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Tyre maker Continental to cut 7,150 jobs as it switches to electric vehicles – latest updates – The Telegraph


Thanks for joining me. Inflation was unchanged last month handing a boost to the Prime Minister after economists predicted prices would rise.

The consumer prices index (CPI) held steady at 4pc in January, according to the Office for National Statistics, despite economists forecasting an increase to 4.1pc.

5 things to start your day 

1) Parents earning over £100k being punished by Hunt’s tax traps, says IFS | Report highlights how tax system disincentivises work for high and low income families

2) Britain must pay more for Hinkley, says France | Push for funding comes weeks after Hinkley Point C costs were revised up to £46bn

3) Retail in crisis as violence and abuse towards staff jumps 50pc | Shop employees targeted as police fail to respond to growing wave of crime

4) Jeremy Warner: Xi Jinping will make the West pay for China’s economic collapse | The president cannot be relied on to prevent his country’s deflationary ills from infecting the global economy

5) Ambrose Evans-Pritchard: This is the year the world’s green juggernaut becomes unstoppable | The greatest economic growth story since the industrial revolution has crossed a critical threshold

What happened overnight 

In the US, shares fell sharply after disappointing data on inflation made investors confront the bitter possibility that interest rates will stay high for months longer than they were hoping. The S&P 500 fell 1.4pc, to 4,953.17. Meanwhile, the Dow Jones Industrial Average of 30 leading American companies fell 1.4pc, to 38,272.75. The Nasdaq Composite fell 1.8pc, to 15,655.60.

The yield on benchmark 10-year US Treasury bonds rose to 4.3123pc compared with 4.17pc on Monday.

Asian equities sank Wednesday, tracking a sell-off on Wall Street, as a forecast-topping US inflation report dealt a hefty blow to hopes for an early interest rate cut.

The dimming prospects of a dovish turn by the Federal Reserve also sent the dollar surging against the yen, forcing Japanese officials to warn they would intervene in forex markets to support the country’s currency.

Expectations for a rate cut have been doused in recent weeks by a series of strong indicators – particularly on the economy and jobs – while several monetary policymakers warned they want to see more data before shifting.

Asian traders ran for cover, with Hong Kong in retreat as it reopened after an extended break for the Lunar New Year, while Tokyo, Sydney, Singapore, Seoul, Wellington and Manila were also well down.

The dollar held on to most of its gains against its peers, with its movements against the yen of particular interest to investors after it jumped around one percent to sit back above 150 for the first time since November.

However, officials in Tokyo said they were keeping a close eye on developments and were ready to step in to support their currency.



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