Business Live: 'Dismay, frustration and uncertainty'

Goldman Sach's chief economist thinks further rises in US interest rates are on hold until the middle of next year.

Tougher financial conditions and trade uncertainties are likely to dampen any Federal Reserve rate hike in the very near term.

"We think the probability of a move in March has now fallen to slightly below 50%," Goldman's Jan Hatzius wrote in a research note. But "we see a return to quarterly hikes in June that last through the end of 2019".

US stocks staged a modest recovery on Monday after the turmoil of last week. At the close of trading, the Dow was up 0.14% or 34.31 points at 24,423.26, while the broader-based S&P 500 was 0.18% or 4.64 points higher at 2,637.72. The high-tech Nasdaq rose 0.74% or 51.27 points to 7,020.52.

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French President Emmanuel Macron has announced a €100-per month increase in the minimum wage from next year in a major concession to "yellow vest" protesters.

The minimum wage was set at €1,498 per month pre-tax in 2018 and €1,185 after tax.

He also rolled back most of an unpopular increase in taxes on pensioners which was introduced by his government.

In an address to the nation this evening, the former investment banker also struck a more humble tone than usual as he sought to address criticism of his style of leadership.

"I know that I have hurt some of you with my statements," he said.

The S&P 500 has turned positive with help from technology stocks in a volatile session.

The energy index was the S&P's biggest percentage loser followed by financials, which have been dogged by worries about cooling global growth, interest rates and trade tensions.

But an afternoon comeback in Apple shares appeared to cheer up investors in the broader technology sector.

The Dow Jones was up 0.04% at 24,398.6 points, while the S&P 500 gained 0.14% to 2,636.7. The Nasdaq added 0.79% to 7,023.9.

After a sea of red in the morning, seven of the 11 major S&P sectors were positive by late afternoon. The technology sector led the gainers with a 1.4% gain.

Apple was trading up 0.6% at $169.54 after hitting a low of $163.33 earlier in the day.

The Huawei executive facing extradition to the US returned to court today, but this protest probably doesn't do justice to the scale of anger being felt in Beijing.

After today's about-face on the Brexit vote, Charlie Mullins, boss of Pimlico Plumbers and ardent Remainer, is about to tell Westminster what he thinks. As he describes himself on his own Twitter feed: "Often scathing, never boring".

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GoPro is pulling production out of China of its cameras that are destined for the US market to avoid tariffs.

Cameras for countries other than the US will remain in China, according to the Silicon Valley-based electronics firm.

"Today's geopolitical business environment requires agility, and we're proactively addressing tariff concerns by moving most of our US-bound camera production out of China," said GoPro finance director Brian McGee.

The company gave no details on where it would relocate the production.

Apple's confident rebuff to Qualcomm's claim that some iPhone models will be temporarily blocked from sale in China seems to have calmed investor nerves.

The tech giant says all its models remain on sale in the country, and it will go to court to ensure that continues.

Apple shares opened more than 2% down, but are now up about 0.2%.

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The new charges against Carlos Ghosn will allow prosecutors to continue detaining him until 30 December.

His interrogations will continue and can be done without the former chairman of Nissan having his lawyer present.

In Japan, there is nothing surprising about this. But elsewhere there has been real shock at the draconian nature of Japan’s justice system.

US attorney Professor Alan Dershowitz today likened Japan’s system to that of authoritarian regimes like Iran, Cuba and even China.

Secondly, Mr Ghosn has been effectively accused of the same offence twice.

The new arrest warrant accuses him of under-reporting his pay for a further three years, between 2016 and 2018).

A former prosecutor I have spoken to says this suggests the Tokyo prosecutors have no other evidence of wrong doing against Mr Ghosn.

If that is the case, the former prosecutor told me, the case against Mr Ghosn is very weak.

But he says, because it is such a high-profile case, they will feel compelled to press charges and take the case to its conclusion.

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We reported earlier that chip maker Qualcomm said it has been granted injunctions against Apple in China that prevent the sale of some iPhone handsets.

Qualcomm makes a range of semiconductor and telecommunications equipment, and the Snapdragon processors used in most Android smartphones.

As you might expect, Apple is not taking this lying down and has issued this statement:

"Qualcomm’s effort to ban our products is another desperate move by a company whose illegal practices are under investigation by regulators around the world.

"All iPhone models remain available for our customers in China. Qualcomm is asserting three patents they had never raised before, including one which has already been invalidated.

"We will pursue all our legal options through the courts.”

Quote Message: Business leaders may understand the political reasons for the delay, but today’s announcement will be viewed by most as another extension of the frustration and uncertainty. While we wish the government well in their attempts to seek further assurances about the backstop, the clock is ticking and one of the only things we know for certain is that our exit date has been written into UK law for next March.

Business leaders may understand the political reasons for the delay, but today’s announcement will be viewed by most as another extension of the frustration and uncertainty. While we wish the government well in their attempts to seek further assurances about the backstop, the clock is ticking and one of the only things we know for certain is that our exit date has been written into UK law for next March.

Quote Message: Many companies are still in the dark about what HMRC and border agencies would require the day after Brexit if there is no transition period. Partly because of a lack of information, only 14% of Institute of Directors members say they are fully prepared to manage no-deal, highlighting the scale of the challenge if a withdrawal agreement isn’t ratified.” from Stephen Martin Director general, Institute of Directors

Many companies are still in the dark about what HMRC and border agencies would require the day after Brexit if there is no transition period. Partly because of a lack of information, only 14% of Institute of Directors members say they are fully prepared to manage no-deal, highlighting the scale of the challenge if a withdrawal agreement isn’t ratified.”

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The pound falls to the lowest level against the dollar since April 2017 after prime minister's statement.

Pound slides after Brexit vote delayed

The pound falls to the lowest level against the dollar since April 2017 after the prime minister's statement.

Read more

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Frankfurt prosecutors are investigating a former anti-money laundering official of Deutsche Bank on suspicion of money laundering, German broadcaster Hessischer Rundfunk reported on Monday.

A spokesman for Deutsche Bank declined to comment, according to Reuters.

It's unclear at the moment if the news is related to a police raid on the offices of the German banking giant on 29 November.

Quote Message: Firms are looking on with utter dismay at the ongoing saga in Westminster, and express concern that politicians are seemingly acting in their own interest, with little regard for the millions of people whose livelihoods depend on the success of UK business and trade. Many business leaders will be intensely frustrated by yet another delay in this drawn-out process, which impacts real-world business conditions, not least currency markets.

Firms are looking on with utter dismay at the ongoing saga in Westminster, and express concern that politicians are seemingly acting in their own interest, with little regard for the millions of people whose livelihoods depend on the success of UK business and trade. Many business leaders will be intensely frustrated by yet another delay in this drawn-out process, which impacts real-world business conditions, not least currency markets.

Quote Message: “Businesses are clear that time is rapidly running out. With just over 100 days to go until the 29th of March, many are already enacting contingency plans in the absence of clarity from Westminster. Even basic business planning for next year has become difficult, if not impossible, for many firms and their investors.

“Businesses are clear that time is rapidly running out. With just over 100 days to go until the 29th of March, many are already enacting contingency plans in the absence of clarity from Westminster. Even basic business planning for next year has become difficult, if not impossible, for many firms and their investors.

Quote Message: “Businesses need clarity and precision on the UK’s future relationship with the EU and with other key trading partners. Businesses are clear that they do not want a messy and disorderly exit, which both government and far too many firms are underprepared for." from Dr Adam Marshall Director general, British Chambers of Commerce

“Businesses need clarity and precision on the UK’s future relationship with the EU and with other key trading partners. Businesses are clear that they do not want a messy and disorderly exit, which both government and far too many firms are underprepared for."