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| 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) | |
| 9.49am GMT | |
| 09:49 | |
| US futures suggest the sell-off on Wall Street is likely to continue when markets open later: | |
| Dow Jones futures: -0.3% | |
| Nasdaq futures: -0.2% | |
| 9.45am GMT | |
| 09:45 | |
| Is this the end of the Trump rally, asks David Morrison, senior market strategist at Spread Co? | |
| European stock indices are weaker across the board this morning. Investors are responding to last night’s sell-off on Wall Street which saw the majors close out on their lows. Not only that, but US stock index futures are weaker again this morning. Yesterday’s sharp reversal took many investors by surprise, particularly as the US session opened with fresh all-time highs for Facebook and the Nasdaq index. | |
| Unfortunately for traders, much of yesterday’s move was down to political factors rather than market technicals. There are fears that the Trump administration won’t have enough votes to repeal and replace the Affordable Care Act when it goes to Congress tomorrow. | |
| There are thought to be around 26 Republican representatives who oppose their party’s new health care bill. This in turn could jeopardise Trump’s tax plan and this has worried investors who have watched equities soar on the promise of fiscal stimulus. | |
| 9.40am GMT | |
| 09:40 | |
| The final scores in Asia: | |
| APAC Closing Prices:#ASX 5684.51 -1.56%#NIKKEI 19041.38 -2.13%#HSI 24320.41 -1.11%#HSHARES 10456.96 -1.76%#CSI300 3450.23 -0.46% | |
| 9.30am GMT | |
| 09:30 | |
| Julia Kollewe | |
| Back in the UK, estate agent Savills has published results. Shares are currently down 1.8%. Julia Kollewe reports: | |
| Savills, the upmarket estate agent, has posted annual pretax profits of nearly £100m, up 1%, despite “geopolitical distractions” and higher property taxes in the UK and elsewhere. The Brexit vote in June pushed revenues from its UK residential business down 3% to £124m last year. | |
| The firm explained: “A very strong first quarter, as buyers rushed to beat the increased stamp duty on second homes, was followed by low trading volumes in advance of the Brexit referendum at the end of June. Then a relatively quiet, but encouraging summer gave rise to a strong autumn selling season albeit with a slowing of transactions in December.” | |
| Savills said the sharp decline in the value of sterling since the referendum had drawn overseas buyers at the top end of the market. The average selling price in London increased slightly to £2.9m because the firm sold more properties worth £20m or more than in 2015. But it still recorded 5% fewer sales overall, while the market suffered even bigger declines. Outside London there was a 7% increase in exchanges. | |
| 9.22am GMT | 9.22am GMT |
| 09:22 | 09:22 |
| US bound yields at 3-week lows as caution mounts | US bound yields at 3-week lows as caution mounts |
| US bond yields are at three-week lows as investors dump equities in favour of lower-risk assets. | US bond yields are at three-week lows as investors dump equities in favour of lower-risk assets. |
| The yield on benchmark 10-year US treasuries - an indicator of how much it costs the government to borrow from the financial markets - fell to 2.4%. | The yield on benchmark 10-year US treasuries - an indicator of how much it costs the government to borrow from the financial markets - fell to 2.4%. |
| U.S. 10-yr yield falls to 3-week low below 2.4%. It was above 2.6% only 8 days ago. Yield curve also flattest in 3 weeks. | U.S. 10-yr yield falls to 3-week low below 2.4%. It was above 2.6% only 8 days ago. Yield curve also flattest in 3 weeks. |
| 9.01am GMT | 9.01am GMT |
| 09:01 | 09:01 |
| Kingfisher, the company behind B&Q and Screwfix, is the biggest faller on the FTSE 100 this morning following the publication of annual results. | Kingfisher, the company behind B&Q and Screwfix, is the biggest faller on the FTSE 100 this morning following the publication of annual results. |
| My colleague Julia Kollewe reports: | My colleague Julia Kollewe reports: |
| Shares in Kingfisher fell 4.8% despite better-than-expected results. The retailer warned of modest price increases and expressed concern that uncertainty around French and British politics could hit demand for its DIY products. | Shares in Kingfisher fell 4.8% despite better-than-expected results. The retailer warned of modest price increases and expressed concern that uncertainty around French and British politics could hit demand for its DIY products. |
| Chief executive Véronique Laury, who is overseeing a five-year revamp of the business, said: “Looking forward, the EU referendum has created uncertainty for the UK economic outlook and we remain cautious on the outlook for France, especially in light of the forthcoming presidential elections.” | Chief executive Véronique Laury, who is overseeing a five-year revamp of the business, said: “Looking forward, the EU referendum has created uncertainty for the UK economic outlook and we remain cautious on the outlook for France, especially in light of the forthcoming presidential elections.” |
| The company beat City forecasts with a 14.7% rise in annual underlying pretax profit to £787m. A good performance in the UK & Ireland, where like-for-like sales rose 5.9%, offset a 2.7% sales drop in France, where it trades as Castorama and Brico Dépôt. | The company beat City forecasts with a 14.7% rise in annual underlying pretax profit to £787m. A good performance in the UK & Ireland, where like-for-like sales rose 5.9%, offset a 2.7% sales drop in France, where it trades as Castorama and Brico Dépôt. |
| The retailer’s chairman Daniel Bernard is to step down in June after eight years in the role. He will be succeeded by Andy Cosslett, the former chief executive of InterContinental Hotels Group and Fitness First, who previously worked at Unilever and Cadbury Schweppes. He also chairs Rugby Football Union. | The retailer’s chairman Daniel Bernard is to step down in June after eight years in the role. He will be succeeded by Andy Cosslett, the former chief executive of InterContinental Hotels Group and Fitness First, who previously worked at Unilever and Cadbury Schweppes. He also chairs Rugby Football Union. |
| 8.50am GMT | 8.50am GMT |
| 08:50 | 08:50 |
| European losses accelerate, FTSE falls 1% | European losses accelerate, FTSE falls 1% |
| Investors are not happy at all this morning. Losses are widening across Europe on fears that Trump is not going to be able to deliver on his policy pledges. | Investors are not happy at all this morning. Losses are widening across Europe on fears that Trump is not going to be able to deliver on his policy pledges. |
| Much of the optimism about his policies to boost US (and therefore global) growth has already been priced into markets since his election, with Wall Street and European markets hitting record highs. But as President Trump deals with the reality of governing, it seems determination alone is not enough to push through his flagship policies. | Much of the optimism about his policies to boost US (and therefore global) growth has already been priced into markets since his election, with Wall Street and European markets hitting record highs. But as President Trump deals with the reality of governing, it seems determination alone is not enough to push through his flagship policies. |
| If Trump hasn’t yet managed to overhaul Obamacare - his key priority - won’t his promises on tax giveaways and infrastructure spending get kicked into the long grass? | If Trump hasn’t yet managed to overhaul Obamacare - his key priority - won’t his promises on tax giveaways and infrastructure spending get kicked into the long grass? |
| Connor Campbell, analyst at Spreadex, says markets are in a “sour mood”: | Connor Campbell, analyst at Spreadex, says markets are in a “sour mood”: |
| Based on the mess Republicans are making of their healthcare reforms it seems increasingly unlikely that the Wotsit-in-Chief will be able to deliver on his sweeping tax changes and $1 trillion infrastructure spending. | Based on the mess Republicans are making of their healthcare reforms it seems increasingly unlikely that the Wotsit-in-Chief will be able to deliver on his sweeping tax changes and $1 trillion infrastructure spending. |
| Combine that with the Wall Street Journal, a notably right-leaning publication, claiming that if Trump doesn’t ‘show more respect for the truth’ then ‘most Americans may conclude he’s a fake president’, and the optimism that caused investors to flock to the major indices has been seriously undermined by, well, Trump himself. | Combine that with the Wall Street Journal, a notably right-leaning publication, claiming that if Trump doesn’t ‘show more respect for the truth’ then ‘most Americans may conclude he’s a fake president’, and the optimism that caused investors to flock to the major indices has been seriously undermined by, well, Trump himself. |
| The FTSE 100 is down 72 points as the negative sentiment spreads. The mining sector and financials are taking the brunt of it. | The FTSE 100 is down 72 points as the negative sentiment spreads. The mining sector and financials are taking the brunt of it. |
| Current scores on the board: | Current scores on the board: |
| FTSE 100: -1% at 7,306 | FTSE 100: -1% at 7,306 |
| Germany’s DAX: -0.8% at 11,871 | Germany’s DAX: -0.8% at 11,871 |
| France’s CAC: -0.8% at 4,963 | France’s CAC: -0.8% at 4,963 |
| Italy’s FTSE MIB: -1.1% at 19,706 | Italy’s FTSE MIB: -1.1% at 19,706 |
| Spain’s IBEX: -0.9% at 10,126 | Spain’s IBEX: -0.9% at 10,126 |
| Europe’s STOXX 600: -0.8% at 373 | Europe’s STOXX 600: -0.8% at 373 |
| Updated | Updated |
| at 8.51am GMT | at 8.51am GMT |
| 8.24am GMT | 8.24am GMT |
| 08:24 | 08:24 |
| Pound steadies above $1.24 | 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%. | 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). | 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. | 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 |