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Rolling coverage of the latest economic and financial news, as investors welcome deal which should avert another Federal government shutdown. Skip to main content The Guardian – Back to home Support The Guardian Contribute Subscribe Contribute Search jobs Sign in My account Comments & replies Public profile Account details Emails & marketing Membership Contributions Subscriptions Sign out Search switch to the International edition switch to the UK edition switch to the US edition switch to the Australia edition current edition: International edition News Opinion Sport Culture Lifestyle Show More News World news UK news Science Cities Global development Football Tech Business Environment Obituaries Opinion The Guardian view Columnists Cartoons Opinion videos Letters Sport Football Rugby union Cricket Tennis Cycling F1 Golf US sports Culture Books Music TV & radio Art & design Film Games Classical Stage Lifestyle Fashion Food Recipes Love & sex Health & fitness Home & garden Women Men Family Travel Money What term do you want to search? Search with google Make a contribution Subscribe International edition switch to the UK edition switch to the US edition switch to the Australia edition Search jobs Dating Holidays Digital Archive Discount Codes The Guardian app Video Podcasts Pictures Newsletters Today’s paper Inside the Guardian The Observer Guardian Weekly Crosswords Facebook Twitter Search jobs Dating Holidays Digital Archive Discount Codes Business Economics Banking Money Markets Project Syndicate B2B More Business live Business Markets boosted by US government shutdown deal and trade war hopes – business live
Rolling coverage of the latest economic and financial news, as investors welcome deal which should avert another Federal government shutdown
Full story: Party leaders reach deal to avoid fresh US government shutdown
Deal only gives $1.4bn for border security Trump wanted £5.7bn LIVE Updated
Pedestrians walk past a window showing the Nikkei stock index in Tokyo. Photograph: Toshifumi Kitamura/AFP/Getty Images Graeme Wearden
Tue 12 Feb 2019 07.57 GMT First published on Tue 12 Feb 2019 07.53 GMT
Share on Facebook Share on Twitter Share via Email Key events Show 7.47am GMT 07:47 The agenda: Shutdown deal pushes markets up Live feed Show 7.47am GMT 07:47
The agenda: Shutdown deal pushes markets up
Republican Senator from Alabama Richard Shelby, who says a deal to avoid another government shutdown has been reached Photograph: Jim Lo Scalzo/EPA
Good morning, and welcome to our rolling coverage of the world economy, the financial market, the eurozone and business.
A burst of optimism is rippling through the markets this morning, after US lawmakers reached a tentative deal to avoid another government shutdown.
Overnight, Democrats and Republicans agreed a new spending package, which includes some more money to fund border security. Assuming president Trump signs it off, the deal will keep the Federal government running beyond Friday.
After weeks of deadlock, Republican Senator Richard Shelby emerged to tell reporters that “an agreement in principle” had been reached, and that staff would be “working feverishly to put all the particulars together.”
The deal will provide some money to construct fencing on the US-Mexico border, but this really doesn’t look like a win for Trump.
That’s because Congress is only providing $1.4bn for extra border security, not the $5.7bn the White House had asked for.
As my colleague Tom McCarthy explains:
The agreement would allocate far less money for Trump’s border wall than the White House’s $5.7bn wish list, settling for a figure of nearly $1.4bn, according to congressional aides. The funding measure is through the fiscal year, which ends 30 September.
The agreement means 55 miles of new fencing — constructed through existing designs such as metal slats instead of a concrete wall — but far less than the 215 miles the White House demanded in December. The fencing would be built in the Rio Grande Valley in Texas.
Money has also been set aside for technology such as advanced screening at border entry point, humanitarian aid, and additional customs officers.
News of the breakthrough boosted markets in Asia, where Japan’s Nikkei jumped by 2.61%, or 531.04 points, to end at 20,864.21.
European markets are expected to rise at the open too.
IGSquawk (@IGSquawk) European Opening Calls: #FTSE 7148 +0.26% #DAX 11097 +0.75% #CAC 5043 +0.56% #MIB 19740 +0.78% #IBEX 8980 +0.48%
February 12, 2019 The deal comes as US officials prepare for fresh talks with China over the trade war – another Trump bugbear that has been worrying the market s. Treasury secretary Stephen Mnuchin and trade representative Robert Lighthizer are due to meet Chinese Vice Premier Liu He in Beijing on Thursday.
Yesterday, White House adviser Kellyanne Conway revealed that president Trump is still keen to meet China’s Xi Jinping “very soon” to hammer out a deal, saying:
“This president wants a deal. He wants it to be fair to Americans and American workers and American interests.”
Given the slowing global economy, investors would welcome a breakthrough – before even more tariffs are imposed on US and Chinese goods.
Bloomberg Economics (@economics) Trump wants to meet with Xi “very soon” in an effort to end the trade war, Kellyanne Conway says: “This president wants a deal” https://t.co/iaD8qEWJC0
February 12, 2019 Also coming up today Bank of England governor Mark Carney is speaking about the global economy, and risks to the outlook, at an event in London, organised by the Financial Times. Trade wars will probably come up.
Chris Giles (@ChrisGiles_) Looking forward to chairing @ftlive event tomorrow with BoE governor Mark Carney speech and Q&A #FTMarkCarney https://t.co/H4rTDOcDFD
February 11, 2019 Otherwise it’s a quiet day.
The agenda 1pm GMT: Bank of England governor Mark Carney discusses the global economy
Updated at 7.57am GMT
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