The European Central Bank has cut interest rates to a record low, in a fresh attempt to counter the threat of economic stagnation across the eurozone.
The governing council cut its benchmark main refinancing rate from 0.15 per cent to 0.05 per cent and said it would charge lenders 0.2 per cent, up from 0.1 per cent, for their deposits parked at the central bank. Mario Draghi’s press conference is now over.
By Ralph Atkins and Emily Cadman
Welcome to our live coverage of ECB president Mario Draghi monthly press conference. Earlier the ECB kept its interest rates at their current record lows for the second month in a row.. Follow the questions and reaction live here with Lindsay Whipp and economics reporter Emily Cadman.
UK Chancellor George Osborne and former US Treasury Secretary Lawrence Summers have just locked horns at Davos on the UK’s economic recovery. Whilst Summers didn’t directly use the words “you blew it” as some reported, FT reporters on the ground say that was the clear sentiment.
FT editor Lionel Barber on why Iran’s new president Hassan Rouhani wants to end Iran’s isolation and why he might be the leader that the west could do business with.
From the World Economic Forum in Davos, Martin Wolf on whether markets are safer now and why Japanese prime minister Shinzo Abe’s comments on China are the most sobering he has heard at Davos in years.
FT senior columnist Gillian Tett reports on why business and governments are at loggerheads over where growth will come from, with business saying it is not ready to invest, yet confidence in governments is low.
And here are the other talking points from the first morning tech-focused sessions:
1. “Internet of things” worth $19tn
John Chambers, the chief executive of Cisco, has just put a number on the “Internet of Things” – and it’s big.
In fact, it’s very big – a whopping $19tn – more on FastFT
2. Management editor Andrew Hill reports that Marc Benioff of Salesforce.com has set the pace – literally – by pointing out he lost 30lb using the Fitbit personal health tracker. When he stopped working out last week – because he had a cold – his “Fitbit friend” Michael Dell called him to check he was OK.
“There’s a fitness challenge at Davos this year – they’re handing out fitness bands to monitor delegates’ patterns of sleep and exercise. I suspect it may reveal a grisly picture of lost sleep, hangovers and canape overload.”
(c) World Economic Forum
It’s day one at Davos, with business and political leaders, gathered in the Swiss resort for the first sessions. Here is what you should read today before the action starts:
1. The FT’s economics editor Chris Giles lays out the message economy
experts attending the forum will be sending. That is: We may have
eliminated the horrors but we’re still fragile – ie, the eurozone,
falling productivity and widening inequality within countries. Here is the
FT’s editor Lionel Barber and here Martin Wolf on what to expect from
2. The FT’s Gideon Rachman provided some lighthearted bedtime reading on
dogs, Russian pianists and extreme chance meetings.
3. The gender gap is just as evident at Davos as it is in many other
places across the business world. See our interactive to view just how big
that gap is. Read more
After days of severe weather warnings and anticipation, England suffered transport chaos and widespread power cuts this morning after a storm with gusts of up to 99 mph hit southern England.
Though the storm was not severe by international standards, it is the worst to hit the country in a number of years.
Porthleven in Cornwall. (c) Getty Images
This video from the Met Office shows the progress of the storm across the country.
The worst of the weather is now over, with the focus turning to the cleanup.
London’s rail stations were eerily quiet as most major rail companies cancelled all early morning trains.
(c) Claer Barrett
(c) Claer Barrett
Network Rail, like many other companies, took to Twitter to update commuters on problems.
It said that more than 100 trees have been discovered on the rail network across the south east so far today.
As of 10am, many major commuter routes were still closed. Read more