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You can find the current article at its original source at https://www.theguardian.com/business/live/2017/feb/03/markets-us-jobs-report-trump-dodd-frank-review-business-live
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| Markets await US jobs report as Trump 'plans Dodd-Frank review' – business live | Markets await US jobs report as Trump 'plans Dodd-Frank review' – business live |
| (35 minutes later) | |
| 9.40am GMT | |
| 09:40 | |
| UK service sector growth slows | |
| Newsflash: Britain’s service sector grew slower than expected last month, as firms were hit by rising prices. | |
| The Services PMI, which tracks activity in the dominant part of the UK economy, dropped to 54.5 for January from 56.2 in December, a bigger slowdown than expected. | |
| UK service sector growth slows more than expected in January. PMI posts biggest fall since July, second biggest in a year. | |
| Firms said that new business and employment also increased at slower rates, and their backlog of outstanding work fell a little. | |
| And there are also signs that raw material prices are ballooning ahead, due to the weaker pound. | |
| The 3 UK #PMI surveys show companies' costs are rising at the joint-fastest rate since the global financial crisis pic.twitter.com/wOVzjoqiIv | |
| Updated | |
| at 9.43am GMT | |
| 9.29am GMT | |
| 09:29 | |
| Bad news for UK energy customers... Npower has just announced it will raise the cost of its dual fuel package by almost 10%. | |
| The move will hurt around half of its customers, putting £100 on the average annual bill. And where one energy firm leads, the others tend to follow... | |
| The first of the Big 6? NPower is raising a typical dual fuel annual energy bill by 9.8% or £109. | |
| #Npower blames rising wholesale prices & cost of delivering g'ment policies incl smart meters, renewables, cap market.@beisgovuk @ofgem | |
| Ouch! Npower hiking dual fuel bills by 9.8% or £109 a year on ave. And where one Big Six provider goes, they all follow. 🐏🐏 #brrr | |
| 9.26am GMT | |
| 09:26 | |
| Investors often flock to gold in time of nervousness. And Donald Trump’s election win has helped to push demand for bullion up to its highest level since the eurozone debt crisis was raging. | |
| 9.12am GMT | |
| 09:12 | |
| Good news! The Eurozone’s service sector has kept growing at the fastest pace in five and a half years. | |
| Markit’s service sector PMI, which tracks activity across the sector, has just come in at 54.4 for January, matching December’s reading - the highest since mid-2012. That shows robust growth, with job creation hitting its fastest rate since 2008. | |
| Markit #Eurozone #PMI Composite Output Index unchanged at 54.4 in Jan'17. Job creation fastest since Feb'08. https://t.co/8l5aV5qnPW pic.twitter.com/fRPujteWVD | |
| But...firms also warned that input costs are rising at the fastest rate in over five- and-a-half years That’s due to higher global commodity prices, increased import costs due to the weak euro and supplier price hikes. | |
| Overall, the report suggests eurozone growth is gathering pace, according to Julien Lafargue, European Equities Strategist at JP Morgan. He says: | |
| Although Germany has decelerated somewhat in the recent months, today’s PMIs are clearly pointing to accelerating GDP growth in the Eurozone in 2017. In addition, the rate of job creation - the fastest since February 2008 – indicates that this momentum could be sustained in the coming months. Going forward, it will be important to keep an eye on cost pressures which continue to intensify. The companies’ ability to pass these higher costs onto consumers will be critical to support margins and the earnings recovery we anticipate. | |
| 8.59am GMT | 8.59am GMT |
| 08:59 | 08:59 |
| President Trump makes the front page of this week’s Economist: | President Trump makes the front page of this week’s Economist: |
| The Economist front page pic.twitter.com/YBhQhMMBYM | The Economist front page pic.twitter.com/YBhQhMMBYM |
| And their leader column says that America’s allies are right to be worried by the president’s early moves: | And their leader column says that America’s allies are right to be worried by the president’s early moves: |
| Here’s a flavour: | Here’s a flavour: |
| WASHINGTON is in the grip of a revolution. The bleak cadence of last month’s inauguration was still in the air when Donald Trump lobbed the first Molotov cocktail of policies and executive orders against the capital’s brilliant-white porticos. He has not stopped. Quitting the Trans-Pacific Partnership, demanding a renegotiation of NAFTA and a wall with Mexico, overhauling immigration, warming to Brexit-bound Britain and Russia, cooling to the European Union, defending torture, attacking the press: onward he and his people charged, leaving the wreckage of received opinion smouldering in their wake.... | WASHINGTON is in the grip of a revolution. The bleak cadence of last month’s inauguration was still in the air when Donald Trump lobbed the first Molotov cocktail of policies and executive orders against the capital’s brilliant-white porticos. He has not stopped. Quitting the Trans-Pacific Partnership, demanding a renegotiation of NAFTA and a wall with Mexico, overhauling immigration, warming to Brexit-bound Britain and Russia, cooling to the European Union, defending torture, attacking the press: onward he and his people charged, leaving the wreckage of received opinion smouldering in their wake.... |
| More here: An insurgent in the White House | More here: An insurgent in the White House |
| 8.54am GMT | 8.54am GMT |
| 08:54 | 08:54 |
| BoE deputy governor: Trump has been good for Britain | BoE deputy governor: Trump has been good for Britain |
| Donald Trump’s shock election victory has been “marginally” good for the UK economy, according to one of the Bank of England’s top officials. | Donald Trump’s shock election victory has been “marginally” good for the UK economy, according to one of the Bank of England’s top officials. |
| Deputy governor Ben Broadbent argued that Britain has benefitted from the jump in financial confidence following Trump’s win last November. | Deputy governor Ben Broadbent argued that Britain has benefitted from the jump in financial confidence following Trump’s win last November. |
| Speaking to BBC Breakfast TV, Broadbent said: | Speaking to BBC Breakfast TV, Broadbent said: |
| “You’ve seen business confidence rise particularly in the United States. You’ve seen financial markets get more optimistic and I think that has had some impact on us. | “You’ve seen business confidence rise particularly in the United States. You’ve seen financial markets get more optimistic and I think that has had some impact on us. |
| “So far, at the margin, yes, it’s been positive for global sentiment, and for that reason, and to that extent, for us as well.” | “So far, at the margin, yes, it’s been positive for global sentiment, and for that reason, and to that extent, for us as well.” |
| Broadbent also cautioned, though, that we don’t know exactly what Trump will do: | Broadbent also cautioned, though, that we don’t know exactly what Trump will do: |
| “And I should say overall that... there’s a lot we have yet to see about the detailed plans, including those for fiscal policy, for government spending and taxes and so forth, so we’ll have to wait and see.” | “And I should say overall that... there’s a lot we have yet to see about the detailed plans, including those for fiscal policy, for government spending and taxes and so forth, so we’ll have to wait and see.” |
| Yesterday the Bank of England hiked its growth forecasts for the UK economy this year, prompting criticism that it was too gloomy after the EU referendum result. | Yesterday the Bank of England hiked its growth forecasts for the UK economy this year, prompting criticism that it was too gloomy after the EU referendum result. |
| 8.43am GMT | 8.43am GMT |
| 08:43 | 08:43 |
| Trump to roll back Dodd-Frank: What the experts say | Trump to roll back Dodd-Frank: What the experts say |
| Laurie Macfarlane of the New Economics Foundation is concerned that removing financial regulations could lead to trouble: | Laurie Macfarlane of the New Economics Foundation is concerned that removing financial regulations could lead to trouble: |
| This all sounds familiar 🤔https://t.co/xWp4GMl7bx pic.twitter.com/RPEsf4DzjE | This all sounds familiar 🤔https://t.co/xWp4GMl7bx pic.twitter.com/RPEsf4DzjE |
| The FT’s Jeremy Grant also has concerns: | The FT’s Jeremy Grant also has concerns: |
| There are many who wld welcome roll back of #doddfrank but will pendulum swing too far the opposite way? | There are many who wld welcome roll back of #doddfrank but will pendulum swing too far the opposite way? |
| Lawyers likely loving Trump admin review/rollback of #doddfrank - yet further years of work guaranteed #suegrabittrunne | Lawyers likely loving Trump admin review/rollback of #doddfrank - yet further years of work guaranteed #suegrabittrunne |
| But the move could drive stock markets higher, argues Neil Wilson of ETX Capital, especially if today’s US jobs report is a zinger. | But the move could drive stock markets higher, argues Neil Wilson of ETX Capital, especially if today’s US jobs report is a zinger. |
| Big day for US markets with #NFP numbers and @realDonaldTrump to roll back Dodd-Frank - US financials could jump. | Big day for US markets with #NFP numbers and @realDonaldTrump to roll back Dodd-Frank - US financials could jump. |
| 8.21am GMT | 8.21am GMT |
| 08:21 | 08:21 |
| President Trump will meet with the bosses of some of America’s largest financial firms today, before signing executive orders to review Dodd-Frank and stall the Obama fiduciary rule. | President Trump will meet with the bosses of some of America’s largest financial firms today, before signing executive orders to review Dodd-Frank and stall the Obama fiduciary rule. |
| He’s expected to see Blackstone CEO Steve Schwarzman, Blackrock boss Laurence Fink and JP Morgan’s Jamie Dimon, among others | He’s expected to see Blackstone CEO Steve Schwarzman, Blackrock boss Laurence Fink and JP Morgan’s Jamie Dimon, among others |
| That may not dispel concerns that the new administration is batting for the banking sector, rather than the public. | That may not dispel concerns that the new administration is batting for the banking sector, rather than the public. |
| For example, Obama’s fiduciary rules are means to protect millions of retired Americans from being missold investments by brokers, to get bumper profits. | For example, Obama’s fiduciary rules are means to protect millions of retired Americans from being missold investments by brokers, to get bumper profits. |
| However, the White House line is that removing regulations is good for investors, which is why they want the rule rescinded. | However, the White House line is that removing regulations is good for investors, which is why they want the rule rescinded. |
| As Bloomberg puts it: | As Bloomberg puts it: |
| The two executive actions are designed to lay out the Trump administration’s approach to financial markets, with an emphasis on removing regulatory burdens and opening up investor options, said the White House official, who briefed reporters on condition of anonymity. | The two executive actions are designed to lay out the Trump administration’s approach to financial markets, with an emphasis on removing regulatory burdens and opening up investor options, said the White House official, who briefed reporters on condition of anonymity. |
| 8.03am GMT | 8.03am GMT |
| 08:03 | 08:03 |
| Trump to 'Undo Dodd-Frank Law and Obama's Fiduciary Rule' | Trump to 'Undo Dodd-Frank Law and Obama's Fiduciary Rule' |
| Some breaking news from America.... US president Donald Trump is expected to start unpicking some of the rules created after the 2008 crisis to to rein in the financial sector. | Some breaking news from America.... US president Donald Trump is expected to start unpicking some of the rules created after the 2008 crisis to to rein in the financial sector. |
| US media are reporting that Trump will order a review of the Dodd-Frank rules, which are designed to stop banks being too reckless. | US media are reporting that Trump will order a review of the Dodd-Frank rules, which are designed to stop banks being too reckless. |
| He’s also apparently planning to sign another executive action that could halt President Obama’s Fiduciary Rules. This regulation forces retirement advisers to work in the best interests of their clients; Trump will ask the US labor secretary to consider rescinding it, reports say. | He’s also apparently planning to sign another executive action that could halt President Obama’s Fiduciary Rules. This regulation forces retirement advisers to work in the best interests of their clients; Trump will ask the US labor secretary to consider rescinding it, reports say. |
| The Dodd-Frank rules were a major attempt to avoid a repeat of the crisis that brought down Lehman Brothers. They force banks to be more transparent, provide extra consumer protection, and are meant to prevent the kind of risks that led to the meltdown of the sector nine years ago. | The Dodd-Frank rules were a major attempt to avoid a repeat of the crisis that brought down Lehman Brothers. They force banks to be more transparent, provide extra consumer protection, and are meant to prevent the kind of risks that led to the meltdown of the sector nine years ago. |
| But they’re also unpopular with banks, who argue that they restrict business. | But they’re also unpopular with banks, who argue that they restrict business. |
| Gary Cohn, the director of the White House National Economic Council, has told the Wall Street Journal that unravelling these safeguards will be good for consumers (as well as the banks, of course!). | Gary Cohn, the director of the White House National Economic Council, has told the Wall Street Journal that unravelling these safeguards will be good for consumers (as well as the banks, of course!). |
| Cohn (a former president of Goldman Sachs) argued: | Cohn (a former president of Goldman Sachs) argued: |
| “Americans are going to have better choices and Americans are going to have better products because we’re not going to burden the banks with literally hundreds of billions of dollars of regulatory costs every year. | “Americans are going to have better choices and Americans are going to have better products because we’re not going to burden the banks with literally hundreds of billions of dollars of regulatory costs every year. |
| “The banks are going to be able to price product more efficiently and more effectively to consumers.” | “The banks are going to be able to price product more efficiently and more effectively to consumers.” |
| More here: Donald Trump Plans to Undo Dodd-Frank Law, Fiduciary Rule | More here: Donald Trump Plans to Undo Dodd-Frank Law, Fiduciary Rule |
| Trump plans to dismantle much of the regulatory system put in place after the financial crisis https://t.co/UcQYkyBv7W | Trump plans to dismantle much of the regulatory system put in place after the financial crisis https://t.co/UcQYkyBv7W |
| Busy day ahead with exec orders said to be coming to roll back Dodd-Frank, cancel fiduciary rule, water down gun owner background checks... | Busy day ahead with exec orders said to be coming to roll back Dodd-Frank, cancel fiduciary rule, water down gun owner background checks... |
| 7.35am GMT | 7.35am GMT |
| 07:35 | 07:35 |
| The agenda: US jobs report and service sector data | The agenda: US jobs report and service sector data |
| 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. |
| Donald Trump once promised to be “the greatest jobs president God ever created”. And today we’ll find out whether his rise to the White House has had any impact on the US labour market yet. | Donald Trump once promised to be “the greatest jobs president God ever created”. And today we’ll find out whether his rise to the White House has had any impact on the US labour market yet. |
| The latest US Non-Farm Payroll (NFP), due at 1.30pm GMT (8.30am East Coast), will show how many new jobs were created across America last month, whether wages rose, and whether more people were lured back to the jobs market. | The latest US Non-Farm Payroll (NFP), due at 1.30pm GMT (8.30am East Coast), will show how many new jobs were created across America last month, whether wages rose, and whether more people were lured back to the jobs market. |
| Economists expect a fairly solid report. The payroll is expected to rise by around 180,000 jobs leaving the unemployment rate at a healthy-looking 4.7%. | Economists expect a fairly solid report. The payroll is expected to rise by around 180,000 jobs leaving the unemployment rate at a healthy-looking 4.7%. |
| Michael Hewson of CMC Markets suggests we could get an even stronger report: | Michael Hewson of CMC Markets suggests we could get an even stronger report: |
| This would suggest that the 180k estimate being predicted is probably too low, with a figure in excess of 200k not being beyond the realms of possibility. Such a high number given an unemployment rate of 4.7%, would suggest that there is probably still a fair degree of slack in the jobs market. | This would suggest that the 180k estimate being predicted is probably too low, with a figure in excess of 200k not being beyond the realms of possibility. Such a high number given an unemployment rate of 4.7%, would suggest that there is probably still a fair degree of slack in the jobs market. |
| Wages are also likely to be closely watched with a rise of 0.3% expected, with an annualised rise of 2.8%, down slightly from December’s 2.9%. | Wages are also likely to be closely watched with a rise of 0.3% expected, with an annualised rise of 2.8%, down slightly from December’s 2.9%. |
| The report could easily move the markets, as the strength of the US jobs market will determine how quickly the Federal Reserve can raise interest rates this year. | The report could easily move the markets, as the strength of the US jobs market will determine how quickly the Federal Reserve can raise interest rates this year. |
| #US non-farm payroll out tonight. #Jobs expected up by 175k for Dec. A large miss could lead to weakness in #USD, #stocks. #MAGA #Trump | #US non-farm payroll out tonight. #Jobs expected up by 175k for Dec. A large miss could lead to weakness in #USD, #stocks. #MAGA #Trump |
| Also coming up today | Also coming up today |
| Data firm Markit is publishing its latest healthcheck on the world’s service sector companies today. | Data firm Markit is publishing its latest healthcheck on the world’s service sector companies today. |
| These Purchasing Managers Index (PMIs) reports are expected to show decent growth last month, suggesting the world economy began 2017 in good spirits despite the political uncertainty. | These Purchasing Managers Index (PMIs) reports are expected to show decent growth last month, suggesting the world economy began 2017 in good spirits despite the political uncertainty. |
| Here’s the timings: | Here’s the timings: |
| 9am GMT: Eurozone (with a breakdown for each country) | 9am GMT: Eurozone (with a breakdown for each country) |
| 9.30am GMT: UK | 9.30am GMT: UK |
| 2.45pm GMT: US | 2.45pm GMT: US |
| The financial markets are expected to be calm, as traders wait for the NFP numbers: | The financial markets are expected to be calm, as traders wait for the NFP numbers: |
| Our European opening calls:$FTSE 7143 up 3$DAX 11638 up 10$CAC 4797 up 3$IBEX 9412 up 6$MIB 18925 up 36 | Our European opening calls:$FTSE 7143 up 3$DAX 11638 up 10$CAC 4797 up 3$IBEX 9412 up 6$MIB 18925 up 36 |
| We’ll be tracking all the main events through the day.... | We’ll be tracking all the main events through the day.... |
| Updated | Updated |
| at 7.38am GMT | at 7.38am GMT |