All the latest economic and financial news, including disappointing surveys of Europe’s dominant service sector and protests at Air France * Latest: Air France execs’ shirts ripped * UK service growth hits lowest since April 2013 * Eurozone growth slows too * UK government starts Lloyds retail sale 3.12pm BST Dennis de Jong, managing director at broker UFX.com said: With inconclusive economic data in recent weeks, the Fed is now split on the timing of an interest rate rise. That situation is unlikely to change in response to today’s non-manufacturing figures, which aren’t strong enough to sway Janet Yellen and Co towards a clear decision. A decline on last month puts a dampener on what is actually quite a robust set of numbers. It’s not all doom and gloom, however, as Yellen’s reluctance to act may be seen as a positive move elsewhere. 3.04pm BST Confirmation that the US services sector saw slowing growth in September comes from the Institute for Supply Management. The ISM services index fell to 56.9 from 59 in August, and lower than analysts’ expectations of a reading of 57.5p. Both new orders and business activity slowed. US Data Watch: September ISM Non-Manufacturing Employment Index At 58.3 Vs 56 (MoM) The Employment component of ISM Services PMI actually rose 2+ points 58.3 last month - did NFP overstate labor market weakness? ^MW 2.53pm BST And shortly we will get the ISM indices... 2.53pm BST America’s service sector is growing by less than expected, according to the first of two rival surveys. Markit’s final purchasing managers index for the sector came in at 55.1 for September, down from an early reading of 55.6, which was also what analysts had been expecting for the final figure. That compares to 56.1 in August. The US economic growth slowed in the third quarter according the PMI surveys, down to around 2.2%. But this largely represents a payback after growth rebounded in the second quarter, suggesting that the economy is settling down to a moderate rate of growth in line with its long term average. Hiring also remains relatively robust, albeit down from earlier in the year, again suggesting that the economy has shifted down a gear but remains in good health. 2.42pm BST In tandem with other global markets, Wall Street is moving ahead strongly. The Dow Jones Industrial Average is up 164 points or 12%, while the S&P 500 has opened 0.5% higher. 2.23pm BST China can manage its economic slowdown but needs to communicate policy more effectively, says the International Monetary Fund. Ahead of its annual meeting the IMF said China’s exchange rate was in line with medium term fundamentals after the recent devaluations, Reuters reports. 2.10pm BST Global corporations are avoiding tax to the tune of up to $240bn a year, according to a new report from the OECD, which has also announced reform measures to tackle the problem. Simon Bowers reports: An unprecedented international collaboration on tax reform, led by the G20 nations and targeting many of the world’s largest global corporations, will wipe out much of the tax avoidance industry, it was claimed today. The two-year reform programme, under the auspices of the OECD, was prompted by a spate of revelations in recent years about the tax affairs of multinationals including Starbucks, Google and Amazon. Related: OECD hopes reforms will end era of aggressive tax avoidance 1.57pm BST A quick recap: BRITAIN’S RECOVERY SLOWED LAST MONTH, ACCORDING TO THE LATEST SURVEY OF ITS DOMINANT SERVICE SECTOR. Related: UK economic growth has slowed dramatically, latest survey suggests And we're off: @J_Dijsselbloem arrives for #Luxembourg #eurogroup meeting. Looks greyer than last time! pic.twitter.com/qmaA63qho4 Related: Lloyds Bank shares to be offered cut-price to the public 1.38pm BST European commissioner Pierre Moscovici tweets from Brussels: Arrival at #Eurogroup meeting on #Greece: common will to avoid new drama. @EU_Commission is here to help. Implementation needed. @EEAthina 1.29pm BST The Trans-Pacific Partnership deal is “a huge strategic and political win for US President Barack Obama and Japan’s Shinzo Abe,” says the FT’s Shawn Donnan. He writes: It represents the economic backbone of the Obama administration’s strategic “pivot” to Asia and a response to the rise of the US’s chief rival, China, and its growing regional and global influence. It is also a key component of the “third arrow” of economic reforms that Mr Abe has been pursuing in Japan since taking office in 2012. 1.22pm BST OVER IN ATLANTA, A DOZEN PACIFIC RIM NATIONS HAVE REACHED THE MOST SWEEPING TRADE LIBERALIZATION PACT IN A GENERATION. After late hitches over drugs monopolies, and New Zealand’s dairy market, the Trans-Pacific Partnership (TPP) has been hammered out. It is meant to lower trader barriers in the region, and set common standards in around 40% of the world economy. The TPP aims to lower trade tariffs between the signatory nations and bring in wide-ranging new regulations for investment, agriculture, intellectual property, labour and the environment. This in turn could mean cheaper food, medicine and everyday household goods for millions of people. It will also help the 12 countries to counter China’s rising economic influence in the region. Related: From cars to cough medicine: why the Trans-Pacific Partnership matters to you 1.12pm BST THE BRUSSELS PRESS PACK ARE ASSEMBLING FOR TODAY’S MEETING OF FINANCE MINISTERS, WHERE GREECE’S NEW BAILOUT PACKAGE WILL BE DISCUSSED. But it’s not as exciting as the eurogroup meetings we enjoyed (or was it endured?) this summer, so there’s more space outside: U know its going to be a boring #Eurogroup by the amount of space at the doorstep pic.twitter.com/vghReLH4Cj 1.04pm BST The Greek parliament is back in full force today with prime minister Alexis Tsipras outlining his newly elected government’s policy programme as the draft 2015 budget is also submitted. “He will present the prior actions lenders are demanding at the meeting,” “These are the first package of measures we have agreed to apply [in exchange] for loans.” 12.38pm BST AIR FRANCE-KLM has criticised those responsible for today’s violence, and insisted that most staff were protesting peacefully before a group burst into its boardroom. A spokesman said: “This violence was carried out by particularly violent, isolated individuals, whereas the protest by striking personnel was taking place calmly up until then.” 12.26pm BST Associated Press has more details on the Air France protests this morning: Union activists protesting proposed layoffs at Air France stormed the headquarters during a meeting, zeroing in on two managers who had their shirts torn from their bodies, scaled a fence and fled under police protection. An Associated Press photographer saw about a hundred activists rush the building. The managers who fled included the head of human resources. 11.51am BST Fortunately, Xavier Broseta and Pierre Plissonnier did manage to escape the demonstrators, sans chemises. 11.38am BST OVER IN PARIS, TWO AIR FRANCE EXECUTIVES APPEAR TO HAVE HAD THEIR SHIRTS RIPPED FROM THEIR BACKS AFTER THE AIRLINE ANNOUNCED PLANS TO CUT UP TO 2,900 JOBS. According to local media reports, several hundred workers stormed the airline’s headquarters this morning, after it announced the cutbacks. Hundreds of @AirFranceFR employees storm management meeting. Head of HR emerges shirtless, accompanied by security. http://t.co/V955f97Mzp 11.17am BST EUROPEAN STOCK MARKETS AREN’T PANICKING AT TODAY’S SERVICE SECTOR SLOWDOWN. Instead, they continue to rally –– catching up with Wall Street’s late jump on Friday night. Odds of a rate hike in October have fallen below 10%. http://t.co/KMKpyq4jJc via @richwesgoodman UK and European markets were higher across the board on Monday, playing catch-up from the biggest turnaround on the Dow Jones Industrial Average in four years on Friday. The French CAC was higher by over 2.5% supported by positive French service sector data. Missed expectations for Germany’s service sector took the edge off gains on the DAX, which was still higher by over 1.5%. 10.31am BST A NEW SURVEY OF BRITAIN’S TOP FINANCE CHIEFS CONFIRMS THAT THE UK ECONOMY MAY BE WEAKENING. Our Katie Allen reports this morning: China’s downturn, the prospect of rising interest rates and uncertainty about the global economic outlook have knocked confidence among bosses of the UK’s biggest companies, according to a survey. Chief financial officers (CFOs) polled by the consultancy Deloitte reported a sharp rise in uncertainty facing their businesses and have scaled back their expectations for investment and hiring over the coming year. Related: Bosses of UK's top firms report rising uncertainty over global economy 10.14am BST Economist HOWARD ARCHER, of IHS GLOBAL INSIGHT, fears UK economic growth could stumble in the last quarter of 2015: We have been expecting UK GDP growth to slow to 0.5% q/q in Q3 from 0.7% q/q in Q2 but now very real risk it may be no better than 0.4% q/q 10.12am BST THE SLOWDOWN ACROSS BRITAIN’S SERVICE SECTOR IS PUTTING THE RECOVERY AT RISK, SAYS DAVID NOBLE CEO AT THE CHARTERED INSTITUTE OF PROCUREMENT & SUPPLY. He blames the knock-on effect of China, which sparked global market panic in August after Beijing devalued the yuan. The further softening of growth in the services sector must now be causing some concern for the sustainability of the recent recovery in the UK economy.... It appears that when China sneezes, the world catches a cold as some companies cited the region as a cause for worldwide concern. 10.01am BST Some instant reaction to the slowdown in Britain’s services sector: Wheels coming off Osborne's recovery? Weakest rise in service sector activity in nearly two-and-a-half years in September Weaaaaaaak UK services PMI. Slowest growth since April 2013. Slowdown coming? Ouch! Markit services #PMI Weakest rise in activity in nearly two-and-a-half years in September #GBP 9.51am BST BRITAIN’S SERVICE SECTOR SUFFERED A SHARP SLOWDOWN LAST MONTH, NEW DATA SHOWS, RAISING FEARS THAT THE ECONOMY MAY BE FALTERING. Data firm Markit reports that activity across the sector grew at its slowest rate since April 2013 in September. Its service PMI fell to 53.3, from August’s 55.6 (where 50=stagnation). “Weakness is spreading from the struggling manufacturing sector, hitting transport and other industrial-related services in particular. There are also signs that consumers have become more cautious and are pulling back on their leisure spending, such as on restaurants and hotels.” 9.34am BST GROWTH ACROSS EUROPE’S PRIVATE SECTOR IS SLOWING, ACCORDING TO THE LATEST HEALTHCHECK OF THE REGION’S SERVICE SECTOR. Markit’s Eurozone PMI, which measures activity at thousands of companies, dipped to a four-month low of 53.6 in September, down from 54.3 in August. That shows the sector kept growing, but at a slower rate. “The final PMI reading came in slightly below the earlier flash estimate but still leaves a signal of the eurozone economy having expanded 0.4% in the third quarter. “However, the failure of the economy to pick up speed over the summer will be a disappointment to the ECB, especially with job creation sliding to an eight-month low. 8.43am BST Mining stocks are packing the top of the FTSE 100 leaderboard: Consensus is building that the Federal Reserve won’t now be in a position to hike interest rates before the end of the year. This gives emerging markets a little more breathing room and it’s the mining stocks that are forging their way to the top of the table. 8.40am BST SHARES ARE RALLYING ACROSS EUROPE THIS MORNING, FUELLED BY HOPES THAT CENTRAL BANKS KEEP TOPPING UP THE PUNCHBOWL FOR LONGER. France’s CAC index is the biggest riser, up nearly 2%, and Germany’s DAX gaining 1.3%. “Risk aversion weakened today as the weak U.S. employment data supported expectations that the Fed would put off the timing of rate hikes.” 8.15am BST GLENCORE’S SHARES HAVE RALLIED BY 8% IN EARLY TRADING IN LONDON, FUELLED BY THAT TAKEOVER TALK AND SPECULATION THAT IT COULD SELL ITS AGRICULTURAL BUSINESS. They’re up 7.8p at 108.6p, having briefly jumped 20% to 114.45p. That’s quite a recovery, given they slumped to 66p last week. ...the Board confirms that it is not aware of any reasons for these price and volume movements or of any information which must be announced to avoid a false market in the Company’s securities or of any inside information that needs to be disclosed... 8.04am BST SEVEN LONG YEARS AFTER BAILING OUT LLOYDS BANKING GROUP, THE UK GOVERNMENT IS FINALLY SELLING SOME OF ITS REMAINING STAKE TO THE PUBLIC. The value of the bonus share incentive will be capped at £200 per investor. People applying for investments of less than £1,000 will be prioritised. The sale of Lloyds shares to small investors at a discount is a subsidy from taxpayers to middle-class people with brokerage accounts. 7.55am BST 10 minutes until the FTSE100 opens - expected to start +110 points at 6240. 7.54am BST REPORTS THAT GLENCORE IS IN TALKS TO SELL ITS ENTIRE AGRICULTURE BUSINESS ARE HELPING TO DRIVE ITS SHARES HIGHER. That would provide fresh resources to tackle its $30bn debt mountain, and to handle a further drop in commodity prices. 7.50am BST SOMETHING IS GOING ON AT GLENCORE, THE TROUBLED COMMODITY TRADING AND MINING COMPANY. Shares in Glencore leapt by over 70% in Hong Kong overnight, and are currently up over 30%. Glencore would listen to offers for a takeover of the entire company but its management does not believe there are any buyers willing to pay a fair value for the business in the current market. Glencore says "unaware of reasons for share movements" pic.twitter.com/eVnkHXg1U5 7.43am BST BIG NEWS BREAKING IN THE RETAIL SECTOR -- AMERICAN APPAREL, SUPPLIER OF ETHICAL CLOTHING AND GOD-AWFUL ADVERTS, HAS FILED FOR BANKRUPTCY PROTECTION. The move follows a steady slide in sales, and ever-more disturbing antics by ex-chairman Dov Charney, who was forced out a year ago. Related: American Apparel files for bankruptcy 7.32am BST GOOD MORNING, AND WELCOME TO OUR ROLLING COVERAGE OF THE WORLD ECONOMY, THE FINANCIAL MARKET, THE EUROZONE AND BUSINESS. A new week begins with investors digesting still last Friday’s disappointing US jobs data. #Japan's Nikkei ends up 1.6% at 18005.49 buoyed by #TPP talk progress, US easy policy. pic.twitter.com/GGNbAzlQxu Market Update: Sensex 26614.54 +1.50%: Nifty 8061.75 +1.39% #CNBCTV18Market Continue reading...
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