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You can find the current article at its original source at https://www.theguardian.com/business/live/2018/sep/26/investors-poised-for-us-rate-hike-business-live
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| Investors poised for US rate hike - business live | Investors poised for US rate hike - business live |
| (35 minutes later) | |
| Britain’s high street banks approved 42,581 mortgages for house purchase in August, which was 4.3% fewer than the same month last year. | |
| It was also down on July, when 43,967 mortgages were approved according to the figures from the banking trade body, UK Finance. | |
| Remortgaging increased however, by 9.2% to 32,457, as home owners took advantage of a competitive market with some decent deals. | |
| Mark Harris, chief executive of mortgage broker SPF Private Clients, said lenders were competing for customers as potential home movers become more cautious ahead of Brexit: | |
| With many would-be buyers holding off making a decision until Brexit is resolved one way or another, lenders are battling for a relatively small pool of borrowers and are having to reduce rates accordingly. | |
| Barclays, HSBC, Halifax and TSB are among the big names to have reduced the cost of fixed-rate mortgages recently, and we expect this trend to continue as lenders try to boost business before the end of the year. | |
| In case you missed it... the governor of Argentina’s central bank, Luis Caputo, resigned unexpectedly on Tuesday after just three months in the job. | |
| Caputo quit just as Argentina is negotiating emergency financial support from the IMF, initially sending the peso down 7%, before trimming some of the losses. | |
| Investor concern over economic prospects and debts in Argentina have sent the peso down more than 50% this year, and inflation is expected to top 40%. | |
| The central bank said in a statement: | |
| This resignation is due to personal reasons, with the conviction that a new agreement with the International Monetary Fund will reestablish confidence in the fiscal, financial, monetary and exchange rate situation. | |
| However, Paul Greer at Fidelity was not convinced: | |
| The timing could not be worse for Argentina. Caputo’s resignation will only add to investor uncertainty. | |
| The FTSE 250 index, which tends to include firms that are more focused on the domestic market in the UK than those in the FTSE 100, is also down this morning, by 0.2% at 20,422. | The FTSE 250 index, which tends to include firms that are more focused on the domestic market in the UK than those in the FTSE 100, is also down this morning, by 0.2% at 20,422. |
| It’s biggest faller is the AA, with shares down 8.4% at 109p after it blamed a plunge in first-half profits on Britain’s “pothole epidemic”. | It’s biggest faller is the AA, with shares down 8.4% at 109p after it blamed a plunge in first-half profits on Britain’s “pothole epidemic”. |
| Major markets across Europe are down this morning, after Wall Street closed lower on Tuesday. | Major markets across Europe are down this morning, after Wall Street closed lower on Tuesday. |
| Investors will be cautious ahead of the Fed decision and more importantly its signals for future policy decisions, but markets are also subdued after President Trump’s “America First” message at the UN. | Investors will be cautious ahead of the Fed decision and more importantly its signals for future policy decisions, but markets are also subdued after President Trump’s “America First” message at the UN. |
| The latest scores: | The latest scores: |
| FTSE 100: -0.1% at 7,500 | FTSE 100: -0.1% at 7,500 |
| Germany’s DAX: -0.1% at 12,365 | Germany’s DAX: -0.1% at 12,365 |
| France’s CAC: -0.1% at 5,474 | France’s CAC: -0.1% at 5,474 |
| Italy’s FTSE MIB: -0.4% at 21,586 | Italy’s FTSE MIB: -0.4% at 21,586 |
| Spain’s IBEX: -0.02% at 9,492 | Spain’s IBEX: -0.02% at 9,492 |
| Europe’s STOXX 600: -0.1% at 383 | Europe’s STOXX 600: -0.1% at 383 |
| The AA has said this morning that the “beast from the east” earlier in the year triggered a “pothole epidemic” in the UK, and contributing to the highest number of vehicle breakdown call outs in 15 years. | The AA has said this morning that the “beast from the east” earlier in the year triggered a “pothole epidemic” in the UK, and contributing to the highest number of vehicle breakdown call outs in 15 years. |
| The breakdown recovery service said the trend drove pre-tax profits down 65% in the six months to 31 July, to £28m. | The breakdown recovery service said the trend drove pre-tax profits down 65% in the six months to 31 July, to £28m. |
| Simon Breakwell, AA chief executive, said: | Simon Breakwell, AA chief executive, said: |
| The first half of the financial year has seen exceptional weather conditions, from extreme cold and snow in February and March to the hottest summer in recent memory, with the severe winter also creating a pothole “epidemic” on the UK’s roads. All this led to a 15-year high in the number of breakdowns we serviced. | The first half of the financial year has seen exceptional weather conditions, from extreme cold and snow in February and March to the hottest summer in recent memory, with the severe winter also creating a pothole “epidemic” on the UK’s roads. All this led to a 15-year high in the number of breakdowns we serviced. |
| Against this backdrop, I am extremely proud of our achievements and to be reporting results in line with our guidance as we continue to build resilience throughout the business. | Against this backdrop, I am extremely proud of our achievements and to be reporting results in line with our guidance as we continue to build resilience throughout the business. |
| Full story here: | Full story here: |
| A rate hike from the Federal Reserve today would be the eighth one since December 2015, Michael Hewson from CMC Markets notes. | A rate hike from the Federal Reserve today would be the eighth one since December 2015, Michael Hewson from CMC Markets notes. |
| The only G7 central bank that has come anywhere close to this level of tightening of monetary policy has been Canada which has seen four rate rises over the same period. | The only G7 central bank that has come anywhere close to this level of tightening of monetary policy has been Canada which has seen four rate rises over the same period. |
| Despite these rate rises, US and Canadian markets have managed to remain close to recent record highs, despite concerns over a break down in the NAFTA trade deal and the start of a fresh round of tariffs this week in the current trade stand-off between the US and China. | Despite these rate rises, US and Canadian markets have managed to remain close to recent record highs, despite concerns over a break down in the NAFTA trade deal and the start of a fresh round of tariffs this week in the current trade stand-off between the US and China. |
| If the FOMC is particularly aggressive in terms of its rate outlook, and in terms of its assessment of the health of the US economy, then we could well see further US dollar strength in emerging market currencies. | If the FOMC is particularly aggressive in terms of its rate outlook, and in terms of its assessment of the health of the US economy, then we could well see further US dollar strength in emerging market currencies. |
| If on the other hand they are more cautious and signal it may be time for a pause then the US dollar could come under additional pressure, given recent weakness. | If on the other hand they are more cautious and signal it may be time for a pause then the US dollar could come under additional pressure, given recent weakness. |
| Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. | Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. |
| It’s Fed decision day, and investors are pricing in the third US rate hike of the year, as the central bank’s chairman Jerome Powell and his colleagues continue to displease President Trump who has said he is not happy with the rate rises. | It’s Fed decision day, and investors are pricing in the third US rate hike of the year, as the central bank’s chairman Jerome Powell and his colleagues continue to displease President Trump who has said he is not happy with the rate rises. |
| The decision will be announced at 7pm UK time, and anything other than a rate hike will come as a major shock to markets. | The decision will be announced at 7pm UK time, and anything other than a rate hike will come as a major shock to markets. |
| The dollar index, which measures the US currency against a basket of other major currencies, is edging higher ahead of the decision. | The dollar index, which measures the US currency against a basket of other major currencies, is edging higher ahead of the decision. |
| Fed likely to raise rates, possibly end 'accommodative' policy era https://t.co/ASX9OmyIsh | Fed likely to raise rates, possibly end 'accommodative' policy era https://t.co/ASX9OmyIsh |
| What investors really want to know is, what does the Fed have planned next? | What investors really want to know is, what does the Fed have planned next? |
| Jasper Lawler, from London Capital Group, explains: | Jasper Lawler, from London Capital Group, explains: |
| The Fed are widely expected to hike 25 basis points to 2.25%, in the 3rd hike of the year. Whilst this hike is almost completely priced in and another in December over 76% priced in, investors will be turning their attention to next year. | The Fed are widely expected to hike 25 basis points to 2.25%, in the 3rd hike of the year. Whilst this hike is almost completely priced in and another in December over 76% priced in, investors will be turning their attention to next year. |
| In June, the Fed indicated 3 hikes across 2019 and these are expected to be carried out one per quarter, for the first three quarters. This leaves traders wondering what the Fed have planned thereafter? | In June, the Fed indicated 3 hikes across 2019 and these are expected to be carried out one per quarter, for the first three quarters. This leaves traders wondering what the Fed have planned thereafter? |
| A hawkish plan could re-ignite the dollar rally, whilst suggestions of a slow down in the pace of hiking or that the Fed is coming to the end of its cycle next year, could bring the dollar tumbling lower. | A hawkish plan could re-ignite the dollar rally, whilst suggestions of a slow down in the pace of hiking or that the Fed is coming to the end of its cycle next year, could bring the dollar tumbling lower. |
| Also coming up today... | Also coming up today... |
| 9.30am BST: UK mortgage approvals data for August | 9.30am BST: UK mortgage approvals data for August |
| 11am BST: CBI distributive trades survey for September, which give a snapshot of the UK retail sector | 11am BST: CBI distributive trades survey for September, which give a snapshot of the UK retail sector |