-backed military rule.
3.40pm GMT3.40pm GMT
15:4015:40
Here are Obama and Alexis Tsipras, courtesy of the White House, with the US president saying he would continue to urge Greece’s creditors to take the steps needed to put the country on the path to a durable economic recovery:Here are Obama and Alexis Tsipras, courtesy of the White House, with the US president saying he would continue to urge Greece’s creditors to take the steps needed to put the country on the path to a durable economic recovery:
"Kalispera." Watch @POTUS speak alongside PM @tsipras_eu in Athens—his first stop on his final planned foreign trip: https://t.co/BDXY7VdZmH"Kalispera." Watch @POTUS speak alongside PM @tsipras_eu in Athens—his first stop on his final planned foreign trip: https://t.co/BDXY7VdZmH
3.11pm GMT3.11pm GMT
15:1115:11
US markets off to a mixed startUS markets off to a mixed start
After six straight days of rises, the Dow Jones Industrial Average is pausing for breathe.After six straight days of rises, the Dow Jones Industrial Average is pausing for breathe.
It is currently down 26 points or 0.15%, but the S&P 500 and Nasdaq both moved higher at the open.It is currently down 26 points or 0.15%, but the S&P 500 and Nasdaq both moved higher at the open.
3.09pm GMT3.09pm GMT
15:0915:09
More from Obama on debt relief for Greece:More from Obama on debt relief for Greece:
#Obama: it is important to combine reforms, cuts with growth agenda #Greece#Obama: it is important to combine reforms, cuts with growth agenda #Greece
#Obama: you need a growth agenda, difficult without debt relief mechanism #Greece#Obama: you need a growth agenda, difficult without debt relief mechanism #Greece
And on Donald Trump’s election victory:And on Donald Trump’s election victory:
"Elex always turn on personalities .. turn on natural desire for change if incumbant has been there for 8 years," says #Obama in #Athens"Elex always turn on personalities .. turn on natural desire for change if incumbant has been there for 8 years," says #Obama in #Athens
Greek prime minister Alexis Tsipras says he is hopeful Germany will back debt relief (which may be an heroic assessment):Greek prime minister Alexis Tsipras says he is hopeful Germany will back debt relief (which may be an heroic assessment):
Tsipras says he is *optimistic* that Merkel will be convinced (by @POTUS !) to provide substantive debt relief to Greece. #obama_athensTsipras says he is *optimistic* that Merkel will be convinced (by @POTUS !) to provide substantive debt relief to Greece. #obama_athens
2.49pm GMT2.49pm GMT
14:4914:49
And here are Obama’s comments. Helena reports:And here are Obama’s comments. Helena reports:
“I have always wanted to come to Greece ... I think we all know that the world owes an enormous debt to Greece and the Greek people,” Obama also told reporters.“I have always wanted to come to Greece ... I think we all know that the world owes an enormous debt to Greece and the Greek people,” Obama also told reporters.
“The ideas of ancient Greeks helped inspire our founding fathers ….to this day the United States is profoundly grateful to our Greek friends.“The ideas of ancient Greeks helped inspire our founding fathers ….to this day the United States is profoundly grateful to our Greek friends.
“I know this has been a painful and difficult time … this crisis is not an abstraction but has a very concrete and devastating impact on people in this country.”“I know this has been a painful and difficult time … this crisis is not an abstraction but has a very concrete and devastating impact on people in this country.”
It was, he said, now very important that “Greeks see improvements in their daily lives.”It was, he said, now very important that “Greeks see improvements in their daily lives.”
2.44pm GMT2.44pm GMT
14:4414:44
Obama backs debt relief for GreeceObama backs debt relief for Greece
Helena SmithHelena Smith
Back to Greece again, where the US president has begun his farewell tour of Europe. Our correspondent Helena Smith reports:Back to Greece again, where the US president has begun his farewell tour of Europe. Our correspondent Helena Smith reports:
Barack Obama may be visiting Athens at the end of his time in office but the outgoing US leader has not disappointed. Barely three hours after he touched down in a Greek capital rendered almost unrecognizable by draconian security, Obama said the three words Greek officials have wanted the world leader to utter: debt, austerity and solidarity. “I will continue to underline that austerity alone cannot deliver prosperity,” he told the Greek prime minister Alexis Tsipras after being greeted by the debt-stricken country’s head of state and the rousing tones of a military honour band. “Debt relief is needed.”Barack Obama may be visiting Athens at the end of his time in office but the outgoing US leader has not disappointed. Barely three hours after he touched down in a Greek capital rendered almost unrecognizable by draconian security, Obama said the three words Greek officials have wanted the world leader to utter: debt, austerity and solidarity. “I will continue to underline that austerity alone cannot deliver prosperity,” he told the Greek prime minister Alexis Tsipras after being greeted by the debt-stricken country’s head of state and the rousing tones of a military honour band. “Debt relief is needed.”
Earlier he had said: “Greece has gone through very challenging and dramatic times over the last several years. We are glad to see that progress is being made, although we recognise that there are significant challenges ahead, and we intend to stand shoulder to shoulder with the Greek people throughout this process. “Earlier he had said: “Greece has gone through very challenging and dramatic times over the last several years. We are glad to see that progress is being made, although we recognise that there are significant challenges ahead, and we intend to stand shoulder to shoulder with the Greek people throughout this process. “
Athens’ leftist led government has made little secret that it hopes the US president’s open display of support will resonate with Germany and other partners in Europe which have footed the bill of the nation’s massive bailouts but demanded punishing belt-tightening in return. “We consider this visit will contribute to the effort to reduce Greece’s debt, its spokesman said ahead of the leader’s arrival. “The US president has repeatedly stated he wants to solve this huge issue before he leaves office.”Athens’ leftist led government has made little secret that it hopes the US president’s open display of support will resonate with Germany and other partners in Europe which have footed the bill of the nation’s massive bailouts but demanded punishing belt-tightening in return. “We consider this visit will contribute to the effort to reduce Greece’s debt, its spokesman said ahead of the leader’s arrival. “The US president has repeatedly stated he wants to solve this huge issue before he leaves office.”
Obama, only the fourth American leader to visit the country since its foundation nearly 200 years ago, heads to Berlin once his 29-hour sojourn in Athens ends on Wednesday.Obama, only the fourth American leader to visit the country since its foundation nearly 200 years ago, heads to Berlin once his 29-hour sojourn in Athens ends on Wednesday.
Tsipras is pushing EU partners to agree to a debt deal by the end of the year. At around €330bn, or 180 percent of GDP, Greece’s debt pile is not only regarded as unsustainable but perhaps the biggest impediment to its economic recovery.Tsipras is pushing EU partners to agree to a debt deal by the end of the year. At around €330bn, or 180 percent of GDP, Greece’s debt pile is not only regarded as unsustainable but perhaps the biggest impediment to its economic recovery.
Without the load being partially forgiven, Tsipras’ Syriza-dominated government says it will be high-nigh impossible to get out of the death spiral in which the recession-ravaged economy now finds itself.Without the load being partially forgiven, Tsipras’ Syriza-dominated government says it will be high-nigh impossible to get out of the death spiral in which the recession-ravaged economy now finds itself.
Obama, who also spoke of the importance of reforms in making the Greek economy more competitive, emphasized the significance of a “strong, prosperous and unified Europe … not just for the people of Europe but for the whole world and the US.”Obama, who also spoke of the importance of reforms in making the Greek economy more competitive, emphasized the significance of a “strong, prosperous and unified Europe … not just for the people of Europe but for the whole world and the US.”
This is the first time a sitting US president has elected to visit Greece on its own. On previous occasions Turkey has also been included in the tour. But Obama, who is accompanied by his Secretary of Treasury Jack Lew and Assistant Secretary of State for European and Eurasian Affairs Victoria Nuland, is believed to have wanted to make the trip for a long time. “It was a personal choice,” said the defense minister Panos Kammenos speaking to a local radio station after welcoming the leader at Athens’ international airport. The symbolism of Athens being the birthplace of democracy also played a significant role for a president now determined to allay the fears of European leaders following the election of his successor Donald Trump last week.This is the first time a sitting US president has elected to visit Greece on its own. On previous occasions Turkey has also been included in the tour. But Obama, who is accompanied by his Secretary of Treasury Jack Lew and Assistant Secretary of State for European and Eurasian Affairs Victoria Nuland, is believed to have wanted to make the trip for a long time. “It was a personal choice,” said the defense minister Panos Kammenos speaking to a local radio station after welcoming the leader at Athens’ international airport. The symbolism of Athens being the birthplace of democracy also played a significant role for a president now determined to allay the fears of European leaders following the election of his successor Donald Trump last week.
At a press conference following 90-minute talks with Obama, the Greek prime minister said it was vital that Greeks began to feel the effects of the sacrifices they have made in recent years.At a press conference following 90-minute talks with Obama, the Greek prime minister said it was vital that Greeks began to feel the effects of the sacrifices they have made in recent years.
“After seven years the Greek people cannot bear any more austerity,” he told reporters. “Greece deserves debt relief and the time is now. President Obama and I discussed a number of issues specifically the important potential of investment in Greece and the future of Greece with its shipping power becoming an important centre for trade, transport and energy.”“After seven years the Greek people cannot bear any more austerity,” he told reporters. “Greece deserves debt relief and the time is now. President Obama and I discussed a number of issues specifically the important potential of investment in Greece and the future of Greece with its shipping power becoming an important centre for trade, transport and energy.”
UpdatedUpdated
at 3.00pm GMTat 3.00pm GMT
2.41pm GMT2.41pm GMT
14:4114:41
But the signs of US economic strength question the need for any fiscal stimulus, says Dr Harm Bandholz, chief US economist at UniCredit Research:But the signs of US economic strength question the need for any fiscal stimulus, says Dr Harm Bandholz, chief US economist at UniCredit Research:
The consumption strength (and the related good performance of the US economy in the second half of 2016) has important policy implications.The consumption strength (and the related good performance of the US economy in the second half of 2016) has important policy implications.
First, and most straightforward, it allows the Fed to stay on course for a rate hike at the upcoming meeting in mid-December.First, and most straightforward, it allows the Fed to stay on course for a rate hike at the upcoming meeting in mid-December.
Second, and probably more controversial, it really questions the need for a massive fiscal stimulus at this point. After all, the idea of such a stimulus is to temporarily support the economy during downturns. There is a growing literature showing that fiscal multipliers are much smaller when the economy is close to potential or full employment. That means that one gets less bang for the buck. Moreover, as highlighted already by Milton Friedman, poorly timed policies add instability to the economy, potentially exacerbating rather than damping business cycles. They initially may cause overheating and higher inflation, and then a deeper recession.Second, and probably more controversial, it really questions the need for a massive fiscal stimulus at this point. After all, the idea of such a stimulus is to temporarily support the economy during downturns. There is a growing literature showing that fiscal multipliers are much smaller when the economy is close to potential or full employment. That means that one gets less bang for the buck. Moreover, as highlighted already by Milton Friedman, poorly timed policies add instability to the economy, potentially exacerbating rather than damping business cycles. They initially may cause overheating and higher inflation, and then a deeper recession.
2.36pm GMT2.36pm GMT
14:3614:36
The strong US retail sales figures have only added to the expectation that the US Federal Reserve will raise interest rates in December. Rob Carnell, chief international economist at ING Bank, said a hike next month was almost in the bag:The strong US retail sales figures have only added to the expectation that the US Federal Reserve will raise interest rates in December. Rob Carnell, chief international economist at ING Bank, said a hike next month was almost in the bag:
Strong US retail sales, and an expectation of further gains in inflation (due out on November 17) make the 92% market probability for a 14 December Fed rate hike look about right (nothing is 100% until it is done).Strong US retail sales, and an expectation of further gains in inflation (due out on November 17) make the 92% market probability for a 14 December Fed rate hike look about right (nothing is 100% until it is done).
Not only were headline retail sales figures strong at +0.8% month on month, but there were strong core figures (control group which strips out the more volatile items also rose 0.8% month on month). The figures were stronger than the consensus expected (+0.6% month on month), and stronger still when upwards revisions to the previous months’ data are taken into account.Not only were headline retail sales figures strong at +0.8% month on month, but there were strong core figures (control group which strips out the more volatile items also rose 0.8% month on month). The figures were stronger than the consensus expected (+0.6% month on month), and stronger still when upwards revisions to the previous months’ data are taken into account.
The strength in sales was also matched with its breadth and only a few sub-categories registered month on month declines (furniture (-0.9% month on month, dept stores -0.7% month on month, and eating/drinking -0.7% month on month).The strength in sales was also matched with its breadth and only a few sub-categories registered month on month declines (furniture (-0.9% month on month, dept stores -0.7% month on month, and eating/drinking -0.7% month on month).
While a December hike looks as close to a done deal as one ever gets in markets, there are still questions about 2017 Fed policy. Markets are currently optimistic about Trump’s fiscal expansion in the US next year, and downplaying risks of a more deflationary protectionist policy mix. This might be right. That said, it places most of the risk on the downside, should expansion take longer to materialise than expected, or protectionism rear up more strongly than anticipated.While a December hike looks as close to a done deal as one ever gets in markets, there are still questions about 2017 Fed policy. Markets are currently optimistic about Trump’s fiscal expansion in the US next year, and downplaying risks of a more deflationary protectionist policy mix. This might be right. That said, it places most of the risk on the downside, should expansion take longer to materialise than expected, or protectionism rear up more strongly than anticipated.
2.21pm GMT2.21pm GMT
14:2114:21
US retail sales stronger than expectedUS retail sales stronger than expected
While Mark Carney was delighting MPs by doling out party invitations, the US released better than forecast retail sales figures for October.While Mark Carney was delighting MPs by doling out party invitations, the US released better than forecast retail sales figures for October.
According to the Commerce Department, retail sales rose 0.8% last month compared to September, with a particularly strong performance from the car industry. On top of that, building materials were also in demand, perhaps due to households hit by Hurricane Matthew having to rebuild and repair damage. The year on year rise was 4.3%.According to the Commerce Department, retail sales rose 0.8% last month compared to September, with a particularly strong performance from the car industry. On top of that, building materials were also in demand, perhaps due to households hit by Hurricane Matthew having to rebuild and repair damage. The year on year rise was 4.3%.
Analysts had forecast a month on month rise of 0.6% in October. Meanwhile September’s figure was revised upwards from 0.6% to 1%. The combined gain in September and October was the biggest two month gain since early 2014.Analysts had forecast a month on month rise of 0.6% in October. Meanwhile September’s figure was revised upwards from 0.6% to 1%. The combined gain in September and October was the biggest two month gain since early 2014.