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London pre-open: All eyes on the US Federal Reserve

Thu, 17th Sep 2015 07:39

(ShareCast News) - All eyes are on the US Federal Reserve ahead of today's open and whether or not it will decide to move on interest rates for the first time since 2006.Economists seem split roughly down the middle but futures markets are far more sceptical, attaching a probability of roughly just a quarter to such an outcome.However, back then consumer price inflation was running at a 4% year-on-year clip versus 0.2% at present and unemployment was also lower, points out the Financial Times's John Authers in an article entitled "US rat rise harder to justify nine years on".Against the above backdrop, the top flight index was being called to start the day up to 33 points stronger.The US central bank is also set to release a new set of macroeconomic projections which will help to inform markets, as will Fed president Janet Yellen's press conference at 20:00 BST.Deutsche Bank's Joe Lavorgna is of the view that the Fed will refrain from raising rates this time around but continue to hold out the possibility of rate rises perhaps even as soon as the next meeting, in October.That is despite warnings from the likes of broker Citi that a global growth recession centered on emerging markets and China is likely over the next two years.Yellen's decision will be preceded by a host of economic data, including the Federal Reserve bank of Philadelphia's survey of manufacturing conditions.In the UK, investors are waiting on the release of the latest retail sales figures, courtesy of ONS, at 09:30.Over on the Continent, the Swiss National Bank will announce its policy decision at 08:30, although no change in rates is expected.Canberra throws sands in the gears of BG Group/Royal Dutch Shell tie-up The Australian Competition and Consumer Commission has raised concerns that a merger between Royal Dutch Shell and BG Group could boost prices and reduce the supply of natural gas to consumers on the east coast of Australia. The regulator, which is seeking further submissions from the market before a final decision is made on 12 November, noted that Shell the largest quantity of uncommitted gas reserves in eastern Australia and there are a limited number of other potential suppliers to the domestic market.Phoenix Group Holdings has confirmed rumours that it has begun non-exclusive talks about acquiring Guardian Financial Services. The FTSE 250-listed closed life and pension fund consolidator said in a statement Thursday that it was "evaluating" the smaller rival as part of an on-going sale process.Technology product distributor Premier Farnell reported a 13.7% fall in interim pre-tax profits to £30.6m as it warned that slowing momentum would mean the company's second half operating profits coming in at lower than forecasts. The company said full year adjusted operating profit was now expected to be in the range of £73m to £77m.
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Shell's renewables boss steps down after less than two years

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UK earnings, trading statements calendar - next 7 days

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26 Jan 2022 17:02

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UPDATE 1-U.S. awards 13 mln barrel exchange of crude from strategic reserve

(Adds details on sale, background on 50 million barrel SPR plan)WASHINGTON, Jan 25 (Reuters) - The U.S. Department of Energy said on Tuesday it had approved an exchange of 13.4 million barrels of crude oil from the Strategic Petroleum Reserve to ...

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25 Jan 2022 20:10

U.S. awards exchange of 13 mln barrels of crude from strategic reserve

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