Stock markets have retreated again over worries of further US interest rate rises after the Federal Reserve defied Donald Trump to increase rates for the fourth time this year.

The EU has confirmed it is “actively investigating” a potential breach of its diplomatic communications network, following reports that secret cables had been stolen by hackers.

The Bank of England has welcomed a “crucial and positive” move by the EU to help keep a key part of the financial system functioning in the event of a “no-deal” Brexit.

A handful of banks will be forced to write multimillion pound cheques to buy shares in the construction giant Kier Group after some of its biggest investors snubbed the chance to take part in a £250m fundraising.

GlaxoSmithKline (GSK) is to merge its consumer healthcare unit with that of rival Pfizer, to create a new market leader with almost £10bn in annual sales.

 

Santander has been fined more than £30m for “serious failings” in processing the accounts of dead customers, the Financial Conduct Authority (FCA) says.

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Goldman Sachs to bet on weaker US currency

Goldman-Sachs-to-bet-on-weaker-US-currency

According to the financial giant, the US dollar is poised to suffer a decline in the current scenario

Comments from Federal Reserve Chairman Jerome Powell boosted the changes that the central bank will pause interest-rate increases, wrote Goldman Sachs strategists in a note. Powell cited the events of 2016, when rates were kept unchanged through most of the year due to concerns about slow growth in China.

The potential hold presents a chance for the greenback to drop.

“Combined with net softer US data for December, we think a more data-dependent Fed creates space for further dollar downside,” the strategists led by Zach Pandl wrote.

“We are therefore recommending short DXY (or a basket with approximately these weights), with an initial target of 93.0 and stop of 97.5.” The note added further.

The DXY index hasn’t been below 93—Goldman’s target level—since May, as the currency has strengthened on the back of robust American economic data. It reached a peak level at the stop of 97.5 in November. The gauge ended last week at 96.179, a consecutive third week decline, as it failed to hold gains from the extremely strong monthly US payrolls report.

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