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You can find the current article at its original source at https://www.theguardian.com/business/live/2017/mar/23/markets-pause-ahead-of-crucial-us-healthcare-vote-business-live
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| Version 1 | Version 2 |
|---|---|
| Markets pause ahead of crucial US healthcare vote - business live | Markets pause ahead of crucial US healthcare vote - business live |
| (35 minutes later) | |
| 9.14am GMT | |
| 09:14 | |
| European markets are in a subdued mood this morning as investors await the crucial US vote on the healthcare bill which seeks to overturn Obamacare. | |
| With many opposed to the bill in its current form, investors are concerned that should Trump lose the vote, his growth-boosting policy promises might not materialse. | |
| Connor Campbell, analyst at Spreadex: | |
| The markets got off to an understandably quiet start this Thursday, the European indices gently slipping into the red after the bell. | |
| There are a couple of reasons why investors may be sitting on their hands this morning. Firstly, the tragedy in Westminster on Wednesday is the kind of event that casts the cold light of perspective on the stock market’s frivolities. | |
| Secondly, investors are waiting for the House of Representatives vote on ‘Trumpcare’ later in the day; if the President can’t get the bill passed it would suggest he faces an uphill battle push through his tax and infrastructure reforms. And considering it was those promises that sent the Dow Jones et al. sky high, investors will likely not react well to that eventuality. | |
| 8.58am GMT | |
| 08:58 | |
| Neil Wilson, senior market analyst at ETX Capital, says that investors knew what was coming from the retailer in the form of the first profit drop in eight years. | |
| Not a pretty set of figures from Next but no worse than expected after warning on profits in January. Following that dire Christmas trading update investors were prepared for this and the retailer remains extremely cautious about the year ahead. | |
| It was the first drop in annual profits in 8 years but investors seem to be reassured that it’s taking steps to turn things around with a focus on core products. | |
| Next has to get its house in order and focus more on its core product – something it says it began doing in January. UK retail sales have held up in the months following the Brexit vote (led by clothing retail sales hit a 14-year peak in October) but Next has suffered – it’s clearly not been getting things right. | |
| The question is whether a return to ‘easy to wear styles that can be delivered in large volumes’ will be enough to offset the external headwinds. | |
| Fundamentally the business remains strongly cash generative even if it’s not expanding rapidly and is able to maintain solid returns to investors. Shares have already halved in value since the 2015 peak. With the Directory division performing very well it appears well placed to respond to consumer trends as they shift more spend online. | |
| 8.46am GMT | 8.46am GMT |
| 08:46 | 08:46 |
| Next tops FTSE 100 leader board as it signals a return to basic ranges | Next tops FTSE 100 leader board as it signals a return to basic ranges |
| Next is at the top of the FTSE 100 leader board this morning, despite reporting its first annual profits fall in eight years. | Next is at the top of the FTSE 100 leader board this morning, despite reporting its first annual profits fall in eight years. |
| Shares in the clothing and homeware retailer are up 6% at £41.05 after it said pre-tax profit fell 5.5% to £790.2m last year. It was in line with City expectations, so investors were relieved there were no nasty surprises in the numbers. | Shares in the clothing and homeware retailer are up 6% at £41.05 after it said pre-tax profit fell 5.5% to £790.2m last year. It was in line with City expectations, so investors were relieved there were no nasty surprises in the numbers. |
| Chief executive Lord Wolfson said the year ahead was also looking challenging: | Chief executive Lord Wolfson said the year ahead was also looking challenging: |
| The year ahead looks like it will be tough with a combination of economic, cyclical and internal factors working against us. | The year ahead looks like it will be tough with a combination of economic, cyclical and internal factors working against us. |
| Next also signalled a shift in emphasis in its clothing ranges, suggesting it had neglected simpler, popular ranges, in favour of more fashionable lines. | Next also signalled a shift in emphasis in its clothing ranges, suggesting it had neglected simpler, popular ranges, in favour of more fashionable lines. |
| In focussing so much energy on changing our buying culture, processes and adopting exciting new trends, we have omitted some of our best-selling, heartland product from our ranges. These are the easy to wear styles that can be delivered in large volumes and great prices across several colours. | In focussing so much energy on changing our buying culture, processes and adopting exciting new trends, we have omitted some of our best-selling, heartland product from our ranges. These are the easy to wear styles that can be delivered in large volumes and great prices across several colours. |
| Corrective action is relatively straightforward and began in late January. We believe that some of these changes will begin to be reflected in our Summer ranges from May onwards, but we will not have our ranges where we want them until the Autumn season. | Corrective action is relatively straightforward and began in late January. We believe that some of these changes will begin to be reflected in our Summer ranges from May onwards, but we will not have our ranges where we want them until the Autumn season. |
| 8.18am GMT | 8.18am GMT |
| 08:18 | 08:18 |
| FTSE 100 dips in early trading | FTSE 100 dips in early trading |
| Trading is Europe is underway and investors are in following Asia and Wall Street by taking a bit of a breather. | Trading is Europe is underway and investors are in following Asia and Wall Street by taking a bit of a breather. |
| The FTSE 100 is down 13 points or 0.2% at 7,312. | The FTSE 100 is down 13 points or 0.2% at 7,312. |
| Elsewhere in Europe: | Elsewhere in Europe: |
| Germany’s DAX: +0.1% at 11,914 | Germany’s DAX: +0.1% at 11,914 |
| France’s CAC: flat at 4,995 | France’s CAC: flat at 4,995 |
| Italy’s FTSE MIB: +0.2% at 19,985 | Italy’s FTSE MIB: +0.2% at 19,985 |
| Spain’s IBEX: +0.1% at 10,242 | Spain’s IBEX: +0.1% at 10,242 |
| Europe’s STOXX 600: +0.03% at 374 | Europe’s STOXX 600: +0.03% at 374 |
| 8.04am GMT | 8.04am GMT |
| 08:04 | 08:04 |
| The agenda: Trump's faces key test on healthcare bill | The agenda: Trump's faces key test on healthcare bill |
| 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. |
| Asian markets are subdued after Wall Street stabilised on Wednesday. Fears that President Trump will not be able to deliver on his growth boosting policy pledges have not gone away, but investors appear to be taking a breather before today’s crucial vote on the Republican healthcare bill in the US. | Asian markets are subdued after Wall Street stabilised on Wednesday. Fears that President Trump will not be able to deliver on his growth boosting policy pledges have not gone away, but investors appear to be taking a breather before today’s crucial vote on the Republican healthcare bill in the US. |
| The bill, which seeks to overturn Obamacare and has been a key priority for Trump from the outset, is a major test for the President. | The bill, which seeks to overturn Obamacare and has been a key priority for Trump from the outset, is a major test for the President. |
| A failure to win the vote will ring alarm bells on Wall Street and beyond that Trump will not be able to deliver other policy pledges, such as tax giveaways and infrastructure spending. | A failure to win the vote will ring alarm bells on Wall Street and beyond that Trump will not be able to deliver other policy pledges, such as tax giveaways and infrastructure spending. |
| In Asia, the Hang Seng was down 0.2% at 24,278, while the Nikkei rose 0.2% to 19,085. | In Asia, the Hang Seng was down 0.2% at 24,278, while the Nikkei rose 0.2% to 19,085. |
| Here is how Wall Street closed on Wednesday: | Here is how Wall Street closed on Wednesday: |
| US Closing Prices:#DOW 20661.3 -0.03%#SPX 2348.45 +0.19%#NDX 5367.55 +0.66%#VIX 12.81 +2.73% | US Closing Prices:#DOW 20661.3 -0.03%#SPX 2348.45 +0.19%#NDX 5367.55 +0.66%#VIX 12.81 +2.73% |
| Also today, we have official UK retail sales for February at 9.30am, giving an insight into how resilient consumers are feeling in the face of rising inflation and weak wage growth. | Also today, we have official UK retail sales for February at 9.30am, giving an insight into how resilient consumers are feeling in the face of rising inflation and weak wage growth. |
| The CBI will give its take on the retail sector in its latest distributive survey at 11am. | The CBI will give its take on the retail sector in its latest distributive survey at 11am. |
| And in the US, Janet Yellen, head of the Federal Reserve, will give a speech. | And in the US, Janet Yellen, head of the Federal Reserve, will give a speech. |
| We will be tracking all the key developments through the day. | We will be tracking all the key developments through the day. |
| Updated | Updated |
| at 8.08am GMT | at 8.08am GMT |