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/2019/feb/12/markets-boosted-by-us-government-shutdown-deal-and-trade-war-hopes-business-live
The article has changed 14 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Markets boosted by US government shutdown deal and trade war hopes - business live | Markets boosted by US government shutdown deal and trade war hopes - business live |
| (35 minutes later) | |
| If the US government crisis is averted, investors will be free to worry about other issues - such as the eurozone. | |
| And one of the front-runners to replace Mario Draghi as head of the European Cenral Bank has just warned that the euro area isn’t fully protected from another crisis. He cited the fact that many eurozone banks are big holders of their own national debt, which amplifies any financial problems. | |
| Bundesbank President Jens Weidmann told an audience in Pretoria that: | |
| “Certain issues like the lack of credibility of fiscal rules or the harmful sovereign-bank nexus still have to be adequately addressed. | |
| Weidmann - a hawkish critic of some of Draghi’s measures to save the euro - also warned that central bankers are being force to take political decisions beyond their remit. | |
| “Acting beyond the mandate would also undermine people*s trust in the central bank....At the end of the day, it could become more and more difficult for the European Central Bank to focus on its promise of a stable currency.” | |
| European stock markets have all jumped in early trading, following gains in Asia overnight. | |
| Germany’s DAX is leading the way, up almost 1%, while in London, the FTSE 100 is up 25 points or 0.35%. | |
| Earlier, China’s Shanghai index gained 0.7%, Australia’s S&P/ASX picked up 0.3%, while the Nikkei’s 2.6% jump is the standout performance (exporters surged as the yen dipped against the US dollar) | |
| Naeem Aslam of Think Markets says investors will be relieved to hear that another US government shutdown can be avoided. | |
| No one wants to see another government shutdown, especially after a historic one which wasn’t too long ago. These government shutdowns adversely impact the economic health of the country. | |
| Resolving the trade war issues with China would also “really improve the sentiment in the markets”, he adds. | |
| Donald Trump has put a brave face on his failure to get full funding for his wall with Mexico. | Donald Trump has put a brave face on his failure to get full funding for his wall with Mexico. |
| At a rally in El Paso, Texas, Trump declared: | At a rally in El Paso, Texas, Trump declared: |
| “Just so you know, we’re building the wall anyway”. | “Just so you know, we’re building the wall anyway”. |
| (Just not as much as he’d hoped). | (Just not as much as he’d hoped). |
| That talk will play well with the Trump base; some attendees at the rally were carrying signs urging him to “Build the Wall”. | That talk will play well with the Trump base; some attendees at the rally were carrying signs urging him to “Build the Wall”. |
| But - possibly in a precursor to the 2020 presidential campaign - Trump found himself vying for attention with Democrat Beto O’Rourke who held his own rally in Texas. | But - possibly in a precursor to the 2020 presidential campaign - Trump found himself vying for attention with Democrat Beto O’Rourke who held his own rally in Texas. |
| O’Rourke took a rather different approach to the situation, telling his crowd that: | O’Rourke took a rather different approach to the situation, telling his crowd that: |
| “With the eyes of the country upon us, all of us together are going to make our stand here in one of the safest cities in America. Safe not because of walls but in spite of walls.” | “With the eyes of the country upon us, all of us together are going to make our stand here in one of the safest cities in America. Safe not because of walls but in spite of walls.” |
| Trump and Beto O'Rourke speak at dueling rallies in Texas | Trump and Beto O'Rourke speak at dueling rallies in Texas |
| Good morning, and welcome to our rolling coverage of the world economy, the financial market, the eurozone and business. | Good morning, and welcome to our rolling coverage of the world economy, the financial market, the eurozone and business. |
| A burst of optimism is rippling through the markets this morning, after US lawmakers reached a tentative deal to avoid another government shutdown. | A burst of optimism is rippling through the markets this morning, after US lawmakers reached a tentative deal to avoid another government shutdown. |
| Overnight, Democrats and Republicans agreed a new spending package, which includes some more money to fund border security. Assuming president Trump signs it off, the deal will keep the Federal government running beyond Friday. | Overnight, Democrats and Republicans agreed a new spending package, which includes some more money to fund border security. Assuming president Trump signs it off, the deal will keep the Federal government running beyond Friday. |
| After weeks of deadlock, Republican Senator Richard Shelby emerged to tell reporters that “an agreement in principle” had been reached, and that staff would be “working feverishly to put all the particulars together.” | After weeks of deadlock, Republican Senator Richard Shelby emerged to tell reporters that “an agreement in principle” had been reached, and that staff would be “working feverishly to put all the particulars together.” |
| The deal will provide some money to construct fencing on the US-Mexico border, but this really doesn’t look like a win for Trump. | The deal will provide some money to construct fencing on the US-Mexico border, but this really doesn’t look like a win for Trump. |
| That’s because Congress is only providing $1.4bn for extra border security, not the $5.7bn the White House had asked for. | That’s because Congress is only providing $1.4bn for extra border security, not the $5.7bn the White House had asked for. |
| As my colleague Tom McCarthy explains: | As my colleague Tom McCarthy explains: |
| The agreement would allocate far less money for Trump’s border wall than the White House’s $5.7bn wish list, settling for a figure of nearly $1.4bn, according to congressional aides. The funding measure is through the fiscal year, which ends 30 September. | The agreement would allocate far less money for Trump’s border wall than the White House’s $5.7bn wish list, settling for a figure of nearly $1.4bn, according to congressional aides. The funding measure is through the fiscal year, which ends 30 September. |
| The agreement means 55 miles of new fencing — constructed through existing designs such as metal slats instead of a concrete wall — but far less than the 215 miles the White House demanded in December. The fencing would be built in the Rio Grande Valley in Texas. | The agreement means 55 miles of new fencing — constructed through existing designs such as metal slats instead of a concrete wall — but far less than the 215 miles the White House demanded in December. The fencing would be built in the Rio Grande Valley in Texas. |
| Money has also been set aside for technology such as advanced screening at border entry point, humanitarian aid, and additional customs officers. | Money has also been set aside for technology such as advanced screening at border entry point, humanitarian aid, and additional customs officers. |
| News of the breakthrough boosted markets in Asia, where Japan’s Nikkei jumped by 2.61%, or 531.04 points, to end at 20,864.21. | News of the breakthrough boosted markets in Asia, where Japan’s Nikkei jumped by 2.61%, or 531.04 points, to end at 20,864.21. |
| European markets are expected to rise at the open too. | European markets are expected to rise at the open too. |
| European Opening Calls:#FTSE 7148 +0.26%#DAX 11097 +0.75%#CAC 5043 +0.56%#MIB 19740 +0.78%#IBEX 8980 +0.48% | European Opening Calls:#FTSE 7148 +0.26%#DAX 11097 +0.75%#CAC 5043 +0.56%#MIB 19740 +0.78%#IBEX 8980 +0.48% |
| The deal comes as US officials prepare for fresh talks with China over the trade war - another Trump bugbear that has been worrying the markets. Treasury secretary Stephen Mnuchin and trade representative Robert Lighthizer are due to meet Chinese Vice Premier Liu He in Beijing on Thursday. | The deal comes as US officials prepare for fresh talks with China over the trade war - another Trump bugbear that has been worrying the markets. Treasury secretary Stephen Mnuchin and trade representative Robert Lighthizer are due to meet Chinese Vice Premier Liu He in Beijing on Thursday. |
| Yesterday, White House adviser Kellyanne Conway revealed that president Trump is still keen to meet China’s Xi Jinping “very soon” to hammer out a deal, saying: | Yesterday, White House adviser Kellyanne Conway revealed that president Trump is still keen to meet China’s Xi Jinping “very soon” to hammer out a deal, saying: |
| “This president wants a deal. He wants it to be fair to Americans and American workers and American interests.” | “This president wants a deal. He wants it to be fair to Americans and American workers and American interests.” |
| Given the slowing global economy, investors would welcome a breakthrough - before even more tariffs are imposed on US and Chinese goods. | Given the slowing global economy, investors would welcome a breakthrough - before even more tariffs are imposed on US and Chinese goods. |
| Trump wants to meet with Xi "very soon" in an effort to end the trade war, Kellyanne Conway says: "This president wants a deal" https://t.co/iaD8qEWJC0 | Trump wants to meet with Xi "very soon" in an effort to end the trade war, Kellyanne Conway says: "This president wants a deal" https://t.co/iaD8qEWJC0 |
| Also coming up today | Also coming up today |
| Bank of England governor Mark Carney is speaking about the global economy, and risks to the outlook, at an event in London, organised by the Financial Times. Trade wars will probably come up. | Bank of England governor Mark Carney is speaking about the global economy, and risks to the outlook, at an event in London, organised by the Financial Times. Trade wars will probably come up. |
| Looking forward to chairing @ftlive event tomorrow with BoE governor Mark Carney speech and Q&A #FTMarkCarney https://t.co/H4rTDOcDFD | Looking forward to chairing @ftlive event tomorrow with BoE governor Mark Carney speech and Q&A #FTMarkCarney https://t.co/H4rTDOcDFD |
| Otherwise it’s a quiet day. | Otherwise it’s a quiet day. |
| The agenda | The agenda |
| 1pm GMT: Bank of England governor Mark Carney discusses the global economy | 1pm GMT: Bank of England governor Mark Carney discusses the global economy |