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You can find the current article at its original source at https://www.theguardian.com/business/live/2016/may/05/uk-service-sector-report-slowdown-china-stock-markets-business-live
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| Donald Trump says he'd probably replace Fed chair Janet Yellen - business live | Donald Trump says he'd probably replace Fed chair Janet Yellen - business live |
| (35 minutes later) | |
| 1.37pm BST | |
| 13:37 | |
| Donald Trump also says he’d scrap a swathe of federal regulations which are (he argues) holding back US firms. | |
| He told CNBC: | |
| “We’re lowering taxes very substantially and we’re going to be getting rid of a tremendous amount of regulations.” | |
| 1.07pm BST | 1.07pm BST |
| 13:07 | 13:07 |
| Trump: I'd probably replace Janet Yellen | Trump: I'd probably replace Janet Yellen |
| With the Republican nomination in the bag, Donald Trump is now turning his attention to how he’d run the American economy if he makes it to the White House. | With the Republican nomination in the bag, Donald Trump is now turning his attention to how he’d run the American economy if he makes it to the White House. |
| And he’s just declared that he would probably replace Janet Yellen as chair of the Federal Reserve when her current term expires. | And he’s just declared that he would probably replace Janet Yellen as chair of the Federal Reserve when her current term expires. |
| Yellen’s crime? Not being a Republican, apparently. | Yellen’s crime? Not being a Republican, apparently. |
| Speaking to CNBC, Trump declared: | Speaking to CNBC, Trump declared: |
| I have nothing against Janet Yellen whatsoever. She’s been doing her job, and I have absolutely nothing against her. | I have nothing against Janet Yellen whatsoever. She’s been doing her job, and I have absolutely nothing against her. |
| I don’t know her, but she’s a very capable person and people that I know have a very high regard for her. | |
| But she’s not a Republican… When her time is up, I would most likely replace her because of the fact that it would be appropriate. | But she’s not a Republican… When her time is up, I would most likely replace her because of the fact that it would be appropriate. |
| But in a typical piece of Trump logic, the billionaire businessman also backed Yellen’s monetary policy stance: | But in a typical piece of Trump logic, the billionaire businessman also backed Yellen’s monetary policy stance: |
| She’s a low interest-rate person, she’s always been a low interest-rate person …and I must be honest, I’m a low interest rate person. If we raise interest rates, and the dollar starts getting too strong, we’re going to have some very major problems. | She’s a low interest-rate person, she’s always been a low interest-rate person …and I must be honest, I’m a low interest rate person. If we raise interest rates, and the dollar starts getting too strong, we’re going to have some very major problems. |
| Yellen’s current four-year term expires in February 2018, but she could potentially serve a second term (as did her predecessor, Ben Bernanke). | |
| Bloomberg’s Jon Ferro questions Trump’s logic on this one: | Bloomberg’s Jon Ferro questions Trump’s logic on this one: |
| Surely the best thing Trump can do at this point is back Yellen. Does he really want the markets to move against him if climbs the polls? | Surely the best thing Trump can do at this point is back Yellen. Does he really want the markets to move against him if climbs the polls? |
| You can watch a clip of the interview here. | You can watch a clip of the interview here. |
| Trump: Nothing against Janet Yellen, but would replace her "when her time is up" https://t.co/KxZLRBjOLN | Trump: Nothing against Janet Yellen, but would replace her "when her time is up" https://t.co/KxZLRBjOLN |
| Updated | Updated |
| at 1.46pm BST | |
| 12.53pm BST | 12.53pm BST |
| 12:53 | 12:53 |
| US layoffs jump | US layoffs jump |
| We also have worrying news from America. | We also have worrying news from America. |
| The number of US workers laid off last month jumped, and hit the highest level for an April in seven years. | The number of US workers laid off last month jumped, and hit the highest level for an April in seven years. |
| It indicates American companies are feeling the pinch, after its economy slowed to virtual stagnation in the first quarter of 2016. | It indicates American companies are feeling the pinch, after its economy slowed to virtual stagnation in the first quarter of 2016. |
| Reuters has the details: | Reuters has the details: |
| Layoffs by U.S.-based companies accelerated in April, sending year-to-date job cuts to the highest level since 2009, a private study reported Thursday. | Layoffs by U.S.-based companies accelerated in April, sending year-to-date job cuts to the highest level since 2009, a private study reported Thursday. |
| Domestic companies announced plans to let go 65,141 workers last month, a 35 percent increase from March, according to the report by outplacement firm Challenger, Gray & Christmas . | Domestic companies announced plans to let go 65,141 workers last month, a 35 percent increase from March, according to the report by outplacement firm Challenger, Gray & Christmas . |
| In the first four months of the year, employers said they would hand out 250,061 pink slips. That is the highest total for the January-to-April period since 2009. | In the first four months of the year, employers said they would hand out 250,061 pink slips. That is the highest total for the January-to-April period since 2009. |
| “We continue to see large scale layoffs in the energy sector, where low oil prices are driving down profits. However, we are also seeing heavy downsizing activity in other areas, such as computers and retail, where changing consumer trends are creating a lot of volatility,” Challenger CEO John A. Challenger said in a statement. | “We continue to see large scale layoffs in the energy sector, where low oil prices are driving down profits. However, we are also seeing heavy downsizing activity in other areas, such as computers and retail, where changing consumer trends are creating a lot of volatility,” Challenger CEO John A. Challenger said in a statement. |
| BREAKING: US job cuts rise to 65,141 in April; 2016 layoffs at 7-year high - Challenger https://t.co/xGFlKQbV4Q | BREAKING: US job cuts rise to 65,141 in April; 2016 layoffs at 7-year high - Challenger https://t.co/xGFlKQbV4Q |
| 12.23pm BST | 12.23pm BST |
| 12:23 | 12:23 |
| Meanwhile in London, the boss of consumer goods group Reckitt Benckiser has apologised over a humidifier steriliser scandal that has claimed around 100 lives. | Meanwhile in London, the boss of consumer goods group Reckitt Benckiser has apologised over a humidifier steriliser scandal that has claimed around 100 lives. |
| Julia Kollewe reports: | Julia Kollewe reports: |
| Rakesh Kapoor, chief executive of Reckitt Benckiser told shareholders at an AGM in central London: “I’m personally very sorry and very much regret that our Oxy product caused harm to people in Korea.” | |
| He said the company had “made a mistake” and vowed to ensure that “something like this never happens again”. He will meet representatives from one patient group, who were demonstrating outside the AGM, in his office on Friday. | He said the company had “made a mistake” and vowed to ensure that “something like this never happens again”. He will meet representatives from one patient group, who were demonstrating outside the AGM, in his office on Friday. |
| The humidifier steriliser is believed to have killed nearly 100 people and injured others. It was invented in Korea and only sold there. | The humidifier steriliser is believed to have killed nearly 100 people and injured others. It was invented in Korea and only sold there. |
| Reckitt acquired the firm that made the steriliser in 2001. Some of these products were also manufactured by rival companies. | Reckitt acquired the firm that made the steriliser in 2001. Some of these products were also manufactured by rival companies. |
| Kapoor’s comments come three days after the head of Reckitt Benckiser Korea and Japan was struck while apologising for the scandal. | Kapoor’s comments come three days after the head of Reckitt Benckiser Korea and Japan was struck while apologising for the scandal. |
| Related: Reckitt Benckiser executive slapped at South Korea press conference | Related: Reckitt Benckiser executive slapped at South Korea press conference |
| Updated | Updated |
| at 2.01pm BST | |
| 11.20am BST | 11.20am BST |
| 11:20 | 11:20 |
| James Sproule, chief economist at the Institute of Directors, fears the Britain’s economy is suffering from more than the Brexit jitters. | James Sproule, chief economist at the Institute of Directors, fears the Britain’s economy is suffering from more than the Brexit jitters. |
| Sproule warns: | Sproule warns: |
| “These figures will be put down to uncertainty over the EU referendum, but while this may explain part of the fall, we should also consider whether there are underlying factors feeding into a less rosy economic picture. | “These figures will be put down to uncertainty over the EU referendum, but while this may explain part of the fall, we should also consider whether there are underlying factors feeding into a less rosy economic picture. |
| “The question we must ask is whether growth is built on solid foundations. My concern is that the exceptional period we are living in of low rates and cheap money is not the basis of a sustainable economy. We do not know what the outcome of the referendum will be, or the exact effects on the economy in the short and longer term, but this uncertainty is not an excuse to take our eye off the ball on more fundamental issues of economic sustainability.” | “The question we must ask is whether growth is built on solid foundations. My concern is that the exceptional period we are living in of low rates and cheap money is not the basis of a sustainable economy. We do not know what the outcome of the referendum will be, or the exact effects on the economy in the short and longer term, but this uncertainty is not an excuse to take our eye off the ball on more fundamental issues of economic sustainability.” |
| And this chart, from the Indie’s Ben Chu, underlines how worrying this week’s data is: | And this chart, from the Indie’s Ben Chu, underlines how worrying this week’s data is: |
| Is UK GDP growth heading down to zero? That's what the latest PMI surveys seem to suggest.https://t.co/xhgGOsW6jE pic.twitter.com/sDWTaiYoZO | Is UK GDP growth heading down to zero? That's what the latest PMI surveys seem to suggest.https://t.co/xhgGOsW6jE pic.twitter.com/sDWTaiYoZO |
| 11.04am BST | 11.04am BST |
| 11:04 | 11:04 |
| Could Bank of England cut rates? | Could Bank of England cut rates? |
| With Britain’s economy seemingly slowing, there’s even less chance of the Bank of England raising interest rates in the next few months. | With Britain’s economy seemingly slowing, there’s even less chance of the Bank of England raising interest rates in the next few months. |
| Some economists are even speculating that the BoE could cut rates this year. | Some economists are even speculating that the BoE could cut rates this year. |
| And Chris Williamson of data firm Markit has confirmed that the Bank has previously eased monetary policy when its PMI readings have been this week. | And Chris Williamson of data firm Markit has confirmed that the Bank has previously eased monetary policy when its PMI readings have been this week. |
| This graph plots Markit’s PMI (dark blue) against interest rate cuts (light blue) and bouts of quantitative easing (grey). | This graph plots Markit’s PMI (dark blue) against interest rate cuts (light blue) and bouts of quantitative easing (grey). |
| Williamson says: | Williamson says: |
| The three Markit/CIPS PMI surveys collectively indicated the weakest rate of expansion since March 2013, with growth slowing across the board. The combined Output Index fell from 53.6 in March to 51.9 in April. The latest reading is consistent with a near-stalling of economic growth, down to just 0.1% in April. | The three Markit/CIPS PMI surveys collectively indicated the weakest rate of expansion since March 2013, with growth slowing across the board. The combined Output Index fell from 53.6 in March to 51.9 in April. The latest reading is consistent with a near-stalling of economic growth, down to just 0.1% in April. |
| The deterioration in April pushes the surveys into territory which has in the past seen the Bank of England start to worry about the need to revive growth, either by cutting interest rates or non-standard measures such as quantitative easing. | The deterioration in April pushes the surveys into territory which has in the past seen the Bank of England start to worry about the need to revive growth, either by cutting interest rates or non-standard measures such as quantitative easing. |
| Updated | Updated |
| at 11.04am BST | at 11.04am BST |
| 10.27am BST | 10.27am BST |
| 10:27 | 10:27 |
| This chart shows why the weak service sector data probably show that UK growth has slowed sharply. | This chart shows why the weak service sector data probably show that UK growth has slowed sharply. |
| It’s from German bank Berenberg. Their economist Kallum Pickering, says there are “substantial downside risks” to UK growth, but.. | It’s from German bank Berenberg. Their economist Kallum Pickering, says there are “substantial downside risks” to UK growth, but.. |
| If, as we expect, the UK votes to remain in the EU, then the growth rate should recover to its trend rate of 0.5% qoq in the second half of the year. | If, as we expect, the UK votes to remain in the EU, then the growth rate should recover to its trend rate of 0.5% qoq in the second half of the year. |
| While there are some risks relating to the current account deficit and concerns that households are returning to pre-Lehman borrowing and saving habits, underlying fundamentals are sound. | While there are some risks relating to the current account deficit and concerns that households are returning to pre-Lehman borrowing and saving habits, underlying fundamentals are sound. |
| 10.06am BST | 10.06am BST |
| 10:06 | 10:06 |
| With services making up 79% of UK GDP, a three year low in services PMI will have big impact on Q2 growth expectations | With services making up 79% of UK GDP, a three year low in services PMI will have big impact on Q2 growth expectations |
| Updated | Updated |
| at 10.09am BST | at 10.09am BST |
| 10.03am BST | 10.03am BST |
| 10:03 | 10:03 |
| Anthony Cheung of City firm Amplify Trading agrees that the UK economic picture has deteriorated: | Anthony Cheung of City firm Amplify Trading agrees that the UK economic picture has deteriorated: |
| UK PMI's showing a worrying picture this week. Manufacturing slows for 1st time since Mar 2013, construction & services dropped to 3yr lows | UK PMI's showing a worrying picture this week. Manufacturing slows for 1st time since Mar 2013, construction & services dropped to 3yr lows |
| 9.58am BST | 9.58am BST |
| 09:58 | 09:58 |
| Dean Turner, Economist at UBS Wealth Management, agrees that Britain’s economy appears to have weakened in April. | Dean Turner, Economist at UBS Wealth Management, agrees that Britain’s economy appears to have weakened in April. |
| And that means growth in the current quarter will be lower than in January-March, when GDP expanded by only 0.4%. | And that means growth in the current quarter will be lower than in January-March, when GDP expanded by only 0.4%. |
| Turner says: | Turner says: |
| Uncertainty over the EU Referendum is clearly taking its toll on activity and with this backdrop, we expect second quarter GDP growth to dip below the already disappointing first quarter print. | Uncertainty over the EU Referendum is clearly taking its toll on activity and with this backdrop, we expect second quarter GDP growth to dip below the already disappointing first quarter print. |
| With such subdued levels of growth, we expect the Bank of England will hold fire on interest rates in next week’s MPC meeting, and for many months thereafter.” | With such subdued levels of growth, we expect the Bank of England will hold fire on interest rates in next week’s MPC meeting, and for many months thereafter.” |
| 9.48am BST | 9.48am BST |
| 09:48 | 09:48 |
| CIPS: EU referendum fears are hurting the economy | CIPS: EU referendum fears are hurting the economy |
| Britain’s services sector makes up around three-quarters of the economy, so this slowdown is pretty worrying. | Britain’s services sector makes up around three-quarters of the economy, so this slowdown is pretty worrying. |
| David Noble, CEO of the Chartered Institute of Procurement & Supply, says June’s EU referendum is partly to blame. | David Noble, CEO of the Chartered Institute of Procurement & Supply, says June’s EU referendum is partly to blame. |
| “The UK’s services sector is stuck between a rock and a hard place. Mounting global economic uncertainty at the top of the supply chain and the reality of the new National Living Wage at the bottom mean that firms are feeling the pinch from both ends. As a result, the sector credited with being the main driver of the UK’s economic fortunes appears to be slowing down. | “The UK’s services sector is stuck between a rock and a hard place. Mounting global economic uncertainty at the top of the supply chain and the reality of the new National Living Wage at the bottom mean that firms are feeling the pinch from both ends. As a result, the sector credited with being the main driver of the UK’s economic fortunes appears to be slowing down. |
| “The looming EU referendum has had a profound effect on the sector, keeping prices relatively stagnant and delaying new orders. At the other end of the supply chain, the National Living Wage has compounded cost increases, resulting in the overall rate of input price inflation hitting a 27-month high. Together, these factors have squeezed margins while fewer than half of businesses expect to grow over the next twelve months. | “The looming EU referendum has had a profound effect on the sector, keeping prices relatively stagnant and delaying new orders. At the other end of the supply chain, the National Living Wage has compounded cost increases, resulting in the overall rate of input price inflation hitting a 27-month high. Together, these factors have squeezed margins while fewer than half of businesses expect to grow over the next twelve months. |
| Updated | Updated |
| at 9.49am BST | at 9.49am BST |