This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/business/live/2018/may/31/market-rebound-italian-fears-ease-business-live
The article has changed 21 times. There is an RSS feed of changes available.
| Version 9 | Version 10 |
|---|---|
| Markets turn negative as US slaps tariffs on EU, Canada and Mexico steel - as it happened | |
| (35 minutes later) | |
| Markets have edged into negative territory despite earlier rises on hopes of a resolution to the Italian political crisis. | |
| The moves came as the US imposed steel and aluminium tariffs on the EU, Mexico and Canada. Investors are also fretting about other geopolitical problems, including Friday’s vote of no confidence in Spain, the continuing concerns about North Korea and Iran, the prospect of a trade war between the US and China. | |
| Italy’s FTSE MIB is currently down 0.13%, while Spain’s Ibex is 0.2% lower and Germany’s Dax is down 0.75%. France’s Cac has managed to edge up 0.03% while the FTSE 100 is 0.18% higher. On Wall Street, the Dow Jones Industrial Average is down 145 points or 0.62%. | |
| On the economic front, eurozone inflation came in higher than forecast in May. | |
| UK consumer credit rebounded in April, as the City regulator ordered a clampdown on high cost credit. | |
| In the US, consumer spending and weekly jobless claims both came in better than expected. | |
| Finally, the Bank of England has appointed academic Jonathan Haskel to its rate setting monetary policy committee, the only man on a shortlist of five candidates. | |
| On that note, it’s time to close for the day. Thanks for all your comments, and we’ll be back tomorrow. | |
| US commerce secretary Wilbur Ross has confirmed that it will impose steel and aluminium tariffs on the EU, Canada and Mexico from midnight tonight. | US commerce secretary Wilbur Ross has confirmed that it will impose steel and aluminium tariffs on the EU, Canada and Mexico from midnight tonight. |
| The tariffs will be 25% for steel and 10% for aluminium. Amid fears of a trade war, Ross said if any party retaliated that did not rule out further negotiations. | The tariffs will be 25% for steel and 10% for aluminium. Amid fears of a trade war, Ross said if any party retaliated that did not rule out further negotiations. |
| He said talks with the EU had made progress, but not enough to continue an exemption from tariffs, which was due to expire tomorrow. | He said talks with the EU had made progress, but not enough to continue an exemption from tariffs, which was due to expire tomorrow. |
| While European markets are still just about holding onto gains in the hope that Italy can come up with a plausible government after the recent turmoil, Wall Street has opened lower on worries about trade wars. | While European markets are still just about holding onto gains in the hope that Italy can come up with a plausible government after the recent turmoil, Wall Street has opened lower on worries about trade wars. |
| With the US set to impose tariffs on steel and aluminium from the EU, Canada and Mexico, the Dow Jones Industrial Average is down 112 points or 0.4%. The S&P 500 opened 0.28% lower and the Nasdaq Composite has lost 0.08%. | With the US set to impose tariffs on steel and aluminium from the EU, Canada and Mexico, the Dow Jones Industrial Average is down 112 points or 0.4%. The S&P 500 opened 0.28% lower and the Nasdaq Composite has lost 0.08%. |
| Here’s our story on the appointment of the only man on a five person shortlist to the Bank of England’s monetary policy committee: | Here’s our story on the appointment of the only man on a five person shortlist to the Bank of England’s monetary policy committee: |
| The Bank of England interest rate setting committee, which has only one woman among its nine members, will continue to be male-dominated after the Treasury opted to appoint the only man from a shortlist of five candidates. | The Bank of England interest rate setting committee, which has only one woman among its nine members, will continue to be male-dominated after the Treasury opted to appoint the only man from a shortlist of five candidates. |
| In a move that immediately sparked protests from women’s groups, the chancellor, Philip Hammond, said Jonathan Haskel, an Imperial College economist, would join the Bank’s governor, Mark Carney, on the monetary policy committee (MPC) for a three-year term starting in September, when he will succeed the outgoing Ian McCafferty. | In a move that immediately sparked protests from women’s groups, the chancellor, Philip Hammond, said Jonathan Haskel, an Imperial College economist, would join the Bank’s governor, Mark Carney, on the monetary policy committee (MPC) for a three-year term starting in September, when he will succeed the outgoing Ian McCafferty. |
| The Treasury said four women were on the shortlist, but an internal panel made up of two women and one man chose Haskel as the best candidate. | The Treasury said four women were on the shortlist, but an internal panel made up of two women and one man chose Haskel as the best candidate. |
| Clare Lombardelli, first female chief economic adviser to the Treasury, chaired the panel. She was joined by the former MPC member Kate Barker and Richard Hughes, the Treasury’s director of fiscal policy. | Clare Lombardelli, first female chief economic adviser to the Treasury, chaired the panel. She was joined by the former MPC member Kate Barker and Richard Hughes, the Treasury’s director of fiscal policy. |
| A Women’s Equality party (WEP) spokeswoman said the appointment of Haskel sent the wrong message- about the Treasury’s commitment to improving diversity in important areas of public life. “It suggests that even if they had an all-female shortlist, they would probably still appoint a man,” she said. | A Women’s Equality party (WEP) spokeswoman said the appointment of Haskel sent the wrong message- about the Treasury’s commitment to improving diversity in important areas of public life. “It suggests that even if they had an all-female shortlist, they would probably still appoint a man,” she said. |
| The full report is here: | The full report is here: |
| Shares in troubled Deutsche Bank are down around 5% following reports that US authorities have put its business in the country on a list of troubled institutions. | Shares in troubled Deutsche Bank are down around 5% following reports that US authorities have put its business in the country on a list of troubled institutions. |
| The Fed designated Deutsche Bank's U.S. business as 'troubled,' in a rare censure that pushed the bank to reduce risk-taking https://t.co/HkAS7QaDob | The Fed designated Deutsche Bank's U.S. business as 'troubled,' in a rare censure that pushed the bank to reduce risk-taking https://t.co/HkAS7QaDob |
| More signs of the strength of the US economy. | More signs of the strength of the US economy. |
| Weekly jobless claims fell by more than expected, down 13,000 to a seasonally adjusted 221,000. Analysts had forecast a fall to 228,000. The jobless rate at 3.9% is a near seventeen and a half year low and close to the Federal Reserve’s target of 3.8% by the end of the year. | Weekly jobless claims fell by more than expected, down 13,000 to a seasonally adjusted 221,000. Analysts had forecast a fall to 228,000. The jobless rate at 3.9% is a near seventeen and a half year low and close to the Federal Reserve’s target of 3.8% by the end of the year. |
| The news comes ahead of Friday’s non-farm payroll report, where economists expect around 188,000 jobs to have been created in May. | The news comes ahead of Friday’s non-farm payroll report, where economists expect around 188,000 jobs to have been created in May. |
| Meanwhile US consumer spending rose by a higher than expected 0.6% last month, the biggest increase in five months. The forecast was for a 0.4% increase. | Meanwhile US consumer spending rose by a higher than expected 0.6% last month, the biggest increase in five months. The forecast was for a 0.4% increase. |
| Back in Italy: | Back in Italy: |
| Lega rushes to cancel signs it was ever in favour of exiting the Euro: “Stop the Euro” sign disappears from headquarters wall. (>70% of Italians would vote to stay in €, polls say) HT @carloalberto https://t.co/SYVqkjLHGH | Lega rushes to cancel signs it was ever in favour of exiting the Euro: “Stop the Euro” sign disappears from headquarters wall. (>70% of Italians would vote to stay in €, polls say) HT @carloalberto https://t.co/SYVqkjLHGH |
| Meanwhile over in Spain, the no confidence debate is taking place. Our latest report: | Meanwhile over in Spain, the no confidence debate is taking place. Our latest report: |
| The future of the Spanish prime minister, Mariano Rajoy, is hanging in the balance as parliament prepares to debate a motion of no-confidence tabled after his Partido Popular (People’s party) was found to have profited from a huge kickbacks-for-contracts scheme. | The future of the Spanish prime minister, Mariano Rajoy, is hanging in the balance as parliament prepares to debate a motion of no-confidence tabled after his Partido Popular (People’s party) was found to have profited from a huge kickbacks-for-contracts scheme. |
| A defiant Rajoy addressed MPs early on Thursday, accusing the opposition Partido Socialista Obrero Español (Spanish Socialist Workers’ party) of opportunism and reminding the PSOE of its corruption scandals. | A defiant Rajoy addressed MPs early on Thursday, accusing the opposition Partido Socialista Obrero Español (Spanish Socialist Workers’ party) of opportunism and reminding the PSOE of its corruption scandals. |
| “With what moral authority are you speaking? Are you perhaps Mother Teresa of Calcutta?” he asked. “There have been corrupt people in the PP, but the PP is not a corrupt party.” | “With what moral authority are you speaking? Are you perhaps Mother Teresa of Calcutta?” he asked. “There have been corrupt people in the PP, but the PP is not a corrupt party.” |
| The no-confidence vote, scheduled to take place on Friday, is likely to be very close. The PSOE needs the support of 176 of the 350 MPs in congress of deputies. The votes of the five MPs of the Partido Nacionalista Vasco (Basque Nationalist party) will prove decisive, with the PNV saying it would meet and hear what the PSOE leader, Pedro Sánchez, had to say before announcing its decision. | The no-confidence vote, scheduled to take place on Friday, is likely to be very close. The PSOE needs the support of 176 of the 350 MPs in congress of deputies. The votes of the five MPs of the Partido Nacionalista Vasco (Basque Nationalist party) will prove decisive, with the PNV saying it would meet and hear what the PSOE leader, Pedro Sánchez, had to say before announcing its decision. |
| Sánchez called for “democratic regeneration” as he sought the backing of MPs, saying: “Resign, Mr Rajoy. Your time is up.” | Sánchez called for “democratic regeneration” as he sought the backing of MPs, saying: “Resign, Mr Rajoy. Your time is up.” |
| The full story is here: | The full story is here: |
| With European markets drifting - but mainly still managing to stay in positive territory - Wall Street is expected to open marginally lower. There is an eerie sense of calm after all the ructions caused by the Italian political crisis, with investors hoping a new government can be formed after all without the need for another election campaign. Craig Erlam, senior market analyst at Oanda, said: | With European markets drifting - but mainly still managing to stay in positive territory - Wall Street is expected to open marginally lower. There is an eerie sense of calm after all the ructions caused by the Italian political crisis, with investors hoping a new government can be formed after all without the need for another election campaign. Craig Erlam, senior market analyst at Oanda, said: |
| Not too long ago, a coalition government in Italy consisting of two eurosceptic populist parties was a feared and unlikely prospect that many believed would majorly concern investors. While much of this remains true, it is also currently viewed as the least unattractive and feasible outcome for markets, with the other alternative being fresh elections and the possibility that the parties are given an even stronger and potentially less euro-friendly mandate. | Not too long ago, a coalition government in Italy consisting of two eurosceptic populist parties was a feared and unlikely prospect that many believed would majorly concern investors. While much of this remains true, it is also currently viewed as the least unattractive and feasible outcome for markets, with the other alternative being fresh elections and the possibility that the parties are given an even stronger and potentially less euro-friendly mandate. |
| Italy’s President, Sergio Mattarella, may have believed he was acting in the best interest of the country when he rejected to populists choice of Finance Minister but the reality is that in doing so, he has given both parties more ammunition with which to attack the euro. Mattarella has already been accused of acting on behalf of Germany and others while Brussels has been accused of interference, it all feeds very well into the eurosceptics message that the country no longer even has control over its domestic politics. | Italy’s President, Sergio Mattarella, may have believed he was acting in the best interest of the country when he rejected to populists choice of Finance Minister but the reality is that in doing so, he has given both parties more ammunition with which to attack the euro. Mattarella has already been accused of acting on behalf of Germany and others while Brussels has been accused of interference, it all feeds very well into the eurosceptics message that the country no longer even has control over its domestic politics. |
| Should the country move straight on to another election, both Five Star Movement and Lega will look to take advantage of any fury linked to perceived meddling and could significantly add to their numbers. All of a sudden, the worst case scenario prior to the election looks tolerable compared to what could come from another. With both parties now in discussions again, there is a hope that the political impasse can be resolved which is helping to lift sentiment in the near-term. That said, a positive outcome now poses many further risks in the long-term. | Should the country move straight on to another election, both Five Star Movement and Lega will look to take advantage of any fury linked to perceived meddling and could significantly add to their numbers. All of a sudden, the worst case scenario prior to the election looks tolerable compared to what could come from another. With both parties now in discussions again, there is a hope that the political impasse can be resolved which is helping to lift sentiment in the near-term. That said, a positive outcome now poses many further risks in the long-term. |
| While Italian assets have bore the brunt of the pain from the latest period of political instability and uncertainty, there has been a negative impact on the wider markets including the euro which dropped to a 10-month low against the dollar. While we’re still far away from the days of the debt crisis and the risk of a breakup, a second election was being portrayed as a vote on the euro which seems drastic and probably overhyped but it certainly hit the single currency. | While Italian assets have bore the brunt of the pain from the latest period of political instability and uncertainty, there has been a negative impact on the wider markets including the euro which dropped to a 10-month low against the dollar. While we’re still far away from the days of the debt crisis and the risk of a breakup, a second election was being portrayed as a vote on the euro which seems drastic and probably overhyped but it certainly hit the single currency. |
| Markets are still managing to hold onto their gains - just - on hopes that the Italian political crisis can be resolved before too long. Here is our latest report on the developments: | Markets are still managing to hold onto their gains - just - on hopes that the Italian political crisis can be resolved before too long. Here is our latest report on the developments: |
| The leader of the Italian far-right party the League, Matteo Salvini, cancelled political rallies to return to Rome early on Thursday, in what was seen as a sign that a weeks-long political impasse that has left the country without a fully-functioning government for months might soon be coming to an end. | The leader of the Italian far-right party the League, Matteo Salvini, cancelled political rallies to return to Rome early on Thursday, in what was seen as a sign that a weeks-long political impasse that has left the country without a fully-functioning government for months might soon be coming to an end. |
| Salvini was heading back to the capital to meet with his coalition partner, Luigi Di Maio, the 31-year-old head of the anti-establishment Five Star Movement, after the Italian president gave the pair more time to form a government. | Salvini was heading back to the capital to meet with his coalition partner, Luigi Di Maio, the 31-year-old head of the anti-establishment Five Star Movement, after the Italian president gave the pair more time to form a government. |
| Italian press reports indicated that any agreement to form a new populist government involving the League, formerly known as the Lega Nord, and M5S would include the nomination – again – of Giuseppe Conte, a formerly obscure law professor, to serve as prime minister. | Italian press reports indicated that any agreement to form a new populist government involving the League, formerly known as the Lega Nord, and M5S would include the nomination – again – of Giuseppe Conte, a formerly obscure law professor, to serve as prime minister. |
| But the two populists, Di Maio and Salvini, were expected to back down on their earlier insistence that the 81-year-old Eurosceptic Paolo Savona, who had called Italy’s adoption of the euro a “historic mistake”, serve as finance minister. | But the two populists, Di Maio and Salvini, were expected to back down on their earlier insistence that the 81-year-old Eurosceptic Paolo Savona, who had called Italy’s adoption of the euro a “historic mistake”, serve as finance minister. |
| There were also small indications that the populists would try to assure markets that they were not planning any big moves to try to hasten an Italian exit out of the euro, a fear that roiled markets this week. | There were also small indications that the populists would try to assure markets that they were not planning any big moves to try to hasten an Italian exit out of the euro, a fear that roiled markets this week. |
| The full story is here: | The full story is here: |
| Given the controversy over the comments from male executives making excuses for why there are now women on their boards, the fact that the new member of the Bank of England’s MPC is male hardly helps matters. | Given the controversy over the comments from male executives making excuses for why there are now women on their boards, the fact that the new member of the Bank of England’s MPC is male hardly helps matters. |
| Worse - the shortlist for the appointment included four women and one man. And the man was given the job. From the Treasury release: | Worse - the shortlist for the appointment included four women and one man. And the man was given the job. From the Treasury release: |
| The release also says: | The release also says: |
| The Treasury is committed to appointing a diverse range of people to public appointments, including at the Bank of England. The Treasury continues to work to attract the broadest range of suitable applicants for posts. As part of this recruitment process, the Chief Economic Advisor at the Treasury and chair of the interview panel contacted 87 potential applicants to inform them of the vacancy, of whom 44 were women. | The Treasury is committed to appointing a diverse range of people to public appointments, including at the Bank of England. The Treasury continues to work to attract the broadest range of suitable applicants for posts. As part of this recruitment process, the Chief Economic Advisor at the Treasury and chair of the interview panel contacted 87 potential applicants to inform them of the vacancy, of whom 44 were women. |
| Bank of England put Jonathan Haskel on the MPC,* 27 applicants in total* Shortlist was Haskel and, er, four women... pic.twitter.com/4T04l6RfnF | Bank of England put Jonathan Haskel on the MPC,* 27 applicants in total* Shortlist was Haskel and, er, four women... pic.twitter.com/4T04l6RfnF |