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Jan 19, 2017

The Guardian | Business | Davos 2017 - Busines Live - January 19, 2017: Davos 2017: Hammond Sees Brexit Fog Lifting; Oxfam Warns on Corporation Tax - Day 3 Live
Larry Elliott
Theresa May has been speaking on TV at Davos, and has told the BBC that she has had positive discussions with banks about the benefits of the City of London, and how to build on that for the future.

BBC News (UK) (@BBCNews)
I've had "positive discussions" with big banks about jobs, @theresa_may tells @bbckamal #Brexit #davos2017
January 19, 2017
This comment comes of course as banks continue to suggest they will move employees out of London as a consequence of the UK leaving the EU.
Asked about the weakness in sterling on Bloomberg TV, she did not want to get into a discussion about the value of the pound but pointed to economic data showing the fundamental strength of the UK economy.
She also repeated that the UK had already begun discussions with other countries about free trade deals.
Livesquawk (@Livesquawk)
Most of what UK PM May said in that BTV interview has already been discounted... GBP steady
January 19, 2017

UN chief: Youth unemployment is worst problem we face

Euro under pressure after Mario Draghi plays down inflation pick-up

The euro has weakened on Mario Draghi’s comments at the ECB’s first press conference of 2017, with investors interpreting his stance as largely dovish.
After announcing its decision to leave key interest rates and the quantitative easing (QE) programme unchanged at its 1,000th board meeting, the ECB president highlighted downside risks to the eurozone economy from “global uncertainty” and noted a lack of underlying upward pressure on inflation. Much of the recent rise in inflation, he says, is down to energy price movements and he also pointed out nominal wages growth remains subdued. There is more of that in his opening statement.
Draghi appeared keen to send the message that the ECB remains ready to do more to shore up the eurozone’s economic recovery as necessary. Draghi said there was no discussion of tapering - the process of winding down QE. In the wake of criticism from German politicians over how low interest rates were hurting those with savings, he also called on people to be patient with the ECB. He patiently fielded several questions on German low rate angst.
ECB (@ecb)
Draghi: We didn't discuss tapering
January 19, 2017
ECB (@ecb)
Draghi: As the recovery firms up, real rates will go up too. Be patient.
January 19, 2017
ECB (@ecb)
Draghi: No signs yet of convincing upward trend in underlying inflation
January 19, 2017
To the likely disappointment of reporters at the news conference, the ECB president dodged a question on whether Donald Trump could make life more difficult for those charged with safeguarding the euro after the president elect said in an interview that it would be a struggle keeping the euro together.
A careful Draghi said:
I just won’t make any comment on that... I would rather comment on policies and policy actions than just statements.”
His apparently relaxed stance on inflation left the euro down 0.3% against the US dollar at $1.0600 by the end of the news conference. Against the pound it is down 0.6% on the day to 86.19 pence. Europe’s Stoxx 600 share index turned positive after the apparent promise of ultra-low interest rates for a very long time to come.

Mike Bird (@Birdyword)
"No signs yet of a convincing upward underlying trend in inflation" - mic drop, euro drop
January 19, 2017
Commenting on the tone of the press conference, David Lamb sums up the likely reaction of German politicians:
In Berlin, Mario Draghi’s unwavering dovishness will go down about as well as Donald Trump’s hints of tariffs on German cars... With the money-printing set to continue until further notice, inflationary pressures will return and the euro has taken an immediate hit.

Oxfam worried by Trump and May's tax talk

Some background: the new global standard on Automatic Exchange of Information (AEOI) come into effect in September 2017, when around 50 jurisdictions will work towards having their first information exchanges.

Oxfam's Byanyima: Tax avoidance is a human rights issue