Eurozone interest rates could be cut today; Uber ‘explored bid for Expedia’ in super-app push – business live

The future of the HS2 rail line could soon be decided.

LBC are reporting that the government will soon announce that HS2 will run from London Euston to Crewe.

According to the LBC report, state-owned HS2 LTD will not oversee the extension to Crewe, and the multi-billion-pound project will be handed to a private sector consortium instead.

LBC say:

According to sources close to the project, Ministers have re-evaluated the cost-benefit of HS2 and concluded the line should continue beyond Birmingham – reversing a decision made by the then-Prime Minister Rishi Sunak at his party’s conference last year.

A year ago, Sunak scrapped the northern leg of HS2, meaning it would start in Birmingham, rather than Manchester.

Under that plan, the line would terminate outside central London at Old Oak Common – unless private investment would pay for it to reach Euston.

Last week, cabinet minister Lisa Nandy hinted that a cut-price “HS2-lite” would run from Birmingham to Crewe

Rail industry analysis has shown that runing the line from Crewe to Euston would make financial sense.

The euro has dipped to its lowest level in two and a half months, as investors anticipate a cut from the European Central Bank today.

The single currency has dropped to $1.0847 this morning, the lowest since 2nd August.

It’s been weakening through October, having hit $1.12 at the end of September.

Kathleen Brooks, research director at XTB, suggests the euro has further to fall if the ECB sounds dovish today.

The ECB has little choice but to cut. Germany’s economy is continuing to show signs of struggle. German investor confidence was weaker than expected this week, and a number of Eurozone economies have extremely low levels of inflation.

As we lead up this meeting, EUR/USD has made a fresh 2-month low and is back trading around $1.0850. There is a lot of expectation already priced into the market, however, momentum is to the downside for the euro, and a dovish tilt from the ECB could exacerbate the euro even more.

Shares in Expedia, the nearly $20bn US travel booking website, are set to rally today following reports that transport and delivery firm Uber has explored a possible bid.

Uber, the Financial Times reports, has approached advisers in recent months to examine whether such a deal would be possible and how it could be structured.

It would be Uber’s bigger acquisition yet, and give it access to new growth opportunities. However, the situation is still at an early stage, as a formal approach hasn’t yet been made to Expedia and the two sides aren’t in discussions.

A deal would help Uber transform itself into a ‘super app’, offering users a wide range of services through a single application as Chinese tech groups such as WeChat already do well.

Intriguingly, Uber’s CEO Dara Khosrowshahi was previously the chief executive of Expedia.

Expedia’s shares have jumped by 7.2% in after-hours trading on Wall Street, while Uber’s shares have dropped by 2.9%.

Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.

The welcome slowdown in global inflation is clearing the way for central banks to pull down interest rates, and today the spotlight falls on the European Central Bank.

The ECB is expected to make its third rate cut of the year today, putting it two cuts ahead of the Bank of England. Policymakers are under pressure to cut after eurozone inflation was estimated to fall below the ECB’s 2% target in September (we get the final reading today too).

Economists predict the ECB will cut its deposit rate by another quarter-point today, to 3.25%, as its governing council meets in Ljubljana, Slovenia, today. President Christine Lagarde is also expected to leave the door wide open for another cut in December.

With European countries such as Germany struggling this year, lower interest rates would be welcomed by business and consumers across the eurozone.

Last week, Greece’s central bank governor Yannis Stournaras piled pressure on the governing council, dclaring that “highly restrictive” interest rates could be lowered faster than previously anticipated.

Neil Hutchison, European liquidity strategies portfolio manager at J.P. Morgan Asset Management, says it would be a surprise if the ECB don’t cut today:

“With Halloween on the horizon, we’re not expecting any scary surprises from the ECB this week. Spooked by weaker PMI business survey data, the ECB is likely to deliver a 0.25% rate cut.

Recent cooling in inflation data means they’re less burdened by potential price pressures. With minimal pushback from ECB members, markets would be surprised if a cut didn’t happen.

Beyond this meeting, the outlook is currently enveloped in a Halloween haze, with concerns over a potential growth slowdown and geopolitical tensions, amid resilient wage growth and low unemployment.”

The agenda

• 10am BST: Eurozone inflation estimate for September (final reading)

• 1.15pm BST: European Central Bank sets interest rates

• 1.30pm BST: US retail sales for September

• 1.30pm: US weekly jobless claims

• 1.45pm BST: European Central Bank press conference

• Tonight: Annual City Banquet at Mansion House