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/aug/23/rbs-santander-ppi-jackson-hole-jerome-powell-federal-reserve-dollar-sterling-pound-brexit-business-live

The article has changed 12 times. There is an RSS feed of changes available.

Version 9 Version 10
Markets rise as investors await Jerome Powell's keynote speech – business live Markets edgy as investors await Jerome Powell's keynote speech – business live
(32 minutes later)
We have confirmation of the trade action hinted at by the Global Times editor earlier: China will impose tariffs on American exports worth about $75bn.
China’s ministry of commerce said it will impose levies of 5% and 10% on more than 5,000 products originating in the US, with crude oil, small aircraft and cars among the items targeted, Reuters reported.
Some of the tariffs will take effect on 1 September, with the rest on 15 December.
...and for those who drink at lunch on a Friday, here’s a great dispatch from the G7 in Biarritz, where a tariff on French wine could be in the offing after Emmanuel Macron targeted US tech firms with new levies.
French wine-makers are increasingly concerned about Donald Trump’s threats to introduce high tariffs on French wine in retaliation for Emmanuel Macron’s tax on global technology giants, writes the Guardian’s Angelique Chrisafis.
Trump is a proud teetotaller, but he recently told reporters he had “always liked American wines better than French wines even though I don’t drink”. He explained why: “I just like the way they look.”
Perhaps you’ve already had your lunch, but if not here’s more to whet your appetite: the prospect of vegan doughnuts on a high street near you.Perhaps you’ve already had your lunch, but if not here’s more to whet your appetite: the prospect of vegan doughnuts on a high street near you.
Here’s the full story on the Greggs revelation that it is working on even more vegan products:Here’s the full story on the Greggs revelation that it is working on even more vegan products:
Greggs to develop vegan versions of all its bestselling foodsGreggs to develop vegan versions of all its bestselling foods
But here is a good illustration of the challenge facing Powell as he tries to balance supporting the economy with his desire not to raise rates prematurely: a strong suggestion that China is intending to retaliate to US tariffs.But here is a good illustration of the challenge facing Powell as he tries to balance supporting the economy with his desire not to raise rates prematurely: a strong suggestion that China is intending to retaliate to US tariffs.
China will “take further countermeasures” in the trade war, including retailiatory tariffs, after the US imposed levies on goods worth $300bn, according to Hu Xijin, the editor of China’s Global Times, a state-controlled newspaper.China will “take further countermeasures” in the trade war, including retailiatory tariffs, after the US imposed levies on goods worth $300bn, according to Hu Xijin, the editor of China’s Global Times, a state-controlled newspaper.
The $300bn tariffs caused markets to panic at the start of the month, after the shock decision from Donald Trump, the US president.The $300bn tariffs caused markets to panic at the start of the month, after the shock decision from Donald Trump, the US president.
Ominous words from the Global Times:Ominous words from the Global Times:
China has ammunition to fight back. The US side will feel the pain.China has ammunition to fight back. The US side will feel the pain.
Based on what I know, China will take further countermeasures in response to US tariffs on $300 billion Chinese goods. Beijing will soon unveil a plan of imposing retaliatory tariffs on certain US products. China has ammunition to fight back. The US side will feel the pain.Based on what I know, China will take further countermeasures in response to US tariffs on $300 billion Chinese goods. Beijing will soon unveil a plan of imposing retaliatory tariffs on certain US products. China has ammunition to fight back. The US side will feel the pain.
There has also been some hawkish language from US rate-setters, which might suggest the Federal Reserve does not want to cut rates too quickly.There has also been some hawkish language from US rate-setters, which might suggest the Federal Reserve does not want to cut rates too quickly.
More from Deutsche Bank:More from Deutsche Bank:
Fed officials already descended on Jackson Hole yesterday, and we got an interesting trickle of comments from some regional presidents. Overall, the tone was on the hawkish side of expectations.Fed officials already descended on Jackson Hole yesterday, and we got an interesting trickle of comments from some regional presidents. Overall, the tone was on the hawkish side of expectations.
Kansas City’s George said that she is not ready to provide more policy accommodation, Dallas’s Kaplan said “I’d like to avoid having to take further action,” and Philadelphia’s Harker said “I think we should stay here for a while and see how things play out.” And yes, he was talking about interest rates, not the beautiful resort in Wyoming.Kansas City’s George said that she is not ready to provide more policy accommodation, Dallas’s Kaplan said “I’d like to avoid having to take further action,” and Philadelphia’s Harker said “I think we should stay here for a while and see how things play out.” And yes, he was talking about interest rates, not the beautiful resort in Wyoming.
Powell certainly appears to be getting into the swing of things at the Jackson Hole resort. Just look at those relaxed zip-off trousers from the central bank chief last night. Not sure what message that sends on monetary policy.Powell certainly appears to be getting into the swing of things at the Jackson Hole resort. Just look at those relaxed zip-off trousers from the central bank chief last night. Not sure what message that sends on monetary policy.
Markets were this morning pricing in 57 basis points (0.5 percentage points) of cuts this year and another 47bps in 2020, meaning Powell has a high bar for markets to read a dovish message into today’s comments.Markets were this morning pricing in 57 basis points (0.5 percentage points) of cuts this year and another 47bps in 2020, meaning Powell has a high bar for markets to read a dovish message into today’s comments.
The last month has seen new trade war tensions, global growth slowdown fears and further steep drops in bond yields, so Powell’s speech “couldn’t come soon enough”, said analysts at Deutsche Bank led by Craig Nicol.The last month has seen new trade war tensions, global growth slowdown fears and further steep drops in bond yields, so Powell’s speech “couldn’t come soon enough”, said analysts at Deutsche Bank led by Craig Nicol.
Recession concerns are “crystalising today”, as evidenced by the inverted yield curve, Nicol said.Recession concerns are “crystalising today”, as evidenced by the inverted yield curve, Nicol said.
The immediate focus of Powell’s speech will likely be whether he affirms that the current easing is a ‘mid-cycle adjustment’ as per the FOMC minutes or align more closely to market pricing.The immediate focus of Powell’s speech will likely be whether he affirms that the current easing is a ‘mid-cycle adjustment’ as per the FOMC minutes or align more closely to market pricing.
The Deutsche Bank view is:The Deutsche Bank view is:
If Powell sticks to the old language, as is most likely, it would affirm that he is still confident that the strength of consumption, in combination with modest Fed easing, will be sufficient to keep the recovery broadly on track.If Powell sticks to the old language, as is most likely, it would affirm that he is still confident that the strength of consumption, in combination with modest Fed easing, will be sufficient to keep the recovery broadly on track.
That would represent a slightly more hawkish message than markets are currently pricing, they reckon.That would represent a slightly more hawkish message than markets are currently pricing, they reckon.
So what will Powell do?So what will Powell do?
In July the Federal Reserve chair described the interest rate cut as a “mid-cycle adjustment” of monetary policy, rather than the start of a proper cutting cycle. That comment could come back to haunt him if the US enters a recession – as markets are pricing – but in the short term investors will be keen to see whether he repeats this message.In July the Federal Reserve chair described the interest rate cut as a “mid-cycle adjustment” of monetary policy, rather than the start of a proper cutting cycle. That comment could come back to haunt him if the US enters a recession – as markets are pricing – but in the short term investors will be keen to see whether he repeats this message.
Lee Hardman and Fritz Louw, analysts at MUFG Bank, expect a stronger dollar after he speaks:Lee Hardman and Fritz Louw, analysts at MUFG Bank, expect a stronger dollar after he speaks:
We think he will likely stick with this theme, but highlight increased concern over the global economic outlook and the potential impact this could have on the US economy going forward.We think he will likely stick with this theme, but highlight increased concern over the global economic outlook and the potential impact this could have on the US economy going forward.
Even though we expect a dovish overall message from Chair Powell, it will likely fall short of the capitulation demanded by the market and US President Trump. The dollar will likely be supported on the back of this.Even though we expect a dovish overall message from Chair Powell, it will likely fall short of the capitulation demanded by the market and US President Trump. The dollar will likely be supported on the back of this.
As we approach midday in London, stock markets remain on the rise across Europe, with investors awaiting Federal Reserve chairman Jerome Powell in three hours’ time.As we approach midday in London, stock markets remain on the rise across Europe, with investors awaiting Federal Reserve chairman Jerome Powell in three hours’ time.
The FTSE 100 is up by 0.6%, while the FTSE 250 increased by 0.9%. The Stoxx 600 has also risen by 0.4%, but shed some of its earlier gains.The FTSE 100 is up by 0.6%, while the FTSE 250 increased by 0.9%. The Stoxx 600 has also risen by 0.4%, but shed some of its earlier gains.
Rising bond yields – as investors position for a slightly more hawkish message from Powell – have boosted the US dollar. Higher government bond yields generally suggest that investors expect tighter monetary policy, making the country’s currency more attractive.Rising bond yields – as investors position for a slightly more hawkish message from Powell – have boosted the US dollar. Higher government bond yields generally suggest that investors expect tighter monetary policy, making the country’s currency more attractive.
The dollar index, which measures the greenback against a trade-weighted basket of currencies, has risen by 0.3% today.The dollar index, which measures the greenback against a trade-weighted basket of currencies, has risen by 0.3% today.
While central bankers are meeting at Jackson Hole, the leaders of the world’s largest advanced economies have their own shindig: the G7 summit in Biarritz, in the south of France.While central bankers are meeting at Jackson Hole, the leaders of the world’s largest advanced economies have their own shindig: the G7 summit in Biarritz, in the south of France.
Prime Minister Boris Johnson is there. Brexit is predictably on the agenda, for the British at least. You can follow the twists and turns today on the politics live blog.Prime Minister Boris Johnson is there. Brexit is predictably on the agenda, for the British at least. You can follow the twists and turns today on the politics live blog.
Brexiter Tories tell Boris Johnson backstop is not only problem with withdrawal agreement - live newsBrexiter Tories tell Boris Johnson backstop is not only problem with withdrawal agreement - live news
However, the start of the summit has been dominated by the reaction to wildfires in the Amazon. Emmanuel Macron, the French president, called for emergency talks on the subject at this week’s G7 summit.However, the start of the summit has been dominated by the reaction to wildfires in the Amazon. Emmanuel Macron, the French president, called for emergency talks on the subject at this week’s G7 summit.
Scientists have called for international pressure on Brazil’s president, Jair Bolsonaro, who has pursued a policy of developing the Amazon. Deforestation is thought to contribute directly to global heating.Scientists have called for international pressure on Brazil’s president, Jair Bolsonaro, who has pursued a policy of developing the Amazon. Deforestation is thought to contribute directly to global heating.
You can read more here:You can read more here:
Amazon rainforest fires: global leaders urged to divert Brazil from 'suicide' pathAmazon rainforest fires: global leaders urged to divert Brazil from 'suicide' path
Huawei, the Chinese tech giant at the heart of the geopolitical dispute with the US, said on Friday its business has been less impacted by trade restrictions than initially feared.Huawei, the Chinese tech giant at the heart of the geopolitical dispute with the US, said on Friday its business has been less impacted by trade restrictions than initially feared.
The $100bn company is “fully prepared” to live and work with US sanctions, it said.The $100bn company is “fully prepared” to live and work with US sanctions, it said.
In June Huawei founder and chief executive Ren Zhengfei said US trade restrictions would dent revenue by $30bn this year.In June Huawei founder and chief executive Ren Zhengfei said US trade restrictions would dent revenue by $30bn this year.
Eric Xu, Huawei’s deputy chairman, was at a news conference earlier to introduce new artificial intelligence chips at its headquarters in Shenzhen. He said via Reuters:Eric Xu, Huawei’s deputy chairman, was at a news conference earlier to introduce new artificial intelligence chips at its headquarters in Shenzhen. He said via Reuters:
It seems it’s going to be a little less than that. But you have to wait till our results in March.It seems it’s going to be a little less than that. But you have to wait till our results in March.
Washington said this week that it will extend by 90 days a reprieve that permits Huawei to buy from US firms in order to supply existing customers, but it also moved to add more than 40 of Huawei’s units to its economic blacklist.Washington said this week that it will extend by 90 days a reprieve that permits Huawei to buy from US firms in order to supply existing customers, but it also moved to add more than 40 of Huawei’s units to its economic blacklist.
Greggs is planning to roll out more vegan products, after the stunning marketing success of its vegan sausage roll.Greggs is planning to roll out more vegan products, after the stunning marketing success of its vegan sausage roll.
Chief executive Roger Whiteside said the company is looking at new products replacing meat with Quorn, in an interview with LBC radio station.Chief executive Roger Whiteside said the company is looking at new products replacing meat with Quorn, in an interview with LBC radio station.
Greggs sales topped £1bn for the first time last year, and the launch of the vegan sausage roll at the start of the year helped it to buck the struggles of the high street.Greggs sales topped £1bn for the first time last year, and the launch of the vegan sausage roll at the start of the year helped it to buck the struggles of the high street.
Whiteside said:Whiteside said:
We are working away at trying to see if we can come up with a vegan version of all our top-selling lines. Obviously people want a vegan option.We are working away at trying to see if we can come up with a vegan version of all our top-selling lines. Obviously people want a vegan option.
If we can succeed in doing that and produce something that tastes just as good as the meat version, then that will sell very successfully. That’s what’s been shown with the vegan sausage roll.If we can succeed in doing that and produce something that tastes just as good as the meat version, then that will sell very successfully. That’s what’s been shown with the vegan sausage roll.
RBS and Santander may be smarting from the competition regulator’s telling off this morning, but in a neat one-two punch the Financial Conduct Authority (FCA) has now criticised the claims management companies (CMCs) who have profited so immensely from the PPI scandal.RBS and Santander may be smarting from the competition regulator’s telling off this morning, but in a neat one-two punch the Financial Conduct Authority (FCA) has now criticised the claims management companies (CMCs) who have profited so immensely from the PPI scandal.
The FCA on Friday said it has “found widespread poor-practice in CMCs” using misleading adverts.The FCA on Friday said it has “found widespread poor-practice in CMCs” using misleading adverts.
CMCs make complaints on behalf of their customers – often taking fees as high as 30% of any compensation won. Regulators say they help people claim who otherwise would not be able.CMCs make complaints on behalf of their customers – often taking fees as high as 30% of any compensation won. Regulators say they help people claim who otherwise would not be able.
However, the FCA found a litany of abuses, including failing to tell users they can easily claim themselves, appearing to say customers would be better off using a CMC, and using misleadingly high compensation examples in adverts.However, the FCA found a litany of abuses, including failing to tell users they can easily claim themselves, appearing to say customers would be better off using a CMC, and using misleadingly high compensation examples in adverts.
New rules from the FCA require CMC firms to:New rules from the FCA require CMC firms to:
identify themselves as a claims management companyidentify themselves as a claims management company
prominently state if a claim can be made to a statutory ombudsman / compensation scheme without using a CMC and without incurring a feeprominently state if a claim can be made to a statutory ombudsman / compensation scheme without using a CMC and without incurring a fee
include prominent information relating to fees and termination fees which the customer may have to pay if a firm uses the term ‘no win, no fee’ or a term with similar meaninginclude prominent information relating to fees and termination fees which the customer may have to pay if a firm uses the term ‘no win, no fee’ or a term with similar meaning
The regulator took over regulation of CMCs on 1 April 2019, after the previous regulator was widely criticised as toothless.The regulator took over regulation of CMCs on 1 April 2019, after the previous regulator was widely criticised as toothless.
While the PPI deadline on 29 August will deprive CMCs of a their most valuable income stream, the industry has moved on to other areas in its search for new revenue – notably in the payday loans sector. The Guardian previously reported an avalanche of spurious complaints from some firms.While the PPI deadline on 29 August will deprive CMCs of a their most valuable income stream, the industry has moved on to other areas in its search for new revenue – notably in the payday loans sector. The Guardian previously reported an avalanche of spurious complaints from some firms.
After something of a flurry of company news (particularly for a Friday in late August), here’s a round-up of markets.After something of a flurry of company news (particularly for a Friday in late August), here’s a round-up of markets.
The FTSE 100 is up by 0.7% to 7,180 points, boosted by the weaker pound. The mid-cap FTSE 250 is up by about 1% – boosted by Peppa Pig owner Entertainment One.The FTSE 100 is up by 0.7% to 7,180 points, boosted by the weaker pound. The mid-cap FTSE 250 is up by about 1% – boosted by Peppa Pig owner Entertainment One.
Across Europe it was a sea of green, with all of the major indices gaining.Across Europe it was a sea of green, with all of the major indices gaining.
Sterling has lost 0.4% against the US dollar, with one pound buying $1.2204. Against the euro the pound had lost 0.2%.Sterling has lost 0.4% against the US dollar, with one pound buying $1.2204. Against the euro the pound had lost 0.2%.
The euro is down by 0.1% against the dollar, with the trade-weighted dollar basket up by 0.2% as investors await a speech by Federal Reserve boss Jerome Powell.The euro is down by 0.1% against the dollar, with the trade-weighted dollar basket up by 0.2% as investors await a speech by Federal Reserve boss Jerome Powell.