Apple takes shine off global stocks rally (Reuters) Apple’s New iPhones Gamble on Allure of Premium Pricing (WSJ) North Korea defiant over U.N. sanctions as Trump says tougher steps needed (Reuters) Crews Face Herculean Task Restoring Power in Florida (WSJ) Supreme Court Reinstates Travel Ban’s Refugee Restrictions (WSJ) Seadrill Files for Bankruptcy in Effort to Shrink Debt Burden (BBG) There’s a Speeding Mass of Space Junk Orbiting Earth, Smashing Into Things (WSJ) Act or Wait? Fed Debate Heats Up After Inflation Misses Target (BBG) Congress votes to call on Trump to denounce hate groups (Reuters) Uber’s Legal Chief Salle Yoo Is Resigning (WSJ) Greece to beat budget target, plans more bonds: finance ministry official (Reuters) Inequality Persists Despite U.S. Progress on Incomes and Poverty (BBG) Cities Swimming in Raw Sewage as Hurricanes Overwhelm Systems (BBG) 30% of Bank Jobs May Disappear in Next Five Years: Ex-Citi CEO Pandit (BBG) After the Equifax Hack, LifeLock Sign-ups Jump Tenfold (BBG) Emails Show How the Food Industry Uses ‘Science’ to Push Soda (BBG) IEA Sees Strongest Global Oil-Demand Growth in Two Years (BBG) Saudi Arabia Pushes OPEC on New Tack to Curb Oil Supplies (WSJ) J.C. Penney Missed Out on 3300% Rally as Dumped Asset Skyrockets (BBG) No federal charges for Baltimore cops in Freddie Gray's death (Reuters) China Prepares Sale of $2 Billion in U.S.-Dollar Bonds (WSJ) Overnight Media Digest WSJ - Apple Inc introduced a trio of new iPhones, including the premium iPhone X, which will cost from $999 to $1,149. on.wsj.com/2xXSdbs - DowDuPont Inc is altering its plan to splinter into three companies, bringing to an end the threat of a fight with as many as four activist investors. on.wsj.com/2xYrSdt - Britain pledged to contribute troops and to work with the European Union to implement foreign sanctions after Brexit. on.wsj.com/2xYKslH - U.S. President Donald Trump touted what he described as a plan by Malaysia Airlines Bhd to spend between $10 billion and $20 billion on Boeing Co jets and General Electric Co engines as he opened a White House meeting with Malaysia's prime minister Najib Razak. on.wsj.com/2xYZ4RO - Salle Yoo, the top lawyer at Uber Technologies Inc, is departing the company as it faces three federal investigations into its operations and welcomes a new chief executive. on.wsj.com/2h0v2dj - Samuel Shen, a Microsoft veteran of 24 years and the former general manager of its cloud and enterprise business in China, took the job as JD.com Inc's president of cloud unit. on.wsj.com/2h0d6iT - The Donald Trump administration threatened to impose further sanctions on China if Beijing does not do more to shut down banks and other Chinese firms aiding North Korea. on.wsj.com/2gZPf2N - The UK government referred Twenty-First Century Fox Inc's $15.5-billion proposal to consolidate ownership of Sky Plc to British antitrust regulators and said it was likely to broaden that review to include Fox's commitment to the country's broadcasting standards. on.wsj.com/2h25Nr4 FT - Businesses in South Africa have come under pressure to cut ties with KPMG over the auditor's work for companies owned by the Gupta family, as the fallout deepens from a scandal that has caused the collapse of Bell Pottinger's British arm. on.ft.com/2eTrwgk - Concerns over standards at Fox News Network has put Rupert Murdoch's proposed 11.7 billion pound ($15.54 billion) takeover of European pay-TV group Sky Plc into doubt after the UK government signalled that it was likely to widen an investigation by regulators into the deal. on.ft.com/2eUDlTF - DowDuPont has revised its plan to break up into three separate companies by shifting some operations in the three units, a plan welcomed by its activist investors. on.ft.com/2eTwDx8 NYT - Nancy Gibbs, the first woman to lead Time magazine, is stepping down as editor in chief, ending her four-year run at the publication's helm. nyti.ms/2f3ZYZN - Britain's culture minister said on Tuesday she was inclined to ask the country's competition regulator to carry out a detailed review of a bid by Rupert Murdoch's Twenty-First Century Fox to take full control of the British satellite television giant Sky Plc. nyti.ms/2jnRKgg - After a year-long investigation, the National Transportation Safety Board concluded that a Tesla Inc system capable of automatically steering and controlling a car had "played a major role" in a fatal crash in Florida. nyti.ms/2h2ypk9 - DowDuPont Inc, the chemicals giant, said it would shift the focus of its reorganization plan after shareholders opposed a proposal to break up the company. nyti.ms/2eUN10i Canada THE GLOBE AND MAIL ** The Real Estate Council of Ontario (RECO) has laid charges against three realtors for allegedly accepting money from prospective home buyers in exchange for preferential access to preconstruction condo units. tgam.ca/2eUVJMc ** Brookfield Infrastructure Partners LP is on the cusp of its second decade, and chief executive officer Sam Pollock is shoring up capital while preparing to welcome a new slate of index investors to mark the occasion. tgam.ca/2eW31zs ** Shareholders in Home Capital Group Inc have resoundingly rejected Warren Buffett's bid to boost his stake in the mortgage lender, which must now try to rebuild its fortunes without additional support from its star investor. tgam.ca/2eUQyMm ** Canada and Britain have joined forces in their efforts to get Boeing Co to drop its trade complaint against Bombardier Inc, with British Prime Minister Theresa May taking her concerns over the case to U.S. President Donald Trump. tgam.ca/2eUR0Ky NATIONAL POST ** The Financial Accountability Office of Ontario on Tuesday released a commentary covering the province's proposal to increase the minimum wage to C$15 ($12.4) an hour, finding the added labour costs for businesses will increase workers' incomes, but that those extra payroll costs will force firms to axe some lower-income positions. bit.ly/2eUHrv5 ** Single-family house prices may be overvalued by as much as 60 percent in Toronto, but cooling measures may take a bigger bite out of markets away from the country's largest metro area, says a new report. bit.ly/2eU8x5i ** Canada's two major rail companies, Canadian National Railway Co and Canadian Pacific Railway Ltd, sounded off on Tuesday against a new legislative proposal they say will give U.S. competitors unfair access to the Canadian rail network, and potentially cause more of the country's smaller and remoter rail lines to be abandoned. bit.ly/2eVrgh1 Britain The Times - 21st Century Fox Inc's 11.7 billion pounds ($15.54 billion )bid to take over Sky Plc has suffered a setback after the culture secretary, Karen Bradley, said that she was minded to refer the deal to regulators over concerns about broadcasting standards. bit.ly/2xXZ3hc - High Court judges will be asked to rule on whether the inquiry team investigating the causes of the Grenfell Tower fire is sufficiently ethnically and socially diverse. bit.ly/2xY2AMr The Guardian - The Murdochs face the biggest investigation into their record as media owners since the Leveson inquiry after the culture secretary said their proposed 11.7 billion pounds takeover of Sky should face a further six-month inquiry. bit.ly/2fh6OI5 - Air Berlin has been forced to cancel about 100 flights after an "unusually high number" of pilots called in sick, in what is believed to be a wildcat strike against possible redundancies at the bankrupt airline. bit.ly/2fg5Uf1 The Telegraph - Bell Pottinger Pvt has succumbed to the scandal of a divisive campaign it ran for controversial billionaire family the Guptas in South Africa and filed for administration. bit.ly/2gYwWLA - The Competition and Markets Authority has cleared the way for an oil-services mega-merger after agreeing that Amec Foster Wheeler Plc's plan to sell off its North Sea business would be enough to assuage its concerns over the John Wood Group takeover. bit.ly/2h1t8cq Sky News - The fourth round of Brexit talks has been delayed by a week to Sept. 25. A spokesperson said "both sides" had agreed to push back the date to give negotiators "flexibility" to make progress at the current stage. bit.ly/2xXImm0 -Matthias Wissmann, head of the German Automotive Association, said contingency plans were being formed to deal with a possible failure of Brexit negotiations in the next 18 months. bit.ly/2xY4EnA The Independent - Hope Hicks has officially become the third person to hold the title of communications director in United State President Donald Trump's White House. ind.pn/2xXL3nC - Theresa May has asked Donald Trump to help settle a trade dispute over Bombardier which could financially devastate one of Northern Ireland's biggest employers and put thousands of jobs at risk, following pressure from the DUP. ind.pn/2xYebLf
Renewed hike hopes lift pound to one-year high against dollar as rising inflation tightens the squeeze on UK households
UK inflation rises to 2.9pc in August; higher than expected and a jump from July's 2.6pc rate Pound rallies on currency markets as interest rate hike hopes are renewed by the pick-up in inflation Pound at highest level against the dollar in a year; trading 0.7pc higher at $1.3267 FTSE 100 retreats, hurt by the stronger pound; rental firm Ashtead leads the blue-chip leaderboard after saying that it expects a pick-up in demand in the aftermath of Hurricane Irma Housebuilders drop as Redrow boss sells stake in the company, stoking fears that the sector has already peaked UK inflation jumped to 2.9pc in August, the ONS revealed this morning, tightening the squeeze on households already suffering from the gap between rising prices and sluggish wage growth. With inflation well above the Bank of England's 2pc target, the pound soared on currency markets as hopes of an interest rate hike before the end of the year were revived by the figures. The Bank of England will decide on Thursday whether to raise rates in order to curb inflation with today's higher-than-expected pick-up cranking up the pressure on the central bank's policymakers. The ONS said that the fastest rise in clothing and shoe prices in 30 years bumped up the figures but that food inflation slowed, lowering the pressure on the weekly shop. 5:53PM Markets wrap: Inflation pick-up sends pound soaring to one-year high against dollar Today's inflation figure will crank up the pressure on Mark Carney and the Bank of England's MPC The pound has surged to his highest level against the dollar in a year after the ONS revealed that inflation jumped to 2.9pc, cranking up the pressure on Bank of England policymakers to hike interest rates to ease the squeeze on UK households. The markets are now putting the chance of a rate hike before the end of the year at close to a coin flip and the negative effect of the pound's rise on London's big exporters pulled down the FTSE 100 as stocks in the rest of Europe and the US continued to rebound. Housebuilders retreated as investors worried that the sector has reached its peak after directors at Redrow and Berkeley sold big stakes in the space of a few days while rental firm Ashtead rose to the top of the FTSE 100 as it predicted increased earnings from the aftermath of Hurricane Irma. IG market analyst Joshua Mahony said this on today's markets: "This morning’s FTSE gains proved fleeting, as a rise in UK inflation raised the prospect that the Bank of England’s monetary policy makers turn more hawkish. This drew investors into the pound to the detriment of the FTSE 100. "A sharp appreciation in inflation has put greater pressure on the BoE to provide a more hawkish outlook on Thursday, pushing the pound to a one-year high against the dollar." 4:22PM Inflation jumps to 2.9pc as prices for clothes and shoes rise at the fastest rate for 30 years CPI Price rises accelerated in August as costs for clothes, shoes, furniture and telephones all picked up pace. Inflation hit 2.9pc, the Office for National Statistics said, up from 2.6pc in the 12 months to July and the highest level since May, indicating that the fall back in price pressures in June and July may have been a blip in the upward trend. The weak pound has pushed up import prices and that has fed through into costs for shoppers, hitting households in the pocket. Read Tim Wallace's full report here 4:19PM Brent crude pushes past $54 per barrel as OPEC production falls for first time since March Brent crude has jumped 0.7pc today on the report Brent crude has pushed past $54 per barrel this afternoon after fresh data from OPEC showed a fall in production for the first time since March. The oil cartel's output fell by 79,100 in July as it tries to rebalance the market and reduce the glut of oil stocks weighing on prices. OPEC also forecast higher oil demand in 2018, indicating that a tighter market will support future prices. CMC Markets David Madden commented: "The major oil producers clearly mean business now, as at the start of the summer we saw production actually rise from some members. "OPEC’s production freeze will last until the end of March 2018, and Saudi Arabia is floating the idea of extending the production cut until the end of June 2018." #OPEC sees #oil market tightening: Forecasts 2018 demand for its crude will average 32.83 million bpd, up 410,000 bpd vs Aug forecast #OOTTpic.twitter.com/d9wWSKtY5R— Christopher Johnson (@chris1reuters) September 12, 2017 3:59PM Gap between inflation and public sector pay highlighted The Government announced today that the pay cap on police and prison staff had been lifted Many on social media are highlighting the gap between the jump in inflation to 2.9pc and police officer pay rising below that figure to 2pc. Today's pay increase announcement have been described as "derisory" by the TUC and tomorrow's wage growth figures could bring the subject back into focus again. Wage growth is expected to nudge up to 2.2pc, a 0.1 percentage point increase, in tomorrow's figures, lagging far behind inflation. Probably not your strongest timing Phil. So inflation is 2.9%. Police and prison officers are getting a 2% pay rise. Not an expert but my calculator keeps saying it's a pay cut!— Ian Warren (@election_data) September 12, 2017 Just a little bit of housekeeping to do on the economics front in the US. JOLTS job openings inched up to a fresh record of 6170, ahead of expectations. It hasn't done much to lift the dollar today, however, sterling is still trading 0.7pc higher against the greenback. Markets in the UK have been dominated by this morning's inflation reading, according to Spreadex analyst Connor Campbell. He commented on sterling's rise: "That took the pound to some important markers; cable is now sitting pretty at above $1.326 at a one year peak, while against the euro sterling has climbed to a fresh 6 week high. "These gains had important ramifications for the rest of the markets. First and foremost it prevented the FTSE from joining in with the gains seen elsewhere, instead sending the UK index back below 7400 – if only just – with a 0.1% dip." 3:19PM Murdoch faces broadcasting standards investigation over Fox's £11.7bn takeover of Sky Rupert Murdoch and his sons James and Lachlan are making a second bid for full control of Sky The Murdoch family faces a six-month investigation of their record as broadcasters and commitment to editorial standards following a Government decision that will mean a further delay in their £11.7bn bid to take full control of Sky. The Culture Secretary Karen Bradley said that in light of new representations on 21st Century's Fox's compliance record and its handling of sexual harassment allegations at Fox News, she was minded to trigger a double investigation by the Competition and Markets Authority (CMA). A broadcasting standards investigation will run alongside a previously planned probe of the impact of the deal on the public interest in media plurality, amid fears it would grant the Murdochs too much sway over news. Read Christopher Williams' full report here 3:16PM Merger talks that led to 'Clarkson moment' between AA bosses are off Bob Mackenzie CEO of the AA at their London HQ in Covent Garden Merger talks between the AA and insurance rival Hastings, which allegedly led to a Jeremy Clarkson-style brawl between the AA's former chairman and its insurance head are now off, Hastings said Tuesday. While the roadside recovery business confirmed it had spoken to Hastings earlier in the summer about a potential tie-up with its insurance arm, Hastings said in a separate statement that those talks were now off. That ends a process that caused such a divide between AA's ex-chairman Bob Mackenzie and insurance boss Michael Lloyd that it was allegedly the trigger for a physical fight in a hotel bar earlier this year. Mr Mackenzie was then sacked for "gross misconduct" in a move that wiped £200m from the AA's value in one day. However his son Peter has refuted the allegations, instead insisting his father resigned due to ill health. Read Lucy Burton's full report here 2:51PM US stocks nudge up; Apple shares rise ahead of much anticipated iPhone release Apple will unveil the next iPhone at 6pm (BST) US stocks have opened higher at the opening bell in New York, leaving the FTSE 100 the only major index retreating today. The S&P 500, which closed at a record high of 2488.11 yesterday, has continued its ascent and reached a fresh all-time intraday high. With the latest iPhone due to be unveiled at 6pm (BST), Apple shares will be one to keep an eye on this afternoon. Ahead of the much anticipated release, shares are up 0.4pc but are expected to bounce around during the presentation later on. Meanwhile in Europe, the FTSE 100 has stabilised at a 0.4pc loss for the session as the pound dominates on the currency markets but the CAC 40 and DAX are enjoying a 0.6pc jump on rising risk appetite. 2:22PM Is this the top of the market for housebuilders? Redrow share price sinks after chairman sells shares Redrow's share price has sunk more than 8pc The chairman of housebuilder Redrow has sold off part of his stake in the company he founded, spooking investors that he could be calling the top of the market, and sending its share price down more than 8pc. Steve Morgan, who last week announced that he would "ease back" from his executive role this year, sold around a fifth of his 40pc stake in the business. That represents roughly 7pc of the total share capital; he still owns more than a third of Redrow's shares. It comes a week after the founder and chairman of Berkeley Homes, Tony Pidgley, sold 750,000 shares in the housebuilder, pocketing £26.8m. Despite this selloff he remains the fourth-largest shareholder in the housebuilder. Analysts at Jefferies said that he "still has a lot of skin in the game". Read Isabelle Fraser's full report here 2:11PM Pound only at one-month high against basket of leading currencies Against a basket of the leading global currencies, the pound only hit a one-month high Just a sniff of an interest rate hike is enough to send the pound soaring on currency markets but it's worth bearing in mind that, while sterling has reached a one-year high against the dollar, against a basket of the leading global currencies it is only at a one-month high. A weaker dollar, which has been pulled down this year by the chaos at the White House and fears that sluggish inflation in the US could slow the pace of rate rises, is equally responsible for the recent surge. 1:52PM Leonardo joins bid to provide 'private airforce' for RAF to train against Britain's Typhoon pilots could find themselves battling civilian flown aircraft in mock dogfights Defence group Leonardo has joined a consortium hoping to land a massive contract that ultimately aims to supply a “private air force” for the RAF to train against. The international company’s UK arm has joined forces with Canada’s Discovery Air Defence and Britain’s Inzpire to bid for a contract providing live air training that could be worth as much as £1.5bn. Known as Air Defence and Operational Support (ASDOT), the contract could run for up to 10 years. It is eventually expected see private companies provide “enemy” fighters flown by civilians for RAF pilots to battle in mock dogfights, as well training pilots and servicemen and women in areas such as electronic warfare such as jamming radar signals, and calling in aircraft to launch strikes on the ground targets. Read Alan Tovey's full report here 1:43PM Pound jumps to one-year high against the dollar on interest rate hike hopes The pound has jumped to its highest level against the dollar in a year The pound's surge on the currency markets following the uptick in inflation has lifted it to its highest level against the dollar in a year. The recent economic strength of the eurozone and sterling's summer drift downwards against the euro means that it's only at a one-month high against the currency, however, trading 1pc higher at €1.119. $GBP Core CPI 2.7% in August - and more is on the cards in coming years, unless BoE tightens.. We like short EUR/GBP in to year-end #BoEpic.twitter.com/RwxoOaymU5— AndreasStenoLarsen (@AndreasSteno) September 12, 2017 Lukman Otunuga, research analyst at FXTM, believes the hawks calling for an interest rate hike at the Bank of England will find new impetus from today's figures. He said: "With UK inflation rates finding comfort well above the Bank of England’s 2% target, as the Brexit-fuelled Pound weakness boosts import costs, BoE hawks may make an appearance during Thursday’s policy meeting. While rising inflation is likely to support expectations over the Bank of England raising UK interest rates, it still unclear as to when and how this will occur. "It should be kept in mind that elevated inflation levels have pressured households this year, and this will continue to negatively impact the outlook of the economy. With wage growth still struggling to keep up with inflation, concerns are mounting over the sustainability of the UK’s consumer-driven economic growth. BoE policy makers are under fresh pressure to take action, and Wednesday’s UK labour market data, which will be in sharp focus, could act as a catalyst for an unexpected surprise this year. "The big question is, will the jump in UK consumer prices prompt the BoE to raise rates quicker than anticipated?" 1:09PM Competition watchdog clears Amec Foster Wheeler's North Sea sell-off plans The CMA has said that Amec Foster Wheeler’s plan to sell off its North Sea business would be enough to assuage its concerns The Competition and Markets Authority has cleared the way for an oil-services mega-merger after agreeing that Amec Foster Wheeler’s plan to sell off its North Sea business would be enough to assuage its concerns over the Wood Group takeover. The CMA took only one month to review the plans together with feedback from interested parties before approving plans for Amec Foster Wheeler to sell the majority of its North Sea assets and contracts as a package, well before its decision deadline. The pair anticipated the competition concerns surrounding their £2.2bn merger and are understood to have started talks with potential buyers as early as May this year. Both private equity and strategic investors are said to be circling the assets. The takeover raised eyebrows earlier this year amid fears that the pair, which both hold a substantial stake of the North Sea’s oil services market, would be able to wield its dominance to crush market competition. Read Jillian Ambrose's full report here 12:49PM Lunchtime update: Pound soars on currency markets as inflation pick-up renews hike hopes The Bank of England's MPC will meet on Thursday to decide whether to hike rates The pound has soared on the currency markets this morning as the pick-up in inflation to 2.9pc cranked up the pressure on Bank of England policymakers to hike interest rates to ease the squeeze on households. Although the market believes a hike in 2017 is still unlikely, pricing in a 35.6pc chance of a rise before the end of the year, today's rise due to an increase in clothing and shoe prices has renewed hawkish hopes. On the stock market, the pound's rally has punctured the FTSE 100 with housebuilders the biggest losers in London this morning as fears that the sector has reached its peak were stoked by Redrow's chairman selling a stake in the company. Accendo Markets head of research Mike Van Dulken commented on this morning's action: "Equities are mixed this morning, but not for want of underlying risk appetite as recent market take a back seat. While Dow futures and Germany's DAX push further north the FTSE is the odd one out, nursing minor losses, after strong UK inflation data sent the pound higher to the detriment of its significant international exposure. "The German DAX outperforms thanks to EUR/USD holding around yesterday's 3-day lows, helping industrials/exporters while banks embrace this week's general risk-on mentality. The UK FTSE 100 is just the wrong side of breakeven, hindered by the pound's strength." 12:37PM Gold retreats following strong rally based on geopolitical fears Gold enjoyed a strong rally last week on geopolitical fears but has retreated today Gold prices are suffering a second day of decline as risk appetite returns to normal after markets wobbled on North Korea and Hurricane Irma fears. The price has retreated back down to $1.323.99 per ounce, a 1.7pc decline this week, after rallying last week on the geopolitical fears. Precious metal miners Fresnillo and Randgold Resources, whose share prices are wedded to the price of gold, have fallen to the bottom of the FTSE 100 as a result. 12:07PM SMEs will be hit by pick-up in RPI; house price inflation steady House price inflation has nudged up to 5.1pc Although slightly lost underneath the headline CPI figure this morning, the ONS also revealed that retail price inflation increased to 3.9pc while house price inflation nudged up to 5.1pc, both ahead of expectations. With business rates linked to RPI, SMEs will face higher tax bills as a result of the pick-up. Mike Cherry, Federation of Small Businesses national chairman, said that the pick-up in retail price inflation will make business rates unaffordable. He said: "Today’s increase in inflation will add to cost pressures facing the small business community. Confirmation of this month’s RPI is another huge blow, as it will add almost four percent to every single business rates bill next year. "It’s hard to understand why the Government insists on using this outdated measure of inflation rather than the more widely accepted CPI, which it has pledged to use from 2020. With a weakening economy, CPI-indexation should be brought forward to 2018." Adrian Moloney, sales director at OneSavings Bank commented that the housing supply shortage is supporting property prices but that buyers continue to "walk a narrow tightrope to home ownership". He added: "On the one hand, strong employment growth and historically low mortgage rates are supporting buyer demand, but on the other, stagnant wage growth is being outstripped by consumer prices, making homes less affordable. "Mortgage approval levels recovered last month, suggesting a small rebound in consumer confidence and affordability, despite the enduring economic unknowns that continue to cloud the long-term view." 11:40AM Redrow chairman stake sale stokes investor jitters Steve Morgan has slashed his stake in Redrow Redrow chairman Steve Morgan selling a significant stake in the company has pulled down the entire housebuilding sector this morning, the sale coming just days after Berekley's boss also reduced his stake. The two stake sales have caused a few jitters among investors fearing that the the housebuilding sector may have reached its peak and soon be on the decline. Taylor Wimpey's 1.9pc fall is one of the sharpest on the FTSE 100 this morning while Redrow's 8.2pc plummet makes it the biggest laggard on the mid-cap index. UBS analyst Miguel Borrega points out that numerous factors will still support growth in the sector: "We highlight the market is now supported by "(1) low interest rates; "(2) structural undersupply; "(3) supportive land market with limited competition allowing for attractive returns; "(4) Government support in the form of Help-to-Buy and planning reform." Anthony Codling, an analyst at Jefferies, commented that he did not believe that " the silverback alpha males in the sector are calling the top of the market" through their stake disposals. 11:08AM Tasty issues unappetising update with fears about consumer spending squeeze extending into next year Trading conditions have become tough in the restaurant sector with various cost pressures hitting at a time of reduced consumer confidence Tough trading conditions in the restaurant sector have prompted operator Tasty to take a multi-million pound write-down on some of its sites as it predicted the consumer spending squeeze would extend into 2018. The owner of the Wildwood and dim t chains of restaurants said the entire sector had been suffering a slowdown since the beginning of 2017 and that this was set to continue into next year. “This is not unique to the group or any particular area but appears to be a nationwide problem, particularly evident in London, and has impacted turnover and profit,” said chairman Keith Lassman. These fears appear to have spooked shareholders with the stock down nearly 11pc to 37.5p in early trading. While total sales rose nearly 12pc to £24.3m for the six months to July 2, this was entirely down to new openings. Read Bradley Gerrard's full report here 10:51AM Inflation rise reaction: what the experts say UK inflation rose to 2.9% in August, extending the decline in real wages. Only increased indebtedness keeps consumption from declining pic.twitter.com/dsmcoSPogT— Ulrik Bie (@UlrikBie) September 12, 2017 Let's have a quick round-up on what the experts are saying on today's spike in inflation. We'll begin with Howard Archer, chief economic advisor at the EY ITEM club, who believes that inflation should be close to its peak. He said: "Sterling’s past sharp drop should have now largely fed through the pricing chain. Meanwhile, ongoing slow earning growth and lacklustre economic activity should limit domestic inflationary price pressures. Additionally, oil prices remain relatively low. "Consequently, we believe there is a strong chance that CPI will be back to 2% by the end of 2018." Nomura sticking by its out-of-consensus call for a UK rate hike in November after today's inflation comes in higher than expected.— Jamie McGeever (@ReutersJamie) September 12, 2017 Investec economist Philip Shaw commented that this rise shouldn't be enough to move MPC members on interest rates. He said: "Our feeling is still that the MPC will be reluctant to tighten policy until it sees firm evidence that pay growth is strengthening well above the prevailing pace of close to 2%. We view this to be unlikely until the economy gains a degree of traction and there is less uncertainty over the UK’s post-Brexit arrangements. "Partly on this judgement we still see the committee maintaining the current stance of policy until 2019. July’s earnings data, plus other labour market metrics, are due tomorrow and it will be interesting to see the importance the MPC places on them when the minutes to the meeting are published on Thursday." Also here's our economic correspondent Tim Wallace's full report on this morning's figures. 10:26AM Housebuilders fall on Redrow stake sale and bearish sector note Housebuilder Redrow $RDW shares take a dive after chairman's charitable trust sells out at 590p, vs yesterday's closing price of 633p pic.twitter.com/xMKQel0DHB— Ian Smith (@iankmsmith) September 12, 2017 That spike in the pound has turned a stagnant session for the FTSE 100 into a negative one with the index now 0.2pc lower. Housebuilders are taking the biggest beating in London this morning with Redrow diving over 8pc after its chairman Steve Morgan sold a huge stake in the FTSE 250 company. The share placing and a bearish note on the sector from Bank of America Merrill Lynch hinting that housebuilders might have hit their peak already has pulled pulled down the FTSE 100 housebuilders with Taylor Wimpey, Barratt Developments and Persimmon all retreating just under 2pc. IG chief market analyst Chris Beauchamp said on the housebuilders' fall this morning: "Despite further evidence of UK house price growth, housebuilder shares have taken a knock this morning as the chairman of Redrow takes the opportunity to offload some of his stake, in the wake of a bounce in the shares last week. "Given the near 50% appreciation in the shares from January until the end of last week, it doesn’t seem like a sign that the top is near, and in all likelihood there will be plenty of buyers keen to snap up some shares at a cheaper price than seen of late." 10:06AM Inflation rise reaction: Sterling depreciation will fall out of the year-on-year calculation soon ����#UK CPI #inflation was 2.9% in August => real wage squeze => sluggish #GDP growth pic.twitter.com/p4IxzmT44W— Danske Bank Research (@Danske_Research) September 12, 2017 CABLE doing a runner here on UK inflation data on read to Thurs #BoE mtg as both CPI & PPI above expects, GBPUSD last 1.3266 #CABLE#GBPUSDpic.twitter.com/6TZo4jOW1q— stephen garrett (@sgarret13) September 12, 2017 Today's inflation pick-up is slightly higher than the Bank of England's own 2.7pc estimate and way ahead of the central bank's 2pc target but Ben Brettell, senior economist at Hargreaves Lansdown, believes that that 2.9pc could be inflation's peak as sterling's weakness soon falls out of the year-on-year calculation. Mr Brettell added that the long-term inflationary pressures are still absent: "Beyond the currency effect there appear to be few underlying inflationary pressures. Labour costs are the main factor in domestic inflation, and growth here remains below long-term averages. Productivity growth is sluggish, and technological changes look to be suppressing wages, with the likes of Uber, Amazon and Netflix disrupting traditional industries. "Furthermore we need to consider demographics. The baby boomers are retiring in their droves. They have already gone through their consumption phase – they have bought their houses, cars and consumer goods. The generation behind them is saddled with debt and struggling to get on the housing ladder. "All in all I see more deflationary forces than inflationary in the world economy at present." 9:46AM Inflation key takeaways Contributions to the CPIH 12-month rate Inflation rose to 2.9pc in August, up from 2.6pc the previous month and higher than the expected 2.8pc increase. Rising prices for clothing and motor fuel were the main contributors to the pick-up. Air fares rose between July and August but the smaller rise compared to last year weighed on inflation. Renewed hike hopes push pound up to $1.3250 against the dollar, a 0.5pc advance, and €1.1077 against the euro, a 0.6pc gain. 9:33AM UK inflation picks up to 2.9pc, higher than expected Bank of England governor Mark Carney UK inflation rose to 2.9pc in August, figures just released by the ONS have revealed, up from 2.6pc the previous month and higher than the expected 2.8pc pick-up. The increase lifting hawkish hopes of a rate rise has pushed the pound up on currency markets. It's now trading 0.5pc higher against the dollar at $1.3237. 9:18AM UK inflation preview: what the experts say RBC on UK inflation: Look for 2.8% Y/Y as a reflection of GBP depreciation. Exp. CPI to peak at 3.1% in October before pulling back in 2018— RANsquawk (@RANsquawk) September 12, 2017 Let's have a quick round-up of what analysts are saying before this morning's figures. CMC Markets analyst Michael Hewson describes last year's emergency change in monetary policy after the EU referendum as a "self-inflicted wound". He added: "There is a risk that we could see an uptick in the August CPI numbers to 2.8%, largely as a result of last year’s decision by the Bank of England to cut rates to 0.25%, and embark on further QE, which prompted further sterling weakness into the back end of 2016, a self-inflicted wound if ever there was one. "An increase in petrol prices at the pump could prompt a slight uptick in the monthly number to 0.6% from 0.2%, but it still seems likely that we’ve seen the highs in inflationary pressure this year, barring a surprise. The steady decline in input prices since the beginning of the year, from 20% in January to 6.5% in July also suggests inflationary pressure is on the decline, though we could also see a bit of an August uptick here too with expectations of an increase to 7.3%." Spreadex analyst Connor Campbell points out that the MPC were unmoved when inflation peaked in May: "How much of a boost the currency could get from such a reading is perhaps up for debate. The Bank of England was reluctant to hike rates at that aforementioned May high, and it’s unlikely they’ll be moved by anything lower. "However, it would still be a move in the right direction, helping to explain why the pound is up 0.3% against the dollar and 0.2% against the euro." 9:09AM UK inflation preview: weaker-than-expected figure would hurt the pound 6. And... 1) UK inflation not wildly different to peers 2) Energy contributions are global & overlooked 3) Core is still the one to watch pic.twitter.com/SS4cpHi5t9— Rupert Seggins (@Rupert_Seggins) September 12, 2017 Weaker-than-expected inflation and patchy growth indicators for the UK economy have somewhat punctured hawkish hopes of an interest rate rise over the summer but could that impetus be revived today? With only three MPC meetings before the end of the year, the markets have put the chance of a rise in 2017 at just 28pc. A third consecutive month of weaker-than-expected figures hurting hike hopes would pull down the pound even if it does point to a healthier economy, according to Lee Hardman, currency analyst at MUFG. He said "So far this year, the pound has tended to strengthen following stronger than expected UK inflation reports and vice versa which have driven expectations for BoE monetary tightening. "While weaker than expected inflation would also be more favourable for the UK growth outlook, the market has not been willing to reward the pound in that manner." 9:01AM UK inflation preview: CPI expected to rise to 2.8pc; figures have been softer than expected over the summer 3. Oil price inflation suggests that there's still another month or two left of relief from UK transport & energy price inflation. pic.twitter.com/NhbbfMIgRC— Rupert Seggins (@Rupert_Seggins) September 12, 2017 Will the squeeze on households continue to ease or will inflation pick-up where it left off before the summer? Economists are expecting today's inflation data to show a rise back up to 2.8pc but recent figures have been unexpectedly soft. The Bank of England is currently forecasting inflation to peak at 3pc later this year but that surprise slowdown to 2.6pc in June and July has dampened the clamour for a rate rise. Only two members of the current line-up on the central bank's Monetary Policy Committee have voted for a hike, external members Ian McCafferty and Michael Saunders, but BoE chief economist Andy Haldane did admit earlier in the summer that he favoured a rate rise at some point this year. New MPC member and BoE deputy governor Sir David Ramsden's voting intentions are unknown but it is thought he won't rock the boat early on. 8:27AM Agenda: Pound shows no pre-match nerves ahead of key inflation data Mark Carney and the MPC have voted against hiking interest rates to curb high inflation The squeeze on UK households is expected to get a little tighter this morning when the latest inflation figures from the ONS drop. Economists believe UK CPI in August picked-up to 2.8pc after cooling off for the previous two months, mainly due to temporary factors. The latest RPI and PPI figures also due at 9.30am kick off this week's trio of key macro releases with wage growth data and the Bank of England's 'Super Thursday' scheduled in the coming days. Ahead of the data, the pound is showing no nerves on the currency markets, jumping higher against the dollar to flirt with the $1.32 mark. Asia stock mkts hit 10y highs on Irma and N Korea relief led by exportes & tech. Dollar rises on higher US yields, yuan hampered by Beijing pic.twitter.com/KXDX4j6rdl— Holger Zschaepitz (@Schuldensuehner) September 12, 2017 Equipment rental firm Ashtead has climbed to the top of a stagnant FTSE 100 early on with the blue-chip silent giant saying in its interims this morning that it expects demand for its services to pick-up in the clean-up efforts following the two hurricanes in the US and Caribbean. Meanwhile on the FTSE 250, JD Sports has surged over 9pc after reporting record first half profit. The "athleisurewear" store now expects full-year figures to be at the upper end of market expectations. Interim results: JD Sports Fashion, TyraTech, SafeCharge International Group Limited, ADES International Holding, Hydrogen Group, Flowtech Fluidpower, Midwich Group, Tasty, Hilton Food Group, STM Group, Servelec Group, IQE, Goals Soccer Centres, Manx Telecom, TP Group, Smart Metering Systems, Ashtead Group Full-year results: Murgitroyd Group, InnovaDerma, Vernalis AGM: EF Realisation Company, Limitless Earth, Aew UK Reit, Supergroup, Liontrust Asset Management, Daejan Holdings, Mulberry Group, Bushveld Minerals, Oxford Instruments, Van Elle Holdings, Ashtead Group, Emmerson Economics: CPI y/y (UK), HPI y/y (UK), RPI y/y (UK), PPI Input m/m (UK), NFIB Small Business Index (US), Federal Budget Balance (US)
Торжественная церемония, посвященная этому событию прошла 1 июня 2017 г.На строительной площадке Яйского нефтеперерабатывающего завода в Кемеровской области была забита первая свая в основание комплекса по переработке прямогонного бензина УК-1 (установка комбинированная-1).В строительстве комплекса будет занято около 1000 человек. В ходе работ строителям предстоит смонтировать 12 тыс т металлоконструкций и залить более 40 тыс м3 бетона.Всего УК-1 будет производить более 700 тыс т/год высокооктанового бензина стандарта Евро-5.Комплекс по переработке прямогонного бензина будет включать установку по гидроочистке бензина, блок разделения бензина, изомеризации легкого бензина и риформинга с непрерывной регенерацией катализатора.В настоящее время идет контрактация основного технологического оборудования.Поставщиками оборудования выбраны UOP, Amec Foster Wheeler Italiana s.r.l, а так же российские предпр...
Isab SRL, a subsidiary of PJSC Lukoil of Russia, has let a contract to Amec Foster Wheeler PLC to provide engineering services as part of a major turnaround of the 16 million-tonne/year Priolo refinery in Sicily’s eastern province of Syracuse.
Британская Douglas—Westwood в своем новом исследовании сервисных услуг для мировой нефтегазовой промышленности The World Oilfield Services Market Forecast прогнозирует рост сектора с 178 млрд долларов (по итогам 2016 г.) до 252 млрд долларов к 2021 г. Напомним, что за последние два года сектор обвалился на 52% из-за падения нефтяных цен. В то время как ОПЕК координирует […]
Aspen Technology, Inc. (NASDAQ: AZPN), лидер в области программного обеспечения для оптимизации производственных активов, с гордостью сообщает, что сегодня состоялось открытие международной отраслевой конференции OPTIMIZE™ 2017 в отеле The Marriott Marquis Houston, в штате Техас. В конференции OPTIMIZE™ 2017 принимают участие руководители и специалисты из более чем 45 стран и 250 компаний. На конференции будут обсуждаться передовые инновации, которые помогают компаниям сложных и капиталоемких отраслей промышленности обеспечить устойчивое конкурентное преимущество при максимальной эффективности на протяжении всего жизненного цикла производственных активов. Даниэль Кумбс (Daniel Coombs), исполнительный вице-президент по производству, проектам и технологиям для перерабатывающей промышленности компании LyondellBasell, доктор Габор Кенесси (Dr. Gabor Kenessey), генеральный директор по управлению цепями поставок компании Orpic, и Скотт У. Шори (Scott W. Shorey), директор по технологиям и бизнес-решениям компании Amec Foster Wheeler присоединились к Антонио Пьетри (Antonio Pietri), президенту и главному исполнительному директору компании AspenTech, а также Джошу Фредбергу (Josh Fredberg), исполнительному вице-президенту по продукции и маркетингу AspenTech на церемонии открытия этой международной конференции. Спикеры от компаний-заказчиков поделились мнениями о том, как инновации и технологии повышают операционную эффективность. Мировые отраслевые лидеры собираются в рамках конференции OPTIMIZE 2017 для того, чтобы обеспечить:Инновации с передовыми технологиями, которые максимально увеличивают время безотказной работы, и расширяют границы производительности. Взаимодействие с программным обеспечением, предназначенным для бесшовной интеграции в масштабах целого предприятия. Подъем производительности путем расширения охвата оптимизации благодаря сочетанию опыта в области моделирования производственного процесса и технологий Big Data для машинного обучения.В рамках международной конференции OPTIMIZE 2017, Alcoa, BASF, BP, Chevron, The Dow Chemical Company, ENI S.p.A, EQUATE Petrochemical, Evonik Industries, ExxonMobil, INVISTA, Marathon Petroleum, Momentive, Mitsubishi Chemical, SABIC, Saudi Aramco, Shell, Statoil, Sinopec, Perstorp, Valero и другие компании-заказчики представят более 100 исследований в области инженерии, производства и управления цепями поставок, а также проведут сессии и живые демонстрации на тему контроля производительности активов. Для получения актуальной информации о мероприятии, включая регистрацию, тематику основных докладов и отслеживания обновлений в программе конференции, посетите сайт OPTIMIZE 2017. Цитата по теме: Джош Фредберг (Josh Fredberg), исполнительный вице-президент по продукции и маркетингу компании AspenTech "В рамках международной отраслевой конференции OPTIMIZE 2017, AspenTech в очередной раз продемонстрирует свою приверженность в помощи лучшим компаниям стать еще лучше за счет оптимизации проектирования производственных активов и циклов эксплуатации и обслуживания в сложных промышленных средах. С нашим программным обеспечением мы будем продолжать обеспечивать успешную поддержку для предприятий капиталоемких отраслей промышленности с пониманием того, что производственные активы должны становиться быстрее, безопаснее, долговечнее и экологичнее." Ссылки по теме: OPTIMIZE 2017 AspenTech LinkedIn AspenTech Facebook AspenTech TwitterО конференции OPTIMIZE 2017 Международная конференция OPTIMIZE 2017, которую организует и проводит компания AspenTech, является ведущей отраслевой конференцией по оптимизации производственных активов и операционной эффективности. Медиа-спонсоры, оказывающие информационную поддержку, включают Control Magazine, Hydrocarbon Processing и World Oil. О компании AspenTech Компания AspenTech - ведущий поставщик программного обеспечения для оптимизации производительности активов. Наши продукты разработаны для использования в сложных промышленных средах, где очень важную роль играет оптимизация проектирования производственных активов и циклов эксплуатации и обслуживания. AspenTech уникально сочетает десятилетия опыта в области моделирования производственного процесса с технологиями Big Data для машинного обучения. Наша цель - создание программной платформы для автоматизации работы с производственными данными и обеспечение устойчивого конкурентного преимущества, сохраняя высокую доходность за весь жизненный цикл актива. Как следствие, предприятия в капиталоемких отраслях промышленности могут максимально увеличить время безотказной работы и расширить границы производительности, модернизируя и делая свои активы быстрее, безопаснее, долговечнее и экологичнее. Чтобы узнать больше, посетите сайт AspenTech.com.(http://promrf.ru/text/100...)
Stock futures lower after G20 drops free-trade pledge (Reuters) U.K. to Trigger Brexit on March 29, May’s Spokesman Says (BBG) Comey to Testify on Hill About Russia, Wiretap Allegation (WSJ) Germany, Japan Push Trade Deal as Merkel Seeks Anti-Trump Allies (BBG) North Korea engine test may be prelude to partial ICBM flight (Reuters) Regulators Said to Weigh Appraisal Change That May Spur Lending (BBG) Gorsuch to restore conservative tilt to US court (FT) White House installs political aides at Cabinet agencies to be Trump’s eyes and ears (WaPo) Canada Committed to Lower Debt Ratio, Morneau Says Before Budget (BBG) Deputy to Uber CEO Abruptly Exits, Adding to Management Turmoil (WSJ) Almost half of Canadians want illegal border crossers deported (Reuters) Deutsche Bank Says Revenue to Stay ‘Broadly Flat’ This Year (BBG) What’s Attacking the Web? A Security Camera in a Colorado Laundroma (WSJ) French financial prosecutor's office evacuateda (Reuters) A Six-Figure Income May Not Shield You From a Shock (BBG) It’s Good to Be a CEO, Again: Stocks Rise, and So Does Pay (WSJ) Norway unseats Denmark as world's happiest country (Reuters) Rent or Buy in New York? Compare the Costs (BBG) No plans for early election, says UK PM May's spokesman (Reuters) Visco Says ECB Could Shorten Break Between QE Exit And Rate Hike (BBG) China says preparatory work for Xi-Trump meeting has begun (Reuters) Polls in Austria show erosion of far-right Freedom Party's lead (Reuters) Overnight Media Digest WSJ - Uber Technologies Inc said a prominent retail executive it hired as president just six months ago is leaving, the most senior in a string of executive departures as the ride-hailing giant reels from an escalating series of controversies. http://on.wsj.com/2mjaMFD - Pay raises are back in style in the corner office, wiping out cuts from a year earlier and pushing CEO compensation to new highs amid a surging stock market. http://on.wsj.com/2mjaLBo - Walt Disney Co's "Beauty and the Beast" was a monster at the box office this weekend, opening to $170 million from Thursday night through Sunday in the U.S. and Canada, according to studio estimates. http://on.wsj.com/2mjbsuO - Freeport-McMoRan Inc's standoff with Indonesia over the giant Grasberg copper and gold mine is entering a new phase, as the company scales back operations while trying to force a resolution to the dispute. http://on.wsj.com/2mjhMT0 - Music mogul Irving Azoff and a business partner, Tim Leiweke, recently purchased Venues Today, and are in talks to buy Pollstar, people familiar with the matter said. Both outlets cover the live-music business. http://on.wsj.com/2mj8l5N - Canadian mining company Dominion Diamond Corp received a $1.1 billion bid from a privately held conglomerate in Montana, but the two sides are at a negotiating impasse, setting the stage for a public takeover fight. http://on.wsj.com/2mj6Bd7 - The Italian government on Saturday made a series of nominations for the top management of large listed companies it controls, including confirming the chief executive of oil major Eni SpA for a second three-year term. http://on.wsj.com/2mj8sOL - Apple Inc's Chief Executive Tim Cook defended globalization in a rare public speech in China, as his company faces political pressure in the U.S. to bring back factories. http://on.wsj.com/2mjaJcU FT British Prime Minister Theresa May will begin her tour of the UK in order to unite the country before she enters formal Brexit negotiations by the end of the month. The UK defence ministry has said it is in talks with Germany to sign a new defence co-operation agreement after the country launches Brexit. SNC-Lavalin of Canada and UK's Petrofac Ltd are eyeing John Wood Group Plc and Amec Foster Wheeler Plc for picking up assets and contracts. The Children's Investment Fund wrote a letter to Safran SA's board in a push to its campaign to block Safran's takeover bid for Zodiac Aerospace SA . NYT - Jeff Jones, Uber's president of ride sharing, has left the company after just six months, Uber said on Sunday. In addition, Brian McClendon, Vice-President of maps and business platform at Uber, also plans to leave at the end of the month. http://nyti.ms/2mKP2hX - German officials included the offices of both Volkswagen's chief executive and the head of the Audi division when they raided company premises last week as part of an investigation into emissions fraud, according to a copy of the search warrant. http://nyti.ms/2nqd7hJ - A senior Chinese official on Sunday defended his country's push for greater self-sufficiency in computer chips, electric cars and other industries, calling it a necessary strategy in the face of Western countries' controls of certain high-tech gear. http://nyti.ms/2nqmXQM Britain The Times * A senior director of MI5, Jeremy Fleming, is coming out of the shadows to become the new head of intelligence eavesdropping service GCHQ. http://bit.ly/2mKzkn2 * Shareholders could win the legal right to block excessive pay deals for company bosses, as part of British Prime Minister Theresa May's attack on large executive pay. http://bit.ly/2mGtx0W The Guardian * Google executives are bracing for a two-pronged inquisition from the advertising industry and the government over the company's plans to stop ads being placed next to extremist material. http://bit.ly/2nB4kde * Former British ambassador to Washington, Peter Westmacott, has issued a withering criticism of U.S. President Donald Trump and his inner circle, accusing them of making absurd claims about UK's involvement in alleged wiretapping of Trump Tower that he warns could damage close ties between the two countries. http://bit.ly/2np3uQj The Telegraph * Billions of pounds' worth of water contracts will be awarded to utilities in the coming weeks ahead of the opening of the business supply market. The first major framework contract is expected to be awarded by Crown Commercial Services on behalf of UK's public sector which is understood to be worth between 800 million pounds to 900 million pounds. http://bit.ly/2mGqA0i * British housebuilder Crest Nicholson Holdings is facing an embarrassing investor backlash over generous share awards for its top executives as the government weighs radical reforms to rein in excessive pay. http://bit.ly/2n58Sr3 Sky News * A man named David Hempseed has been charged after a member of staff at a NatWest bank in Birmingham was held hostage, police say. http://bit.ly/2nTvmZt * Scottish First Minister Nicola Sturgeon has insisted to a rapturous crowd at her party's conference that "there will be an independence referendum". http://bit.ly/2nTxJvu The Independent * Theresa May is expected to visit Wales this week as she commences a tour of the devolved nations ahead of triggering Article 50 within the next fortnight. http://ind.pn/2mY9cWP
Wood Group PLC has agreed to acquire the entire issued and to be issued share capital of fellow oil field services firm Amec Foster Wheeler PLC in a deal valued at $2.7 billion.
A quiet start to today's quad-witching St. Patrick's day, with European stocks mixed, Asian shares and U.S. index futures (-0.1%) little changed ahead of industrial production data with just Tiffany's set to report earnings. Emerging markets headed toward the best week in eight months even as the global equities rally spurred by the Federal Reserve’s outlook lost momentum. The lack of a more hawkish tone in the FOMC's statement meant the dollar was poised for its biggest weekly loss since February. As Bloomberg observes, markets from Malaysia to Turkey climbed, while Jakarta’s benchmark touched a record before erasing gains. Shares in Tokyo dropped weighing down the MSCI Asia Pacific Index after it posted its biggest gain since November. Chinese stocks slipped 1 percent as investors sought more evidence of a sustainable economic recovery, but indexes were set for a 1 percent increase for the week. Hong Kong's Hang Seng index touched its highest level since August 2015 on Friday. While up only marginally on the day, it was on track for a 3.2 percent gain for the week, its biggest since September. The MSCI Emerging Markets Index rose 0.2 percent, bringing its rally for the week to 4.2 percent, far outpacing a 1.3 percent advance for the MSCI All-Country World Index. European shares opened lower although have since rebounded into the green, while futures on the S&P 500 Index retreated some more following Thursday's modest decline, after climbing to within 0.5% of an all-time high. The Bloomberg Dollar Spot Index was little changed after a two-day loss, while Treasuries recovered some of the previous day’s declines. "The story in global markets over the past 24 hours has centered on a broad-based tightening of monetary policy conditions (and the perception of future tightening)," Chris Weston, chief market strategist at IG in Melbourne, wrote in a note. Global stocks are on course for the best week since January in a week full of central bank announcements but none more improtant thatn the Fed raising its benchmark lending rate a quarter point without accelerating the timetable for future hikes, a move which according to Goldman and RBC was misinterpreted by a market which no longer believes that the Fed could possibly do anything to harm equities according to SocGen' Albert Edwards. “A less hawkish monetary policy in the U.S. is more likely to push assets outside of the U.S. into higher-risk, higher-return markets,” James Woods, a Sydney-based investment analyst at Rivkin Securities, said in a phone interview. “A weaker dollar is supportive of those emerging markets generally. I’m not sure whether its going to be long-lived though. People are going to get back to focusing on the next Fed hike, and also Trump’s policies which would be dollar supportive.” The Stoxx Europe 600 Index was unchanged in early trading, holding on to a modest weekly gain after reaching the highest closing level since December 2015 on Thursday. The MSCI Asia Pacific Index retreated 0.2 percent, after closing Thursday at the highest since June 2015. Japan’s Topix fell 0.4 percent, capping its biggest weekly decline in more than a month. The MSCI Emerging Markets Index rose 0.2 percent, bringing its rally for the week to 4.2 percent, far outpacing a 1.3 percent advance for the MSCI All-Country World Index. The Jakarta Composite Index gained as much as 0.7 percent to a record before erasing gains. India’s Sensex Index climbed 0.3 percent, taking its gains for a holiday-shortened week to 2.6 percent. South Korea’s Kospi and Taiwan’s Taiex jumped 0.7 percent. Hong Kong’s Hang Seng and the Hang Seng China Enterprises Index were little changed after soaring the most since May on Thursday. Futures on the S&P 500 slipped 0.1 percent, after the benchmark gauge fell 0.2 percent Thursday. MSCI's all-country world stock index held near Thursday's all-time high on Friday, on track to end the week 1 percent higher. The pound was unchanged on Friday after strengthening Thursday as some Bank of England policy makers said they may not be far behind Kristin Forbes who’s leaning toward raising interest rates. The dollar index, which tracks the greenback against a basket of six trade-weighted peers, retreated 0.2 percent to 100.18. It hit a five-week low on Thursday, and is down 1 percent for the week. The dollar was steady at 113.32 yen but is on track to post a 1.2 percent loss for the week. Meanwhile, the fascination with volatility remains, as it continues to retreat after the central bank policy decisions, while at the same time, the defeat in this week’s Dutch elections of anti-immigration candidate Geert Wilders is being seen as a blow to populist political leaders, easing concerns ahead of French elections. A gauge of volatility on the Euro Stoxx 50 Index plunged 26 percent on Thursday, the most on record. “Volatility is scarily low and there’s just a lot of complacency out there,” James Audiss, a senior wealth manager at Shaw and Partners in Sydney, said in a phone interview. “After we get through the big macro events with governments and elections, we have to start to look to corporate earnings. That’s where it becomes not so much a systemic stock market move as stock selection.” In commodities, U.S. and Brent crude held above a 3-1/2-month low breached early this week, supported by a weaker dollar. Gold was up slightly at $1,228 an ounce. It was poised to gain 1.8 percent for the week, its first in three, driven by the Fed's more moderate monetary policy stance. * * * Market Snapshot S&P 500 futures down 0.1% to 2,378.00 STOXX Europe 600 up 0.02% to 377.81 MXAP down 0.2% to 147.85 MXAPJ up 0.3% to 478.99 Nikkei down 0.4% to 19,521.59 Topix down 0.4% to 1,565.85 Hang Seng Index up 0.09% to 24,309.93 Shanghai Composite down 1% to 3,237.45 Sensex up 0.3% to 29,682.41 Australia S&P/ASX 200 up 0.2% to 5,799.65 Kospi up 0.7% to 2,164.58 German 10Y yield rose 1.8 bps to 0.466% Euro down 0.01% to 1.0765 per US$ Brent Futures down 0.04% to $51.72/bbl Italian 10Y yield rose 6.4 bps to 2.366% Spanish 10Y yield rose 3.5 bps to 1.934% Brent Futures down 0.04% to $51.72/bbl Gold spot up 0.1% to $1,228.05 U.S. Dollar Index down 0.08% to 100.28 Top Overnight News Airbus Probed by French Authorities as U.K. Fraud Case Widens Amazon Seeks Nod to Invest, Partner in India Food Supply Chain Amec Foster Wheeler Wins Share of $950m U.S. Air Force Contract AstraZeneca Says FDA Issues Response for ZS-9 in Hyperkalaemia Morgan Stanley Veteran Wong Said to Leave to Help Set Up PE Fund Trump Adviser Gary Cohn Said to Sell Stake in China’s ICBC: NYT Apple Plans R&D Centers in China’s Shanghai and Suzhou Freeport Indonesia Axes About 2,100 Workers as Talks Continue Cerro Verde Says Union Could Start Indefinite Strike March 24 U.K. Pulls YouTube Adverts, Summons Google Over Content: Times In Asian markets equities traded mixed, following a weak lead on Wall St. with markets relatively calm following a tumultuous 2 weeks packed with key risk events and ahead of quadruple witching. ASX 200 (+0.2%) was buoyed by gold names as the precious metal held on to most of its post-FOMC gains, while strength in the largest weighted sector financials further underpinned the index. Nikkei 225 (-0.3%) lagged as USD/JPY languished, while Shanghai Comp. (-1.0%) and Hang Seng (flat) were mixed with the mainland underperforming after the PBoC conducted a net weekly drain of CNY 120bIn. 10yr JGBs were flat despite weakness in riskier Japanese assets, while a mixed enhanced-liquidity auction for 2yr, 5yr, 10yr and 20yr JGBs also failed to spur demand. The PBoC injected CNY 20bIn in 7-day reverse repos, CNY 20bIn in 14-day reverse repos and CNY 20bIn in 28-day reverse repos, for a net weekly drain of CNY 120bIn vs. CNY 110bIn net drain last week. In European bourses, price action has been similarly uneventful as the week closes, with major indices failing to find a firm direction as participants keep one eye on the quadruple witching throughout the day. The FTSE has managed to hold near yesterday's fresh all time highs, despite miners seeing some profit taking in the wake of recent strength. The softness in miners has been offset by the likes of Berkeley, who led the index at the open after their pre-market earnings. Yields continue to climb in the fixed income space, with bund prices lower today by around 50 ticks after the Nowotny comments yesterday. Elsewhere, Greek yields also continue to climb after yesterday's commentary from an EU official suggesting it is likely the bailout review will be completed by early April. In currencies, the Bloomberg Dollar Spot Index added less than 0.1 percent, after dropping 0.2 percent on Thursday on top of a 1.3 percent post-FOMC drop. The gauge is down 1.2 percent for the week, the most since the period ended Feb. 3. The yen was little changed at 113.25 per dollar, paring its biggest weekly gain in more than a month. The pound rose 0.2%, rebounding just shy of $1.24. The currency is up 1.6 percent for the week, its biggest gain since January. The euro was little changed at $1.0769, bringing its advance for the week to 0.9 percent, following yesterday's hint by Nowotny that rate hikes in Europe may be coming. The USD continues to struggle this morning — this in spite of US Treasury yields balancing out after the sell off post FOMC. Both the EUR and GBP are still gaining ground against the greenback this morning, and both from an interest rate perspective, where yesterday's MPC conclusion revealed the majority of the BoE see a case for a rate hike sooner on the timeline. This came alongside the dissenting Forbes who voted for a hike this time around, though tempered by the fact that she leaves the committee in Jun. Cable has pushed higher today to test the stronger resistance levels seen ahead of 1.2400, but has held for now. EUR/GBP was testing support ahead of 0.8650 late yesterday before the ECB's Nowotny hit the newswires with hints towards a rate move ahead of tapering — distinguishing their exit strategy to that of the US. The cross rate turned tail to reclaim 0.8700, but has topped out ahead of 0.8750 before moving lower again. This has come in tandem with a EUR/USD move towards 1.0800, but selling intensifies the closer we get to this level. In commodities, oil rose 0.2 percent to $48.84, heading toward its first weekly gain in three weeks thanks to a surge on Wednesday. Gold added 0.1 percent after a two-day gain, trading at $1,228.33 an ounce and poised for a 2 percent increase for the week. Oil prices have recovered courtesy of the latest inventory data from API, perhaps less so the DoE. Saudi Arabia have also alluded to a potential extension to production cuts beyond June, but this will be cause for consolidation more than anything else, and it is now surprise to see WTI struggling to get back into the $50-55 range — currently just under $49.00. The moderate retracement in the USD has also been supportive, as it has across the commodity spectrum, with the impact on base metals positive along with some fresh optimism over demand. Supply issues have also aided Copper and Zinc price, but levels still comfortably off the recent highs seen. Gold continues to track the USD, and with a tighter correlation in Treasuries, USD/JPY has been a good indicator, with some calls for a move back to $1250.00. Looking at the day ahead in the US we’ll get the February industrial and manufacturing production prints for February where the consensus is for +0.2% mom and +0.5% mom respectively. The conference board’s leading index for February is also due along with the first estimate of the March University of Michigan consumer sentiment print. It’s worth noting that over the weekend China will also release February property prices data. There are a couple of other things to highlight starting today. One is the G-20 finance ministers meeting which continues into tomorrow and the other is the Scottish National Party conference which also continues into tomorrow, where clearly most will be looking for further debate on a possible second referendum. US Event Calendar March 17-March 20: Labor Market Conditions Index Change, est. 2.5, prior 1.3 9:15am: Industrial Production MoM, est. 0.2%, prior -0.3%; Capacity Utilization, est. 75.5%, prior 75.3%; Manufacturing Production, est. 0.5%, prior 0.2% 10am: U. of Mich. Sentiment, est. 97, prior 96.3; Current Conditions, est. 111, prior 111.5; Expectations, est. 87.1, prior 86.5 U. of Mich. 1 Yr Inflation, prior 2.7%; 5-10 Yr Inflation, prior 2.5% 10am: Leading Index, est. 0.5%, prior 0.6% Jim Reid concludes the overnight wrap, with the announcement that his wife is expecting twin boys What have Amal Clooney, Beyoncé and my wife got in common? Please don't spill your coffee when reading the following but shock of all shocks they are all expecting twins. We had our 12 week scan yesterday - which I just managed to get back in time for after storm Stella delayed me - and it all went well. Ours are identical which are a 1 in 300 occurrence, and totally hit us for six when we found out a few weeks ago. I knew nothing about twins beforehand but apparently identical ones are totally random across age, region, religion and family history. There are absolutely no clues to their likelihood. Indeed given our age and a long time trying we thought Maisie was a miracle. What this qualifies as we've no idea. However poor Trudi has been suffering from extreme morning sickness for the last 2 months and has been on medication to help combat it. Apparently it's twice the hormones with twins and can be twice the sickness. Homelife has been a bit of a nightmare over this period and I've had to step up to the plate a lot and also get care for poor Maisie. She is still sick and exhausted but is slowly getting slightly better. So please feel for her growing two replicas of us inside of her. Also it being twins and our geriatric age (combined 87 years old around delivery... and I'm the toy boy!) make it a risky pregnancy so hopefully everyone will have their fingers crossed for us. To build some suspense there will be a gender reveal in today's PDF. I've no idea how gender reveal parties have caught on in recent years but luckily I've avoided going to all I've been invited to. All you have to do is open the PDF for all to be made apparent. Oh and I'm sure there are some twins or parents of twins out there reading this. Any advice will be gratefully received - especially with identicals. It's fair to say we're still in shock. We certainly don't know how to tell poor Bronte!! Talking of sickness, tracking bond yields over the last 36 hours has left you in danger of experiencing quite bad motion sickness as Wednesday night's fierce rally partly and suddenly reversed yesterday. 10y Treasury yields rose +4.7bps to 2.541% and in doing so reversed just under 50% of the post Fed move. 2y yields also darted back up +3.3bps to 1.334% and unwound a similar percentage of the prior day rally. I had a lot of clients email me yesterday wondering why bonds should have rallied so much in the first place when the Fed had hinted that they could let inflation run symmetrically around their target which might mean a period where's it's allowed to run a little hot. The relatively dovish dots seemed to dominate activity Wednesday night but perhaps there was some acknowledgment yesterday that this actually could mean 10 year yields should rise not fall. Anyway there are many ways of interpreting the Fed and at the moment yields are still notably lower than before the decision. That said in Europe bond markets yesterday did pretty much complete the post Fed u-turn. 10y Bund yields backed up +3.4bps to finish at 0.443%, yields in the periphery were up to +6.7bps higher while similar maturity Dutch yields were +2.6bps higher at 0.683%. Indeed the biggest driver appeared to be that market-friendly Dutch election result and specifically the defeat for the populists, helping to lower expectations of a possible Le Pen shock in France. ECB board member Praet also spoke and sounded generally upbeat on European growth prospects although did still sound some caution on the inflation outlook. Later in the evening and after the European close the ECB’s Nowotny also caused a bit of a hawkish buzz after being quoted in the Handelsblatt saying that the ECB doesn’t necessarily need to follow the US model of completing QE before raising rates, and also that the ECB could raise the deposit rate before the main refinancing rate. We'll see the reaction in the front end this morning. The Euro spiked on Nowotny’s comments having traded flat for most of yesterday, closing up +0.30% versus the Dollar and it’s up a little bit more this morning at 1.078. Generally positive sentiment in Europe was reflected in a decent session for risk assets yesterday with the Stoxx 600 closing +0.70%, with European Banks +0.94% and to a new 15-month high. The iTraxx Main and Crossover indices were 2bps and 7bps tighter respectively. In contrast the S&P 500 (-0.16%) and Dow (-0.07%) both eased back, albeit very modestly with the S&P 500 still up about +0.30% versus the pre-Fed level. EM on the other hand surged again with the MSCI EM index up a bumper +2.09% and to the highest since July 2015. Meanwhile it’s worth highlighting that President Trump’s budget came and went without causing too much of a ripple. The President proposed steep cuts to a number of domestic departments to pay for higher military spending, amongst other things. Indeed much of the chatter is that Congress will almost certainly reject most of the proposals. House Speaker Paul Ryan confirmed that the budget request is part of a “long, ongoing” process. Overnight in Asia it’s been fairly quiet for the most part. Equity bourses are fairly mixed but moves have been modest with the Nikkei (-0.36%) and Shanghai Comp (-0.24%) a little softer but the Hang Seng (+0.28%), Kospi (+0.35%) and ASX (+0.37%) all slightly firmer. Rates and currencies are also fairly quiet while Oil and Gold are a little firmer. Staying in Asia, after China's mini tightening yesterday it was good timing from our chief economist Zhiwei Zhang who published a note looking at how the property bubble is getting bigger with policy behind the curve. Zhiwei thinks the root cause of this bubble is excessively loose monetary policy set to achieve growth above its potential. He thinks aggressive monetary tightening is unlikely in 2017 though and that the bubble might help the economy in the near term, partly through a large wealth effect for households as well the government. But it severely heightens macro risks, particularly for 2018-2020. Talking of bubbles our asset allocation team published a note yesterday suggesting that US real yields are extremely misvalued if not actually in a bubble and are at levels comparable to those seen at the depths of the financial crisis. So after a week of a Fed hike and a mini Chinese one, here in the UK there was some surprise that BOE member Kirsten Forbes dissented from the rest of the committee yesterday and voted for a 25bp hike. She does leave the committee in the summer which perhaps downplays the move but the tone in the minutes were on the hawkish side notwithstanding the MPC acknowledging that wage inflation was "notably weaker" than the expectations from the Inflation Report in February. As DB's Mark Wall highlights, first there was a reference to "some members" (beyond Forbes) feeling that it would not take much upside relative to current growth and inflation expectations for an immediate tightening of policy to be warranted. Second, the MPC sees potential offsets against the baseline view that weaker consumption weakens GDP, for example, more supportive net trade. Mark's baseline view is for an indefinite hold on rates but yesterday's tone increases the risks of upcoming tightening. Away from the central banks, yesterday’s data was largely second tier by nature in the US. The most notable was perhaps the Philly Fed manufacturing index which declined a bit less than expected in March (32.8 vs. 30.0 expected; 43.3 in February) albeit with the index still at fairly elevated levels. The details also revealed a small uptick in new orders by 0.6pts to 38.6. Away from that housing starts were reported as rising +3.0% mom in February (vs. +1.4% expected) however permits fell -6.2% mom (vs. -1.9% expected). On the employment front initial jobless claims held steady at 241k while the BLS JOLTS report for January showed a small lift in the quits rate to 2.2% which matches the post-recession high from December 2015. The hiring rate rose to 3.7% from 3.6% and was the first increase since July. Finally the only notable data in Europe was the final February inflation report for the Euro area where headline CPI was confirmed at +0.4% mom and the YoY rate at +2.0%. There were no final revisions to the core either at +0.9% yoy. Away from that central bank decisions from Switzerland, Norway and Turkey saw benchmark rates left on hold. Looking at the day ahead it’s a fairly quiet end to the week for data in Europe this morning with Q4 wages data in France and the latest trade balance reading for the Euro area the only releases of note. In the US we’ll get the February industrial and manufacturing production prints for February where the consensus is for +0.2% mom and +0.5% mom respectively. The conference board’s leading index for February is also due along with the first estimate of the March University of Michigan consumer sentiment print. It’s worth noting that over the weekend China will also release February property prices data so it’ll be worth seeing if the data backs up our aforementioned economists’ view. There are a couple of other things to highlight starting today. One is the G-20 finance ministers meeting which continues into tomorrow and the other is the Scottish National Party conference which also continues into tomorrow, where clearly most will be looking for further debate on a possible second referendum. Meanwhile I'll still be walking round in a state of shock.
State-owned Kuwait Petroleum Corp. (KPC) subsidiary Petrochemical Industries Co. KSC (PIC) has let a contract to Amec Foster Wheeler PLC for the integration project between PIC’s proposed grassroots Olefins III-Aromatics II complex and Kuwait National Petroleum Co.’s (KNPC) 615,000-b/d Al-Zour refinery complex now under construction in southern Kuwait.