Rolling coverage of the latest economic and financial news, as investors welcome signs that tensions between Beijing and Washington are thawingLatest: Pound jumps back over $1.26Introduction: China to cut US car tariffs soonEuropean markets up after rally in Asia 1.50pm GMT Boom! The pound has risen back over $1.26, as the City becomes increasingly certain that Theresa May will win tonight’s confidence vote.May needs 159 votes to ensure victory; Sky News has been totting up the various displays of loyalty, and reckon she’s pretty much there.NEW: At least 158 Tory MPs say they will support PM tonight (and now I’m dipping out of my spreadsheet temporarily for a sandwich) pic.twitter.com/OnObTMYb1pIf May wins the vote by a narrow margin, fears of failure or a vote of no confidence in the Commons will intensify, although ironically the impact of a general election on sterling is difficult to call as it would introduce a real prospect of reversing Brexit altogether.If May loses tonight’s vote, all hell will break loose for sterling as several scenarios that were previously tail risks become more plausible, with the net effect being to substantially increase the likelihood of a catastrophic no deal outcome. 1.42pm GMT Just in: US inflation has slowed, giving policymakers another reason not to tighten monetary policy much further.Consumer prices were unchanged month-on-month in November, as the recent drop in the oil price fed through to people’s pockets.Fed can breathe easy? CPI in line with forecasts. Inflation still doesn’t seem to be a significant threat just yet.Paul La Monica sums it up well: No inflation threat yet.CPI = 2.2%CPI less food & energy = 2.2%Gas actually DECLINED -4.2% in November, which help offset rising costs of shelter and used cars & trucks. #economy https://t.co/yWD3jBEdPU Continue reading…
Via: Markets rally on trade hopes, as pound jumps back over .26 – business live
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