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Pound hits one-year high over $1.33 ahead of UK jobs report - business live

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09/13/2017 | 10:39 am

block-time published-time 9.25am BST

JP Morgan's Dimon: Bitcoin is a fraud

The boss of JP Morgan has weighed in on the cryptocurrency debate, declaring that Bitcoin is “a fraud” that will end in tears.

Jamie Dimon told a banking conference in the US that he’d fire any staff caught trading Bitcoin, arguing that:

The currency isn’t going to work. You can’t have a business where people can invent a currency out of thin air and think that people who are buying it are really smart.

“If you were in Venezuela or Ecuador or North Korea or a bunch of parts like that, or if you were a drug dealer, a murderer, stuff like that, you are better off doing it in bitcoin than US dollars.

So there may be a market for that, but it’d be a limited market.”

Related: Bitcoin is a fraud that will blow up, says JP Morgan boss

block-time published-time 9.12am BST

A decade after the run on Northern Rock, Britain’s banking sector is unprepared to handle another crisis.

That’s according to a new report by the Adam Smith Institute, the right-wing thinktank, which argues that the Bank of England is failing to police the banks properly.

Here’s the full story:

Related: UK's high street banks are accident waiting to happen, says report

block-time published-time 8.50am BST

Economist Rupert Seggins is tweeting some good charts to get us up to speed, ahead of today’s UK jobs report.

They shows how real wages (adjusted for inflation) have been falling for several months, even as the unemployment rate hits its lowest since the 1970s.

enltr1. UK labour market stats today. The headline was given to us yesterday. Pay squeeze. Using the CPI, real pay is expected to fall -1%y/y. pic.twitter.com/ZgzXl4IARn

Rupert Seggins (@Rupert_Seggins) September 13, 2017

enltr2. The UK employment juggernaut is expected to rumble on. Consensus forecast says 154,000 more in employment in the 3 months to July. pic.twitter.com/cEBK6vSlUB

Rupert Seggins (@Rupert_Seggins) September 13, 2017

enltr3. How low can the UK unemployment rate go? Nobody really knows. Big headache for the #MPC. Peacetime lows have been in the 1% to 2% range. pic.twitter.com/8C2bdQBynE

Rupert Seggins (@Rupert_Seggins) September 13, 2017

enltr4.The (rough) historical relationship between wage growth & unemployment may still be there. Sort of. Light at the end of the pay squeeze? pic.twitter.com/iDDXr8rmIi

Rupert Seggins (@Rupert_Seggins) September 13, 2017

block-time published-time 8.44am BST

The strength of the pound is pulling shares down in London this morning.

The FTSE 100 has shed 58 points, or 0.8%, to 7354. Mining giants, oil companies and major exporters, such as pharmaceutical group Shire and drinks firm Diageo, are among the fallers.

A stronger currency means their overseas earnings are worth less in sterling terms.

Connor Campbell of SpreadEx says:

The miners have all moved lower, while BP and Shell are both down half a percent. However, the main reason for the UK index’s decline was the pound’s latest climb.

block-time published-time 8.28am BST

The British pound has seen “tremendous strength this week”, says Naeem Aslam of Think Markets, adding:

If you want to see a currency which is having one of the best runs this week, then look no further.

block-time published-time 8.25am BST

Sterling has also risen against the euro, gaining 0.2% to €1.1124.

block-time published-time 7.57am BST

The agenda: Pound bounces ahead of jobs report

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

The pound has hit a new one-year high this morning, as the City braces for a new health-check on Britain’s jobs market.

Sterling has risen to $1.332 against the dollar, the highest level in exactly a year. That means it has clawed back around half its losses after last year’s EU referendum.

The pound vs the US dollar over the last two years Photograph: Thomson Reuters

Today’s rally follows yesterday’s unexpected jump in inflation to 2.9%, which is fuelling expectations that interest rates could rise sooner than previously thought.

Related: Pound hits one-year high as UK inflation rate jumps to 2.9% - as it happened

But... is Britain’s economy really strong enough to handle a rate rise? We’ll get a clue at 9.30am when the latest labour market statistics are released.

The City expects that the UK economy continued to create jobs in the last quarter, leaving the unemployment rate at just 4.4%, its lowest in over 40 years.

But this jobs recovery hasn’t been feeding through to people’s pockets. Average earnings, excluding bonuses, are expected to have risen by 2.2% per year in the three months to July. That would be an improvement on last month’s figures, but well below inflation.

As Royal Bank of Canada put it:

For average earnings the story continues to be disappointing.

And that’s why most economists don’t expect the Bank of England to raise interest rates until 2018.

But...the BoE meets to set interest rates tomorrow, and there’s chatter in the City that chief economist Andy Haldane could become the third policymaker to vote for a hike.

Michael Hewson of CMC Capital Markets explains:

A solid wages number could shift the calculus on the MPC further towards a rate rise with chief economist Andrew Haldane likely to join the other two hawks Michael Saunders and Ian McCafferty in pushing for a rate rise, given recent comments he made during the summer, when inflation ticked up to the same level it is now.

Also coming up...

City traders will also be remembering the events of 10 years ago, when Northern Rock was forced to seek help from the Bank of England - triggering the first UK bank run in over a century.

The Resolution Foundation is holding an events in London with former Chancellor of the Exchequer Alistair Darling this morning, so we’ll keep an ear out.

European stock markets are expected to dip at the open, with the FTSE 100 being called down around 18 points or 0.25%.

enltrEuropean opening call @LCGTrading$FTSE -18 points at 7382 $DAX -26 points at 12498 $CAC -9 points at 5200 #EuroStoxx -7 points at 3505

— Ipek Ozkardeskaya (@IpekOzkardeskay) September 13, 2017

We also get new eurozone unemployment and factory output statistics.

The agenda
  • 8am BST: Eurozone unemployment figures for the second quarter of 2017
  • 9.30am: UK labour market report
  • 10am: Eurozone industrial production figures for July

block-time updated-timeUpdated at 8.05am BST

835 2017-09-16T07:00:00Z true 2017-09-13T07:01:39Z false false 2017-09-13T08:25:00Z true UK theguardian.com

https://gu.com/p/77yx3 false true https://media.guim.co.uk/2e7fa1a11670434d46144ea7b656cd336cf2d84e/0_49_3543_2127/500.jpg false en The boss of JP Morgan has weighed in on the cryptocurrency debate, declaring that Bitcoin is “a fraud” that will end in tears. Jamie Dimon told a banking conference in the US that he’d fire any staff caught trading Bitcoin, arguing that: The currency isn’t going to work. You can’t have a business where people can invent a currency out of thin air and think that people who are buying it are really smart. “If you were in Venezuela or Ecuador or North Korea or a bunch of parts like that, or if you were a drug dealer, a murderer, stuff like that, you are better off doing it in bitcoin than US dollars. So there may be a market for that, but it’d be a limited market.” A decade after the run on Northern Rock, Britain’s banking sector is unprepared to handle another crisis. That’s according to a new report by the Adam Smith Institute, the right-wing thinktank, which argues that the Bank of England is failing to police the banks properly. Here’s the full story: Economist Rupert Seggins is tweeting some good charts to get us up to speed, ahead of today’s UK jobs report. They shows how real wages (adjusted for inflation) have been falling for several months, even as the unemployment rate hits its lowest since the 1970s. The strength of the pound is pulling shares down in London this morning. The FTSE 100 has shed 58 points, or 0.8%, to 7354. Mining giants, oil companies and major exporters, such as pharmaceutical group Shire and drinks firm Diageo, are among the fallers. A stronger currency means their overseas earnings are worth less in sterling terms. Connor Campbell of SpreadEx says: The miners have all moved lower, while BP and Shell are both down half a percent. However, the main reason for the UK index’s decline was the pound’s latest climb. The British pound has seen “tremendous strength this week”, says Naeem Aslam of Think Markets, adding: If you want to see a currency which is having one of the best runs this week, then look no further. Sterling has also risen against the euro, gaining 0.2% to €1.1124. Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. The pound has hit a new one-year high this morning, as the City braces for a new health-check on Britain’s jobs market. Sterling has risen to $1.332 against the dollar, the highest level in exactly a year. That means it has clawed back around half its losses after last year’s EU referendum. Today’s rally follows yesterday’s unexpected jump in inflation to 2.9%, which is fuelling expectations that interest rates could rise sooner than previously thought. But... is Britain’s economy really strong enough to handle a rate rise? We’ll get a clue at 9.30am when the latest labour market statistics are released. The City expects that the UK economy continued to create jobs in the last quarter, leaving the unemployment rate at just 4.4%, its lowest in over 40 years. But this jobs recovery hasn’t been feeding through to people’s pockets. Average earnings, excluding bonuses, are expected to have risen by 2.2% per year in the three months to July. That would be an improvement on last month’s figures, but well below inflation. As Royal Bank of Canada put it: For average earnings the story continues to be disappointing. And that’s why most economists don’t expect the Bank of England to raise interest rates until 2018. But...the BoE meets to set interest rates tomorrow, and there’s chatter in the City that chief economist Andy Haldane could become the third policymaker to vote for a hike. Michael Hewson of CMC Capital Markets explains: A solid wages number could shift the calculus on the MPC further towards a rate rise with chief economist Andrew Haldane likely to join the other two hawks Michael Saunders and Ian McCafferty in pushing for a rate rise, given recent comments he made during the summer, when inflation ticked up to the same level it is now. Also coming up... City traders will also be remembering the events of 10 years ago, when Northern Rock was forced to seek help from the Bank of England - triggering the first UK bank run in over a century. The Resolution Foundation is holding an events in London with former Chancellor of the Exchequer Alistair Darling this morning, so we’ll keep an ear out. European stock markets are expected to dip at the open, with the FTSE 100 being called down around 18 points or 0.25%. We also get new eurozone unemployment and factory output statistics. The agenda 8am BST: Eurozone unemployment figures for the second quarter of 2017 9.30am: UK labour market report 10am: Eurozone industrial production figures for July 4641 false

Copyright © 2017 theguardian.com. All rights reserved., source Guardian Online

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