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You can find the current article at its original source at https://www.theguardian.com/business/live/2019/jul/25/investors-ecb-european-central-bank-economic-stimulus-brexit-interest-rates-euro-sterling-pound-dollar-business-live
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| Investors await signal on fresh ECB economic stimulus – business live | Investors await signal on fresh ECB economic stimulus – business live |
| (32 minutes later) | |
| Meanwhile, Metro Bank’s shares are down by 16% after hitting a record low this morning following the resignation of founder Vernon Hill as chairman last night. | |
| Metro Bank has been under the cosh in recent months after a mischaracterisation of loans was found by the Bank of England. That error was compounded by a response that raised questions over the governance of the lender. | |
| Hill will still hold a non-executive director role at the company he founded in 2010. | |
| Metro Bank to replace founder Vernon Hill as chairman | |
| Cobham shares have surged by 35% after the bid from private equity firm Advent. | |
| Japanese carmaker Nissan has announced 12,500 job cuts worldwide – more than the 10,000 previously reported – as profits plunged by 98.5% in the first quarter of its 2019 financial year. | |
| Operating profit fell to only 1.6bn Japanese yen (£11.8m), from 109bn yen the previous year, Nissan said. | |
| Revenue dropped by 12.7% in its first financial quarter to 2.4bn Japanese yen. | |
| In its statement Nissan did not say whether its Sunderland plant would be affected by the job cuts, although the BBC reported yesterday that this was not thought likely by union sources. | |
| Nissan will reduce its global production capacity by 10% by the end of the 2022 fiscal year. | |
| In line with production optimizations, the company will reduce headcount by roughly 12,500. Furthermore, the company will reduce the size of its product lineup by at least 10% by the end of fiscal year 2022 in order to improve product competitiveness by focusing investment on global core models and strategic regional models. | |
| The FTSE 100 has risen by 0.2% at the opening bell. Top risers include ITV for a second day and miner Anglo American – although neither has gained more than 2% in early trading. | The FTSE 100 has risen by 0.2% at the opening bell. Top risers include ITV for a second day and miner Anglo American – although neither has gained more than 2% in early trading. |
| Across Europe, the Euro Stoxx 600 is up by 0.6%, led by France’s Cac 40, up 0.7%, and Italy’s FTSE MIB, up by 0.35%. Germany’s Dax gained 0.4%. | Across Europe, the Euro Stoxx 600 is up by 0.6%, led by France’s Cac 40, up 0.7%, and Italy’s FTSE MIB, up by 0.35%. Germany’s Dax gained 0.4%. |
| 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. |
| Boris Johnson has started his reign as prime minister with a brutal cabinet cull. He promised on Tuesday to steal leadership rival Jeremy Hunt’s ideas, but he did not want him in his cabinet. In the top jobs are chancellor Sajid Javid, home secretary Priti Patel and foreign secretary Dominic Raab. Keen Brexiteer Andrea Leadsom is head of the business department, and will likely strike a somewhat different tone to predecessor Greg Clark. | Boris Johnson has started his reign as prime minister with a brutal cabinet cull. He promised on Tuesday to steal leadership rival Jeremy Hunt’s ideas, but he did not want him in his cabinet. In the top jobs are chancellor Sajid Javid, home secretary Priti Patel and foreign secretary Dominic Raab. Keen Brexiteer Andrea Leadsom is head of the business department, and will likely strike a somewhat different tone to predecessor Greg Clark. |
| “Revenge” is the word on our main story this morning. You can read about it in all its gory detail here, as Britain prepares for what could be the hottest day ever. | “Revenge” is the word on our main story this morning. You can read about it in all its gory detail here, as Britain prepares for what could be the hottest day ever. |
| Barring any early interventions on Brexit from Johnson (and it’s tricky to see at this point how he could take a harder line on a no-deal Brexit than he already has) the major economic news for the day will almost certainly be the European Central Bank’s latest monetary policy announcement. | Barring any early interventions on Brexit from Johnson (and it’s tricky to see at this point how he could take a harder line on a no-deal Brexit than he already has) the major economic news for the day will almost certainly be the European Central Bank’s latest monetary policy announcement. |
| And, oh, how times change. A year ago most economists believed that ECB president Mario Draghi would preside over at least one interest rate hike during his time in the chair. Now those same economists are weighing whether the ECB’s rate-setting governing council will today signal an intention to cut interest rates at its next meeting in September – or whether it could take the plunge today with a new round of economic stimulus. | And, oh, how times change. A year ago most economists believed that ECB president Mario Draghi would preside over at least one interest rate hike during his time in the chair. Now those same economists are weighing whether the ECB’s rate-setting governing council will today signal an intention to cut interest rates at its next meeting in September – or whether it could take the plunge today with a new round of economic stimulus. |
| “The case for further ECB easing was reinforced yesterday by the release of weaker than expected eurozone PMI surveys for July,” said Lee Hardman, a currency analyst at MUFG Bank. | “The case for further ECB easing was reinforced yesterday by the release of weaker than expected eurozone PMI surveys for July,” said Lee Hardman, a currency analyst at MUFG Bank. |
| It is another disappointing signal for the ECB whohad previously hoped that growth would begin to pick up in the second half of this year. They are now becoming increasingly resigned to a more protracted economic slowdown. | It is another disappointing signal for the ECB whohad previously hoped that growth would begin to pick up in the second half of this year. They are now becoming increasingly resigned to a more protracted economic slowdown. |
| The ECB response could involve a smaller rate cut than usual, and even a reacceleration of quantitative easing, the bond purchases which have been such a big feature of monetary policy in the last decade. | The ECB response could involve a smaller rate cut than usual, and even a reacceleration of quantitative easing, the bond purchases which have been such a big feature of monetary policy in the last decade. |
| Chances of a rate cut today have risen substantially after this week's PMIs and BLS. But the bigger question is about QE - watch out for Draghi's comments about (SPF) inflation expectations. https://t.co/Rna7GM07Qf | Chances of a rate cut today have risen substantially after this week's PMIs and BLS. But the bigger question is about QE - watch out for Draghi's comments about (SPF) inflation expectations. https://t.co/Rna7GM07Qf |
| Draghi leaves the ECB on 31 October, meaning he will probably have gone through eight years in which the central bank has provided constant stimulus to the eurozone economy. | Draghi leaves the ECB on 31 October, meaning he will probably have gone through eight years in which the central bank has provided constant stimulus to the eurozone economy. |
| Back in the UK, there is some big corporate news in the defence sector, as Cobham – the Dorset-based maker of military and civilian aerospace systems – is snapped up by US private equity group Advent International for £4bn. The 165p per share offer represents a 50.3% premium to the average share price for the last three months. | |
| The agenda | The agenda |
| 9am BST: Germany Ifo business confidence (July) | 9am BST: Germany Ifo business confidence (July) |
| 11am BST: UK CBI distributive trades (retail) survey (July) | 11am BST: UK CBI distributive trades (retail) survey (July) |
| 12:45pm BST: European Central Bank (ECB) interest rate decision | 12:45pm BST: European Central Bank (ECB) interest rate decision |
| 1:30pm BST: ECB press conference with Mario Draghi | 1:30pm BST: ECB press conference with Mario Draghi |
| 1:30pm BST: US durable goods orders (June) | 1:30pm BST: US durable goods orders (June) |