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/2017/feb/03/markets-us-jobs-report-trump-dodd-frank-review-business-live

The article has changed 17 times. There is an RSS feed of changes available.

Version 5 Version 6
Bank shares rally on reports Trump will dismantle Dodd-Frank – business live Bank shares rally on reports Trump will dismantle Dodd-Frank – business live
(35 minutes later)
11.51am GMT
11:51
In other banking news, Deutsche Bank is planning to cut 17% of its equities staff and 6% of its fixed-income staff globally, according to the Wall Street Journal.
It would be the latest stage in CEO John Cryan’s push to cut costs and return the company to profit (it reported a $2bn loss yesterday).
Deutsche Bank set to slash equities, fixed-income jobs https://t.co/z3y6xT6pMW
11.40am GMT
11:40
China and Germany reject Trump criticism over currencies
Earlier today, China’s government rejected claims from the Trump administration that it unfairly manipulates its currency.
Government spokesman Lu Kang told reporters in Beijing that China hopes to resolve concerns over global trade through talks, not through tit-for-tat devaluations.
Lu said:
China has never and won’t use a currency war to seek advantage in trade or to raise competitiveness in trade.
We have no intention of fighting a currency war. From a long-term perspective this is not beneficial to China.
(thanks to Reuters for the quotes).
Earlier this week, the president’s trade adviser caused a stir by claiming that Germany was getting an unfair advantage through the “grossly undervalued” euro.
German finance minister Wolfgang Schäuble has now hit back, pointing out that Berlin doesn’t actually control the euro....
*SCHAEUBLE: SOME IN U.S. NOT AWARE GERMAN GOVT NOT SETTING RATES
10.56am GMT10.56am GMT
10:5610:56
Mining shares are falling after China’s central bank raised short term interest rates overnight.Mining shares are falling after China’s central bank raised short term interest rates overnight.
That is holding back the FTSE 100, which is up 30 points thanks to the Trump-induced rally in bank shares.That is holding back the FTSE 100, which is up 30 points thanks to the Trump-induced rally in bank shares.
Michael Hewson of CMC Markets says:Michael Hewson of CMC Markets says:
The mining sector has slipped back this morning after a disappointing Chinese manufacturing survey as well as slight tightening of money market rates by Chinese authorities. It’s not immediately clear what prompted this action, though there is speculation about rising concerns about a property bubble, and this slight rise could well be an attempt to warn that tighter policy is on the way. Glencore, Antofagasta, BHP Billiton, Anglo-American PLC and Rio Tinto have all slipped lower at the open.The mining sector has slipped back this morning after a disappointing Chinese manufacturing survey as well as slight tightening of money market rates by Chinese authorities. It’s not immediately clear what prompted this action, though there is speculation about rising concerns about a property bubble, and this slight rise could well be an attempt to warn that tighter policy is on the way. Glencore, Antofagasta, BHP Billiton, Anglo-American PLC and Rio Tinto have all slipped lower at the open.
On the upside banking shares have gained a lift on speculation that US President Trump may well sign a new executive order to roll back some of the Dodd Frank regulatory bill, helping push Barclays and RBS higher.On the upside banking shares have gained a lift on speculation that US President Trump may well sign a new executive order to roll back some of the Dodd Frank regulatory bill, helping push Barclays and RBS higher.
10.37am GMT10.37am GMT
10:3710:37
Bank shares boosted by TrumpBank shares boosted by Trump
Shares in banks and insurance groups are rallying in London, following the reports that president Trump will take steps to dismantle regulations brought in to prevent another financial crisis.Shares in banks and insurance groups are rallying in London, following the reports that president Trump will take steps to dismantle regulations brought in to prevent another financial crisis.
The prospect of Trump blocking president Obama’s fiduciary rules also seem to be boosting demand for financial stocks. They were due to come into force in April, compelling financial advisors to recommend the best product to clients, not simply a suitable one.The prospect of Trump blocking president Obama’s fiduciary rules also seem to be boosting demand for financial stocks. They were due to come into force in April, compelling financial advisors to recommend the best product to clients, not simply a suitable one.
Barclays are leading the FTSE risers, up 2.5%, followed by Prudential, and Royal Bank of Scotland.Barclays are leading the FTSE risers, up 2.5%, followed by Prudential, and Royal Bank of Scotland.
Chris Beauchamp of City trading firm IG says:Chris Beauchamp of City trading firm IG says:
UK bank stocks are higher across the board this morning, after the magic words ‘Dodd-Frank’ and ‘repeal’ flashed across screens last night; leaving aside the political implications, the news could provide a tonic for the sector.UK bank stocks are higher across the board this morning, after the magic words ‘Dodd-Frank’ and ‘repeal’ flashed across screens last night; leaving aside the political implications, the news could provide a tonic for the sector.
Trump cannot simply demolish the Dodd-Frank rules on his own, but his executive orders still carry weight.Trump cannot simply demolish the Dodd-Frank rules on his own, but his executive orders still carry weight.
The FT has a good explanation:The FT has a good explanation:
Gary Cohn, the former Goldman Sachs executive who is now director of the White House’s National Economic Council, said Mr Trump would sign executive orders preparing the way to fulfil a campaign pledge to dismantle parts of Dodd-Frank.Gary Cohn, the former Goldman Sachs executive who is now director of the White House’s National Economic Council, said Mr Trump would sign executive orders preparing the way to fulfil a campaign pledge to dismantle parts of Dodd-Frank.
However, the president’s ability to pull apart the sweeping reforms on his own is limited. Only Congress can make major revisions to the act it passed in 2010, but Mr Trump can use the orders to signal his priorities and instruct regulators enforcing the law.However, the president’s ability to pull apart the sweeping reforms on his own is limited. Only Congress can make major revisions to the act it passed in 2010, but Mr Trump can use the orders to signal his priorities and instruct regulators enforcing the law.
“This is a table setter for a bunch of stuff that is coming,” said Mr Cohn, who stepped down as a top executive at Goldman Sachs to take the White House job.“This is a table setter for a bunch of stuff that is coming,” said Mr Cohn, who stepped down as a top executive at Goldman Sachs to take the White House job.
UpdatedUpdated
at 10.41am GMTat 10.41am GMT
9.57am GMT9.57am GMT
09:5709:57
Economists are concerned that Britain’s service sector slowed last month. Here’s some early reaction:Economists are concerned that Britain’s service sector slowed last month. Here’s some early reaction:
Dean Turner, UK Economist, UBS Wealth Management:Dean Turner, UK Economist, UBS Wealth Management:
“The most notable aspect of the Services PMI was the ongoing strength of the input prices index, which rose again and is now above 60 level for the fourth consecutive month. Higher input prices will, in time, shift into selling prices otherwise firms will see their profits shrink. In line with the Manufacturing and Construction PMI, this points to inflation continuing its recent surge in the months ahead.“The most notable aspect of the Services PMI was the ongoing strength of the input prices index, which rose again and is now above 60 level for the fourth consecutive month. Higher input prices will, in time, shift into selling prices otherwise firms will see their profits shrink. In line with the Manufacturing and Construction PMI, this points to inflation continuing its recent surge in the months ahead.
“Headline activity, although falling back slightly, suggests the economy is continuing to expand at a healthy pace, but one has to question its sustainability. Can the UK economy keep pace as inflation erodes the spending power of the consumer? We don’t share the Bank of England’s optimism that households will continue to whittle away their savings to support spending. Our conviction strengthened today with the softer outlook for employment highlighted in this survey.”“Headline activity, although falling back slightly, suggests the economy is continuing to expand at a healthy pace, but one has to question its sustainability. Can the UK economy keep pace as inflation erodes the spending power of the consumer? We don’t share the Bank of England’s optimism that households will continue to whittle away their savings to support spending. Our conviction strengthened today with the softer outlook for employment highlighted in this survey.”
Howard Archer of IHS Global Insight:Howard Archer of IHS Global Insight:
Services have been the key UK growth driver along with consumer spending and January survey evidence for both has been softer. While these are surveys rather than hard data and not too much should be read into one month’s figures, it nevertheless fuels our suspicion that the UK economy will find life increasing difficult during 2017 and that growth will gradually lose buoyancy like a slow puncture.Services have been the key UK growth driver along with consumer spending and January survey evidence for both has been softer. While these are surveys rather than hard data and not too much should be read into one month’s figures, it nevertheless fuels our suspicion that the UK economy will find life increasing difficult during 2017 and that growth will gradually lose buoyancy like a slow puncture.
Chris Sood-Nicholls, managing director and head of global services at Lloyds Bank Commercial Banking.Chris Sood-Nicholls, managing director and head of global services at Lloyds Bank Commercial Banking.
“There are some helpful economic ingredients that are keeping the PMI in positive territory. Healthy levels of employment and low interest rates mean consumers continue to spend. Business confidence has also been buoyed by a stronger than expected economic performance in 2016, and is likely to be further boosted by yesterday’s improved growth forecast from the Bank of England.“There are some helpful economic ingredients that are keeping the PMI in positive territory. Healthy levels of employment and low interest rates mean consumers continue to spend. Business confidence has also been buoyed by a stronger than expected economic performance in 2016, and is likely to be further boosted by yesterday’s improved growth forecast from the Bank of England.
“However, some uncertainty remains and we’re seeing a cautious approach towards making major investment decisions across the services sector.”“However, some uncertainty remains and we’re seeing a cautious approach towards making major investment decisions across the services sector.”
9.40am GMT9.40am GMT
09:4009:40
UK service sector growth slowsUK service sector growth slows
Newsflash: Britain’s service sector grew slower than expected last month, as firms were hit by rising prices.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.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.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.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.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/wOVzjoqiIvThe 3 UK #PMI surveys show companies' costs are rising at the joint-fastest rate since the global financial crisis pic.twitter.com/wOVzjoqiIv
UpdatedUpdated
at 9.43am GMTat 9.43am GMT
9.29am GMT9.29am GMT
09:2909:29
Bad news for UK energy customers... Npower has just announced it will raise the cost of its dual fuel package by almost 10%.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 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.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#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. 🐏🐏 #brrrOuch! 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 GMT9.26am GMT
09:2609:26
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.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 GMT9.12am GMT
09:1209:12
Good news! The Eurozone’s service sector has kept growing at the fastest pace in five and a half years.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’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/fRPujteWVDMarkit #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.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: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.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 GMT8.59am GMT
08:5908:59
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/YBhQhMMBYMThe 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 HouseMore here: An insurgent in the White House
8.54am GMT8.54am GMT
08:5408:54
BoE deputy governor: Trump has been good for BritainBoE 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 GMT8.43am GMT
08:4308:43
Trump to roll back Dodd-Frank: What the experts sayTrump 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/RPEsf4DzjEThis 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 #suegrabittrunneLawyers 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 GMT8.21am GMT
08:2108:21
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 othersHe’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 GMT8.03am GMT
08:0308:03
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 RuleMore 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/UcQYkyBv7WTrump 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 GMT7.35am GMT
07:3507:35
The agenda: US jobs report and service sector dataThe 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 todayAlso 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: UK9.30am GMT: UK
2.45pm GMT: US2.45pm 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 36Our 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....
UpdatedUpdated
at 7.38am GMTat 7.38am GMT