Good morning! Here’s what you need to know in markets on Thursday.
1. All eyes are on the Bank of England, with the latest inflation decision, asset purchase facility decision, and outlook on the UK economy all due at 12.00 p.m. BST (7.00 a.m. ET). No change is expected to the Bank’s policy but inflation data on Wednesday put pressure on the bank to raise rates sooner rather than later. Markets will therefore be watching the wording of any statements closely.
2. The tax authorities have accused Amazon of failing to co-operate fully in tackling a multibillion-pound fraud that is putting scores of small British companies out of business. The Times reports that figures from HM Revenue & Customs suggest that foreign companies selling goods through websites such as Amazon and eBay are evading tax on up to a third of all sales. Meanwhile, the online giants make millions of pounds in commission.
3. US stocks nudged higher to a new record overnight as investors weighed new inflation data in an attempt to forecast the Federal Reserve’s next move. The S&P 500 rose less than 0.1%, up slightly from a new record high reached on Tuesday. Meanwhile, the Dow rose 0.2%, while the more tech-heavy Nasdaq increased 0.1%.
4. Japanese stocks were steady in choppy trade on Thursday morning, as weak Chinese economic data offset early gains. China posted its slowest growth in investment in nearly 18 years along with weaker-than-expected industrial output and retail sales. Japan’s Nikkei stock index is down 0.29% at the time of writing (6.30 a.m. BST/1.30 a.m. ET), while elsewhere in Asia the Hong Kong Hang Seng is down 0.66%, and China’s Shanghai Composite is down 0.32%.
5. The UK government will aim for a “bespoke” deal with the EU to protect the City of London after Brexit, Chancellor Philip Hammond has said. Financial services are the UK’s most important export to the EU, he said at a dinner in the City last night. The BBC reports that Hammond said Brussels would not be allowed to use Brexit to introduce “protectionist” measures designed to target the City.
6. House prices in central London fell at their sharpest pace since 2008 in August, intensifying the slowdown in the capital’s housing market, but prices went up in other regions of Britain, a survey showed on Thursday. Reuters reports that the Royal Institution of Chartered Surveyors (RICS) said …read more
Source:: Business Insider