Hugh Pill, Bank Of England, Europe discussed on Bloomberg Daybreak Europe


Live trading here in Europe The markets over the U.S. the S&P 500 hitting a new record but tech taking a bit of a hit in the later stages of the session on the back of those disappointing earnings from snap that had implications for Twitter Google and Facebook as well Supply chains now impacting the social media companies also inflation back front and center market expectations around inflation at ten year highs of 15 year highs I should say So that is one to watch as well The futures here in the Europe pointing to gains of 6 tenths of a percent you've had a positive session over in Asia gains of two tenths of a percent across the MSCI benchmark index in Mainland China there's some relief that ever grand that significant real estate developer has managed to pay a coupon on a dollar of bonds so bit of stress taken away from that story and gains there of a close to 1% in Shenzhen just over a tenth of a percent in Shanghai over in Hong Kong the tech sector there is doing quite well gains of 2% as well on the back of some relief around whether or not regulation Morgan Stanley saying the regulation re squeeze their has peaked The futures in the U.S. by the way looking slightly lower down a tenth of a percent Your currencies Euro dollar is currently at one 16 The dollar itself is just slightly weaker in today's session Okay so those are the markets for you this morning Let's go to our top stories It does look like Britain's at a really pivotal point So let's start there Is a rate hike next month Really still on the cards the decision whether to raise interest rates is live and finally balance that is what the Bank of England's new chief economist Hugh pill per pew has uphill rather has told the Financial Times rumored Hannah George has more The Bank of England is in an uncomfortable position Hugh pill says that UK inflation may top 5% in the coming months far above the bank's target of 2% But he added that the pace of price gains will moderate in the second half of next year While money markets are anticipating a rate increase in November pills remarks suggest that a hike isn't a done deal But that he may favor acting to curb inflation Pill also signaled that any future tightening doesn't need to be overly restrictive and he had a warning for investors saying there's a bit too much excitement in the focus on rates right now In London I'm Hannah George Bloomberg daybreak Europe And it seems British households are bracing for expected interest rate increases from the Bank of England and they're less willing to make big purchases ahead of the crucial Christmas period According to the latest survey by GF K UK consumer confidence fell in October but that was to the lowest level since the country was stuck in a lockdown The main sources of worry surging inflation food and fuel shortages and clover climbing COVID-19 cases Okay so that on the UK meanwhile the fed is imposing new rules on personal investing for officials at the Central Bank the move follows trading disclosures that led to the resignations of the Dallas fed president Robert caplan and Boston's Eric rosengren his Bloomberg's Steve Matthews on those changes They're prohibited from purchasing individual stocks from holding individual bonds from holding derivatives The rules require even for the securities they do hold they require that they have 45 days advance notice for purchasing our sale of securities They have to get approval for purchasing their sale of securities and they have to hold anything that they do hold for at least a year Well fed watchers say that the prompt action on this ethics scandal taken by J Powell could help his chances for renomination pals current term and in February China evergreen lives to see another day We get more from Bloomberg's Rosalind chin Evergreen has pulled itself back from the brink of default by paying a bond coupon before this weekend's deadline Sources say the company wired the $83.5 million payment and bondholders will receive the funds before Saturday The payment was originally due on September 23rd Saturday the deadline of the one month grace period Meanwhile markets received the news positively shares of Chinese developers surging for a second day in Hong Kong In Hong Kong and Rosalind chin Bloomberg daybreak Europe Well let's get more on this story and bring in Bloomberg's cross asset editor Joanna oshi this morning hi Joanna thanks for being with us What is the market reaction then some relief to evergreens payment Yes Definitely relieved And just a greater sense that things are okay we can go a little bit risk on the stocks in general are up This did really affect sentiment in Asia the dollar is down a little bit So it wasn't just those Chinese developers stocks that did well although they did but it's definitely creating a sense of greater calm within Asian markets today Joanna there's a lot of excitement of course a lot of bars around this futures ETF for Bitcoin that launched earlier this week Now there's concern though about the size of these ETFs What is going on Yeah well there is concern that for instance the futures carry drag could become even larger So basically these ETFs might get so big that they might start influencing the market and make themselves actually more expensive in the process And JPMorgan put out a note yesterday saying that they think it could be bidding up both the futures curve further relative to spot prices and the roles between contracts So that's definitely one to watch as these ETFs start to get approved and kind of settle out Yeah and just a word on Bitcoin right now $63,000 at the moment up 5 tenths of 1% but pulling back of course from the record in terms of the Bitcoin price this week Thanks so much to try and Austin to their full time market commentary and analysis check out markets live ML live on your blue book terminal And the U.S. and 5 European governments have resolved a dispute over digital taxes on American tech giants the deal was reached after a broader global agreement to overhaul levies on big corporations under the deal the European countries will retain so called digital services taxes on companies like Amazon and Facebook but once a global tax deal comes into effect they'll refund any levies in excess of the agreed rate Okay more in terms of those a big tech companies then snap plunged as much as 27% post market after it reported third quarter sales that fell short of analyst estimate more from Bloomberg's dog prisoner A key challenge stems from changes to apple's data collection rules All apps on the iOS 15 platform must now get iPhone users permission to be.

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