Pound hits three-week low after Bank of England says slowing jobs market could prompt rate cut – business live | Business
KEY EVENTS
Following a 30% tariff threat in Donald Trump’s EU imports, the European Stock Exchange markets will be opened lower.
. Eurostoxx 50 The index of large European companies decreased by 0.72% in futures transactions. DAX Reuters fell by 0.84%of futures (German stock market).
The euro is also weakening this morning, after Donald Trump, the goods imported from the European Union will face a 30% US tariff ratio from 1 August.
Trump’s The last trade war bomb had been negotiating for two sides for weeks, disappointed the EU. Europe was hoping Embers A naked bone agreement similar to the UK pact would agree to lower the tariffs on car exports and steel.
Instead, however, the US President decided to bring higher costs for US importers who bought goods from the EU.
On the other hand, the EU decided to delay its retaliation tariffs in US exports again,
European commission minister Ursula von der leyen He said yesterday:
“The United States sent a letter with measures that will come into force unless there is a solution to us, so we will expand the suspension of our counter measures to the beginning of August.
“At the same time, we will continue to prepare for counter measures by preparing exactly.”
Considering Trump’s record, the planned August tariff increases are not guaranteed…
Therefore, the market reaction is modest so far, the euro decreased by 0.17% $ 1.1669.
Introduction: The governor says that if the labor market slows down, he can reduce the Bank of England rates, he says
Good morning and welcome the business world to our financial markets and our world economy.
The governor of the UK Bank said that if the labor market slows down rapidly, it could make greater deductions than their interest rates, this morning fell to the lowest three -week level this morning.
Andrew Bailey said Times This “Slack” was opened in the UK economy after an increase in employers’ national insurance contributions. This looseness should create downward pressure on inflation.
Bailey “I really believe that the road is down for interest rates”. The bank ratio is currently 4.25%, after four quarters of points deduction last year, the bank was planned to set a price on the next 7 August.
Bailey Added:
“If we see looseness much faster, this will lead us to a different result.”
“I think the road [for interest rates] fell. I really believe that the road is down, but we continue to use the words ‘gradual and careful’ because… Some people me ‘Why do you cut over the goal of inflation?’
Governor Bailey In addition, Rachel Reeves’ decision to increase taxes to employers, said the following:
“Adjusting employment and watches, and if the NICS change had not been realized, it is probably to have less wage increases”.
Last week, Guardian announced that the National Guard will reduce at least 550 jobs in saving £ 26 million after the changes in the first budget of Reeves’ first budget.
The hospitality companies have repeatedly warned that higher NICs will force them to cut things.
And indeed, new data this morning show that the number of people hunting business has increased as rapidly since the height of Covid pandema.
Follow -up Bailey’s Ratio cutting clue, pound fell 0.2% this morning to $ 1,3467.
This has extended its lowest level, last losses since June 23, three weeks ago.
