- European stocks surge as Draghi opens door to stimulus
- Trump claims he will meet China's Xi Jinping at G20 summit next week
- Eurozone blue-chip stocks close 2.1pc higher as FTSE 100 jumps 1.2pc
- Has Deutsche Bank left it years too late for a turnaround?
- Matthew Lynn: How 'Facebook money' could change the economy
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Markets wrap: European stocks surge on hopes of ECB stimulus and US-China trade talks
European stocks have surged after ECB president Mario Draghi opened the door to more stimulus to revive the eurozone economy and Donald Trump announced that the US and China will restart trade talks.
Mr Draghi admitted that "additional stimulus will be required" if the economic outlook for the stuttering region does not improve.
He revealed in a speech at the ECB forum in Sintra, Portugal, that further cuts to interest rates and measures to mitigate the impact of negative rates remain tools in the central bank's arsenal. Mr Draghi said the ECB's Governing Council will discuss its options "in the coming weeks", adding that its quantitative easing programme "still has considerable headroom".
Pantheon Macro economist Claus Vistesen said Mr Draghi has "just talked himself into cutting rates before he steps down" in October. The ECB will unveil a further cut in its deposit rate deeper into negative territory if "risks materialise sufficiently between now and September", he added.
The Euro Stoxx 50, which tracks the region's blue-chip stocks, reversed early losses to jump 2.2pc while the DAX in Frankfurt gained 2pc and the CAC 40 in Paris leapt 2.2pc. Markets extended their rally after Mr Trump announced plans to hold "an extended meeting" with Chinese president Xi Jinping at next week's crucial G20 summit in Japan amid simmering trade tensions.
'Chairman' Boris: What makes a great chairman in business?
Boris Johnson remains the favourite to win the Conservative leadership election and replace Theresa May next month.
If, as bookies predict, Johnson surpasses the other Tory candidates to win the top job, he is expected by some MPs to take a more hands-off "chairmanship" role as prime minister, handing down authority over policy areas to trusted advisers.
This would mimic his leadership style as mayor of London, when key aides such as Sir Eddie Lister, Johnson's deputy in City Hall, and Will Walden, his former chief political adviser, had huge influence over his governance.
So, if Johnson creates a chairmanship type of role, how would it work?
Will Hong Kong's political protests give Singapore a financial boost?
The political unrest in Hong Kong in recent days could have serious implications for its reputation as Asia’s premier financial centre by boosting the amount of money flowing into arch rival Singapore.
It’s no secret that Hong Kong and Singapore compete for the crown, but it’s the collected wealth of Hong Kong moguls, not to mention its historical autonomy from the Chinese mainland, that has helped make it the more attractive base. However, that status quo could now be under threat.
Trump and Xi to meet at G20 summit
Donald Trump has given markets an added boost after revealing he will hold "an extended meeting" with Chinese president Xi Jinping at next week's crucial G20 summit in Japan.
The US president revealed on Twitter that US and Chinese negotiators will begin talks prior to the meeting.
Signs of cooling trade tensions have propelled US stocks higher at the start of play in New York. The S&P 500 has jumped 1.1pc after being lifted another notch by Mr Trump's tweet.
Gina Miller calls for 'root and branch' review of FCA following Woodford crisis
SCM Direct, the firm owned by Gina Miller and her husband Alan, has called for a “root and branch” review of the Financial Conduct Authority (FCA) in the wake of the Woodford fund scandal.
SCM has told the financial regulator that funds with daily or weekly trading should be banned from investing in unquoted investments such as private equity or unlisted shares, physical property or listed shares that are “rarely traded”.
SCM describes itself as a “vocal consumer campaigner” and says such measures would “vastly improve” protection for UK investors.
European stocks build on strong gains after stimulus signal
European stocks are building on this morning's strong gains after Mario Draghi's stimulus signal.
The Euro Stoxx 50, which tracks eurozone blue-chip stocks, has leapt 1.7pc while the DAX in Germany and CAC 40 in Paris have jumped 1.7pc and 1.8pc, respectively.
The rally across global markets is expected to spread to the US this afternoon as investors across the Atlantic brace for the Federal Reserve's meeting. The US central bank is also expected to lay the groundwork for an interest rate cut to head off a slowdown.
The S&P 500 is expected to rally 0.7pc at the opening bell in New York this afternoon.
Christmas drone chaos cost Gatwick just £1.4m
Gatwick’s drone chaos last December cost the airport just £1.4m, an amount the airport revealed on Tuesday is “immaterial” to its finances.
Airlines have previously announced that the disruption, which affected 140,000 passengers and forced the cancellation of more than 1,000 flights just before Christmas, cost them tens of millions of pounds.
Britain’s second-biggest airport was brought to a standstill at the end of last year as multiple drone sightings disrupted flights for three days.
Trump hits out at ECB's Draghi after stimulus hint
Donald Trump has hit out at ECB president Mario Draghi after the euro sank versus the dollar following his stimulus hint.
The US president said the decline would make "it unfairly easier for them to compete against the USA".
"They have been getting away with this for years, along with China and others," he added in a Tweet.
Facebook unveils its Libra digital currency: Here's how it could change the way you spend money
Facebook has unveiled plans for a global cryptocurrencywhich the social networking giant hopes will provide an alternative to cash, credit cards and bank transfers.
The Libra currency, which is expected to launch in the first half of next year, has been backed by 27 other companies and organisations, including Uber, Spotify, Mastercard, eBay and Vodafone.
It is by far the most heavily-supported and well-resourced effort to take cryptocurrency and blockchain technology into the financial mainstream since its invention more than a decade ago, and represents a major push into financial services from Facebook. So how will it change the way you spend money?
Bond yields slide after Draghi speech
The cost of government debt is tumbling across Europe after Mario Draghi's market-moving speech at Sintra.
The German 10-year bund yield has slipped deeper into negative territory to hit a fresh record low while Italy 10-year yield has dropped to a 13-month low despite lingering worries over the populist coalition's spending plans.
Mr Draghi has let the "rate-cutting genie" out of the bottle in this morning's speech, warned Bart Hordijk at Monex Europe. He added:
"Even a more hawkish new ECB president will have to take some time to untangle her/himself before further tightening can even be put on the agenda again."
Fears that eurozone is turning Japanese as inflation gauge dives
Inflation expectations for the eurozone have plunged to a record low. Investors and traders are worried its economy is slipping into "Japanification", an inescapable period of stagnant growth and ultra-low interest rates.
The decline in a closely-watched inflation gauge – the five-year forward rate – has accelerated as global growth stutters, tumbling to an all-time low of just above 1.10pc yesterday.
The drop indicates investors believe the European Central Bank (ECB) might be incapable of stopping the region sliding into deflation if the world economy suffers a downturn.
Key takeaways from Mario Draghi's speech at Sintra
Analysts are highlighting two key parts of Mario Draghi's speech at the ECB Forum in Sintra this morning.
The first is the suggestion that the eurozone economy will need more stimulus if the outlook does not improve. Here's what Mr Draghi said:
"In the absence of improvement, such that the sustained return of inflation to our aim is threatened, additional stimulus will be required."
The second is Mr Draghi's thoughts on what weapons the ECB has in its arsenal. He believes that the ECB can cut interest rates further into negative territory and can still restart its quantitative easing programme. Mr Draghi said:
"Further cuts in policy interest rates and mitigating measures to contain any side effects remain part of our tools.
"And the APP (asset purchase programme) still has considerable headroom."
Draghi has talked himself into cutting rates before departure
Pantheon Macro economist Claus Vistesen believes Mario Draghi has "just talked himself into cutting rates before he steps down" in October.
He expects a further cut in the ECB's deposit rate deeper into negative territory if "risks materialise sufficiently between now and September". He added on the timing:
"This timing is logical since September is the president's penultimate meeting before he steps down, and because it will be accompanied by the new staff projections."
Stocks reverse losses after Draghi signals stimulus for eurozone
European stocks have reversed their early losses to rally back into positive territory after ECB president Mario Draghi hinted at more stimulus for the eurozone.
Money markets are now pricing in a drop in interest rates by the end of the year after Mr Draghi admitted that "further cuts in policy interest rates and mitigating measures to contain any side effects remain part of our tools".
He revealed that the ECB will discuss its options in the "coming weeks" with the central bank's next meeting in late July.
Draghi: More stimulus needed for eurozone if outlook does not improve
Sterling has now clawed back its losses against the euro after ECB president Mario Draghi admitted that "additional stimulus will be required" if the eurozone's economic outlook does not improve.
Speaking at the ECB Forum in Sintra, Portugal, Mr Draghi said that negative interest rates will be an important policy tool for the struggling eurozone economy and insisted that its quantitative easing programme still has "considerable headroom".
The pound has pulled back to flat territory against the euro at just below €1.12 as investors brace for more stimulus at the ECB.
Former BHS owner Dominic Chappell faces court over tax evasion charges
Former BHS owner Dominic Chappell is to appear in court on Tuesday accused of tax evasion and buying two yachts to launder money.
The businessman, 52, was thrown into the spotlight in 2015 by his £1 purchase of BHS from retail tycoon Sir Philip Green, just over a year before it collapsed with the loss of 11,000 jobs.
Chappell is due to appear at the City of London Magistrates Court on Tuesday to face three charges of cheating the public revenue and two counts of money laundering relating to his bankrupt finance company Swiss Rock Limited.
Agenda: Pound extends slide to hit five-month low as City frets Boris victory will lead to no deal Brexit
The pound has slipped to a five-month low against the euro and dollar ahead of the second round in the Conservative leadership contest as investors fret that a victory for Boris Johnson could put the UK on a path to a no deal Brexit.
Mr Johnson's strong lead in the race to become prime minister has unnerved the City in recent weeks after the frontrunner said the UK will leave the EU by October 31 with or without a Brexit deal. Mr Johnson has insisted that he would prefer to leave with a deal but sterling is on a five-day losing streak against the dollar as his rivals struggle to close the gap.
"It remains very likely that it’s his to lose and hence the pound is likely to remain under downward pressure as market participants continue to price a greater and greater probability of no-deal on 31st October," explained Derek Halpenny, MUFG analyst. Mr Halpenny warned that there is "an increasing likelihood" sterling will slide below the low hit against the dollar in a currency flash crash in January.
The pound dropped against the dollar for a fifth day, sinking as much as 0.4pc to $1.2512, and fell a further 0.4pc against the euro at €1.1142, the lowest level since January.
Full-year results: Ashtead, Telecom Plus
Interim results: Safestore
Economics: Housing starts (US), Building permits (US), New car registrations (EZ), Trade balance (EZ), CPI (EZ), Zew expectations survey (EZ)