- Anthony Reuben
- Pia Gadkari
Last updated 19 December 2013Share
0600Pia Gadkari, Business reporter, BBC News
Good morning and welcome. We'll bring you the reaction to the Federal Reserve's move to wind down its economic stimulus, and take a look at how the EU will deal will failing banks under its new plan. And much more to come. Stay with us.
0600Anthony Reuben, Business reporter, BBC News
Good morning. Stay with us until lunchtime as we watch the markets react to the Federal Reserve's decision to cut back the amount of money it's pumping into the economy each month. Do get in touch via firstname.lastname@example.org or tweet @bbcbusiness.
0609 UK TAX COLLECTING
There's a critical report from the House of Commons Public Accounts Committee this morning about the way UK tax is collected. Margaret Hodge, who chairs the committee, says that HMRC "seems to lose its nerve" when chasing multinational companies for owed tax. She said the approach was firmer when HMRC was pursuing small businesses.
0619 FEDERAL RESERVE
Yesterday evening, the US central bank decided to scale back the amount of money it pumps into the US economy each month from $85bn (£52bn) to $75bn. The Federal Reserve said the US recovery had taken root, and cited stronger jobs growth as another reason for scaling back its support for the economy.
0620 UK TAX COLLECTINGRadio 5 live
HMRC disputes the findings of the committee of MPs. And speaking to Wake up to Money, Heather Self, a tax expert from law firm Pinsent Masons said: "I think the public accounts committee needs to lay off HMRC a bit. They are questioning their professionalism and that's not helping us have an efficient tax collecting system."
0630 MARKETS UPDATE
Markets responded positively to the Federal Reserve's announcement, which was something of a surprise given how negatively they reacted when the possibility of a pullback was mentioned over the summer. The Dow Jones in New York was up nearly 300 points, or just under 2% afterwards. At the moment, the Japanese Nikkei 225 is 1.9% up and Hong Kong's Hang Seng is down 0.1%
0631 EU BANKING UNION
Late last night, eurozone finance ministers finally agreed to a deal on how to deal with failing banks. They are going to set up a European rescue agency, which will be financed by a levy on banks that is supposed to raise 55bn euros ($76bn; £46bn) over 10 years. The agency will decide how to deal with any failing banks in the eurozone.
0633 FEDERAL RESERVERadio 4
Ian Shepherdson, chief economist for Pantheon Economics, says some of the positive market reaction is down to the fact that the policy change announced by the Federal Reserve was very modest. "Also, I think the markets view the Fed's actions as a vote of confidence in their own forecasts that growth is going to get better," he says.
0644 FEDERAL RESERVERadio 5 live
Cornelia Meyer from Meyer Resources has been speaking about the US economy on Radio 5 live: "It's an economy on steroids and instead of taking a lot of steroids you still take quite a few steroids."
0645 FEDERAL RESERVE
The Federal Reserve also indicated that it would keep shaving $10bn (£6bn) per month off its bond-buying programme, unless economic indicators suggested growth was stalling. So, by this time next year, the stimulus could have been completely wound up.