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You can find the current article at its original source at https://www.theguardian.com/business/live/2016/may/27/markets-us-growth-figures-janet-yellen-putin-greece-live

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US GDP growth revised higher, ahead of Yellen comments– business live US GDP growth revised higher, ahead of Yellen comments– business live
(35 minutes later)
6.43pm BST
18:43
Yellen: need to be cautious on rate rises
And now the key question. She is told that a New York money brokers are delaying their weekend trip to the Hamptons to see if she says anything market moving. So here is her chance to move markets (laughter) so can she say anything about the path of monetary policy?
Yellen: The economy is continuing to improve, we saw weak growth in first quarter of year. It looks to be picking up from data we monitor... We will monitor incoming data and risks.
It’s appropriate for the Fed to gradually and cautiously increase our overnight interest rate over time. In coming months such a move would be appropriate.
On negative interest rates, we considered it briefly. There could be a number of negative repercussions so we didn’t pursue it and it’s not something we are thinking about now. But other countries are using it. So we have to be cautious.
If we were to raise interest rates too quickly and we trigger a downturn we have limited scope to respond. We should be cautious about raising rates too steeply.
6.37pm BST
18:37
On the economy, she says it has been a slow recovery but we have made a great deal of progress. We have created 14m new jobs since lowest point for employment.
We’ve made a lot of progress. That said, further gains are possible, we’ve not seen much improvement in wage growth.
But the growth of output has been remarkably slow. We have a lot of jobs being created in the face of not much output, so that means productivity growth is quite slow.
With respect to inflation, it has been running below the Fed’s 2% objective for a number of years.
There are a number of reasons, the plunge in oil price, a marked depreciation of the dollar pushing down import prices.
These seem to have stablised, and if we continue to see stability, inflationwill move over next couple of years to near target.
6.28pm BST
18:28
Yellen says they are trying to be better at spotting financial instabilities, and they have a better process for doing that.
Updated
at 6.29pm BST
6.27pm BST
18:27
Yellen is praising her predecessor Ben Bernanke for being brave during the financial crisis, but she admits they did not see the crisis coming.
@Fedreserve212 Janet Yellen "America owes Ben Bernanke an enormous debt of gratitude" @WBUR @RadInstitute pic.twitter.com/ib7bXzALm9
6.25pm BST
18:25
Bloomberg has a better feed here.
6.20pm BST
18:20
Janet Yellen is now on stage at the Radcliffe Institute where the chair of the Federal Reserve is being given the Radcliffe Medal, “presented annually to an individual who has had a transformative impact on society.”
Of course the big interest is what - if anything -she might say about a June rate hike, given the suggestions from a number of Fed members in recent days that such a move may be on the cards.
At the moment she is being asked about her background and general comments about economics.
A link to the discussion (albeit a bit sporadic) is here.
5.51pm BST5.51pm BST
17:5117:51
Helena SmithHelena Smith
The Russian president Vladimir Putin was quick to stamp the tone on his two-day visit as he begun talks with the Greek prime minister Alexis Tsipras, reports Helena Smith:The Russian president Vladimir Putin was quick to stamp the tone on his two-day visit as he begun talks with the Greek prime minister Alexis Tsipras, reports Helena Smith:
“In Moscow and St Petersburg we have discussed our prospects of economic collaboration in detail. Of course there are many problems and times are difficult but for sure there are good prospects,” said Putin. “We have to transform the good relations of [our] two peoples into tangible economic results.”“In Moscow and St Petersburg we have discussed our prospects of economic collaboration in detail. Of course there are many problems and times are difficult but for sure there are good prospects,” said Putin. “We have to transform the good relations of [our] two peoples into tangible economic results.”
Greece and Russia, fellow Orthodox states, with a common heritage that goes back to Byzantium have hailed 2016 to be a “year of Greek-Russian friendship.”Greece and Russia, fellow Orthodox states, with a common heritage that goes back to Byzantium have hailed 2016 to be a “year of Greek-Russian friendship.”
Putin, who is travelling with nine ministers, is expected to sign an array of agreements with Athens’ leftist-led government. Energy and tourism are expected to be high on the agenda. Tourist-dependent Greece is hungry for Russian holiday makers and industry figures have complained bitterly about the slow pace with which visas have been made available to them by the Greek state machinery - not least diplomatic services in Russia itself.Putin, who is travelling with nine ministers, is expected to sign an array of agreements with Athens’ leftist-led government. Energy and tourism are expected to be high on the agenda. Tourist-dependent Greece is hungry for Russian holiday makers and industry figures have complained bitterly about the slow pace with which visas have been made available to them by the Greek state machinery - not least diplomatic services in Russia itself.
Athens’ governing left wing Syriza party has spoken stridently about the need to create a “multi-faceted” foreign policy - one which will see the country furthering relations with China, Russia, Iran and Latin America.Athens’ governing left wing Syriza party has spoken stridently about the need to create a “multi-faceted” foreign policy - one which will see the country furthering relations with China, Russia, Iran and Latin America.
“We are trying to open up what used to be a very narrow western looking diplomatic attidude,” the country’s culture minister Aristides Baltas, a leading Syriza ideologue, told me.“We are trying to open up what used to be a very narrow western looking diplomatic attidude,” the country’s culture minister Aristides Baltas, a leading Syriza ideologue, told me.
“We want to remain in Europe but not in the sense of being the obedient servants of the west,” he said, adding that Greece, as an EU member state, had been obliged to follow the embargo against Russia even if didn’t agree with it.“We want to remain in Europe but not in the sense of being the obedient servants of the west,” he said, adding that Greece, as an EU member state, had been obliged to follow the embargo against Russia even if didn’t agree with it.
5.00pm BST5.00pm BST
17:0017:00
Back in Greece and words of welcome for president Putin from the country’s prime minister:Back in Greece and words of welcome for president Putin from the country’s prime minister:
We warmly welcome President Putin to Greece (@KremlinRussia_E ). 1/2We warmly welcome President Putin to Greece (@KremlinRussia_E ). 1/2
His presence in Athens marks the strengthening of our relations during the past year. 2/2His presence in Athens marks the strengthening of our relations during the past year. 2/2
As for Putin himself:As for Putin himself:
Putin says #Greece visit offers chance to re-examine EU-Russia problems@AP story https://t.co/mGw9JdZxeq#Russia pic.twitter.com/jb9ZwKxnHSPutin says #Greece visit offers chance to re-examine EU-Russia problems@AP story https://t.co/mGw9JdZxeq#Russia pic.twitter.com/jb9ZwKxnHS
4.52pm BST4.52pm BST
16:5216:52
European markets quiet ahead of weekendEuropean markets quiet ahead of weekend
There’s no disguising the fact it was a pretty quiet day all round on European stock markets as the week drifted to a close. With investors unwilling to commit themselves ahead of comments from US Federal Reserve chair Janet Yellen later - albeit there is little expectation of any real hints on interest rates - there was little to disturb the horses. Even the upward revision to US first quarter GDP passed without much impact. So the final scores showed:There’s no disguising the fact it was a pretty quiet day all round on European stock markets as the week drifted to a close. With investors unwilling to commit themselves ahead of comments from US Federal Reserve chair Janet Yellen later - albeit there is little expectation of any real hints on interest rates - there was little to disturb the horses. Even the upward revision to US first quarter GDP passed without much impact. So the final scores showed:
On Wall Street, the Dow Jones Industrial Average is currently up 34 points or 0.19%.On Wall Street, the Dow Jones Industrial Average is currently up 34 points or 0.19%.
3.51pm BST3.51pm BST
15:5115:51
Competition watchdog to look at Home Retail dealCompetition watchdog to look at Home Retail deal
In the UK, the Competition and Markets Authority said it was investigating the £1.4bn takeover of Argos owner Home Retail by supermarket group Sainsbury.In the UK, the Competition and Markets Authority said it was investigating the £1.4bn takeover of Argos owner Home Retail by supermarket group Sainsbury.
It said it would be looking at whether the deal would hurt competition in the UK, and it would announce its decision by 25 July.It said it would be looking at whether the deal would hurt competition in the UK, and it would announce its decision by 25 July.
3.49pm BST3.49pm BST
15:4915:49
Back with the US GDP figures, and we could be looking at a weak figure for the second quarter according to Markit:Back with the US GDP figures, and we could be looking at a weak figure for the second quarter according to Markit:
US Q1 GDP revised up from 0.5% to 0.8%, in line w/ PMI. Latter predicts similar weak Q2 rise https://t.co/FmuJFEYWNS pic.twitter.com/oLMW7MnnO7US Q1 GDP revised up from 0.5% to 0.8%, in line w/ PMI. Latter predicts similar weak Q2 rise https://t.co/FmuJFEYWNS pic.twitter.com/oLMW7MnnO7
3.24pm BST3.24pm BST
15:2415:24
#Greece's cash-strapped, overstretched security forces have deployed 2,500 police/snipers around #Athens in draconian security op 4 #Putin#Greece's cash-strapped, overstretched security forces have deployed 2,500 police/snipers around #Athens in draconian security op 4 #Putin
3.14pm BST3.14pm BST
15:1415:14
And here’s Russian president Putin arriving in Greece:And here’s Russian president Putin arriving in Greece:
#Russia president Putin arrives in Athens on official visit pic.twitter.com/pCH5tQmz7C /via @d_daso #Greece#Russia president Putin arrives in Athens on official visit pic.twitter.com/pCH5tQmz7C /via @d_daso #Greece
Putin arrives amid heavy security #Greece #Russia #Putin pic.twitter.com/bPOhhM3YQ5Putin arrives amid heavy security #Greece #Russia #Putin pic.twitter.com/bPOhhM3YQ5
3.09pm BST3.09pm BST
15:0915:09
US consumer confidence lower than expectedUS consumer confidence lower than expected
American consumers are more confident in May than they were in April, but the latest survey has still come in lower than analysts had been forecasting.American consumers are more confident in May than they were in April, but the latest survey has still come in lower than analysts had been forecasting.
The University of Michigan’s final index of consumer sentiment for May was up from 89 in April to 94.7. But this was lower that the preliminary estimate of 95.8 and below the consensus of 95.4.The University of Michigan’s final index of consumer sentiment for May was up from 89 in April to 94.7. But this was lower that the preliminary estimate of 95.8 and below the consensus of 95.4.
2.58pm BST2.58pm BST
14:5814:58
Meanwhile in Greece:Meanwhile in Greece:
#Putin has touched down in #Athens. State-run TV showing his plane drawing up at red carpet NOW!#Putin has touched down in #Athens. State-run TV showing his plane drawing up at red carpet NOW!
(See our preview earlier)(See our preview earlier)
UpdatedUpdated
at 2.59pm BSTat 2.59pm BST
2.46pm BST
14:46
Wall Street edges higher
Investors are keeping their powder dry ahead of the remarks later from US Federal Reserve chair Janet Yellen, with the latest GDP revisions doing little to lift the mood.
The Dow Jones Industrial Average is up 28 points or 0.16% while the S&P 500 opened up 0.12% and Nasdaq just 0.09%.
2.14pm BST
14:14
And here’s how the US slowdown looks:
First-quarter US economic growth revised higher to 0.8 per cent rate, from 0.5 per cent. https://t.co/Ht9PrGJRJ8 pic.twitter.com/f0Bk3cTnBr
2.02pm BST
14:02
A US interest rate rise in the next two months is unnecessary, given the uncertainty over the country’s economy evidenced by the revised first quarter GDP figures, suggest the CEBR. It said:
We still expect the remaining three quarters of 2016 to make up for the first quarter slowdown. Despite the seasonal adjustment process, first quarter GDP data are often unreliable and overly gloomy due to seasonal factors such as winter weather. Our view is also supported by consistently strong job creation figures and a rebound in consumer confidence. Consumer sentiment saw an uptick in May due to a strong labour market showing and expectations that both inflation and interest rates would remain low.
However, the chances that interest rates will remain lower for longer are slimmer now than they were earlier this month...The minutes from the [latest Federal Open Markets Committee] meeting, and statements made by Federal Reserve officials since, indicate that some FOMC members believe that the US labour market is at full employment and that this may start putting upward pressure on inflation.
Another, less official, consideration may be the US presidential election taking place in November. In the past the Fed has been reluctant to indirectly weigh into political debates and raising interest rates too close to the election would be interpreted as a signal regarding the institution’s opinion of economic prospects. Therefore, while the FOMC’s interest rate decision in June will be data-dependant, it may also be impacted by the realisation that if interest rates do not rise in June or July, they are very likely to remain at 0.5% until at least December.
Cebr believes that raising rates in June or July is premature and unnecessary. The inflationary environment remains benign and the US economy still faces numerous risks on the global front. Lacklustre growth in export markets is already creating problems for the country’s exporters. Further strengthening the US dollar via monetary policy tightening would make US-made products relatively more expensive and therefore less desirable for foreign buyers.
1.48pm BST
13:48
David Morrison, senior market strategist at Spreadco said:
The question is how this affects the odds on a Fed rate hike this summer? As far as the markets are concerned, not very much so far although it certainly keeps the prospect alive.
However, it’s unlikely investors will want to take on additional exposure ahead of Janet Yellen’s public appearance this evening and the long holiday weekend. Whether the Fed Chair says anything related to monetary policy is another matter altogether. What should prove far more significant is next week’s raft of manufacturing PMIs along with the latest US Non-Farm Payroll release.
Dennis de Jong, managing director at UFX.com, said:
Yesterday’s durable goods orders and home sales data would have put a smile on the face of Fed Chair Janet Yellen, but today’s underwhelming first quarter GDP report is unlikely to be as well-received.
It’s not the most positive start to the financial year for the US and observers will now be keen to see if momentum can pick up in the next quarter.
There’s plenty of talk about an interest rate rise, but Yellen and Co. are likely to wait for the data to support it before pushing the button.
1.47pm BST
13:47
Despite the revision, the figures show a slowdown in GDP compared to the fourth quarter which saw a 1.4% increase.
The overall figure was lifted by spending on home building and an increase in inventory investment by businesses.
1.34pm BST
13:34
US GDP revised higher
The US economy grew more than originally thought in the first quarter, but less than some economists had been expecting.
As various members of the Federal Reserve suggested that a rate hike in June was not off the table, official figures showed an annualised 0.8% rise in GDP in the three months to March. This was higher than the first estimate of 0.5% but below estimates of a rise of 0.9%.
Updated
at 5.02pm BST
1.01pm BST
13:01
12.51pm BST
12:51
This really has been dullest morning in the City for a while.
Our old friend, the FTSE 100, is refusing to show any enthusiasm and is currently down a meagre 4 points.
Investors are hoping that the US growth figures, in around 40 minutes, might cause a stir. Remember, economists expect the annualised growth rate in the last quarter to be revised up to 0.9%, from 0.4% before.
Conner Campbell of SpreadEx (who gets a bonus mark for keeping awake, frankly), says:
Friday continued at an alarmingly dull pace this morning, though there is the chance for a bit of excitement from the US open later this afternoon.
The FTSE plodded along flat on the day, with the DAX and CAC effectively following the UK index’s lead. Both regions had nothing in the way of data to offer this Friday, and with Brent Crude threatening to fall below $49 per barrel were lacking the recent commodity-buzz that has helped push the indices to 3 week highs.
12.16pm BST
12:16
Putin's Greek visit could sow discord in EU
Greece is prepares to welcome Russian president Vladimir Putin, amid tight security and fears that the visit will cause ructions within the EU.
Putin’s visit is billed as a way of deepening economic and diplomatic ties between the two countries. He’ll be discussing trade, energy and transport issues, and meeting with President Prokopis Pavlopoulos and Prime Minister Alexis Tsipras.
2.500 police officers in #Athens - Tight security measures ahead of the visit of #Russian President Vladimir #Putin https://t.co/LIfjqM0Hl4
Putin has already signalled that Moscow wants closer links with Athens, as the Greek newspaper Kathimerini explains:
Moscow is primarily interested in buying state-run railway operator Trainose and a stake in Thessaloniki port, the country’s second largest, as Putin reiterated in a commentary for Kathimerini published on Thursday ahead of the visit.
He also said that Russia – Greece’s main gas supplier – is still very much interested in reviving the South Stream gas pipeline project.
“The issue of our energy resources being carried through southern corridors to the countries of the European Union is still on the agenda,” Putin said
But the sight of Russia’s president landing in Athens at a time when the EU is imposing sanctions is causing some concern.
Daragh McDowell, a principal analyst for Europe and Central Asia at Verisk Maplecroft, told CNBC that Putin hopes to take advantage of anger within Greece about its years of austerity.
“The extreme political and economic disruption Greece has experienced, in combination with existing cultural ties, make it a particularly attractive target for these kind of initiatives.
“Fundamentally these overtures are about sowing division and discord among the EU states in order to undermine the sanctions regime and, over the longer term, the EU as a whole.”
Vladimir #Putin expected in Athens at 3.30pm local, to sign bilateral agreements. Visits Mt Athos Saturday. More @Monocle24 soon #Greece
Putin due in Athens today, with foreign minister & businessmen. Off to Mt Athos on Saturda https://t.co/ekh8vmTfcd #Greece #Russia
11.51am BST
11:51
Resolution’s Duncan Weldon has now blogged about the IMF paper on the problems with neoliberal economics.
He explains that it’s part of a wider change of thinking at the Fund, away from the “Washington consensus” that dominated thinking before the wheels came off the global economy in 2008.
But the IMF is also pointing out the flaws in the policies implemented over the last eight years.
Duncan argues that the criticism against austerity is understandable :
Excessive fiscal tightening in countries that still have fiscal space simply hasn’t worked as promised. There are plenty of countries with ample fiscal space that haven’t used it and the world economy has suffered as a result.
And the Fund’s comments on capital controls reflect its concerns that ultra-loose monetary policy in the US and Europe has a severe impact on emerging markets. If The Fed won’t care about spillover effects, developing countries must take more precautions.
In this respect the Fund; move towards backing capital controls is a consequences of the failure of Western fiscal policy makers to do enough to support growth and the unwillingness of Western monetary policy makers to take into account the global consequences of their actions.
A 3 minute read on "that" IMF article & why it's basically driven by advanced economy policymakers messing up: https://t.co/FuzbQk8ZNO