Rolling business and financial news, as global investors digest the Federal Reserves latest policy statement, and the Scottish independence pollLatest: UK retail sales up 0.4% in AugustIntroduction: Markets digest the FedGold hits eight-month low overnight Coming up: ECBs first TLTRO stimulus programmeFollow the Scottish referendum vote here 9.59am BST Confirmation that spending on non-food items such as hoovers pushed up retail spending. 9.51am BST The ONS confirm that Britain turned into a nation of vacuum-cleaner shoppers last month:Electrical appliance stores contributed to the increase in the quantity bought in household goods stores. Feedback from retailers suggested that sales were increased as consumers sought to buy high powered vacuum cleaners before the EU energy saving regulation came into force at the end of August. 9.44am BST UK retail sales grew faster than expected last month, and panic buying of vacuum cleaners is partly responsible.Sales volumes grew by 0.4% in August, and were 3.9% higher than a year ago, according to new data from the Office for National Statistics.Don't say the EU does nothing for the UK! RT @ONS Purchases of high powered vacuum cleaners boosted sales in electronic goods storesSaturday's Daily Mail front page - "The great vacuum cleaner stampede" #tomorrowspaperstoday #bbcpapers pic.twitter.com/bq4It0GHnP 9.32am BST Most European stock markets have gained ground this morning, with the German DAX up 0.8% and the French CAC up 0.5%.The FTSE 100 is lagging, though, up just 12 points or 0.2%. The Scottish referendum may be weighing on the City. 9.24am BST Back on the gold price, and this chart shows how bullion has lost 9% of its value since early July, and 12% since March.The decline came as investors brace for the US Federal Reserve to end its quantitative-easing bond-buying spree, and then raise interest rates next year. 9.13am BST In the City, traders are dashing to protect themselves from being burned by the Scottish independence referendum which began two hours ago.The cost of buying overnight protection against sterling volatility has soared this morning, according to Reuters data:The overnight sterling/dollar implied volatility rose to a high of 34.75 percent, almost 10 times levels seen a month ago, having closed on Wednesday at around 12.75 percent. The overnight options will expire on Friday, when results for the Scotland vote will be announced.Alex Salmond going in to cast his vote in the village where he lives #indyref pic.twitter.com/yudo2CgPiGAnd guessing this business bracing for a busy night �� pic.twitter.com/E0DjiC0OP3 8.58am BST Switzerlands central bank has declared that it will immediately take action to prevent the Swiss franc appreciating any higher.The SNB voted to leave interest rates unchanged at 0.0%, but also warned that economic conditions have worsened.The economic outlook has deteriorated considerably. The Swiss franc is still high. With the three-month Libor close to zero, the minimum exchange rate remains the key instrument to avoid an undesirable tightening of monetary conditions. The SNB will therefore continue to enforce the minimum exchange rate with utmost determination. For this purpose, it is prepared to purchase foreign currency in unlimited quantities. If necessary, it will take further measures immediately.Talk of negative Swiss rates isn't followed up with action...for now at least. No policy change from SNB, Swiss franc rises. 8.37am BST Overnight, the International Monetary Fund has warned that the global recovery is precarious.It told G20 finance minister and bank chiefs that excessive risk taking and geopolitical hazards pose new threats to the global economy, and cut its growth forecasts for this year. 8.28am BST Bloomberg also reports that the gold price was hit by the Feds forecast that rates will rise more rapidly in 2015 and 2016 (even if theres a considerable pause before the first hike)Higher rates are becoming a reality, Chris Gaffney, the senior market strategist at EverBank Wealth Management in St. Louis, said in a telephone interview. The sentiment is turning very very bearish.#Gold Falls to Eight-Month Low as Fed Raises Rate Estimate http://t.co/ImNWCB1zLZ 8.23am BST Heres Reuters take on the falling gold price:Gold tumbled to its lowest in 8-1/2 months on Thursday as the dollar index jumped to a four-year peak after the Federal Reserve signalled that a faster hike in U.S. interest rates might be on the horizon.The Fed on Wednesday renewed its pledge to keep interest rates near zero for a considerable time, but also indicated it could raise borrowing costs faster than expected when it starts moving. 8.19am BST Good morning, and welcome to our rolling coverage of the financial markets, the world economy, business and finance.The US dollar is rallying this morning after the Federal Reserve signalled last night that US interest rates will rise faster than expected, once the hiking begins.In commodities, Gold has taken another dive to $1217/oz, its lowest since January, after the US Fed increased its interest rate projections, spurring USD gains which made the safehaven more expensive.GLOBAL MARKETS-Yellen comments boost U.S. stocks; gold fallsGold falls to lowest since January http://t.co/UO5jHNjpqIThe labor market is still struggling to recover, Yellen said to reporters on Wednesday. There are too many people who want jobs but cannot find them too many people who are not searching for a job but would be if the labor market were stronger.Fed in no hurry to raise interest rates as it details gradual plans to exit stimulusWhat else is afoot today?...The message that Hardouvelis is sending to Germany and Greeces other creditors in an interview to be published on Thursday in German newspaper Handelsblatt is that the country is able to refinance its requirements by itself.Just a few days before a meeting between the Greek and German heads of government, Antonis Samaras and Angela Merkel, Hardouvelis argued that Greece does not need a third bailout package, noting that the country is able to borrow from markets at a cost below that of the loans from the International Monetary Fund.... Continue reading...
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