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You can find the current article at its original source at https://www.theguardian.com/business/live/2017/mar/22/markets-tumble-as-impatience-mounts-over-trumps-policies-business-live
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| Version 0 | Version 1 |
|---|---|
| Markets tumble as impatience mounts over Trump's policies - business live | Markets tumble as impatience mounts over Trump's policies - business live |
| (35 minutes later) | |
| 8.24am GMT | |
| 08:24 | |
| Pound steadies above $1.24 | |
| The pound is just about holding on to the gains it made against the dollar on Tuesday following the sharp rise in UK inflation to 2.3% in February from 1.8%. | |
| In theory, the acceleration of inflation brings forward the prospect of a UK interest rate rise and adds weight to the decision by Kristin Forbes - member of the Bank of England’s Monetary Policy Committee - to vote for a hike at the March meeting (she was outvoted). | |
| The pound is also being supported by dollar weakness, and is currently flat at $1.2477. It is also up 0.1% against the euro at €1.1550. | |
| 8.08am GMT | 8.08am GMT |
| 08:08 | 08:08 |
| Europe follows Wall Street lower | Europe follows Wall Street lower |
| European markets have opened lower, as fears ripple across the Atlantic over Trump’s ability to push through growth-boosting policies: | European markets have opened lower, as fears ripple across the Atlantic over Trump’s ability to push through growth-boosting policies: |
| FTSE 100: -0.6% | FTSE 100: -0.6% |
| Germany’s DAX: -0.8% | Germany’s DAX: -0.8% |
| France’s CAC: -0.7% | France’s CAC: -0.7% |
| Italy’s FTSE MIB: -0.9% | Italy’s FTSE MIB: -0.9% |
| Spain’s IBEX: -0.7% | Spain’s IBEX: -0.7% |
| Europe’s STOXX 600: -0.3% | Europe’s STOXX 600: -0.3% |
| 8.01am GMT | 8.01am GMT |
| 08:01 | 08:01 |
| Nouriel Roubini, the economist who is probably best known for predicting the global financial crisis, has also warned on Trump’s policies. | Nouriel Roubini, the economist who is probably best known for predicting the global financial crisis, has also warned on Trump’s policies. |
| Specifically, the professor at NYU’s Stern School of Business, says markets have over-estimated how many beneficial policies the President can carry through, while underestimating the potential negatives. | Specifically, the professor at NYU’s Stern School of Business, says markets have over-estimated how many beneficial policies the President can carry through, while underestimating the potential negatives. |
| Roubini told CNBC: | Roubini told CNBC: |
| [Markets] are overestimating the positives of the US-Trump policies. Infrastructure, stimulus, deregulation, tax cuts: I think Trump will achieve much less on those dimensions. | [Markets] are overestimating the positives of the US-Trump policies. Infrastructure, stimulus, deregulation, tax cuts: I think Trump will achieve much less on those dimensions. |
| And they’re underestimating the risk that the US protectionist policies are going to lead to trade wars, that the restrictions on immigration are going to slow down labor supply, and that micromanaging the corporate sector is going to be negative. | And they’re underestimating the risk that the US protectionist policies are going to lead to trade wars, that the restrictions on immigration are going to slow down labor supply, and that micromanaging the corporate sector is going to be negative. |
| Nouriel Roubini warns: Markets are overestimating Trump policy positives https://t.co/Yd64Z4gpJZ | Nouriel Roubini warns: Markets are overestimating Trump policy positives https://t.co/Yd64Z4gpJZ |
| 7.49am GMT | 7.49am GMT |
| 07:49 | 07:49 |
| The agenda: Investor fears mount over Trump's ability to deliver | The agenda: Investor fears mount over Trump's ability to deliver |
| 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. |
| Shares in Asia are down sharply this morning following Wall Street’s worst day this year. It appears that hopes are evaporating of swift action on the growth-boosting policies promised by President Trump. | Shares in Asia are down sharply this morning following Wall Street’s worst day this year. It appears that hopes are evaporating of swift action on the growth-boosting policies promised by President Trump. |
| With much of the upside already priced in, investors are now coming to the realisation that for all the talk, it might take longer than expected to push through reforms. | With much of the upside already priced in, investors are now coming to the realisation that for all the talk, it might take longer than expected to push through reforms. |
| Michael Hewson, chief market analyst at CMC Markets UK, explains: | Michael Hewson, chief market analyst at CMC Markets UK, explains: |
| After the S&P 500 posted its biggest one day fall since last October last year, the question being asked is whether the scales are starting to fall away from investor’s eyes as to whether President Trump will be able to deliver anything close to what has been priced into markets since his election last November. | After the S&P 500 posted its biggest one day fall since last October last year, the question being asked is whether the scales are starting to fall away from investor’s eyes as to whether President Trump will be able to deliver anything close to what has been priced into markets since his election last November. |
| Even the mistiest eyed optimist appears to be coming to the realisation that even on health care, where there is some form of consensus, reforms are likely to take a lot longer than realised and as such any other programmes like tax and banking reform and infrastructure spending are likely to get pushed further out into the future. | Even the mistiest eyed optimist appears to be coming to the realisation that even on health care, where there is some form of consensus, reforms are likely to take a lot longer than realised and as such any other programmes like tax and banking reform and infrastructure spending are likely to get pushed further out into the future. |
| Here is how US markets closed: | Here is how US markets closed: |
| Dow Jones: -1.1% at 20,668 | Dow Jones: -1.1% at 20,668 |
| S&P 500: -1.2% at 2,344 | S&P 500: -1.2% at 2,344 |
| Nasdaq: -1.5% at 5,333 | Nasdaq: -1.5% at 5,333 |
| And in Asia: | And in Asia: |
| Hang Seng: -1.3% at 24,275 | Hang Seng: -1.3% at 24,275 |
| Nikkei: -2% at 19,041 | Nikkei: -2% at 19,041 |
| Topix: -2% at 1,530 | Topix: -2% at 1,530 |
| Shares in Europe are expected to open lower this morning: | Shares in Europe are expected to open lower this morning: |
| Our European opening calls:$FTSE 7337 down 41$DAX 11882 down 80$CAC 4977 down 26$IBEX 10153 down 59$MIB 19798 down 121 | Our European opening calls:$FTSE 7337 down 41$DAX 11882 down 80$CAC 4977 down 26$IBEX 10153 down 59$MIB 19798 down 121 |
| We will be tracking all the key developments. | We will be tracking all the key developments. |
| Updated | Updated |
| at 7.49am GMT | at 7.49am GMT |