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You can find the current article at its original source at https://www.theguardian.com/business/live/2017/jul/31/oil-sanctions-venezuela-china-uk-credit-eurozone-pmis-
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| Moody's issues warning over UK consumer credit as borrowing hits £200bn -as it happened | Moody's issues warning over UK consumer credit as borrowing hits £200bn -as it happened |
| (4 months later) | |
| On a relatively quiet day for company and economic news, the weakness of the dollar was a dominant theme once more. The latest going-on in the White House - including the change of chief of staff following the healthcare bill failure - have helped undermine the US currency, with investors questioning how much of his promised tax reforms and spending plans will actually see the light of day. Added to that was the nervousness surrounding the latest missile tests by North Korea. | On a relatively quiet day for company and economic news, the weakness of the dollar was a dominant theme once more. The latest going-on in the White House - including the change of chief of staff following the healthcare bill failure - have helped undermine the US currency, with investors questioning how much of his promised tax reforms and spending plans will actually see the light of day. Added to that was the nervousness surrounding the latest missile tests by North Korea. |
| So with the euro and pound benefitting from the greenback’s weakness, European markets mainly ended the day lower. But the recent run of positive US company results, and hopes for the same from Apple on Tuesday, helped pushed the Dow Jones Industrial Average to new peaks. | So with the euro and pound benefitting from the greenback’s weakness, European markets mainly ended the day lower. But the recent run of positive US company results, and hopes for the same from Apple on Tuesday, helped pushed the Dow Jones Industrial Average to new peaks. |
| The final scores in Europe showed: | The final scores in Europe showed: |
| The FTSE 100 edged up 3.63 points or 0.05% to 7372.00 | The FTSE 100 edged up 3.63 points or 0.05% to 7372.00 |
| Germany’s Dax dipped 0.37% to 12,118.25 | Germany’s Dax dipped 0.37% to 12,118.25 |
| France’s Cac closed 0.73% lower at 5093.77 | France’s Cac closed 0.73% lower at 5093.77 |
| Italy’s FTSE MIB finished 0.26% ahead at 21,486.91 | Italy’s FTSE MIB finished 0.26% ahead at 21,486.91 |
| Spain’s Ibex ended down 0.32% at 10,502.2 | Spain’s Ibex ended down 0.32% at 10,502.2 |
| In Greece, the Athens market fell 0.95% to 812.21 | In Greece, the Athens market fell 0.95% to 812.21 |
| On Wall Street, the Dow Jones Industrial Average is currently up 84 points or 0.39%, close to its intraday peak. | On Wall Street, the Dow Jones Industrial Average is currently up 84 points or 0.39%, close to its intraday peak. |
| 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. |
| More on the strike at the Bank of England, and here’s the Bank’s response: | More on the strike at the Bank of England, and here’s the Bank’s response: |
| The Bank has been informed that industrial action called by Unite will commence at midnight tonight for three days. The Union balloted approximately 2% of the workforce. The Bank has plans in place so that all essential business will continue to operate as normal during this period. The Bank has been in talks with Unite up to and including today and remains ready to continue those talks at any time. | The Bank has been informed that industrial action called by Unite will commence at midnight tonight for three days. The Union balloted approximately 2% of the workforce. The Bank has plans in place so that all essential business will continue to operate as normal during this period. The Bank has been in talks with Unite up to and including today and remains ready to continue those talks at any time. |
| The weak dollar has also seen the euro gain ground against the US currency: | The weak dollar has also seen the euro gain ground against the US currency: |
| Euro trades above $1.18 for first time since January 2015 (July 31, 2017) pic.twitter.com/7dc80a3dYM | Euro trades above $1.18 for first time since January 2015 (July 31, 2017) pic.twitter.com/7dc80a3dYM |
| Sterling has hit a new 10 month high against the dollar, as the US currency continues to struggle with the uncertainties caused by the actions and comments from the president. | Sterling has hit a new 10 month high against the dollar, as the US currency continues to struggle with the uncertainties caused by the actions and comments from the president. |
| The pound is currently up 0.35% at $1.3178, having earlier hit $1.32 for the first time since 16 September. Neil Wilson, senior market analyst at ETX Capital, said: | The pound is currently up 0.35% at $1.3178, having earlier hit $1.32 for the first time since 16 September. Neil Wilson, senior market analyst at ETX Capital, said: |
| Sterling jumped to fresh 10-month highs as the end of month 4pm fix sent cable higher. The pound exploded higher to $1.31999, having the briefest of flirts with the $1.32 handle before easing back. The move came as the dollar heads for its worst month since January. Cable is now trading at its highest since mid-September 2016 on this sustained bout of dollar weakness. Clearly it’s all to do with Donald Trump saying it was too strong and the market having confidence in him…more likely it is the exact opposite – concerns about the chaos in Washington and a complete lack of faith in the administration delivering any kind of meaningful economic or fiscal reforms. | Sterling jumped to fresh 10-month highs as the end of month 4pm fix sent cable higher. The pound exploded higher to $1.31999, having the briefest of flirts with the $1.32 handle before easing back. The move came as the dollar heads for its worst month since January. Cable is now trading at its highest since mid-September 2016 on this sustained bout of dollar weakness. Clearly it’s all to do with Donald Trump saying it was too strong and the market having confidence in him…more likely it is the exact opposite – concerns about the chaos in Washington and a complete lack of faith in the administration delivering any kind of meaningful economic or fiscal reforms. |
| There is also growing doubt that the US Federal Reserve will be in a position to raise interest rates again in the immediate future. | There is also growing doubt that the US Federal Reserve will be in a position to raise interest rates again in the immediate future. |
| After its earlier gains on Venezuela’s problems, the oil price is now on the slide. | After its earlier gains on Venezuela’s problems, the oil price is now on the slide. |
| Opec crude output rose by 90,000 barrels a day this month to a high for the year, according to Reuters, as supplies from Libya continued to recover. | Opec crude output rose by 90,000 barrels a day this month to a high for the year, according to Reuters, as supplies from Libya continued to recover. |
| So, ahead of a meeting next week between Opec and non-Opec producers, Brent crude is now down 0.4% at $52.28 a barrel, having earlier reached a peak for the day of $52.92. | So, ahead of a meeting next week between Opec and non-Opec producers, Brent crude is now down 0.4% at $52.28 a barrel, having earlier reached a peak for the day of $52.92. |
| Back with the UK consumer credit figures, and TUC general secretary Frances O’Grady has called for the government to take action: | Back with the UK consumer credit figures, and TUC general secretary Frances O’Grady has called for the government to take action: |
| Wages are still lower than before financial crisis, so it’s no wonder that families are being forced deeper and deeper into debt. | Wages are still lower than before financial crisis, so it’s no wonder that families are being forced deeper and deeper into debt. |
| If working people don’t see extra cash in their pocket, borrowing will continue to spiral. Setting aside mortgages, household debt is likely to hit an all-time high this year. | If working people don’t see extra cash in their pocket, borrowing will continue to spiral. Setting aside mortgages, household debt is likely to hit an all-time high this year. |
| The government needs to boost investment to get wages rising again. They should start by ending public sector pay restrictions and putting the minimum wage up to £10 as soon as possible. | The government needs to boost investment to get wages rising again. They should start by ending public sector pay restrictions and putting the minimum wage up to £10 as soon as possible. |
| Meanwhile Elliott Silk, Head of Commercial at Sanlam UK, said: | Meanwhile Elliott Silk, Head of Commercial at Sanlam UK, said: |
| The Bank of England’s actions to curtail the growth of unsecured loans has had some impact, but more action is needed. While consumer credit accounts for a fraction of household debt, people are much more likely to default on unsecured loans. A lot of this has to do with understanding the area – there is a lack of financial education on the national curriculum, which means young people often come out of education naïve to the negative consequences of unsecured loans and personal debt. Companies also have a large part to play in the financial wellbeing of their employees – otherwise, they too will feel the negative impact that financial stress can have on employee performance. | The Bank of England’s actions to curtail the growth of unsecured loans has had some impact, but more action is needed. While consumer credit accounts for a fraction of household debt, people are much more likely to default on unsecured loans. A lot of this has to do with understanding the area – there is a lack of financial education on the national curriculum, which means young people often come out of education naïve to the negative consequences of unsecured loans and personal debt. Companies also have a large part to play in the financial wellbeing of their employees – otherwise, they too will feel the negative impact that financial stress can have on employee performance. |
| The Press Association is reporting some bad news for Bank of England governor Mark Carney ahead of this week’s monetary policy meeting: | The Press Association is reporting some bad news for Bank of England governor Mark Carney ahead of this week’s monetary policy meeting: |
| #Breaking Three-day strike by Bank of England workers to go ahead from Tuesday after talks end without agreement, Unite union says | #Breaking Three-day strike by Bank of England workers to go ahead from Tuesday after talks end without agreement, Unite union says |
| US markets continue to be buoyant, despite a relatively quiet day in terms of economic and corporate news. But there is a lot coming up this week for investors to get their teeth into, which could well provide some volatility. Connor Campbell, financial analyst at Spreadex, said: | US markets continue to be buoyant, despite a relatively quiet day in terms of economic and corporate news. But there is a lot coming up this week for investors to get their teeth into, which could well provide some volatility. Connor Campbell, financial analyst at Spreadex, said: |
| There wasn’t all that much to drive the index higher this Monday, with investors perhaps enjoying the calm before the storm of data and earnings brought by the first few days of August. | There wasn’t all that much to drive the index higher this Monday, with investors perhaps enjoying the calm before the storm of data and earnings brought by the first few days of August. |
| Tuesday’s Markit and ISM manufacturing PMIs are joined by Fed-favourite inflation gauge the core PCE price index and, most crucially, Apple’s latest earnings update. Wednesday then has the ADP employment change reading, before Thursday’s double dose of services PMIs and, finally, Friday’s non-farm jobs report. In other words, plenty to challenge the Dow’s recent rise. | Tuesday’s Markit and ISM manufacturing PMIs are joined by Fed-favourite inflation gauge the core PCE price index and, most crucially, Apple’s latest earnings update. Wednesday then has the ADP employment change reading, before Thursday’s double dose of services PMIs and, finally, Friday’s non-farm jobs report. In other words, plenty to challenge the Dow’s recent rise. |
| The Dallas Federal Reserve manufacturing activity index has climbed from 15 in June to 16.8 in July, much better than the expected fall to 13. | The Dallas Federal Reserve manufacturing activity index has climbed from 15 in June to 16.8 in July, much better than the expected fall to 13. |
| The production index, a key measure of state manufacturing conditions, rose 11 points to 22.8, indicating output grew at a faster pace than in June, said the Dallas Fed. | The production index, a key measure of state manufacturing conditions, rose 11 points to 22.8, indicating output grew at a faster pace than in June, said the Dallas Fed. |
| But the positive data, there were more mixed responses from respondents: | But the positive data, there were more mixed responses from respondents: |
| Business is good, not great. We are busy. | Business is good, not great. We are busy. |
| The foreign competition for new equipment is extremely competitive and our company is not able to match their selling prices. | The foreign competition for new equipment is extremely competitive and our company is not able to match their selling prices. |
| Things are going poorly in the economy. We have no projects, and business is slow. | Things are going poorly in the economy. We have no projects, and business is slow. |
| We are experiencing the summertime blues. Business is very dull July to date. | We are experiencing the summertime blues. Business is very dull July to date. |
| Washington, D.C., is still a significant contingent factor for a better or worse outlook. Prospects for better are dimming. | Washington, D.C., is still a significant contingent factor for a better or worse outlook. Prospects for better are dimming. |
| The increases in business are small but measurable. We have been trying to add employees over the last six months, with no qualified candidates available. | The increases in business are small but measurable. We have been trying to add employees over the last six months, with no qualified candidates available. |
| I cannot explain it, but we are slower than we have ever been at this time and it seems like we are not the only ones. | I cannot explain it, but we are slower than we have ever been at this time and it seems like we are not the only ones. |
| Next on the agenda are the latest US housing figures, which have come in better than expected. | Next on the agenda are the latest US housing figures, which have come in better than expected. |
| Pending home sales bounced back in June after three months of decline. The National Association of Realtors said that its index of contracts to buy previously owned homes jumped1.5% to a reading of 110.2. This was higher than the 0.7% rise that analysts had been forecasting. But the market remains limited by the number of houses available to buy. | Pending home sales bounced back in June after three months of decline. The National Association of Realtors said that its index of contracts to buy previously owned homes jumped1.5% to a reading of 110.2. This was higher than the 0.7% rise that analysts had been forecasting. But the market remains limited by the number of houses available to buy. |
| Lawrence Yun, the NAR chief economist said: | Lawrence Yun, the NAR chief economist said: |
| The first half of 2017 ended with a nearly identical number of contract signings as one year ago, even as the economy added 2.2 million net new jobs. | The first half of 2017 ended with a nearly identical number of contract signings as one year ago, even as the economy added 2.2 million net new jobs. |
| Market conditions in many areas continue to be fast paced, with few properties to choose from, which is forcing buyers to act almost immediately on an available home that fits their criteria. | Market conditions in many areas continue to be fast paced, with few properties to choose from, which is forcing buyers to act almost immediately on an available home that fits their criteria. |
| Low supply is an ongoing issue holding back activity. Housing inventory declined last month and is a staggering 7.1 percent lower than a year ago. | Low supply is an ongoing issue holding back activity. Housing inventory declined last month and is a staggering 7.1 percent lower than a year ago. |