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UK inflation report due as trade war fears rise - business live UK inflation rises to 1.9%, as London house prices slide - business live
(32 minutes later)
Newsflash: UK house price inflation has slowed, partly due to another fall in prices in the capital.
The Office for National Statistics says that house prices were 1.7% higher in January than a year ago, the weakest house prices inflation since June 2013.
In London, prices shrank by 1.6% - the biggest annual decline since September 2009 when Britain was struggling out of the last recession.
The ONS says:
Over the past two and a half years, there has been a slowdown in UK house price growth, driven mainly by a slowdown in the south and east of England.
The lowest annual growth was in London, where prices fell by 1.6% over the year to January 2019, down from a decrease of 0.7% in December 2018. This was followed by the East of England where prices fell 0.2% over the year.
It appears that rising food and alcohol costs helped to push UK inflation up from January’s two-year low.
The Office for National Statistics says:
Rising prices for food, alcohol and tobacco, and across a range of recreational and cultural goods produced the largest upward contributions to change in the rate between January and February 2019.
The largest, offsetting, downward contribution came from clothing and footwear, with prices rising between January and February 2019 but by less than between the same two months a year ago.
Breaking: UK inflation has risen slightly.
The Consumer Prices Index rose by 1.9% in the 12 months to February, up from 1.8% in January, and higher than the City expected.
The broader (and somewhat discredited) Retail Prices Index rose by 2.5% year-on-year.
More to follow....
The pound is dropping against the US dollar, now down almost half a cent at $1.3226.
Traders are getting jittery about the chances of the UK getting a Brexit extension, and this sort of thing isn’t helping!
EU sounding the alarm: THEY HAVE NOT YET RECEIVED THE PMs LETTER -EU Diplomats saying: How can 27 leaders be expected to reach a unanimous decision on PM’s #Brexit extension request with only hours to go before tomorrow’s EU summit and still no official notice from No10..?
A flurry of takeover action has driven shares in UK satellite operator Inmarsat up 16%.A flurry of takeover action has driven shares in UK satellite operator Inmarsat up 16%.
Inmarsat has told the City last night that it’s talking to a private equity-led consortium about a $3.3bn cash deal.Inmarsat has told the City last night that it’s talking to a private equity-led consortium about a $3.3bn cash deal.
This is the third take-over approach in around a year for Inmarsat, which offers mobile and internet services via a network of satellites orbiting the globe.This is the third take-over approach in around a year for Inmarsat, which offers mobile and internet services via a network of satellites orbiting the globe.
Véronique Laury to step down as CEO of struggling KingfisherVéronique Laury to step down as CEO of struggling Kingfisher
After hitting a five-month high yesterday, European stock markets have dropped back this morning.After hitting a five-month high yesterday, European stock markets have dropped back this morning.
German pharmaceuticals firm Bayer is the region’s biggest faller, down 12% after a US court ruled that its glyphosate-based Roundup weed killer caused cancer.German pharmaceuticals firm Bayer is the region’s biggest faller, down 12% after a US court ruled that its glyphosate-based Roundup weed killer caused cancer.
Conner Campbell of SpreadEx blames those trade jitters too:Conner Campbell of SpreadEx blames those trade jitters too:
The reason for Europe’s red start is the same as what gave the Dow Jones a headache on Tuesday. Namely a Bloomberg reporting suggesting China are pushing back on some US trade demands, despite Trump’s insistence that the two countries are making progress.The reason for Europe’s red start is the same as what gave the Dow Jones a headache on Tuesday. Namely a Bloomberg reporting suggesting China are pushing back on some US trade demands, despite Trump’s insistence that the two countries are making progress.
Mining companies are under pressure this morning, as trade war worries mount again.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%).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.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.Investors are concerned by those reports that talks between Washington and Beijing are struggling.
Neil Wilson of Markets.com says: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.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: 245pB&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/W9GIkT427XThe 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 upAlso 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/ZYv7KCHFVpFOMC 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 1/2Breaking: 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 agendaThe agenda
9.30 GMT: UK inflation report for February9.30 GMT: UK inflation report for February
11am GMT: CBI industrial trends survey of UK factories11am GMT: CBI industrial trends survey of UK factories
6pm GMT: Federal Reserve decision on US interest rates6pm GMT: Federal Reserve decision on US interest rates
6.30pm GMT: Fed chair Jerome Powell holds press conference6.30pm GMT: Fed chair Jerome Powell holds press conference