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Markets cautious after crucial US healthcare vote delayed - as it happened | |
(35 minutes later) | |
3.05pm GMT | |
15:05 | |
Before we close up for the day, let’s take a look at the markets. | |
Wall Street is holding on to earlier gains while Europe is more of a mixed picture. | |
Dow Jones: +0.3% at 20,715 | |
S&P 500: +0.3% at 2,353 | |
FTSE 100: +0.02% at 7,342 | |
Germany’s DAX: +0.2% at 12,062 | |
France’s CAC: -0.3% at 5,018 | |
STOXX 600: -0.3% at 376 | |
Thank you for all your comments, and please join us again on Monday. Have a good weekend. AM | |
2.33pm GMT | 2.33pm GMT |
14:33 | 14:33 |
Data published earlier showed a bigger-than-expected rise in durable goods orders in February. | Data published earlier showed a bigger-than-expected rise in durable goods orders in February. |
Orders rose 1.7%, better than the 1.2% increase forecast by economists but a slowdown compared with January, when they were up 2.3%. | Orders rose 1.7%, better than the 1.2% increase forecast by economists but a slowdown compared with January, when they were up 2.3%. |
Andrew Hunter, US economist at Capital Economics: | Andrew Hunter, US economist at Capital Economics: |
The 1.7% monthly rise in headline durable goods orders in February was helped by another strong rise in commercial aircraft orders, but the improvement in underlying orders provides further evidence that business equipment investment has continued to recover in the first quarter. | The 1.7% monthly rise in headline durable goods orders in February was helped by another strong rise in commercial aircraft orders, but the improvement in underlying orders provides further evidence that business equipment investment has continued to recover in the first quarter. |
...despite the apparent weakness of real consumption, we still think that first-quarter GDP growth was probably close to 2% annualised. | ...despite the apparent weakness of real consumption, we still think that first-quarter GDP growth was probably close to 2% annualised. |
2.23pm GMT | 2.23pm GMT |
14:23 | 14:23 |
US business survey signals slowing growth in Q1 | US business survey signals slowing growth in Q1 |
US firms reported the weakest rate of output growth in six months in March according to Markit’s flash PMI index covering manufacturing and services. | US firms reported the weakest rate of output growth in six months in March according to Markit’s flash PMI index covering manufacturing and services. |
The headline index slipped to 53.2 from 54.12 in February, following a slowdown in growth in both services and manufacturing. Anything above 50 signals growth. | The headline index slipped to 53.2 from 54.12 in February, following a slowdown in growth in both services and manufacturing. Anything above 50 signals growth. |
Staff hiring eased and new business growth slowed. | Staff hiring eased and new business growth slowed. |
Chris Williamson, chief business economist at IHS Markit, said the latest survey suggested US growth would slow in the first quarter: | Chris Williamson, chief business economist at IHS Markit, said the latest survey suggested US growth would slow in the first quarter: |
The US economy shifted down a gear in March. A slowing in the pace of growth signalled by the PMI surveys for a second straight month suggests that the economy is struggling to sustain momentum. | The US economy shifted down a gear in March. A slowing in the pace of growth signalled by the PMI surveys for a second straight month suggests that the economy is struggling to sustain momentum. |
The survey readings are consistent with annualised GDP growth of 1.7% in the first quarter, down from 1.9% in the final quarter of last year. | The survey readings are consistent with annualised GDP growth of 1.7% in the first quarter, down from 1.9% in the final quarter of last year. |
1.36pm GMT | 1.36pm GMT |
13:36 | 13:36 |
Wall Street opens higher | Wall Street opens higher |
Trading is underway and markets are slightly up ahead of the crucial vote on Trump’s controversial healthcare bill. | Trading is underway and markets are slightly up ahead of the crucial vote on Trump’s controversial healthcare bill. |
Dow Jones: +0.2% at 20,698 | Dow Jones: +0.2% at 20,698 |
S&P 500: +0.2% at 2,350 | S&P 500: +0.2% at 2,350 |
Nasdaq: +0.4% at 5,840 | Nasdaq: +0.4% at 5,840 |
President Trump gives his closing sales pitch: | President Trump gives his closing sales pitch: |
After seven horrible years of ObamaCare (skyrocketing premiums & deductibles, bad healthcare), this is finally your chance for a great plan! | After seven horrible years of ObamaCare (skyrocketing premiums & deductibles, bad healthcare), this is finally your chance for a great plan! |
1.01pm GMT | 1.01pm GMT |
13:01 | 13:01 |
Greece threatens to overshadow EU's 60th anniversary | Greece threatens to overshadow EU's 60th anniversary |
Helena Smith | Helena Smith |
As final preparations are underway for the EU’s 60th birthday party in Rome on Saturday, it’s not just Brexit that threatens to overshadow celebrations. | As final preparations are underway for the EU’s 60th birthday party in Rome on Saturday, it’s not just Brexit that threatens to overshadow celebrations. |
Alexis Tsipras, the Greek prime minister, has signalled that Athens intends to support the Rome Declaration - after previously threatening not to - but he has called for clearer support for Greece. | Alexis Tsipras, the Greek prime minister, has signalled that Athens intends to support the Rome Declaration - after previously threatening not to - but he has called for clearer support for Greece. |
The Guardian’s Helena Smith reports: | The Guardian’s Helena Smith reports: |
The Greek prime minister Alexis Tsipras, who arrived in Rome last night, reiterated that the anniversary could only be truly “celebrated” in the knowledge that European achievements applied to all. | The Greek prime minister Alexis Tsipras, who arrived in Rome last night, reiterated that the anniversary could only be truly “celebrated” in the knowledge that European achievements applied to all. |
In a letter to Jean-Claude Junker, the European Commission president, and EU council president Donald Tusk, Tsipras wrote: | In a letter to Jean-Claude Junker, the European Commission president, and EU council president Donald Tusk, Tsipras wrote: |
For the past seven years Greece has been in economic adjustment programs in the name of which exceptions have been imposed from a whole list of achievements in our common European project …. we should know openly, officially and clearly if we also have the right to have access to these gains. | For the past seven years Greece has been in economic adjustment programs in the name of which exceptions have been imposed from a whole list of achievements in our common European project …. we should know openly, officially and clearly if we also have the right to have access to these gains. |
In a speech last night the leftist leader stepped up his criticism telling an audience at La Sapienza university in Rome that Europe was embroiled in existential crisis because it had surrendered its accomplishments to the International Monetary Fund. | In a speech last night the leftist leader stepped up his criticism telling an audience at La Sapienza university in Rome that Europe was embroiled in existential crisis because it had surrendered its accomplishments to the International Monetary Fund. |
We are at a critical moment because these days Greece is on the front line of a battle that concerns all of Europe. We are fighting to restore collective work agreements in our country, to end the exemption status now and for once and for all in the future. | We are at a critical moment because these days Greece is on the front line of a battle that concerns all of Europe. We are fighting to restore collective work agreements in our country, to end the exemption status now and for once and for all in the future. |
Updated | Updated |
at 1.02pm GMT | at 1.02pm GMT |
12.30pm GMT | 12.30pm GMT |
12:30 | 12:30 |
Co-op Bank receives 'a number of credible' approaches | Co-op Bank receives 'a number of credible' approaches |
The troubled Co-operative Bank says it has received a number of serious approaches from potential buyers after putting itself up for sale in February in a bid to raise cash. | The troubled Co-operative Bank says it has received a number of serious approaches from potential buyers after putting itself up for sale in February in a bid to raise cash. |
In a bid to reassure its 4 million customers and creditors, the bank issued a statement earlier today: | In a bid to reassure its 4 million customers and creditors, the bank issued a statement earlier today: |
A number of credible strategic and financial parties have expressed interest in the sale process and are currently evaluating information on the bank. | A number of credible strategic and financial parties have expressed interest in the sale process and are currently evaluating information on the bank. |
Read the full story here: | Read the full story here: |
11.54am GMT | 11.54am GMT |
11:54 | 11:54 |
Pound could fall as low as $1.06, Deutsche Bank | Pound could fall as low as $1.06, Deutsche Bank |
The pound could fall by another 15% against the dollar and the euro this year according to Deutsche Bank. | The pound could fall by another 15% against the dollar and the euro this year according to Deutsche Bank. |
Currency analysts at the German bank said sterling could fall as low as $1.06 - from a current level of $1.2492 - as the Brexit process weighs on growth. Meanwhile it could fall towards parity with the euro. | Currency analysts at the German bank said sterling could fall as low as $1.06 - from a current level of $1.2492 - as the Brexit process weighs on growth. Meanwhile it could fall towards parity with the euro. |
Commenting in a special report on Brexit, they wrote: | Commenting in a special report on Brexit, they wrote: |
We do not see sterling (currently) fully pricing a hard Brexit outcome. Combined with limited adjustment in the UK’s current account deficit and slowing growth, we see further downside, and forecast $1.06 in by year-end. | We do not see sterling (currently) fully pricing a hard Brexit outcome. Combined with limited adjustment in the UK’s current account deficit and slowing growth, we see further downside, and forecast $1.06 in by year-end. |
11.39am GMT | 11.39am GMT |
11:39 | 11:39 |
Brexit watch: squeeze on living standards begins | Brexit watch: squeeze on living standards begins |
The Guardian’s latest monthly analysis shows that the squeeze in UK living standards is on. | The Guardian’s latest monthly analysis shows that the squeeze in UK living standards is on. |
The Brexit vote’s blow to the pound is stoking inflation while pay packets are shrinking in real terms. | The Brexit vote’s blow to the pound is stoking inflation while pay packets are shrinking in real terms. |
My colleague Katie Allen explains: | My colleague Katie Allen explains: |
As Theresa May prepares to trigger article 50 next week, kicking off the formal process of the UK leaving the EU, the economy continues to defy the doomsayers who predicted a sudden downturn after the referendum. But signs of a slowdown are now emerging as higher prices put pressure on companies and consumers alike. | As Theresa May prepares to trigger article 50 next week, kicking off the formal process of the UK leaving the EU, the economy continues to defy the doomsayers who predicted a sudden downturn after the referendum. But signs of a slowdown are now emerging as higher prices put pressure on companies and consumers alike. |
Nine months on from the referendum, the Guardian’s monthly tracker of economic news shows inflation is at its highest level for more than three years, retail sales have lost momentum and pay growth has slowed significantly despite the lowest unemployment rate for more than a decade. | Nine months on from the referendum, the Guardian’s monthly tracker of economic news shows inflation is at its highest level for more than three years, retail sales have lost momentum and pay growth has slowed significantly despite the lowest unemployment rate for more than a decade. |
At 2.3% last month, inflation was the highest since September 2013 and above the Bank of England’s 2% target. It is expected to rise further this year thanks to higher crude oil prices and because the weaker pound is making imports such as food ingredients and fuel more expensive. The latest official snapshot of living costs showed fuel cost 19% more this February than a year ago. | At 2.3% last month, inflation was the highest since September 2013 and above the Bank of England’s 2% target. It is expected to rise further this year thanks to higher crude oil prices and because the weaker pound is making imports such as food ingredients and fuel more expensive. The latest official snapshot of living costs showed fuel cost 19% more this February than a year ago. |
Consumers also had to pay more for many groceries as a long period of food price deflation came to an end. The pound effect on imported food was compounded for some groceries by shortages after bad weather in southern Europe hit crops. The price of an iceberg lettuce, for example, jumped to an average 93p in February – from 54p in January – as supermarkets imposed restrictions on the number of lettuces per customer. | Consumers also had to pay more for many groceries as a long period of food price deflation came to an end. The pound effect on imported food was compounded for some groceries by shortages after bad weather in southern Europe hit crops. The price of an iceberg lettuce, for example, jumped to an average 93p in February – from 54p in January – as supermarkets imposed restrictions on the number of lettuces per customer. |
Read the full story here: | Read the full story here: |
11.20am GMT | 11.20am GMT |
11:20 | 11:20 |
Howard Archer, chief UK economist at IHS Markit, said the BBA report reflected the weaker backdrop facing consumers. | Howard Archer, chief UK economist at IHS Markit, said the BBA report reflected the weaker backdrop facing consumers. |
There are signs of an underlying slowdown in unsecured consumer borrowing from the peak levels seen around last October, which ties in with the impression that consumers are becoming more cautious as their purchasing power is increasingly diluted by rising inflation. | There are signs of an underlying slowdown in unsecured consumer borrowing from the peak levels seen around last October, which ties in with the impression that consumers are becoming more cautious as their purchasing power is increasingly diluted by rising inflation. |
It looks inevitable that the fundamentals for consumers will progressively weaken over the coming months with inflation rising markedly due to the weakened pound and companies likely increasingly looking to hold down pay to limit their total costs. | It looks inevitable that the fundamentals for consumers will progressively weaken over the coming months with inflation rising markedly due to the weakened pound and companies likely increasingly looking to hold down pay to limit their total costs. |
11.10am GMT | 11.10am GMT |
11:10 | 11:10 |
Mortgage approvals hit three-month low | Mortgage approvals hit three-month low |
Britain’s high street banks approved 42,613 mortgages for house purchase (excluding remortgages) in February, which was a three-month low. | Britain’s high street banks approved 42,613 mortgages for house purchase (excluding remortgages) in February, which was a three-month low. |
The British Bankers’ Association said the figure was 3.5% lower than January, and 4.6% lower than February 2016. Remortgaging numbers were also down. | The British Bankers’ Association said the figure was 3.5% lower than January, and 4.6% lower than February 2016. Remortgaging numbers were also down. |
The annual growth in consumer credit slowed slightly to 6.6% in February from 6.7%, while growth in business borrowing slowed considerably to 0.9% from 2.1% in January. | The annual growth in consumer credit slowed slightly to 6.6% in February from 6.7%, while growth in business borrowing slowed considerably to 0.9% from 2.1% in January. |
Eric Leenders, BBA Managing Director for Retail Banking said: | Eric Leenders, BBA Managing Director for Retail Banking said: |
“Elevated approval volumes for house purchases and re-mortgaging experienced during the winter months fell back in February, to average levels seen throughout most of last year. Consumers’ use of credit cards and personal loans reflect last month’s increased spending figures. | “Elevated approval volumes for house purchases and re-mortgaging experienced during the winter months fell back in February, to average levels seen throughout most of last year. Consumers’ use of credit cards and personal loans reflect last month’s increased spending figures. |
“Businesses continue to exercise a cautious approach to borrowing, using cash reserves and alternative lending sources to finance their operations.” | “Businesses continue to exercise a cautious approach to borrowing, using cash reserves and alternative lending sources to finance their operations.” |
Updated | Updated |
at 11.29am GMT | at 11.29am GMT |