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Sep 21, 2018

Global markets shrug off trade war fears - business live | Business I The Guardian

Angela Monaghan

Howard Archer, chief economic advisor to the forecasting group EY Item Club has an alternative view and thinks Philip Hammond might have increase borrowing if he is to fund an NHS spending increase.
Public sector borrowing came in at £6.8bn in August, £2.4bn higher than a year earlier. However, over the first five months of the fiscal year, borrowing was still £7.8bn lower than the same period of 2017-18.
There will be one, possibly two, more releases before the Office for Budget Responsibility finalises its forecasts for the Budget. Although borrowing continues to run well below 2017-18 levels, the fact that revenue growth is only running in line with its previous forecast and the likely temporary nature of the undershoot in spending means that major changes to the OBR’s projections are looking increasingly unlikely.
This means the Chancellor may need to use revenue raising measures, or tolerate higher borrowing, in order to fund the extra spending planned for the NHS.

The UK’s deficit was higher than expected in August, but the government is still on track to meet its full year borrowing target of £37bn according to Andrew Wishart at Capital Economics.
He explains:
Borrowing was higher than expected in August, marking the end of a run of strong figures. Despite the rise in borrowing in August, it is still on track to come in below the Office for Budget Responsibility’s (OBR’s) forecast over the fiscal year as a whole.
We remain content with our forecast for borrowing be £34bn in 2018/19, below the £37bn forecast by the OBR. And we think that the fiscal watchdog is likely to revise its forecast down in November, giving the chancellor room to deliver the promised increase in health expenditure without having to increase taxes or make cuts elsewhere.

HSBC has announced it will be taking down its banking app on Sunday morning to carry out “essential maintenance”.
Interesting timing...
Harry Wilson (@harrynwilson)
With all the problems with the online services of UK banks - Barclays, Cashplus, Co-op Bank, RBS - HSBC has picked an interesting time to take its mobile banking app down. All we need now is for Lloyds to go down and it's a straight flush of UK banks
September 21, 2018

UK's budget deficit rises more than expected

The government borrowed more than expected in August, after disappointing tax receipts, a boost to the state pension, and a contribution to the EU budget.
Figures published by the Office for National Statistics showed borrowing was £6.8bn over the month, £2.4bn more than August 2017 and double the £3.4bn forecast by City economists. Not great news for the chancellor, Philip Hammond, who will be thinking about spending options ahead of his autumn budget.
The broader picture is better however, with borrowing in the first five months of the fiscal year totalling £17.8bn, £7.8bn less than in the same period in 2017 and the lowest in 16 years.
Richard Partington (@RJPartington)
Worse-than-expected reading for the public finances - ahead of the autumn budget (date still yet to be announced...)
September 21, 2018

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In the latest technical glitch for UK high street banks, NatWest, RBS and Ulster bank customers are unable to access their bank accounts through the app and online this morning.
Hannah Maundrell, editor in chief of, says:
Frustrating times for Natwest customers this morning, especially ahead of the weekend. Banks really need to pull their socks up because this keeps happening again and again. It’s really not good enough when so many customers are being encouraged to bank online.
It’s worrying when your bank can’t keep on top of their IT systems – customers shouldn’t panic though – Natwest customers can still use telephone banking and they are trying to fix the issues, but if you’re worried about any of your payments being affected speak to Natwest ASAP.

Pound falls on renewed Brexit concerns

The pound is under pressure this morning, hit by renewed fears that Britain will leave the EU without a deal.
Sterling is down 0.3% against the dollar at $1.3222, and down 0.3% against the euro at €1.1225.
Here’s the latest on Brexit negotiations.

Reports that Uber is in talks to buy Deliveroo have hurt food delivery rival firm Just Eat this morning.
Shares in Just Eat are down 5.8%, making it the second biggest faller on the FTSE 100 (after Smiths Group).
Bloomberg (@business)
Uber is in early talks to buy food-delivery company Deliveroo for several billion dollars
September 20, 2018

European markets open higher

Trading is underway in Europe and all major markets are up, following those record closes on Wall Street on Thursday.
  • FTSE 100: +0.8% at 7,424
  • Germany’s DAX: +0.7% at 12,407
  • France’s CAC: +0.3% at 5,469
  • Italy’s FTSE MIB: +0.7% at 21,531
  • Spain’s IBEX: +0.3% at 9,616
  • Europe’s STOXX 600: +0.3% at 384

NatWest customers locked out of online accounts

NatWest is the latest bank to have problems with its online and mobile banking services.
The bank says this morning that it is “working hard” to fix the issues after customers complained.
NatWest (@NatWest_Help)
We’re aware of some issues on our Online and Mobile Banking services and are working hard to fix them. Telephone Banking and ATMs are available. Sorry and thanks for your patience.
September 21, 2018
On Thursday, millions of Barclays customers were unable to access their accounts online for several hours after the high street lender to suffered a technical glitch.
And last but not least, TSB is still recovering from a botched IT upgrade in April that left up to 1.9 million digital customers locked out of accounts.

Uber in talks to buy Deliveroo, Bloomberg reports

FILES-US-INTERNET-TRANSPORT-UBER(FILES) In this file photo taken on May 08, 2018, the Uber logo is seen at the second annual Uber Elevate Summit at the Skirball Center in Los Angeles, California. - Uber chief Dara Khosrowshahi said on Wednesday, August 5, 2018 the smartphone-summoned ride service is reinforcing safeguards for passengers and their personal information. Features to be added to the app in the coming months include “Ride Check,” which uses location tracking already built into the service to detect when cars have stopped unexpectedly. If a crash is suspected, the driver and passenger will receive a prompt on their phones to order a courtesy ride or use the in-app emergency call button introduced earlier this year. (Photo by Robyn Beck / AFP)ROBYN BECK/AFP/Getty Images
The ride-hailing service Uber is in early stage talks to buy the food delivery firm Deliveroo, according to a report by Bloomberg. Deliveroo competes with Uber Eats, Uber’s food delivery business.
The news agency writes:
A bid for London-based Deliveroo, last valued at more than $2 billion, would mark a major attempt by Uber to dominate the food-delivery business in Europe. An acquisition price is unknown. Any offer would need to be considerably above its latest valuation, according to people with direct knowledge of Deliveroo plans.
The talks could fall apart, in part because Deliveroo and its investors have been reluctant to relinquish independence, said the people, who asked not to be identified because the information is private. Spokesmen at Deliveroo and Uber declined to comment.
Uber Chief Executive Officer Dara Khosrowshahi has made the company’s food-delivery business a top priority ahead of a planned initial public offering in the second half of 2019.

Markets shrug off trade war fears; Uber in talks to buy Deliveroo

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
Asian markets have followed Wall Street higher today, as investor fears over a full-blown trade war between China and the US subsided.
Japan’s Nikkei rose 0.6% to hit an eight-month high, while the Hang Seng in Hong Kong was up 1.3%.
It followed a record high close for both the Dow Jones and the S&P 500 on Thursday, as investors focus on positive company earnings and concerns ease over trade tensions.
David Madden, market analyst at CMC Markets explains:
The Dow Jones and S&P 500 hit all-time highs yesterday as fears surrounding the US-China trade standoff subsided. The tariffs that were announced by both sides during the week were deemed to be not as harsh as originally suspected.
The US in particular showed restraint, but that was partially so the Trump administration would have more ammunition should they feel it is required down the line. Now that the latest series of tariffs are out of the way, investors fell back into their bullish routine. Stock markets in Asia overnight were dragged higher by the positive move on Wall Street.
Markets in Europe are also expected to open higher:
IGSquawk (@IGSquawk)
European Opening Calls:#FTSE 7394 +0.36%#DAX 12380 +0.44%#CAC 5468 +0.30%#MIB 21493 +0.49%#IBEX 9634 +0.52%
September 21, 2018

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