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You can find the current article at its original source at https://www.theguardian.com/business/live/2019/mar/20/uk-inflation-us-china-trade-war-federal-reserve-brexit-sterling-business-live
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UK inflation report due as trade war fears rise - business live | UK inflation report due as trade war fears rise - business live |
(32 minutes later) | |
Mining companies are under pressure this morning, as trade war worries mount again. | |
Copper miner Antofagasta is leading the selloff, down 4.2%, followed by Rio Tinto (-3.3%), Glencore (-2.9%) and Anglo American (-2.2%). | |
This has pulled the FTSE 100 down by 8 points, to 7315. | |
Investors are concerned by those reports that talks between Washington and Beijing are struggling. | |
Neil Wilson of Markets.com says: | |
The deadly duo of Lighthizer and Mnuchin are heading to China next week, with the aim of sealing a deal by the end of the month. But there are still a large chasm between the two sides. | |
Shares in Kingfisher have jumped 1.5% at the start of trading, making it the best-performing member of the FTSE 100. | Shares in Kingfisher have jumped 1.5% at the start of trading, making it the best-performing member of the FTSE 100. |
Kingfisher’s latest financial results, also just released, help explain why it’s looking for a new CEO. | Kingfisher’s latest financial results, also just released, help explain why it’s looking for a new CEO. |
Like-for-like sales fell by 1.6% in the last year, helping to drive statutory earnings down by over 50%. | Like-for-like sales fell by 1.6% in the last year, helping to drive statutory earnings down by over 50%. |
Underlying pre-tax profits down 16% due to weakness in Castorama France and losses in Russia & Romania. | Underlying pre-tax profits down 16% due to weakness in Castorama France and losses in Russia & Romania. |
Soon-to-be former CEO Véronique Laury said: | Soon-to-be former CEO Véronique Laury said: |
“During the year, the UK, Poland and Brico Dépôt France performed well, leveraging the benefits of our transformation. However, Castorama France has been disappointing and we are implementing a clear plan to sustainably improve its performance. | “During the year, the UK, Poland and Brico Dépôt France performed well, leveraging the benefits of our transformation. However, Castorama France has been disappointing and we are implementing a clear plan to sustainably improve its performance. |
City news: DIY chain Kingfisher is ousting its chief executive, after her turnaround plan failed to pay off. | City news: DIY chain Kingfisher is ousting its chief executive, after her turnaround plan failed to pay off. |
Th company has announced that it has begun searching for a replacement for Véronique Laury, who joined the company at the end of 2014. | Th company has announced that it has begun searching for a replacement for Véronique Laury, who joined the company at the end of 2014. |
Laury, who apparently “fully supports the decision”, will stay on until a successor is found. | Laury, who apparently “fully supports the decision”, will stay on until a successor is found. |
Laury’s position has looked shaky since Kingfisher reported falling sales and profits last year. She had been pushing a strategy, called “One Kingfisher,” to improve integration between its UK and French operations. That’s not boosted earnings, though, or its share price. | Laury’s position has looked shaky since Kingfisher reported falling sales and profits last year. She had been pushing a strategy, called “One Kingfisher,” to improve integration between its UK and French operations. That’s not boosted earnings, though, or its share price. |
B&Q owner Kingfisher's boss Veronique Laury is off. She says the retailer's "transformation" is in its final year. Share price when she joined: 336p. Share price today: 245p | B&Q owner Kingfisher's boss Veronique Laury is off. She says the retailer's "transformation" is in its final year. Share price when she joined: 336p. Share price today: 245p |
Laury says: | Laury says: |
Leading the transformation has been so exciting but also very challenging. As the transformation approaches its final year, I believe it is right for someone else to lead the next phase of the ONE Kingfisher journey. | Leading the transformation has been so exciting but also very challenging. As the transformation approaches its final year, I believe it is right for someone else to lead the next phase of the ONE Kingfisher journey. |
The number of female FTSE 100 chief executives will drop from six to five as Veronique Laury announces her departure from Kingfisher (owner of B&Q) as profit targets prove too optimistic: https://t.co/VM4gMHYfr9 @JonathanEley @fastFT pic.twitter.com/W9GIkT427X | The number of female FTSE 100 chief executives will drop from six to five as Veronique Laury announces her departure from Kingfisher (owner of B&Q) as profit targets prove too optimistic: https://t.co/VM4gMHYfr9 @JonathanEley @fastFT pic.twitter.com/W9GIkT427X |
Anxiety over the US-China trade talks is building again today. | Anxiety over the US-China trade talks is building again today. |
Yesterday, Bloomberg reported that talks between the two sides had soured, with China refusing to accept some US demands. | Yesterday, Bloomberg reported that talks between the two sides had soured, with China refusing to accept some US demands. |
They said: | They said: |
Chinese officials have shifted their stance because after agreeing to changes to their intellectual-property policies, they haven’t received assurances from the Trump administration that tariffs imposed on their exports would be lifted, two of the people said on condition of anonymity. | Chinese officials have shifted their stance because after agreeing to changes to their intellectual-property policies, they haven’t received assurances from the Trump administration that tariffs imposed on their exports would be lifted, two of the people said on condition of anonymity. |
Beijing has also stepped back from its initial promises over data protection of pharmaceuticals, didn’t offer details on plans to improve patent linkages, and refused to give ground on data-service issues, one person familiar with the U.S.’s views said. | Beijing has also stepped back from its initial promises over data protection of pharmaceuticals, didn’t offer details on plans to improve patent linkages, and refused to give ground on data-service issues, one person familiar with the U.S.’s views said. |
This is fuelling concerns that the trade war could escalate further, and lead to even more tariffs being imposed on exports between the two countries. | This is fuelling concerns that the trade war could escalate further, and lead to even more tariffs being imposed on exports between the two countries. |
According to the Wall Street Journal, top US officials including Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will fly to Beijing next week for fresh talks.... | According to the Wall Street Journal, top US officials including Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will fly to Beijing next week for fresh talks.... |
Good morning, and welcome to our rolling coverage of the financial markets, the world economy, the eurozone and business. | Good morning, and welcome to our rolling coverage of the financial markets, the world economy, the eurozone and business. |
UK workers got some good news yesterday - wages are rising at their fastest pace since the financial crisis, at a pacy 3.4% per year. | UK workers got some good news yesterday - wages are rising at their fastest pace since the financial crisis, at a pacy 3.4% per year. |
Today, we discover how much of a bite inflation is taking out of those pay packets -- which could influence the chances of interest rate rises this year. | Today, we discover how much of a bite inflation is taking out of those pay packets -- which could influence the chances of interest rate rises this year. |
The consumer prices index is expected to have risen by 1.8% year-on-year in February, matching January’s reading. | The consumer prices index is expected to have risen by 1.8% year-on-year in February, matching January’s reading. |
That would be a two-year low, and could elicit a small cheer from the Bank of England, as it would mean inflation was actually close to its target of 2%. | That would be a two-year low, and could elicit a small cheer from the Bank of England, as it would mean inflation was actually close to its target of 2%. |
Michael Hewson of CMC Markets reckons cost of living pressures may have eased further last month. | Michael Hewson of CMC Markets reckons cost of living pressures may have eased further last month. |
If today’s CPI inflation numbers show another drop from the surprise drop to 1.8%, we saw in January, then consumers will get a further boost to their wage packets after months of negative to low wage growth. | If today’s CPI inflation numbers show another drop from the surprise drop to 1.8%, we saw in January, then consumers will get a further boost to their wage packets after months of negative to low wage growth. |
Even if we come in at 1.8% in the February numbers it will still be a two-year low for headline CPI, with core prices also expected to come in at 1.9%. | Even if we come in at 1.8% in the February numbers it will still be a two-year low for headline CPI, with core prices also expected to come in at 1.9%. |
Also coming up | Also coming up |
America’s central bank will set monetary policy today, at the end of a two-day meeting. | America’s central bank will set monetary policy today, at the end of a two-day meeting. |
Recent US economic data hasn’t been great. So the Federal Reserve will probably leave US interest rates on hold, and sound reassuringly cautious and patient about any future rate hikes. | Recent US economic data hasn’t been great. So the Federal Reserve will probably leave US interest rates on hold, and sound reassuringly cautious and patient about any future rate hikes. |
The Fed’s policymakers will also update their dot-plot chart, showing how they expect rates to change over the next couple of years. | The Fed’s policymakers will also update their dot-plot chart, showing how they expect rates to change over the next couple of years. |
FOMC Preview: Data-dependent Powell forced into a dovish corner. Watch 2020/2021 dots. Flatlining these would corroborate view that US interest rate cycle has peaked. This will be *too dovish* for investors to fade the dovish Fed. End date for QT good news for risky assets $USD pic.twitter.com/ZYv7KCHFVp | FOMC Preview: Data-dependent Powell forced into a dovish corner. Watch 2020/2021 dots. Flatlining these would corroborate view that US interest rate cycle has peaked. This will be *too dovish* for investors to fade the dovish Fed. End date for QT good news for risky assets $USD pic.twitter.com/ZYv7KCHFVp |
The Brexit crisis continues to worry investors (just like the rest of us....). | The Brexit crisis continues to worry investors (just like the rest of us....). |
News is just breaking that Theresa May is asking the EU for a short extension to Article 50; if granted, the UK wouldn’t leave on 29th March after all. | News is just breaking that Theresa May is asking the EU for a short extension to Article 50; if granted, the UK wouldn’t leave on 29th March after all. |
Breaking: No10: “PM won’t be asking for a long extension. There is a case for giving Parliament a bit more time to agree a way forward, but the people of this country have been waiting nearly 3 years.. They are fed up with Parliament’s failure to take a decision 1/2 | Breaking: No10: “PM won’t be asking for a long extension. There is a case for giving Parliament a bit more time to agree a way forward, but the people of this country have been waiting nearly 3 years.. They are fed up with Parliament’s failure to take a decision 1/2 |
There’s no market panic this morning; sterling is steady against the US dollar at $1.325. | There’s no market panic this morning; sterling is steady against the US dollar at $1.325. |
European stock markets are expected to open lower. | European stock markets are expected to open lower. |
European Opening Calls:#FTSE 7295 -0.40%#DAX 11708 -0.69%#CAC 5407 -0.34%#MIB 21321 -0.51%#IBEX 9458 -0.36% | European Opening Calls:#FTSE 7295 -0.40%#DAX 11708 -0.69%#CAC 5407 -0.34%#MIB 21321 -0.51%#IBEX 9458 -0.36% |
The CBI’s latest survey of UK manufacturing will show if Brexit anxiety has hurt the sector. | The CBI’s latest survey of UK manufacturing will show if Brexit anxiety has hurt the sector. |
The agenda | The agenda |
9.30 GMT: UK inflation report for February | 9.30 GMT: UK inflation report for February |
11am GMT: CBI industrial trends survey of UK factories | 11am GMT: CBI industrial trends survey of UK factories |
6pm GMT: Federal Reserve decision on US interest rates | 6pm GMT: Federal Reserve decision on US interest rates |
6.30pm GMT: Fed chair Jerome Powell holds press conference | 6.30pm GMT: Fed chair Jerome Powell holds press conference |