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Foxtons leads estate agents lower; eurozone economy strongest this year -as it happened Foxtons leads estate agents lower; eurozone economy strongest this year -as it happened
(35 minutes later)
6.12pm GMT6.12pm GMT
18:1218:12
All eyes are on the Opec meeting next week, to see if oil producers can agree an output cut. But the weekly Baker Hughes rig count from the US still excites some interest.All eyes are on the Opec meeting next week, to see if oil producers can agree an output cut. But the weekly Baker Hughes rig count from the US still excites some interest.
In the latest figures, a couple of days early due to Thanksgiving, the report showed 5 gas and oil rigs were added last week to 593. This marks the biggest monthly rise since July.In the latest figures, a couple of days early due to Thanksgiving, the report showed 5 gas and oil rigs were added last week to 593. This marks the biggest monthly rise since July.
The news has seen Brent crude, which was slightly up ahead of the figures, slip back around 0.18% to $49.03 a barrel.
On that note it’s time to close for the evening. Thanks for all your comments, and we’ll be back tomorrow.On that note it’s time to close for the evening. Thanks for all your comments, and we’ll be back tomorrow.
UpdatedUpdated
at 6.17pm GMT at 6.29pm GMT
5.31pm GMT5.31pm GMT
17:3117:31
European markets edge lowerEuropean markets edge lower
Despite the Dow Jones Industrial Average hitting yet another record, European markets were in a more lacklustre mood. Bond yields jumped after Reuters reported that the European Central Bank was considering lending out more of the bonds it had bought, in an effort to boost liquidity.Despite the Dow Jones Industrial Average hitting yet another record, European markets were in a more lacklustre mood. Bond yields jumped after Reuters reported that the European Central Bank was considering lending out more of the bonds it had bought, in an effort to boost liquidity.
In the UK the Autumn Statement was the big economic event. Chris Beauchamp, chief market analyst at IG, said:In the UK the Autumn Statement was the big economic event. Chris Beauchamp, chief market analyst at IG, said:
The autumn statement will command the headlines, but the broad market impact has been limited. Aside from the hit to estate agents this morning, housebuilders were boosted by Mr Hammond’s plan to build more homes, but the impact was limited. Indeed, while the pound did gain against the US dollar in the period of the statement itself, the gains were rapidly wiped out by a surge in US durable goods orders. The resultant push higher in the dollar sent other currencies lower, indicating that the rally in the greenback is not done yet.The autumn statement will command the headlines, but the broad market impact has been limited. Aside from the hit to estate agents this morning, housebuilders were boosted by Mr Hammond’s plan to build more homes, but the impact was limited. Indeed, while the pound did gain against the US dollar in the period of the statement itself, the gains were rapidly wiped out by a surge in US durable goods orders. The resultant push higher in the dollar sent other currencies lower, indicating that the rally in the greenback is not done yet.
The final scores in Europe showed:The final scores in Europe showed:
On Wall Street, the Dow Jones Industrial Average is currently up 0.15% at 19051, having earlier hit another new record of 19067.On Wall Street, the Dow Jones Industrial Average is currently up 0.15% at 19051, having earlier hit another new record of 19067.
3.27pm GMT3.27pm GMT
15:2715:27
Greece close to concluding bailout talks - TsiprasGreece close to concluding bailout talks - Tsipras
Helena SmithHelena Smith
Over in Greece prime minister Alexis Tsipras has announced the country is very close to concluding bailout negotiations with creditors. But in a new twist to the debt-stricken nation’s bid to regain economic certainty, core eurozone member states also said that they would cancel talks expected to focus on Greece this Friday. Helena Smith reports from Athens:Over in Greece prime minister Alexis Tsipras has announced the country is very close to concluding bailout negotiations with creditors. But in a new twist to the debt-stricken nation’s bid to regain economic certainty, core eurozone member states also said that they would cancel talks expected to focus on Greece this Friday. Helena Smith reports from Athens:
The Greek prime minister was in upbeat mood as he predicted that negotiations with creditors would be completed by December 5 a move, he said, that would automatically open the way to crucial debt relief discussions.The Greek prime minister was in upbeat mood as he predicted that negotiations with creditors would be completed by December 5 a move, he said, that would automatically open the way to crucial debt relief discussions.
Addressing MPs in his leftwing Syriza party, Alexis Tsipras insisted that while his two-party government was implementing its bailout commitments “to the letter” it would never yield to what he described as “absurd demands” creditors were also making over labour reforms.Addressing MPs in his leftwing Syriza party, Alexis Tsipras insisted that while his two-party government was implementing its bailout commitments “to the letter” it would never yield to what he described as “absurd demands” creditors were also making over labour reforms.
“We re not going to discuss absurd demands whether they be new measures or, even worse, measures after the [EU] program ends [in 2018].”“We re not going to discuss absurd demands whether they be new measures or, even worse, measures after the [EU] program ends [in 2018].”
Tsipras has seen his popularity ratings plummet as his coalition has forged ahead with unpopular tax hikes, budget and pension cuts, the price of rescue funds to keep the country afloat.Tsipras has seen his popularity ratings plummet as his coalition has forged ahead with unpopular tax hikes, budget and pension cuts, the price of rescue funds to keep the country afloat.
Working on the assumption that conclusion of the review will trigger debt relief talks, Athens is keen to end the negotiations by the time eurozone finance ministers hold their last meeting of the year on December 5.Working on the assumption that conclusion of the review will trigger debt relief talks, Athens is keen to end the negotiations by the time eurozone finance ministers hold their last meeting of the year on December 5.
But Germany’s hardline finance minister Wolfgang Schauble has assiduously attempted to shoot down any such hope, telling German media earlier this week that it would be a disservice to Greece and its reform progress if its monumental debt mountain was cut.But Germany’s hardline finance minister Wolfgang Schauble has assiduously attempted to shoot down any such hope, telling German media earlier this week that it would be a disservice to Greece and its reform progress if its monumental debt mountain was cut.
Despite the widely held view that the country’s debt load is at the root of its economic ills, Schauble claimed that Greece would not face a debt repayment problem for the next ten years. The international Monetary Fund has been Athens’ biggest ally in the debt writedown battle, saying it will not sign up to its third €86bn rescue package until the issue is resolved.Despite the widely held view that the country’s debt load is at the root of its economic ills, Schauble claimed that Greece would not face a debt repayment problem for the next ten years. The international Monetary Fund has been Athens’ biggest ally in the debt writedown battle, saying it will not sign up to its third €86bn rescue package until the issue is resolved.
Hopes of ending that row were brought to an abrupt halt today when the German finance ministry announced that talks aimed at securing the IMF’s participation in the bailout program would not be going ahead. Finance ministers of core EU countries had been due to meet this Friday to discuss the possible concessions Brussels could offer to bring the Washington-based organization on board.Hopes of ending that row were brought to an abrupt halt today when the German finance ministry announced that talks aimed at securing the IMF’s participation in the bailout program would not be going ahead. Finance ministers of core EU countries had been due to meet this Friday to discuss the possible concessions Brussels could offer to bring the Washington-based organization on board.
UpdatedUpdated
at 5.45pm GMTat 5.45pm GMT
2.45pm GMT2.45pm GMT
14:4514:45
Wall Street opens lower after record runWall Street opens lower after record run
The post-election rally which has taken US markets to new peaks has stuttered in early trading, as a fall in the healthcare sector has taken some of the shine off.The post-election rally which has taken US markets to new peaks has stuttered in early trading, as a fall in the healthcare sector has taken some of the shine off.
Pharmaceutical companies had been in demand since Donald Trump’s victory, on the basis that the new administration would not bring in Hillary Clinton’s threatened price controls.Pharmaceutical companies had been in demand since Donald Trump’s victory, on the basis that the new administration would not bring in Hillary Clinton’s threatened price controls.
But a trial failure for its Alzheimer’s treatment sent shares in Eli Lilly sharply lower, dragging down other companies developing similar drugs.But a trial failure for its Alzheimer’s treatment sent shares in Eli Lilly sharply lower, dragging down other companies developing similar drugs.
The Dow Jones Industrial Average is current down 10 points or 0.06%, while the S&P 500 opened down 0.25% and the Nasdaq Composite 0.38%.The Dow Jones Industrial Average is current down 10 points or 0.06%, while the S&P 500 opened down 0.25% and the Nasdaq Composite 0.38%.
1.45pm GMT1.45pm GMT
13:4513:45
Paul Sirani, chief market analyst at Xtrade, said:Paul Sirani, chief market analyst at Xtrade, said:
After a couple of months in the doldrums, today’s data shows durable goods orders are at their highest since February. This could keep dollar-buying popular and also increase the likelihood of an interest rate hike.After a couple of months in the doldrums, today’s data shows durable goods orders are at their highest since February. This could keep dollar-buying popular and also increase the likelihood of an interest rate hike.
Along with rising inflation and a strong dollar, today’s better than expected numbers are another positive pointer and the Federal Reserve is looking more likely than ever to buckle under increasing pressure to raise rates on December 14th.Along with rising inflation and a strong dollar, today’s better than expected numbers are another positive pointer and the Federal Reserve is looking more likely than ever to buckle under increasing pressure to raise rates on December 14th.
The greenback will now be given a breather as markets shut up shop for tomorrow’s Thanksgiving and Friday looks a light day.The greenback will now be given a breather as markets shut up shop for tomorrow’s Thanksgiving and Friday looks a light day.
1.41pm GMT1.41pm GMT
13:4113:41
US manufactured goods orders rebound in OctoberUS manufactured goods orders rebound in October
Away from the UK autumn statement, there are some strong US figures.Away from the UK autumn statement, there are some strong US figures.
Orders for durable goods - longer lasting products such as computers, toasters and machinery - rebounded in October after a decline in September. They rose 0.4%, in line with expectations, while the September figure was revised from a 1.3% drop to 1.4%. But the recovery suggests that the US economy is strengthening in the fourth quarter, and adds for fuel to the idea that the Federal Reserve will raise interest rates in December.Orders for durable goods - longer lasting products such as computers, toasters and machinery - rebounded in October after a decline in September. They rose 0.4%, in line with expectations, while the September figure was revised from a 1.3% drop to 1.4%. But the recovery suggests that the US economy is strengthening in the fourth quarter, and adds for fuel to the idea that the Federal Reserve will raise interest rates in December.
Meanwhile the number of Americans registering for unemployment benefits rose from a 43 year low last week, up 18,000 to a seasonally adjusted 251,000. But this is still consistent with a tightening jobs market.Meanwhile the number of Americans registering for unemployment benefits rose from a 43 year low last week, up 18,000 to a seasonally adjusted 251,000. But this is still consistent with a tightening jobs market.
12.12pm GMT12.12pm GMT
12:1212:12
A reminder, our politics live blog will be following Chancellor Philip Hammond’s first autumn statement:A reminder, our politics live blog will be following Chancellor Philip Hammond’s first autumn statement:
11.28am GMT11.28am GMT
11:2811:28
German 2-year yield soars after sources tell Reuters ECB looking to lend out more bonds to avert repo market squeeze https://t.co/FFOgVNe9R8 pic.twitter.com/X0uJDCyaGZGerman 2-year yield soars after sources tell Reuters ECB looking to lend out more bonds to avert repo market squeeze https://t.co/FFOgVNe9R8 pic.twitter.com/X0uJDCyaGZ
11.15am GMT11.15am GMT
11:1511:15
Over in Europe again, and Reuters is reporting that the European Central Bank wants to loan out some of the government debt it has bought to provide more liquidity in the bond market. Reuters says:Over in Europe again, and Reuters is reporting that the European Central Bank wants to loan out some of the government debt it has bought to provide more liquidity in the bond market. Reuters says:
The European Central Bank is looking for ways to lend out more of its huge pile of government debt to avert a freeze in the 5.5 trillion euro short-term funding market that underpins the financial system, central bank sources told Reuters.The European Central Bank is looking for ways to lend out more of its huge pile of government debt to avert a freeze in the 5.5 trillion euro short-term funding market that underpins the financial system, central bank sources told Reuters.
The ECB has bought more than a trillion euros ($1.06 trillion) of euro zone government bonds in a bid to shore up economic growth and inflation in the euro zone. For the most part the bank is holding these bonds.The ECB has bought more than a trillion euros ($1.06 trillion) of euro zone government bonds in a bid to shore up economic growth and inflation in the euro zone. For the most part the bank is holding these bonds.
By doing so, it has taken away the key ingredient for repurchase agreements, or repos, whereby financial firms lend to each other against collateral, typically high-rated government bonds such as Germany’s.By doing so, it has taken away the key ingredient for repurchase agreements, or repos, whereby financial firms lend to each other against collateral, typically high-rated government bonds such as Germany’s.
Repo is used by investment funds to finance trading and is regarded by the ECB as a key avenue to transmit its own monetary stimulus to the economy.Repo is used by investment funds to finance trading and is regarded by the ECB as a key avenue to transmit its own monetary stimulus to the economy.
A freeze in repo activity risks undoing some of the ECB’s stimulus by hampering lending between financial companies and leaving bond markets vulnerable to sharp selloffs.A freeze in repo activity risks undoing some of the ECB’s stimulus by hampering lending between financial companies and leaving bond markets vulnerable to sharp selloffs.
To avert this, the ECB wants to make it easier for banks to borrow the bonds that it has bought so that they can be used as collateral for repo loans, the sources said.To avert this, the ECB wants to make it easier for banks to borrow the bonds that it has bought so that they can be used as collateral for repo loans, the sources said.
The full story is here.The full story is here.
10.58am GMT10.58am GMT
10:5810:58
Back with estate agents, and if the letting fees are banned, will this just mean rents go up? Patrick Collinson investigates:Back with estate agents, and if the letting fees are banned, will this just mean rents go up? Patrick Collinson investigates:
10.24am GMT10.24am GMT
10:2410:24
The pensions regulator is currently giving evidence to MPs on, among other things, BHS.The pensions regulator is currently giving evidence to MPs on, among other things, BHS.
Ahead of the meeting, the chairman of the House of Commons work and pensions committee Frank Field wrote to the regulator asking if Sir Philip Green’s superyacht and other assets could be seized to help plug the gap in the BHS pension fund.Ahead of the meeting, the chairman of the House of Commons work and pensions committee Frank Field wrote to the regulator asking if Sir Philip Green’s superyacht and other assets could be seized to help plug the gap in the BHS pension fund.
My colleague Graham Ruddick is following the hearing:My colleague Graham Ruddick is following the hearing:
Boss of Pensions Regulator says "door remains open" for deal with Sir Philip Green over BHS pension schemeBoss of Pensions Regulator says "door remains open" for deal with Sir Philip Green over BHS pension scheme
Boss of Pensions Regulator says it would be up to courts to decide if Sir Philip Green had to sell superyacht to support pension scheme...Boss of Pensions Regulator says it would be up to courts to decide if Sir Philip Green had to sell superyacht to support pension scheme...
Pensions Regulator confirms it could take assets as part of pension settlement with Green, but these would need property valuedPensions Regulator confirms it could take assets as part of pension settlement with Green, but these would need property valued
Frank Field asking if Green's yacht can be taken is pure PR. Ultimately would only happen if Green chooses to make it part of settlement 1/2Frank Field asking if Green's yacht can be taken is pure PR. Ultimately would only happen if Green chooses to make it part of settlement 1/2
or if he has no other cash and assets to raise money for settlement or legal demand so has to include yacht (and he does have the cash) 2/2or if he has no other cash and assets to raise money for settlement or legal demand so has to include yacht (and he does have the cash) 2/2
In other words, Sir Philip Green handing over his yacht to BHS pension scheme is just not going to happen (unfortunately)In other words, Sir Philip Green handing over his yacht to BHS pension scheme is just not going to happen (unfortunately)
Only five MPs present for hearing with Pensions Regulator. It may be autumn statement day, but surely could be better....Only five MPs present for hearing with Pensions Regulator. It may be autumn statement day, but surely could be better....
10.10am GMT10.10am GMT
10:1010:10
Back with the fall in estate agency shares, and analyst Anthony Codling at broker Jefferies International said:Back with the fall in estate agency shares, and analyst Anthony Codling at broker Jefferies International said:
Our view is that it would not be logical to ban fees outright, for instance inventory checks are usually outsourced to third parties and used to safeguard both landlord and tenant, perhaps these fees should be split.Our view is that it would not be logical to ban fees outright, for instance inventory checks are usually outsourced to third parties and used to safeguard both landlord and tenant, perhaps these fees should be split.
Credit referencing fees: we think it fair that tenants can demonstrate that they have the ability to pay the rent.Credit referencing fees: we think it fair that tenants can demonstrate that they have the ability to pay the rent.
Where fees are possibly unfair are, for instance, blanket fees of £300 to set up a standard tenancy agreement or a £60 additional charge to move in on a Saturday, such fees we believe generate high margins for the agent at the expense of the so called JAM tenants (Just About Managing).Where fees are possibly unfair are, for instance, blanket fees of £300 to set up a standard tenancy agreement or a £60 additional charge to move in on a Saturday, such fees we believe generate high margins for the agent at the expense of the so called JAM tenants (Just About Managing).
At the moment, Foxtons is down 9.5%, LSL Property is 6.4% lower, Purplebricks has fallen 6%, Countrywide has lost 4.9% and Savills has slipped 1%.At the moment, Foxtons is down 9.5%, LSL Property is 6.4% lower, Purplebricks has fallen 6%, Countrywide has lost 4.9% and Savills has slipped 1%.