Scottish Power cuts gas prices 4.8%European markets rise German confidence surgesIMF cuts global growth forecastsChinese economy slows 2.18pm GMT Copper is trading higher after China’s growth figures were not as weak as many analysts had feared. revealed growth in 2014 was not as weak as feared. 1.56pm GMT The business blog’s very own Graeme Wearden is in Switzerland and is making his way to Davos. Ok, is this the right way up? https://t.co/CDzPVNu9uiA participant arrives by private helicopter for the #WEF15. LIVE coverage out of #Davos: http://t.co/pf3BsK2WcE pic.twitter.com/TAnxrv29c3 1.27pm GMT The UK will remain in the European Union, analysts and traders are convinced.Of the 500 people surveyed for Bloomberg’s quarterly global poll, 71% believe the UK will be part of the EU for the foreseeable future. 12.43pm GMT Back with George Osborne and his appearance at the Treasury committee:Osborne says budget will contain further tax cuts for oil and gas industry - http://t.co/Es6vlFPJhy 12.25pm GMT Morgan Stanley is the latest big US bank to report results, and they have come in below expectations, with fourth quarter revenues of $7.8bn and earnings per share of $0.47.$MS miss on both their EPS and revenue, trading lower by 3% ahead of the Wall Street openMorgan Stanley is the latest US bank to report below-forecast earnings numbers. Last week results from BoA, Citi and JPM all disappointed^FR 12.19pm GMT Meanwhile chancellor George Osborne is currently being quizzed by the Treasury committee about more tax powers for Scotland. My colleague Andrew Sparrow is live blogging the sesssion here. 11.44am GMT In China-related news, Unilever has warned this morning that it does not expect market conditions to improve in 2015 because of a downturn in emerging markets and weakness in Europe.We do not plan on a significant improvement in market conditions in 2015. Against this background, we expect our full-year performance to be similar to 2014 with the first quarter being softer but growth improving during the year. 11.26am GMT Some more reaction to the IMF’s revised growth forecasts now, specifically on the UK. The shadow chancellor Ed Balls has (unsurprisingly) taken a different view on the forecasts to George Osborne, who was overwhelmingly positive this morning.It’s worrying that the IMF has downgraded its forecasts for the UK economy for last year and next year too. In contrast the IMF says the US will grow faster than us this year and next year and has seen its growth forecasts upgraded.This shows why the complacency of David Cameron and George Osborne is so misplaced. Claims that the economy is fixed will ring hollow to millions of working people who are on average £1,600 a year worse off under this government.Today’s forecast update from the IMF confirms expectations that the UK economy has grown faster than any other G7 country in 2014. It is also encouraging that along with the US we are one of only two G7 countries not to have seen our growth downgraded in 2015. However while this marks real progress we need to continue sticking to our plan to build the stronger economy and fairer society that we aspire to. 11.06am GMT Scottish Power’s move to cut prices follows the decision by British Gas on Monday to cut prices by 5%, with effect from 27 February.Today’s decision has been made to benefit our customers and keep our prices competitive. We will continue to keep our prices under review. Our pricing reflects all of the costs that contribute to a customer’s bill. The wholesale price of energy accounts for half of a customer’s gas bill, but non-energy costs such as transmission and distribution networks and environmental and social obligations remain unaffected by any wholesale energy price movements. 10.45am GMT Breaking: Scottish Power has become the latest energy company to cut its household gas prices. Prices will be cut 4.8% from 20 February. More soon. 10.42am GMT As speculation about the outcome of Sunday’s Greek election mounts, read the Guardian’s datablog here for the latest facts and figures.The big fear among financial markets is that a victory for the radical left and anti-austerity party Syriza - currently ahead in the polls - will ultimately lead to a Greek exit from the eurozone.Greece Election 2015: the politics and economics in numbers http://t.co/VU7Y9biqJQ #ekloges2015 10.32am GMT Confidence among Germany’s analysts and investors jumped to an 11-month high in January, beating expectations.Low oil prices, a weak euro, and expectations that the ECB will announce quantitative easing on Thursday, boosted hopes that Europe’s biggest economy will rebound after weakening in the second half of last year.Presumably any worries about the effect of the Greek crisis on the German economy were offset by expectations of ECB quantitative easing and hopes of a boost to exports from the weakening euro. This may suggest that German GDP growth, which stalled around the middle of 2014 and seems likely to have been very weak in Q4, will pick back up this year. 10.21am GMT Consumer goods group Reckitt Benckiser has received a slap on the wrist from the Financial Conduct Authority in the form of a £539,800 fine over share dealing by its senior executives.The FCA said its disclosure to the market of share dealing by two senior executives was late and incomplete as a result of inadequate monitoring. 9.55am GMT Ukraine is confident that there will be a positive outcome from negotiations with the IMF over further financial aid, Reuters is reporting.Ukraine has been pushed to the financial brink as a result of the pro-Russian separatist war in the east and is facing huge debt repayments. It has asked the IMF to extend an existing programme to plug a $15bn (£9.9bn) funding gap.The talks are constructive. Co-operation with the IMF is fruitful. I feel optimism about the possible outcome. 9.37am GMT The European Central Bank has reported a rise in companies seeking a bank loan in the fourth quarter. Demand is also expected to rise in the first three months of 2015.In its latest quarterly survey of bank loans, the ECB said that a quarter of banks surveyed saw an increased in demand for home loans in the final quarter of 2014, with a fifth expecting another increase this quarter.The heterogeneity across countries continued to reduce somewhat, with banks in Germany, France, the Netherlands and particularly in Spain reporting an increase in demand for loans to enterprises and Italian banks indicating unchanged demand. For housing loans, net loan demand was particularly positive in the Netherlands, Italy and Germany and to a lesser extent in Spain, while remaining unchanged in France down from a strong increase in the previous quarter. 9.17am GMT Brent crude oil prices were down on Tuesday morning, trading at just above $48 a barrel. Nariman Behravesh, the chief economist of data provider IHS, says plunging oil prices will transfer roughly $1.5 trillion (£990bn) in wealth from producers of oil to consumers of it. Everyone right now is talking about the impact of the oil price plunge. While clear winners and losers are being created, the net effect will be positive as roughly $1.5 trillion in wealth is transferred from producers of oil to consumers of it. This will translate to an additional 0.3 to 0.5 percentage point to world growth.As a point of reference, the 67% drop in oil prices in 1985 and 1986 was followed by a boom. While three decades later the global environment is different, and a boom may not be in the offing, the big drop in oil prices will help growth. 8.48am GMT It’s that time of year again when world leaders and the big names in business and economics put their heads together in the Swiss mountains to debate pressing issues of global significance.On the Davos agenda: from Al Gore on global warming to fears over eurozone http://t.co/bhmtuw6dB1 8.33am GMT European investors have shrugged off the IMF’s weaker global outlook this morning, with all major indices trading higher. The news from China that growth was the slowest in 24 years in 2014 was not exactly positive, but markets are signalling relief: it could have been worse. 8.22am GMT Here is a table of the IMF’s latest projections. 8.17am GMT Back on the IMF, the outlook for the UK was unchanged for 2015, with growth of 2.7% forecast. It nudged down the forecast for 2016 to 2.4% from 2.5%.The Washington-based Fund believes official figures will soon confirm that the UK was the fastest growing G7 economy last year with growth of 2.6%. (The Office for National Statistics will publish its first estimate of fourth-quarter and full-year growth on 27 January.)Today’s IMF forecast shows that Britain is pulling ahead, while the global economy is being downgraded. There’s confirmation that we grew faster than any other major economy last year, and we’re set to grow faster this year*. But there are risks out there in the global economy and it’s a timely reminder that we’ve got to go on working through our long term economic plan if we want to stay ahead. IMF forecast shows that Britain is pulling ahead while the global economy is downgraded. Fastest in G7 in 2014 and growing faster in 2015 7.48am GMT Good morning, and welcome to our rolling coverage of the financial markets, the world economy, business and finance.The International Monetary Fund has become the latest heavyweight forecaster to downgrade its outlook for the global economy. Continue reading...
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