Global bond markets suffer fresh losses as investors anticipate higher interest rates and inflation under president Trump * Dow Jones Industrial Average hits new record * Catchup: Another bad day in the bond markets * JP Morgan criticises Trump’s infrastructure scheme * Two-year US borrowing costs at nine-month high * UK 10-year gilt yields hit highest since Brexit vote * Introduction: Investors face life with Trump 3.29pm GMT Over in Greece, government officials are preparing for a new round of talks with inspectors representing the country’s foreign lenders following BARACK OBAMA’S EXTRAORDINARY CALL FOR ATHENS TO BE GRANTED “MEANINGFUL DEBT RELIEF.” Our correspondent Helena Smith reports: Rarely has there been such desire from a sitting government in Athens to conclude a review with auditors representing the bodies that have thrice bailed out Greece since 2010. Highlighting that sentiment, the new government spokesman Dimitris Tzanakopoulos told reporters earlier that differences between the two are “very small.” The talks, which begin in earnest tomorrow, will focus on an overhaul of labour laws including annulment of collective work agreements and mass firings (a red line many in the ruling left wing Syriza party), privatisations and primary surplus targets for 2019. Next year’s budget will also be discussed. The goal – one dismissed as untenable by most – is for the inspection tour to be wrapped up in a matter of days in the hope that debt relief talks can begin when euro zone finance ministers hold their last meeting of the year on December 5. If debt-serving costs are brought down, it will reduce the need for the country to achieve a 3.5% primary surplus by 2018 – a target set by lenders but almost unequivocally derided as impossible to meet. Ahead of president Barack Obama’s arrival in the Greek capital on Tuesday the government has gone out of its way to play up the two-day visit with Tzanakopoulos saying today that it had not only been heartened by his intervention on the matter of Greek debt but calling the tour one of great significance. The trip, which will see the US president flying straight to Berlin after Athens, is expected to be heavy on symbolism as Obama’s last state visit abroad. 3.25pm GMT THE POUND CONTINUES TO WEAKEN AGAINST THE DOLLAR AS THE US CURRENCY BENEFITS FROM TALK OF AN INTEREST RATE RISE IN DECEMBER AFTER ALL, DESPITE THE SHOCK US ELECTION RESULT. Sterling has extended its falls and is now down 1.17% at $1.2450. But against the euro, the pound is holding steady, up 0.09% at €1.1622. Continue reading...
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