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| UK retail sales surge as consumers shrug off Brexit fears - business live | UK retail sales surge as consumers shrug off Brexit fears - business live |
| (35 minutes later) | |
| 1.52pm GMT | |
| 13:52 | |
| Helena Smith | |
| An update on Greece now, where it is hoped record tourism will provide a boost to the crisis-hit economy. The Guardian’s Helena Smith reports: | |
| Greece’s largest carrier, Aegean Airlines, has reported a rise in passenger numbers despite a drop in profits. The record numbers visiting Greece were reflected in the airline’s figures, which showed that passengers grew 7% in 2016 to 12.5 million. | |
| Despite the airline posting a 53% drop in net profit – mainly because of higher VAT offsetting a rise in sales - the carrier’s load factor also increased by 0.6 percentage points to 77.4 percent. | |
| An unprecedented 30 million foreign tourists – almost three times the entire Greek population – are likely to visit the country this year. “We are expecting an exceptional year for tourism,” Dimitris Tsiodras, spokesman of the centrist Potami party told the Guardian. “Hellenic bankers were just telling us that they expect tourism to play a significant role in stabilising the economy. It is the bright light on the horizon.” | |
| In Syntagma square, overlooking the Greek parliament, kiosk owners were echoing that view this morning. “In the coming weeks the tourist season will begin and we can’t wait!” said Pavlos Yiannopoulos as he hung newspapers from a rack. “We need to become the Florida of Europe. After all these years of recession, it is our only hope.” | |
| Tourism employs one in five Greeks in a nation where the jobless rate among the under 25’s is over 50 percent. | |
| Updated | |
| at 1.53pm GMT | |
| 1.34pm GMT | |
| 13:34 | |
| Wall Street opens lower | |
| Trading is underway in the US and markets subdued ahead of the crucial vote on Trump’s controversial healthcare bill. | |
| Dow Jones: -0.1% at 20,634 | |
| S&P 500: -0.2% at 2,345 | |
| Nasdaq: -0.2% at 5,812 | |
| 1.28pm GMT | 1.28pm GMT |
| 13:28 | 13:28 |
| As we wait for the Wall Street bell to go, here are the latest scores across Europe: | As we wait for the Wall Street bell to go, here are the latest scores across Europe: |
| FTSE 100: -0.2% at 7,314 | FTSE 100: -0.2% at 7,314 |
| Germany’s DAX: +0.1% at 11,917 | Germany’s DAX: +0.1% at 11,917 |
| France’s CAC: -0.04% at 4,993 | France’s CAC: -0.04% at 4,993 |
| Italy’s FTSE MIB: +0.3% at 20,011 | Italy’s FTSE MIB: +0.3% at 20,011 |
| Spain’s IBEX: +0.1% at 10,242 | Spain’s IBEX: +0.1% at 10,242 |
| Europe’s STOXX 600: +0.1% at 375 | Europe’s STOXX 600: +0.1% at 375 |
| 1.18pm GMT | 1.18pm GMT |
| 13:18 | 13:18 |
| US markets are expected to open slightly lower: | US markets are expected to open slightly lower: |
| US Opening Calls:#DOW 20634 -0.15%#SPX 2346 -0.07%#NASDAQ 5362 -0.10%#IGOpeningCall | US Opening Calls:#DOW 20634 -0.15%#SPX 2346 -0.07%#NASDAQ 5362 -0.10%#IGOpeningCall |
| 1.16pm GMT | 1.16pm GMT |
| 13:16 | 13:16 |
| Fed's Yellen: need to better prepare the young for work | Fed's Yellen: need to better prepare the young for work |
| Janet Yellen, chair of the Federal Reserve, has been speaking at a Fed event in Washington, DC. | Janet Yellen, chair of the Federal Reserve, has been speaking at a Fed event in Washington, DC. |
| Anyone looking for a steer on the timing of the next interest rate rise will be disappointed, as Yellen’s focus was on young people and education, and not on monetary policy. | Anyone looking for a steer on the timing of the next interest rate rise will be disappointed, as Yellen’s focus was on young people and education, and not on monetary policy. |
| She said more needed to be done to prepare young people for success in the jobs markets: | She said more needed to be done to prepare young people for success in the jobs markets: |
| Research presented over the next two days makes a compelling case that there is a need to also think longer term about how to prepare people for success in the labor market. This research underscores the value of starting young to develop basic work habits and skills, like literacy, numeracy, and interpersonal and organizational skills. | Research presented over the next two days makes a compelling case that there is a need to also think longer term about how to prepare people for success in the labor market. This research underscores the value of starting young to develop basic work habits and skills, like literacy, numeracy, and interpersonal and organizational skills. |
| These habits and skills help prepare people for work, help them enter the labor market sooner, meet with more success over time, and be in a position to develop the more specialized skills and obtain the academic credentials that are strongly correlated with higher and steadier earnings. | These habits and skills help prepare people for work, help them enter the labor market sooner, meet with more success over time, and be in a position to develop the more specialized skills and obtain the academic credentials that are strongly correlated with higher and steadier earnings. |
| Yellen said a better long-term approach would be beneficial to the wider economy: | Yellen said a better long-term approach would be beneficial to the wider economy: |
| Our young people are the future, and we all want them to have the support they need for successful and fulfilling lives. As a central banker, I recognize the benefits to the broader economy when more people are better prepared for work and for managing their finances. In short, ensuring that all of our kids have “strong foundations” will help build a similarly strong foundation for the U.S. economy. | Our young people are the future, and we all want them to have the support they need for successful and fulfilling lives. As a central banker, I recognize the benefits to the broader economy when more people are better prepared for work and for managing their finances. In short, ensuring that all of our kids have “strong foundations” will help build a similarly strong foundation for the U.S. economy. |
| The full speech is available here. | The full speech is available here. |
| 12.52pm GMT | 12.52pm GMT |
| 12:52 | 12:52 |
| Surprise rise in US jobless claims | Surprise rise in US jobless claims |
| New US jobless claims rose unexpectedly last week. | New US jobless claims rose unexpectedly last week. |
| The US Labor Department said initial claims were 258,000 in the week ending 18 March, following 243,000 claims a week earlier (revised up from 241,000). | The US Labor Department said initial claims were 258,000 in the week ending 18 March, following 243,000 claims a week earlier (revised up from 241,000). |
| Economists had forecast 240,000 claims for the latest week. | Economists had forecast 240,000 claims for the latest week. |
| #UnitedStates #IJC Initial Jobless Claims at 258K https://t.co/7jKKbGM762 pic.twitter.com/7ciejLwzl5 | #UnitedStates #IJC Initial Jobless Claims at 258K https://t.co/7jKKbGM762 pic.twitter.com/7ciejLwzl5 |
| 12.43pm GMT | 12.43pm GMT |
| 12:43 | 12:43 |
| BoE's Broadbent: UK exporters are in 'sweet spot' | BoE's Broadbent: UK exporters are in 'sweet spot' |
| Ben Broadbent, the Bank of England’s deputy governor for monetary policy, has given a speech in London on ‘Brexit and the pound’. | Ben Broadbent, the Bank of England’s deputy governor for monetary policy, has given a speech in London on ‘Brexit and the pound’. |
| He said consumers are already feeling the pinch from the drop in then value of the pound, and the effects are starting be reflected in shops sales: | He said consumers are already feeling the pinch from the drop in then value of the pound, and the effects are starting be reflected in shops sales: |
| The vote to leave the EU led to a big drop in sterling’s exchange rate. One consequence is a rise in import prices and a squeeze on households’ real income. We may already be seeing the impact of that squeeze on retail spending, which in real terms fell quite sharply around the turn of the year. | The vote to leave the EU led to a big drop in sterling’s exchange rate. One consequence is a rise in import prices and a squeeze on households’ real income. We may already be seeing the impact of that squeeze on retail spending, which in real terms fell quite sharply around the turn of the year. |
| Exporters on the other hand are enjoying a “sweet spot”, he argued, because their goods are cheaper abroad but Britain’s current membership of the EU means they are not yet facing additional tariffs. | Exporters on the other hand are enjoying a “sweet spot”, he argued, because their goods are cheaper abroad but Britain’s current membership of the EU means they are not yet facing additional tariffs. |
| The result – higher prices and profits but unchanged rules and costs – represents something of a sweet spot for exporters and businesses that compete with imports. | The result – higher prices and profits but unchanged rules and costs – represents something of a sweet spot for exporters and businesses that compete with imports. |
| The sweet spot is not expected to last, he adds, which could make businesses more cautious about investing. | The sweet spot is not expected to last, he adds, which could make businesses more cautious about investing. |
| 12.18pm GMT | 12.18pm GMT |
| 12:18 | 12:18 |
| UK car manufacturing hits 17-year high on export demand | UK car manufacturing hits 17-year high on export demand |
| No sign yet of that much feared slowdown in British car manufacturing following the Brexit vote. | No sign yet of that much feared slowdown in British car manufacturing following the Brexit vote. |
| The number of cars rolling off UK production lines rose 8% in February (compared with a year earlier), to 153,041. It was the strongest February in 17 years, and meant that factories turned out one car every 16 seconds last month according to the Society of Motor Manufacturers and Traders. | The number of cars rolling off UK production lines rose 8% in February (compared with a year earlier), to 153,041. It was the strongest February in 17 years, and meant that factories turned out one car every 16 seconds last month according to the Society of Motor Manufacturers and Traders. |
| The vast majority - 78% - were destined for overseas market, with cars built for export up 13.4%. | The vast majority - 78% - were destined for overseas market, with cars built for export up 13.4%. |
| Domestic demand for British-built cars was much weaker, falling 7.4%. | Domestic demand for British-built cars was much weaker, falling 7.4%. |
| Mike Hawes, chief executive of the SMMT trade body, used the figures as an opportunity to highlight the industry’s concerns about possible trade tariffs post Brexit: | Mike Hawes, chief executive of the SMMT trade body, used the figures as an opportunity to highlight the industry’s concerns about possible trade tariffs post Brexit: |
| Today’s figures illustrate the continuing global popularity of British-built vehicles and the export-led nature of the industry. | Today’s figures illustrate the continuing global popularity of British-built vehicles and the export-led nature of the industry. |
| With eight out of every 10 cars we produce destined for international markets – and half of those for customers in the EU – we must avoid barriers to trade, whether tariff, customs or other regulatory obstacles, at all costs. To do otherwise would damage our competitiveness and threaten the continued success of UK automotive manufacturing.” | With eight out of every 10 cars we produce destined for international markets – and half of those for customers in the EU – we must avoid barriers to trade, whether tariff, customs or other regulatory obstacles, at all costs. To do otherwise would damage our competitiveness and threaten the continued success of UK automotive manufacturing.” |
| 11.51am GMT | 11.51am GMT |
| 11:51 | 11:51 |
| Returning to the official retail sales for February, the strong monthly figure masks the underlying weakness revealed by the broader three-month trend. | Returning to the official retail sales for February, the strong monthly figure masks the underlying weakness revealed by the broader three-month trend. |
| Over the three months, retail sales volumes fell 1.4%, the biggest drop since March 2010. The ONS suggested that higher fuel prices made drivers less willing to fill-up their tanks over the period. | Over the three months, retail sales volumes fell 1.4%, the biggest drop since March 2010. The ONS suggested that higher fuel prices made drivers less willing to fill-up their tanks over the period. |
| The narrowing gap between growth in shop prices and retail sales on a three-month basis, is illustrated here: | The narrowing gap between growth in shop prices and retail sales on a three-month basis, is illustrated here: |
| 11.31am GMT | 11.31am GMT |
| 11:31 | 11:31 |
| The pound is just about holding on to one-month highs above $1.25: | The pound is just about holding on to one-month highs above $1.25: |
| 11.15am GMT | 11.15am GMT |
| 11:15 | 11:15 |
| CBI: retailers' ability to raise prices will be limited | CBI: retailers' ability to raise prices will be limited |
| The CBI has just published its own survey of the retail sector, which is also slightly ahead of expectations. | The CBI has just published its own survey of the retail sector, which is also slightly ahead of expectations. |
| Strength in the retail sector continued into March according to the business lobby group’s distributive trades survey. | Strength in the retail sector continued into March according to the business lobby group’s distributive trades survey. |
| Of the retailers surveyed, 44% said sales volumes were up on a year ago, while 35% said they were down. That gave a balance of +9%, matching February’s figure but better than the +5% forecast by economists. | Of the retailers surveyed, 44% said sales volumes were up on a year ago, while 35% said they were down. That gave a balance of +9%, matching February’s figure but better than the +5% forecast by economists. |
| It’s not all plain sailing however. The CBI said retailers face the twin pressures of having to pay more for goods and materials, and increased competition. Anna Leach, head of economic intelligence at the group, explains: | It’s not all plain sailing however. The CBI said retailers face the twin pressures of having to pay more for goods and materials, and increased competition. Anna Leach, head of economic intelligence at the group, explains: |
| It’s encouraging to see that sales volumes growth is holding up and expectations have strengthened. | It’s encouraging to see that sales volumes growth is holding up and expectations have strengthened. |
| However, retailers continue to be squeezed by rising cost pressures on the one hand, and intense competition on the other, which will limit their ability to raise prices. With household spending growth set to slow as inflation rises, retailers seem likely to remain under pressure through this year. | However, retailers continue to be squeezed by rising cost pressures on the one hand, and intense competition on the other, which will limit their ability to raise prices. With household spending growth set to slow as inflation rises, retailers seem likely to remain under pressure through this year. |
| 10.50am GMT | 10.50am GMT |
| 10:50 | 10:50 |
| Read our full story on the bumper retail sales figures for February: | Read our full story on the bumper retail sales figures for February: |