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Markets boosted by US government shutdown deal and trade war hopes - business live Mark Carney says Brexit is 'acid test', as world economy slows - business live
(35 minutes later)
Turning to globalisation, Carney says it has brought “widespread prosperity”, but it has also created external imbalances — with large trade surpluses in some countries (eg the UK), and deficits in others (eg Germany).
Plus, the benefits haven’t been shared evenly:
Rather, the benefits from trade are unequally spread across individuals and time. Consumers get lower prices and new products, and further benefits from higher productivity over time.
Some workers, however, lose their jobs and the dignity of work, or see their “factor prices equalised.” In plain English, their wages fall.
Mark Carney cites the risk of China’s slowing economy, the push for “de-globalisation”, and rising protectionism as key threats.
He also warns that policymakers may struggle to spot a recession, until it happens:
Given the confluence of the current broad-based slowdown and outstanding downside risks, some are beginning to wonder whether the global expansion, begun in 2010, could be starting to end.
Recessions are notoriously difficult to predict. The IMF has anticipated only a sixth of the over 300 recessions in member countries since 1991. Financial markets are more likely to cry wolf, making Paul Samuelson’s observation fifty years ago that “the stock market has predicted nine of the past five recessions” as relevant today as it was then.
For what it is worth, market-implied probabilities of a recession in the US are around 20%, nearly three times higher relative to this time a year ago.
Mark Carney says the deceleration in the world economy is partly because central bankers have begun tightening monetary policy (through higher interest rates), as they (slowly) unwind the stimulus packages created after the financial crisis.
But there is another culprit -- trade wars.
The BoE governor says:
Potentially more seriously, the slowing in global momentum may also be the product of rising trade tensions and growing policy uncertainty.
Over in the Frobisher Hall at London’s Barbican, Mark Carney is delivering his speech on the global economy.
The Bank of England governor begins with a nod to his Canadian homeland, telling his audience that their location is named after Sir Martin Frobisher, an English navigator who scoured Canada’s eastern arctic coast in the 16th century looking for new trade routes.
(apparently most of Sir Martin’s remains are buried in the St Giles-in-the-Fields churchyard, although St Andrew’s Church in Plymouth snaffled his heart and entrails).
Carney says there is a link between Sir Martin and the world economy:
Martin Frobisher is perhaps more famous in Canada than in his native land. One of the great bays in the eastern arctic is named after him. The capital of Nunavut, Iqaluit, lies at the innermost end of Frobisher Bay.
Nine years ago this month Iqaluit hosted the G7 meeting that marked the start of the euro crisis. Events that still reverberate today including in the environs of the Barbican.
That G7 meeting also treated us to the sight of Carney’s predecessor, Mervyn King, taking a somewhat undignified trip on a dog sled.
Mervyn King goes dog sledding but all avoid seal meat at G7 summit in Canada
Conditions today may look better than in 2010, when the world was struggling back from the financial crisis. Carney, though, sees problems ahead....
While the debate in the United Kingdom has been understandably dominated by Brexit, the world has been otherwise engaged.
When the Referendum was being held, the global economy was emerging from a long period of financial repair and lacklustre growth. Over the subsequent two years, a widespread and increasingly vigorous global expansion took hold. For the first time since the financial crisis, business investment and foreign trade grew strongly across all major regions. Economic uncertainty diminished, and consumer and business confidence firmed. In economies close to full employment, real wages finally began to grow.
A new beginning seemed possible.
In the past few quarters, however, these trends have largely reversed. After peaking a year ago around 4%, global momentum is now weakening in all major regions and downside risks have intensified. The proportion of the global economy growing above trend has fallen from four-fifths to one-third. Trade growth has slowed and the export outlook has dimmed. Capital goods orders are stagnating, investment growth has become more tepid, and business confidence is diminished.
Heads-up. Bank of England governor Mark Carney will be speaking in London shortly, about the world economy, and key risks to the global outlook.
We’re gathering the City of London's senior executives to hear Mark Carney speech and Q&A with @ChrisGiles_ in a few minutes... #FTMarkCarney pic.twitter.com/REaRQ8b66Q
The oil price has also risen today, on hopes of a trade breakthrough in Beijing. US crude is up almost 2% at $53.37 per barrel.The oil price has also risen today, on hopes of a trade breakthrough in Beijing. US crude is up almost 2% at $53.37 per barrel.
US index futures and WTI crude taking some solace in positive noises by officials arriving in Bejing for trade talks. Usually trump deals a tough hand heading into top-level negotiations but hasn't happened yet, will history repeat itself and we get a WSJ source this afternoon?US index futures and WTI crude taking some solace in positive noises by officials arriving in Bejing for trade talks. Usually trump deals a tough hand heading into top-level negotiations but hasn't happened yet, will history repeat itself and we get a WSJ source this afternoon?
An aeroplane carrying top US officials had landed in Beijing, ready for their crunch meeting with China vice-premier Liu He (president Xi’s top economic advisor) later this week.An aeroplane carrying top US officials had landed in Beijing, ready for their crunch meeting with China vice-premier Liu He (president Xi’s top economic advisor) later this week.
U.S. Treasury Secretary Steven Mnuchin told reporters that his team are “looking forward to several important days of talks”.U.S. Treasury Secretary Steven Mnuchin told reporters that his team are “looking forward to several important days of talks”.
Remembering his manners, Mnuching thanked everyone for turning up at his hotel to greet him, saying it was “great to be here back in Beijing” (following earlier talks in December).Remembering his manners, Mnuching thanked everyone for turning up at his hotel to greet him, saying it was “great to be here back in Beijing” (following earlier talks in December).
That’s fine, as far as it goes -- but it’s not a hint that a trade deal will be reached this week.That’s fine, as far as it goes -- but it’s not a hint that a trade deal will be reached this week.
Some US officials have already been holding talks at the China’s Ministry of Commerce yesterday, and today. They’re led by led by deputy U.S. trade representative Jeffrey Gerrish.Some US officials have already been holding talks at the China’s Ministry of Commerce yesterday, and today. They’re led by led by deputy U.S. trade representative Jeffrey Gerrish.
Wall Street is expected to open higher in three hours time, following those gains in Asia and Europe.Wall Street is expected to open higher in three hours time, following those gains in Asia and Europe.
U.S. stock futures pointing to a higher open, with the Dow set for a triple-digit gain amid positive developments on the political front and as investors continued to monitor U.S.-China trade talks $DIA $SPY $QQQ pic.twitter.com/RoALH3ah3TU.S. stock futures pointing to a higher open, with the Dow set for a triple-digit gain amid positive developments on the political front and as investors continued to monitor U.S.-China trade talks $DIA $SPY $QQQ pic.twitter.com/RoALH3ah3T
APAC Closing Prices:#ASX 6079.1 +0.30%#NIKKEI 20864.21 +2.61%#HSI 28171.33 +0.10%#HSHARES 11044.65 +0.25%#CSI300 3330.33 +0.72%APAC Closing Prices:#ASX 6079.1 +0.30%#NIKKEI 20864.21 +2.61%#HSI 28171.33 +0.10%#HSHARES 11044.65 +0.25%#CSI300 3330.33 +0.72%
Here’s how Royal Bank of Canada sums up the scene:Here’s how Royal Bank of Canada sums up the scene:
Asia-Pacific equity indices were in the green overnight, led by Japanese stocks which rallied over 2%, amid growing risk-on sentiment after President Trump’s optimistic remarks about China in a rally in Texas saying he would “make great deals on trade” and that he doesn’t want China “to have a hard time”. This speech came soon after an advisor told Fox the president might hold talks in Florida with Xi Jinping next month.Asia-Pacific equity indices were in the green overnight, led by Japanese stocks which rallied over 2%, amid growing risk-on sentiment after President Trump’s optimistic remarks about China in a rally in Texas saying he would “make great deals on trade” and that he doesn’t want China “to have a hard time”. This speech came soon after an advisor told Fox the president might hold talks in Florida with Xi Jinping next month.
Adding to the positive risk-on sentiment, lawmakers have agreed to a provisional border security deal in order to avoid another government shutdown. The plan includes $1.375 billion for border fencing, however, falling short of Trump’s $5.7 billion, according to Bloomberg reports.Adding to the positive risk-on sentiment, lawmakers have agreed to a provisional border security deal in order to avoid another government shutdown. The plan includes $1.375 billion for border fencing, however, falling short of Trump’s $5.7 billion, according to Bloomberg reports.
Although stocks are up today, there’s still plenty of nervousness out there about the long-term prospects for equities.Although stocks are up today, there’s still plenty of nervousness out there about the long-term prospects for equities.
Bank of America Merrill Lynch’s latest fund manager survey, just released, shows that the US-China trade war is the top ‘tail risk’ worrying investors, followed by a Chinese economic ‘hard landing’.Bank of America Merrill Lynch’s latest fund manager survey, just released, shows that the US-China trade war is the top ‘tail risk’ worrying investors, followed by a Chinese economic ‘hard landing’.
The survey also shows that money managers moved out of stocks and into cash this month, a sign they’re worried that a correction could be approaching (given the rash of weak economic data and profit warnings).The survey also shows that money managers moved out of stocks and into cash this month, a sign they’re worried that a correction could be approaching (given the rash of weak economic data and profit warnings).
Investors remain bearish despite rally, BofAML Fund Manager Survey shows. Investors rotated into cash this mth, taking net cash allocation to 44%, up 6ppt MoM, biggest overweight since the depths of the Global Financial Crisis in Jan'09. Positioning still a Q1 pos for risk assets pic.twitter.com/LiTTilEcuhInvestors remain bearish despite rally, BofAML Fund Manager Survey shows. Investors rotated into cash this mth, taking net cash allocation to 44%, up 6ppt MoM, biggest overweight since the depths of the Global Financial Crisis in Jan'09. Positioning still a Q1 pos for risk assets pic.twitter.com/LiTTilEcuh
The survey also shows that investors believe buying emerging markets stocks is the most crowded trade out there -- which could be a problem if everyone heads for the door at the same time.The survey also shows that investors believe buying emerging markets stocks is the most crowded trade out there -- which could be a problem if everyone heads for the door at the same time.
Blimey. From BAML's latest fund manager survey:"Long EM (18%) is cited as the most crowded trade for the first time in survey history, marking a major reversal from short EM as #3 last month" #sohotrightnow pic.twitter.com/EnvgCoSfMFBlimey. From BAML's latest fund manager survey:"Long EM (18%) is cited as the most crowded trade for the first time in survey history, marking a major reversal from short EM as #3 last month" #sohotrightnow pic.twitter.com/EnvgCoSfMF
Maybe it’s something to do with the weather (the sun was spotted over the City this morning), but City experts are in an optimistic mood.Maybe it’s something to do with the weather (the sun was spotted over the City this morning), but City experts are in an optimistic mood.
Kit Juckes of Societe Generale says the shutdown breakthrough, and hopes of a US-China trade deal, have raise spirits.Kit Juckes of Societe Generale says the shutdown breakthrough, and hopes of a US-China trade deal, have raise spirits.
I got to work with markets in a pleasant mood and spring threatening to break out in London. It was all going swimmingly until Word froze..... ah well, nothing lasts for ever....I got to work with markets in a pleasant mood and spring threatening to break out in London. It was all going swimmingly until Word froze..... ah well, nothing lasts for ever....
The US government shutdown seems to have been averted and there’s a strong chance that import tariffs on Chinese goods will be postponed. Risk is on.The US government shutdown seems to have been averted and there’s a strong chance that import tariffs on Chinese goods will be postponed. Risk is on.
Paul Donovan of UBS also sees reasons to be cheerful, saying:Paul Donovan of UBS also sees reasons to be cheerful, saying:
Good news flows from the US. US President Trump has indicated (albeit not with the majesty of a tweet) that great trade deals are just around the corner. An administration official hinted at a meeting between Trump and Chinese President Xi “soon”. As trade taxes are effectively a tax on equities, this has been well received by Asian risk markets.Good news flows from the US. US President Trump has indicated (albeit not with the majesty of a tweet) that great trade deals are just around the corner. An administration official hinted at a meeting between Trump and Chinese President Xi “soon”. As trade taxes are effectively a tax on equities, this has been well received by Asian risk markets.
The US Congress may also be approaching the point where they do not need to shut down the government (again). A possible deal on a border wall has been agreed by negotiators from the two parties. This may reduce fears about the scale of partisan disruption later this year.The US Congress may also be approaching the point where they do not need to shut down the government (again). A possible deal on a border wall has been agreed by negotiators from the two parties. This may reduce fears about the scale of partisan disruption later this year.
Just in: MPs and Lords are calling for Britain’s “flawed” RPI inflation measure to be fixed.Just in: MPs and Lords are calling for Britain’s “flawed” RPI inflation measure to be fixed.
The House of Commons’ Treasury Committee and the House of Lords’ Economic Affairs Committee are jointly demanding that the government gives the UK Statistics Authority the authority to amend known problems with RPI.The House of Commons’ Treasury Committee and the House of Lords’ Economic Affairs Committee are jointly demanding that the government gives the UK Statistics Authority the authority to amend known problems with RPI.
RPI typically gives a higher reading than the consumer prices index (CPI). Thus, it’s unfair that the government uses RPI to raise the price of things we pay for - such as season tickets and student loans - while relying on CPI for benefits such as pensions.RPI typically gives a higher reading than the consumer prices index (CPI). Thus, it’s unfair that the government uses RPI to raise the price of things we pay for - such as season tickets and student loans - while relying on CPI for benefits such as pensions.
[the problem is that RPI uses a different formula than CPI, and also includes housing costs, so house prices and interest rates moves can make it volatile][the problem is that RPI uses a different formula than CPI, and also includes housing costs, so house prices and interest rates moves can make it volatile]
The Stats Authority themselves say that RPI is “a very poor measure of inflation”, and refuse to class it as a national statistic. However, it still calculated it each month.The Stats Authority themselves say that RPI is “a very poor measure of inflation”, and refuse to class it as a national statistic. However, it still calculated it each month.
Rt Hon. Nicky Morgan MP, Chair of the Treasury Committee, is damning about RPI’sRt Hon. Nicky Morgan MP, Chair of the Treasury Committee, is damning about RPI’s
“As the Treasury Committee has concluded in numerous reports and statements over the years, RPI is a flawed measure of inflation, and it is absurd for the Government to continue to use it.“As the Treasury Committee has concluded in numerous reports and statements over the years, RPI is a flawed measure of inflation, and it is absurd for the Government to continue to use it.
“It appears grossly unfair that Government formulae affecting people’s incomes, such as pensions and benefits, often use CPI, whereas formulae affecting outgoings, including student loans, often use RPI, which typically gives a higher rate of inflation.“It appears grossly unfair that Government formulae affecting people’s incomes, such as pensions and benefits, often use CPI, whereas formulae affecting outgoings, including student loans, often use RPI, which typically gives a higher rate of inflation.
“The Committee has previously urged the Government to abandon the use of RPI, which has been de-designated as a national statistic. Failing this, the Chancellor should at least consent to UKSA correcting the known errors in the RPI formula.”“The Committee has previously urged the Government to abandon the use of RPI, which has been de-designated as a national statistic. Failing this, the Chancellor should at least consent to UKSA correcting the known errors in the RPI formula.”
Chair @NickyMorgan01 said the "Chancellor should at least consent to @UKStatsAuth correcting the known errors in the RPI formula." pic.twitter.com/7HnrpHK667Chair @NickyMorgan01 said the "Chancellor should at least consent to @UKStatsAuth correcting the known errors in the RPI formula." pic.twitter.com/7HnrpHK667
RPI was 2.7% in the year to January, while CPI came in at 2.1%. Clearly at least one of them is failing to measure the cost of living properly.RPI was 2.7% in the year to January, while CPI came in at 2.1%. Clearly at least one of them is failing to measure the cost of living properly.
Back in 2017, the FT’s Chris Giles pointed out that RPI shows that women’s vests and strappy tops have quintupled in price since 2010, while CPI only has them becoming 20% pricier. That’s because of an adjustment (now clearly a mistake) made in 2010, which hasn’t been fixed.Back in 2017, the FT’s Chris Giles pointed out that RPI shows that women’s vests and strappy tops have quintupled in price since 2010, while CPI only has them becoming 20% pricier. That’s because of an adjustment (now clearly a mistake) made in 2010, which hasn’t been fixed.
Now that might seem just a wacky talking point, until you remember that RPI is also used to calculate how much interest is paid to investors who own UK government debt. They’re at least £15bn better off thanks to RPI, which means taxpayers have LOST £15bn.Now that might seem just a wacky talking point, until you remember that RPI is also used to calculate how much interest is paid to investors who own UK government debt. They’re at least £15bn better off thanks to RPI, which means taxpayers have LOST £15bn.
Back in the UK, shares in struggling retailer Debenhams have surged 40% (yay!) to the giddy heights of, umm, 4.5p, after it secured a funding lifeline.Back in the UK, shares in struggling retailer Debenhams have surged 40% (yay!) to the giddy heights of, umm, 4.5p, after it secured a funding lifeline.
The new £40m credit facility should help Debenhams keep operating, as it continues to negotiate with its lenders to restructure its debts.The new £40m credit facility should help Debenhams keep operating, as it continues to negotiate with its lenders to restructure its debts.
Sergio Bucher, the chief executive, hailed the new 12-month credit facility as a “first step in our refinancing process”.Sergio Bucher, the chief executive, hailed the new 12-month credit facility as a “first step in our refinancing process”.
It comes after three profit warnings in 2018, and warnings that the company would not survive without a debt deal.It comes after three profit warnings in 2018, and warnings that the company would not survive without a debt deal.
Even after today’s rally, Debenhams is only valued at around £53m - versus debts of over £280mEven after today’s rally, Debenhams is only valued at around £53m - versus debts of over £280m
Debenhams secures £40m lifeline as it battles for survivalDebenhams secures £40m lifeline as it battles for survival
If the US government crisis is averted, investors will be free to worry about other issues - such as the eurozone.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.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: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.“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.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.”“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.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%.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)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.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.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.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 TexasTrump 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/iaD8qEWJC0Trump 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 todayAlso 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/H4rTDOcDFDLooking 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 agendaThe agenda
1pm GMT: Bank of England governor Mark Carney discusses the global economy1pm GMT: Bank of England governor Mark Carney discusses the global economy