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You can find the current article at its original source at https://www.theguardian.com/business/live/2017/aug/25/sterling-markets-jackson-hole-bankers-janet-yellen-live
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| Sterling and markets calm ahead of Jackson Hole bankers meeting - live | Sterling and markets calm ahead of Jackson Hole bankers meeting - live |
| (35 minutes later) | |
| 8.18am BST | |
| 08:18 | |
| Oil climbs as Hurricane Harvey approaches Texas | |
| Oil prices are climbing as Hurricane Harvey, potentially the biggest to hit the US in more than a decade, approaches Texas. | |
| Brent crude is up nearly 1% at $52.55 a barrel while West Texas Intermediate - the US benchmark - is 0.8% higher at ¢47.83.on concerns about the disruption the storm could cause. Justin Chan at Numis said: | |
| Hurricane Harvey, a category-three storm, is expected to make landfall Friday night along the central coast of Texas where many refineries are located. The hurricane has continued to strengthen; if Harvey remains a category-three storm on landfall, it will be the strongest to hit the US since 2005. | |
| Energy companies have already shut coastal refineries and removed workers from offshore oil platforms in the Gulf of Mexico, Reuters reports, adding that nearly 10% of offshore Gulf crude output capacity had been halted by Thursday. | |
| Updated | |
| at 8.23am BST | |
| 8.06am BST | |
| 08:06 | |
| European markets open higher | |
| Ahead of the main speeches at Jackson Hole, European stock markets have made a positive start to the day. | |
| The FTSE 100 is up 0.2%, Germany’s Dax has added 0.11%, France’s Cac has climbed 0.15% while Spain’s Ibex is 0.2% better. | |
| There could be some fluctuations as the day progresses but some analysts believe investors will prefer to keep their powder dry. David Morrison, senior market strategist at Spreadco, said: | |
| It’s shaping up to be an uneventful trading session, at least until we get past speeches from Janet Yellen and Mario Draghi later this evening. Investors have used the Jackson Hole event as an excuse to go on “pause” despite numerous hints from various insiders that neither Yellen nor Draghi will say anything dramatic when it comes to monetary policy. This is especially true of the Federal Reserve chair... | |
| In other words, this year’s symposium should see a return to the days when it was a dry and dusty academic event only of interest to economists. But even though Mr Draghi isn’t expected to address the issue of the ECB’s €60 billion per month bond purchase programme, some traders believe he may have something to say about the euro. This follows on from last week’s release of minutes from the bank’s last meeting which showed that the Governing Council were concerned about the current strength of the euro. Some traders feel that the ECB don’t want to see the EURUSD get much above 1.2000 and will be listening out for anything that Mr Draghi may say on this matter. | |
| 7.54am BST | 7.54am BST |
| 07:54 | 07:54 |
| German economy grows in line with forecasts | German economy grows in line with forecasts |
| A revised second quarter growth figure for the German economy was in line with the initial estimates. | A revised second quarter growth figure for the German economy was in line with the initial estimates. |
| The country - the economic powerhouse of the eurozone - saw GDP grow by 0.6% quarter on quarter and 0.8% year on year. Later comes the IFO business confidence index. | The country - the economic powerhouse of the eurozone - saw GDP grow by 0.6% quarter on quarter and 0.8% year on year. Later comes the IFO business confidence index. |
| 7.51am BST | 7.51am BST |
| 07:51 | 07:51 |
| Japanese inflation climbs | Japanese inflation climbs |
| Japan’s inflation rate edged up by more than expected in August. | Japan’s inflation rate edged up by more than expected in August. |
| The consumer price index rose from 0.1% in July to 0.5% year on year, compared to expectations of a 0.3% increase. Ipek Ozkardeskaya, senior market analyst at London Capital Group, said: | The consumer price index rose from 0.1% in July to 0.5% year on year, compared to expectations of a 0.3% increase. Ipek Ozkardeskaya, senior market analyst at London Capital Group, said: |
| Improved inflation is good news for the Bank of Japan, even though the Japanese economy is still very far from the 2% inflation goal. | Improved inflation is good news for the Bank of Japan, even though the Japanese economy is still very far from the 2% inflation goal. |
| 7.43am BST | 7.43am BST |
| 07:43 | 07:43 |
| Agenda: Central bankers at annual US meeting | Agenda: Central bankers at annual US meeting |
| Good morning, and welcome to our rolling coverage of the latest news from the world economy, the financial markets, the eurozone and business. | Good morning, and welcome to our rolling coverage of the latest news from the world economy, the financial markets, the eurozone and business. |
| Investors will be looking to the Jackson Hole gathering of central bankers in the US for clues to the future of their various quantitative easing and bond buying programmes. In particular speeches by European Central Bank president Mario Draghi and US Federal Reserve chair Janet Yellen will be scoured for clues on policy. David Madden, market analyst at CMC Markets UK, said: | Investors will be looking to the Jackson Hole gathering of central bankers in the US for clues to the future of their various quantitative easing and bond buying programmes. In particular speeches by European Central Bank president Mario Draghi and US Federal Reserve chair Janet Yellen will be scoured for clues on policy. David Madden, market analyst at CMC Markets UK, said: |
| After a long wait the Jackson Hole symposium finally kicked off yesterday, and traders will be paying close attention to the speeches from Janet Yellen and Mario Draghi, which are due to take place today... | After a long wait the Jackson Hole symposium finally kicked off yesterday, and traders will be paying close attention to the speeches from Janet Yellen and Mario Draghi, which are due to take place today... |
| We were told by unnamed sources from the European Central Bank (ECB),that Mr Draghi will not be laying down the groundwork for the tapering of the stimulus package. The ECB chief will probably use the speech to congratulate himself on the recovery of the eurozone thanks to the loose monetary policy, but he might use the relatively low inflation rate as an excuse not to talk about reigning in the stimulus package. | We were told by unnamed sources from the European Central Bank (ECB),that Mr Draghi will not be laying down the groundwork for the tapering of the stimulus package. The ECB chief will probably use the speech to congratulate himself on the recovery of the eurozone thanks to the loose monetary policy, but he might use the relatively low inflation rate as an excuse not to talk about reigning in the stimulus package. |
| The ECB are buying €60 billion worth of government bonds per month, and traders know full well the central bank will run out of bonds to buy. The ECB will have to come up with alternative ways to keep the policy loose, because a weak euro will assist the eurozone. | The ECB are buying €60 billion worth of government bonds per month, and traders know full well the central bank will run out of bonds to buy. The ECB will have to come up with alternative ways to keep the policy loose, because a weak euro will assist the eurozone. |
| Janet Yellen, the chair of the Federal Reserve, is likely give us more of the usual, that the US economy is improving, and in particular unemployment is falling. Earnings could be firmer but they are edging higher. The US inflation level is below the Fed’s target, and if Ms Yellen brings that up, it will tip off traders that we are unlikely to see a rate hike in December. | Janet Yellen, the chair of the Federal Reserve, is likely give us more of the usual, that the US economy is improving, and in particular unemployment is falling. Earnings could be firmer but they are edging higher. The US inflation level is below the Fed’s target, and if Ms Yellen brings that up, it will tip off traders that we are unlikely to see a rate hike in December. |
| Ahead of the speeches, markets look fairly calm. The Nikkei 225 is up 0.5% and the Hang Seng has added 1%. European markets are forecast to open slightly higher: | Ahead of the speeches, markets look fairly calm. The Nikkei 225 is up 0.5% and the Hang Seng has added 1%. European markets are forecast to open slightly higher: |
| Our European opening calls:$FTSE 7415 +0.10%$DAX 12206 +0.20%$CAC 5123 +0.20%$IBEX 10378 +0.20%$MIB 21778 +0.22% | Our European opening calls:$FTSE 7415 +0.10%$DAX 12206 +0.20%$CAC 5123 +0.20%$IBEX 10378 +0.20%$MIB 21778 +0.22% |
| On the foreign exchanges, the pound is holding steady against both the euro and the dollar. | On the foreign exchanges, the pound is holding steady against both the euro and the dollar. |
| We have already had Japanese inflation - slightly higher than expected - and German GDP - in line with forecasts (more on those shortly). Otherwise the Jackson Hole meeting dominates the day. | We have already had Japanese inflation - slightly higher than expected - and German GDP - in line with forecasts (more on those shortly). Otherwise the Jackson Hole meeting dominates the day. |
| The agenda: | The agenda: |
| 9.00 BST German IFO business confidence | 9.00 BST German IFO business confidence |
| 13.30 BST US durable goods orders | 13.30 BST US durable goods orders |
| 15.00 BST Federal Reserve chair Janet Yellen speaks at Jackson Hole | 15.00 BST Federal Reserve chair Janet Yellen speaks at Jackson Hole |
| 20.00 BST ECB president Mario Draghi speaks at Jackson Hole | 20.00 BST ECB president Mario Draghi speaks at Jackson Hole |