Credit card demand faces record drop as Brexit spooks borrowers - as it happened
UK lenders predict falling demand for credit cards and mortgages, as Brexit crisis rolls on
- Latest: Credit card demand faces biggest fall since at least 2007
- Introduction: Japan urges fight against protectionism
- China's vice-premier to visit Washington
- WSJ: Huawei being probed in US
5.00pm GMT
And finally, European stock markets have ended the day lower (but not dramatically so)
4.50pm GMT
Another blow to the UK economy: Philips has announced plans to shut a UK factory with the potential loss of 430 jobs.
The Dutch company plans to close its baby bottle plant at Glemsford in Suffolk in 2020 and transfer most of the work to its home country.
4.16pm GMT
Newsflash: Theresa May will not be trekking to Davos next week to scoff fondue with the global elite.
2.46pm GMT
Back in the markets, one of Apple's key suppliers has sent shivers through the tech sector.
Taiwan Semiconductor Manufacturing Company, the world's largest independent semiconductor-maker, has slashed its revenue forecast by 14%, and is also reining in investment.
#Apple chip partner #TSMC has issued a warning on its financial situation, advising of reduced revenue growth and plans to cut investments as the company combats the global smartphone market slowdown https://t.co/jOHkvWugT7 pic.twitter.com/qONpKteTGb
2.20pm GMT
The US shutdown is causing considerable pain to federal workers, whose pay checks are on hold. But it doesn't seem to be driving up unemployment, yet anyway.
New figures show that the number of Americans filing new applications for jobless benefits unexpectedly fell last week, by 3,000 people to 213,000.
Weekly jobless claims fall more than expected https://t.co/2Uuvuacchc
1.37pm GMT
Over in Greece, where the government has survived a late-night confidence vote, fears of snap elections have been put on the back burner.
12.39pm GMT
Ouch. Over in New York, Morgan Stanley has just missed Wall Street forecasts.
The bank posted profit of 80 cents per share, below the 89 cent average estimate of analysts surveyed by Refinitiv.
Morgan Stanley drops more than 4% in pre-market trading after missing profit and revenue estimates after volatile markets took a toll on trading, wealth management https://t.co/5IrEn1RrNX pic.twitter.com/Li7DuTv5f4
11.11am GMT
UK lenders have become pickier about who they hand credit cards to, the Bank of England's credit conditions survey shows.
It also highlights that risk appetite has been declining for the last couple of years:
10.33am GMT
Economist Howard Archer of the EY ITEM Club says economic uncertainty is hitting demand for credit:
Latest #BankofEngland #credit conditions survey indicates heightened uncertainties are expected to weigh down on #consumer borrowing & affect #economic activity. #UK #lenders see demand for #mortgages, credit cards plummeting before #Brexit - #BOE https://t.co/BAG4oiA3Gm
10.03am GMT
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9.54am GMT
Brexit is having an even bigger impact on credit card lending than the financial crisis of 2008, points out Andy Bruce from Reuters:
Record drop in demand for credit cards expected by UK lenders ahead of Brexit - BoE survey pic.twitter.com/JAEiTlIPOK
9.48am GMT
NEWSFLASH: Demand for mortgages and credit is sliding as UK consumers brace for Brexit.
The Bank of England has just reported that demand for new house loans in January-March is likely to fall at the fastest pace since 2011.
Lenders reported that demand for secured lending for house purchase decreased significantly in Q4, and was expected to decrease further in Q1. However, demand for secured lending for remortgaging increased slightly in Q4, but demand was expected to decrease slightly in Q1.
Overall demand for unsecured lending increased significantly again in Q4; this was solely driven by a significant increase in demand for credit card lending. However, lenders expected a significant decrease in the demand for credit card lending in Q1, with demand for other unsecured lending expected to be unchanged.
Related: UK house prices fall at fastest rate in six years on back of Brexit - Rics
9.46am GMT
The UK energy's strategy has been plunged into a "full-blown crisis", as Hitachi suspends plans to build a nuclear power station in Wales.
Related: Hitachi scraps 16bn nuclear power station in Wales
9.37am GMT
China's Ministry of Finance has hit out at US authorites for launching a criminal probe into Huawei.
MOFa spokesperson Hua Chunying has told reporters that China is concerned by the "unusual handling" of the case by US prosecutors, suggesting it was driven by political considerations.
"America's treatment of Huawei is full of geopolitical daggers" The US is angry because of China's progress. If China wants to keep developing, China needs to bear these kinds of setbacks."
"The US has prevented these companies from remaining separate from politics. The US has branded Huawei and ZTE as political, and this is a technological Mccarthyism."
8.53am GMT
Trade war concerns are weighing on the markets today.
China's Shanghai composite index has dropped by 0.5%, following the news that Huawei is being probed by US authorities.
The negative start follows reports that US Federal Prosecutors are investigating Huawei Technology for allegedly stealing trade secrets.
The move comes as US - Sino relations were improving amid a 90-day truce. It goes right to the heart of the unresolved IP issues with China. China are unlikely to shrug this off which is creating a risk off environment. Signs of retaliation from China could see stocks sink further.
8.38am GMT
Chinese technology giant Huawei is at the heart of the dispute between Washington and Beijing.
Huawei and the Department of Justice declined to comment on the media report.
However, Huawei noted that "Huawei and T-Mobile settled their disputes in 2017 following a US jury verdict finding neither damage, unjust enrichment nor willful and malicious conduct by Huawei in T-Mobile's trade secret claim."
8.24am GMT
Newsflash: One of China's top political leaders will head to Washington later this month to continue trade talks.
Chinese Vice Premier Liu He will visit the United States on January 30 and 31 for the next round of trade negotiations with Washington, China's commerce ministry says.
BREAKING: China announces its economy czar, Vice Premier Liu He, will visit Washington on Jan. 30-31 for trade talks.
8.13am GMT
Aso's comments came as one of Japan's many tech companies revealed it had been hurt by the US-China trade dispute.
Nidec, a Japanese precision motor maker, slashed its profit forecast by a quarter and warned that the trade war is deterring clients from spending.
"The company is seeing an adverse ripple effect of the current U.S.-China trade friction on its operations in many countries, particularly in China,"
8.01am GMT
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"Dissatisfaction with economic inequality is growing. There is a serious risk that we will revert to a closed and fragmented world.
"Protectionism and unfair trade practices lead to instability and perverse economic outcomes. We must renew our commitment to international cooperation and openness."
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