Yahoo Finance Inflation hits its highest level in five-and-a-half years; MPC right to cut interest rates after Brexit vote says Carney
Inflation rises to 3pc, its highest level in five-and-a-half years; the increase will crank up the pressure on the Bank of England to hike interest rates next month to curb inflation
RPI remains at its highest since 2012; business rates will jump by 3.9pc next April as a result
Sterling sinks as Mark Carney speaks at a select committee; the pound falls 0.7pc against the dollar to below $1.32
FTSE 100 nudges higher as the pound retreats; theme park owner Merlin nosedives 20pc after a "difficult" summer of trading, blaming terrorism and bad weather
Markets wrap: Inflation hits a five-and-a-half-year high; miners drag down FTSE 100
Inflation has nudged up to its highest level in five-and-a-half years to turn up the heat on the Bank of England's Monetary Policy Committee.
The central bank's policymakers are expected to lift interest rates next month in an attempt to ease the squeeze on UK households caused by inflation rising to 3pc.
Sterling has been supported in the last month by the expectation that the central bank will hike rates to curb rising prices but governor Mark Carney failing to provide any new indications on monetary policy and new deputy governor Sir Dave Ramsden revealing his dovish tendencies in Parliament has dragged down the pound 0.7pc against the dollar to $1.3187 this afternoon.
Mr Ramsden said that he was not part of the majority of those on the MPC who favoured a rate hike while Mark Carney couldn't give any clear signals to the markets on whether the central bank will push the base rate up to 0.5pc in November.
Elsewhere, on the FTSE 100 mining stocks have pulled the FTSE 100 down into the red late this afternoon as metal prices soften while Thorpe Park owner Merlin Entertainments has plunged 16pc after terrorism and bad weather weakened its summer of trading.
ETX Capital analyst Neil Wilson commented on sterling's movement this afternoon:
"Sterling lost ground as the market decided the Bank of England is no longer definitely minded to hike rates in November.
"Mark Carney suggested tightening may be warranted in the coming months and failed to give an explicit signal on November, while Dave Ramsden sounded overtly dovish. Some sterling bulls threw in the towel but this looks a trifle cautious - while not nailed on the hawks should edge it next month."
Virgin Money insists its credit card business is safer than the bigger banks
Virgin Money has insisted it has a safer credit card business than Britain’s big banks, amid growing fears over ballooning consumer credit.
The challenger bank’s chief executive Jayne-Anne Gadhia told analysts today the company had conducted its own “extreme” in-house stress test of its expanding credit card book and found in a downturn it would face fewer problems than its peers.
Last month the Bank of England warned lenders they risked losing as much as £30bn on personal lending if the economy took a turn for the worse, with as much as a quarter of credit cards defaulting.
But Ms Gadhia said Virgin’s own credit card business - which has grown balances to £2.9bn - would fare better than its peers.
Read Iain Withers' full report here
Dow Jones on course for another record finish; US industrial production rebounds
US markets have opened and the Dow Jones has nudged up into positive territory, leaving it on course for another record finish.
The index has been dragged up by UnitedHealth's 4.8pc jump on hopes that a decline in medical costs at the health insurer could boost full-year figures.
There's a bit of economics data to update you with from the States this afternoon.
Industrial production growth bounced back in September to rise by 0.3pc after being disrupted by hurricane season the previous month.
Paul Ashworth, chief US economist, said there were still "signs of disruption evident last month, leaving scope for a much bigger rebound in production in October".
He added:
"Overall, with global trade and economic growth booming and the dollar still down substantially from its peak early this year, the outlook for US manufacturing looks bright. That optimism comes through in the upbeat survey evidence. As a result, we expect solid gains in manufacturing output in the fourth quarter."
Revolution Bars suitor leaves empty handed as investors reject £100m bid
Shares in Revolution Bars dropped as much as 8pc after a second potential suitor in two weeks was left unable to secure a deal.
Stonegate, the owner of the Slug & Lettuce chain, had bid 203p a share for its rival, valuing the chain at £100m. But it failed to secure shareholder support for its cash offer, sending the target’s shares down to 176p.
Owners of just 60pc of Revolution's shares voted in favour of the Stonegate bid at each of the two separate Court and General meetings held by the company to allow investors to express their view on the deal.
To be successful, the bid needed 75pc of shareholders to vote in favour.
Read Bradley Gerrard's full report here
Asos profits double as overseas growth offsets weak pound
Asos profits have doubled in the past year as the online retailer's rampant overseas expansion allowed it to storm past its struggling British high street rivals.
The fashion site has delivered a 145pc jump in pre-tax profits to a record £80m while group sales have surged by 33pc to £1.9bn in the year to August 31.
Asos' upbeat numbers are partly down to the rapid consumer shift from traditional bricks and mortar shopping to clicks on mobile devices. This has resulted in the online fashion market growing at twice the rate of the overall fashion sector over the last five years.
However, Nick Beighton, Asos boss, said that it was "not enough to just be online". He added: £There has been a continual channel shift as twentysomethings use their mobile phones, but you can't just be digital, you've got to be selling what people want to buy."
Read Ashley Armstrong's full report here
Pearson stems decline in key US market
The troubled education giant Pearson has suffered a further decline in its core American textbook business in the third quarter but avoided its worst fears, to the relief of investors.
On the back of a string of profit warnings, Pearson said the improved trend meant it could narrow its full-year profit forecast to the upper end of the range.
The company, which has cast off media assets such as the Financial Times to focus on education in recent years, now expects a minimum adjusted operating profit of £576m. The previous lowest prediction was £546m.
The improvement reflects a 5 percentage point cut to Pearson’s expected tax rate for the year to 16pc following the “favourable outcome of certain historical tax issues”.
Read Christopher Williams' full report here
Inflation hits 3pc as cost of living squeeze intensifies
Prices jumped by 3pc in the past year, the fastest rise in more than five years as imported inflation and higher energy prices pushed up the cost of living.
Food prices climbed as inflation in staples such as bread, rice and meat accelerated in September, while transport costs also rose as petrol became more expensive.
Computer games and theatre tickets also dragged up the consumer price index, the Office for National Statistics said.
Read Tim Wallace's full report here
Carney grilling ends
Final question is about the gender pay gap and he replies that the gap is 24pc on a median basis at the Bank of England and 21pc on mean basis.
He says they are in the middle of a deliberate strategy of changing this at the central bank.
And with that, it's over. Nothing much new there to be perfectly honest. He defended, as he always does, quantitative easing and the interest rate cut taken shortly after the Brexit vote while also allaying fears about ballooning household debt.
Sterling took a bit of a battering during that appearance, sinking 0.7pc to below $1.32 against the dollar and 0.3pc against a basket of the leading currencies.
Carney on QE: We're clean and not addicted
BoE's Carney: We Don’t Have To Go As Close To 2% Inflation To Start QE Unwind
— LiveSquawk (@LiveSquawk) October 17, 2017
BoE's Carney: Bank Rate, Not QE, Will Be Relevant Instrument For Policy For Some Time To Come
— LiveSquawk (@LiveSquawk) October 17, 2017
We've move onto quantitative easing and Mr Carney is given a quote comparing it to heroin.
Extending the metaphor, he replies: "We're clean and not addicted to QE or will go through withdrawal symptoms."
He adds that the Bank of England will not just unwind for fun and prove a point, adding that the central bank will observe the Fed's balance sheet unwinding programme.
Household debt only requires macro-prudential response
#GBPUSD loses 1.32 levels after #Carney comments about uncertainty on investment#inflation#BOE#fx#UK#Brexit
— ِِِAhmed Al-Zeini (@alzeini) October 17, 2017
When asked if he is too relaxed on household debt, Mr Carney says that the Bank of England is taking action on household debt but to an appropriate degree. It only merits a macro-prudential response, adding that "we're never relaxed about anything".
On Government fiscal policy, he says that he will not and cannot give his opinion and when asked if Help to Buy has pushed up house prices, Mr Carney says that it hasn't had a multiplier effect on supply.
Carney: We shouldn't take the lead on Brexit from the markets
John Mann extra deadpan at the Treasury Committee today. Here he is asking if Carney "has a clue" about why productivity is so low pic.twitter.com/Ig0CSFx5E7
— Jill Ward (@jillianfward) October 17, 2017
Carney talks down the car finance bubble, saying "debt burden of that is actually overstated."
— Owen Bennett (@owenjbennett) October 17, 2017
Moving onto household debt, Mr Carney is relatively upbeat. He explains away fears of a car finance bubble and says that the quality of "borrowers has gone up substantially".
We shouldn't take the lead from the markets on Brexit given its complexity, he adds. It matters more how households and businesses react.
... even market perception that there is going to be a material change in circumstances will make forecasts "challenging" says Carney
— Faisal Islam (@faisalislam) October 17, 2017
New BoE policymakers lean on the dovish side
I missed new Bank of England policymakers Silvana Tenreyo and Sir Dave Ramsden's grillings this morning but fortunately Reuters was watching. Here's what happened:
New Bank of England rate-setter Silvana Tenreyro said she was not ready to vote to raise the Bank’s record low interest rates in November although she might do so in the coming months if inflation pressure builds in Britain’s labour market.
“My view is that we are approaching a tipping pint at which it would be necessary or justified to remove some of that stimulus,” she told British lawmakers on Tuesday.
New deputy governor Dave Ramsden said he was not close to voting for an interest rate hike, raising some questions for investors about when the BoE would make its widely expected first hike in more than a decade.
Deputy Governor Dave Ramsden said he was not part of the majority of BoE policymakers who believe a rate hike is likely to be needed “in the coming months” because he saw little sign of inflation pressure building in Britain’s labor market.
Carney says business is less confident about a smooth transition and good end-state from Brexit. Consumer confidence holding up much better.
— Richard Partington (@RJPartington) October 17, 2017
They're still questioning Mr Carney but the debate has centered on Brexit on which the governor can't give many certain answers. They've just moved onto household debt. I must admit this select committee is lacking some teeth, he's having quite an easy ride.
Sterling sinks against the dollar as Carney speaks
The overall tenor of MPC testimony seems dovish - Carney diverges from Fed in saying he doesnt want to warehouse hikes
GBPUSD 3200 in view— BKForex (@BKForexIdeas) October 17, 2017
#UK headline #inflation edges higher, core flat. Enough for #BOE to hike in Nov. With #CPI close to peak, further hikes unlikely. #Carneypic.twitter.com/zcL6qHtAVc
— Anna Stupnytska (@AnnaStupnytska) October 17, 2017
Since Mr Carney started speaking the benchmark 10-year Gilt yield has fallen 3.2 basis points to 1.30pc. Meanwhile on the currency markets, against a basket of the leading currencies, the pound has sunk to a 0.2pc loss for the session while against the dollar sterling has slipped 0.6pc to $1.32.
Spreadex analyst Connor Campbell commented on the appearances by MPC members this morning:
"There were conflicting messages from the BoE this Tuesday. The central bank’s newest deputy governor, Sir Dave Ramsden, stated he wasn’t one of the MPC members who said they were close to raising rates last month. In contrast, policymaker Silvana Tenreyro said she would be ‘minded to vote for a bank rate increase’ if the UK’s data justified it.
"As for head honcho Mark Carney, he dismissed a question from the Treasury Committee asking whether it would be wise to raise borrowing costs in order to give the BoE room to cut in the case of a recession, arguing that it isn’t ‘appropriate or necessary given that policy can move quite nimbly’."
Carney warns against moving clearing out of London; BoE working on hard Brexit contingency plan
BoE's Carney: Absolutely In EU's Interest To Have A Transition Brexit Agreement, Believes There Will Be One
— LiveSquawk (@LiveSquawk) October 17, 2017
MArk Carney: BoE done preparations for "hard exit without any transition period" but much less in EU and its firms - on derivatives
— Faisal Islam (@faisalislam) October 17, 2017
They move onto the subject of clearing and Mr Carney warns against moving clearing out of London, saying that fragmenting European clearing would create costs for the European real economy.
He adds that the Bank of England is working on a contingency plan for a hard exit without any transition period but believes there will be a transition deal.
Carney: Interest rate cut after Brexit was not unnecessary
BoE's Carney: 'Building A War Chest' In Interest Rate Terms For Future Shocks Would Not Be In Line With Inflation Target
— LiveSquawk (@LiveSquawk) October 17, 2017
Carney: Rate hike in coming months may be appropriate
— Michael (@lampidicsparrow) October 17, 2017
Mr Carney disagrees with a select committee member arguing that the interest rate cut after Brexit was unnecessary.
The pound has largely been determined by the prospects of the trade deal with the European Union. It was the markets judgement on how Brexit will affect real incomes.
That will ruffle a few feathers.
Raising rates now to potentially support the economy later with a cut is not consistent monetary policy, he says to another question.
He also reiterates that the MPC believes that a hike in interest rates in the coming months will be appropriate.
Watch Mark Carney here
Mark Carney Treasury Committee appearance begins
BoE's Carney: We Still Face A Trade-Off Between Inflation Above Target And Supporting Jobs And Economic Activity
— LiveSquawk (@LiveSquawk) October 17, 2017
Bank of England governor Mark Carney has just started his appearance at the Treasury Commitee.
He said that the Bank of England expects inflation to peak in October, admitting that it is likely that he will be writing a letter to the Chancellor explaining why inflation is so far from the 2pc target rate.
He emphasises that the effects of monetary policy takes time to feed through, adding that some factors pushing up inflation are out of the central bank's control such as rising oil prices.
Attention turns to tomorrow's wage growth reading
UK CPI was 3% in September, but RPI was 3.9% this will push the business rates multiplier to a record high next year https://t.co/nx2GpYeDHlpic.twitter.com/2qxAU4ukaB
— EEF Economics Team (@EEF_Economists) October 17, 2017
All eyes will turn to tomorrow's wage growth reading, which is expected to remain flat and lag far behind inflation at 2.1pc. Back to the reaction to today's figures.
Capital Economics' UK economist Paul Hollingsworth believes that the Bank of England "will probably be focussed more on tomorrow’s wage growth figures for any signs that domestic cost pressures are building".
He added:
"Nonetheless, the fact that this is the last set of inflation figures before the key MPC meeting on 2nd November, they will be a key factor in the Committee’s thinking. What’s more, September’s inflation figures are used for the uprating of some benefits."
Kate Smith, head of pensions at Aegon, explains how today's figures affect the Lifetime Allowance:
"This month inflation figures are uniquely important because they are used by the government to calculate the rise in the Lifetime Allowance (LTA) for the first time. The increase for the LTA in 2018/19 will be £1,030,000 based on today’s figures, and following a series of reductions it is welcome that the base-level is set to start growing again, even if on the surface the numbers aren’t large.
"Despite being small, this is a complex area, so those affected should seek financial advice to make sure their pension is protected from additional tax charges"
A quick sitrep on the pound. Sterling has nudged a little further down against the dollar to a 0.3pc loss for the session at $1.3250 while against the euro it remains 0.2pc higher at €1.1270.
Inflation reaction: Painful squeeze on consumers will ease next year
Just a reminder that Mark Carney and two other Bank of England policymakers are currently appearing in a Treasury Select Committee and we'll bring you the latest from Parliament as it comes.
Let's have a look at what the experts made of today's figures.
Pantheon Macro UK economist Samuel Tombs believes that inflation will slip below 2pc by 2019, meaning that the MPC will be discouraged from raising interest rates more than once in the next 12 months.
He added:
"Inflation looks set to fall sharply in 2018, now that retailers have nearly completed sterling-related price rises.
"Domestically-generated inflation has remained muted; indeed, inflation in the services sector was just 2.7% in September, well below its 3.7% average in the decade before the recession."
EY ITEM Club's chief economic advisor Howard Archer believes that it would take a surprisingly weak earnings figure tomorrow and particularly poor third quarter GDP growth to stop the MPC from lifting interest rates next month.
The painful squeeze on consumers will begin to gradually ease during 2018, he added.
Inflation key takeaways
Food and housing costs drove #inflation in #UK to 4 year high of 3,0% in September #CPI#rate#wages#BoEpic.twitter.com/aorT9oN1Na
— Gunn Kristin Storrø (@gstorro) October 17, 2017
Inflation nudged up to 3pc in September, its highest level since April 2012. Inflation remaining far above the Bank of England's 2pc target rate will crank up the pressure on the central bank to raise interest rates at next month's Monetary Policy Committee meeting.
The ONS said that rising prices on food and recreational goods along with transport costs were the main factors putting upward pressure on the reading.
RPI remained flat at 3.9pc, an almost six-year high, meaning that business rates (which are determined by today's figure) will rise substantially next April. This "will be the last straw" for many SMEs, said the Federation of Small Businesses.
The increase in the headline figure was forecast by economists and thus the pound is unchanged following the release, remaining 0.2pc lower against the dollar this morning at $1.3260.
RPI reading will heap more misery on small businesses
#UK#CPI hits fresh 5&half year highs. The drag in #RPI comes from housing and travel fares. Food and clothing massively up. #BOE will hike pic.twitter.com/RDakTuQjM2
— Manu Ortiz-Olave (@ManuOrtizOlave) October 17, 2017
RPI at 3.9% also suggests a fuel duty hike of nearly 3p per litre in April 2018 unless the Chancellor acts
— steve hawkes (@steve_hawkes) October 17, 2017
Although the Retail Price Index reading came in flat at 3.9pc, a slightly softer figure than economists were expecting, it will heap more misery on small businesses, according to the Federation of Small Businesses.
Today's RPI reading means that business rates bills will rise by 3.9pc next April and that increase "will be the last straw many" SMEs, its national chairman Mike Cherry said.
He added:
"Today’s RPI figure follows six months of business rates misery for our small business community. Since April’s bruising revaluation we’ve had the staircase tax, introduction of an unworkable appeals platform and chronic delays to the Chancellor’s £435 million relief package. A near four per cent bill increase next April, on top of losing year one transitional caps, will be the last straw for many.
"The Chancellor should give careful consideration to his inaugural Autumn Budget. The last thing our businesses need is new tax increases or loss of entrepreneurial reliefs."
3pc inflation turns up the heat on the Bank of England; sterling largely unchanged
����#UK CPI inflation reaches 3% for the first time since April 2012, #BoE stays on course for Bank Rate hike next month $EURGBP$GBPUSDpic.twitter.com/AVA4NJb7ik
— Danske Bank Research (@Danske_Research) October 17, 2017
That U.K. Inflation number does not bode well for real wage growth.
— Sven Henrich (@NorthmanTrader) October 17, 2017
Mr Carney will not be dusting off the parchment and pen to write the chancellor to explain why inflation has veered so far from the Bank of England's 2pc target rate and he has done it by the skin of his teeth.
While the rise to 3pc was expected, inflation hitting its highest point in five-and-a-half years will turn up the heat on the Bank of England's Monetary Policy Committee.
The central bank's policymakers have dropped some very strong hints in the last month or so on raising interest rates but this combined with reasonably solid economics data of late will make it very difficult for the MPC to leave the base rate unchanged in November's meeting.
Meanwhile on the currency markets, sterling has barely budged an inch after today's headline CPI figure came in line with economists' forecast
Inflation hits a five-and-a-half-year high
3% inflation will definitely serve to spur MPC on to a rate rise in November - will they have the metal to actually follow through?
— Andrew Montlake (@montysblog) October 17, 2017
Inflation increased to 3pc in September, its highest level in five-and-a-half years. The reading was in line with economists' forecasts but will crank up the pressure on Bank of England policymakers to raise interest rates at the next Monetary Policy Committee in November. More to follow...
Merlin shares plunge after terror fears hit attractions
Shares in the owner of Madame Tussauds and Alton Towers tumbled in early trade as it revealed the impact of recent terror attacks on trading in the UK.
Merlin's latest trading figures confirmed the hit from terrorist attacks on UK attractions in the peak summer months, which left group like-for-like revenue growth almost grinding to a halt, edging up 0.3pc in the 40 weeks to October 7.
Poor weather across the UK and Northern Europe and extreme weather in Italy and Florida were also to blame, according to Merlin. Shares plunged 19pc to 365p.
Merlin also unveiled a deal to roll out new Peppa Pig attractions worldwide. The agreement with Entertainment One - which owns the rights to the popular children's cartoon character - is to develop new attractions and themed accommodation based on the pre-school favourite.
Inflation preview: what the experts say
3. UK inflation is higher, but not wildly different to peers yet. Changes in energy inflation are a global thing. Core is the one to watch. pic.twitter.com/1zcLFqlHVC
— Rupert Seggins (@Rupert_Seggins) October 17, 2017
Let's have a quick round-up of what the experts are saying ahead of today's inflation figures.
CMC Markets analyst Michael Hewson explains how Bank of England governor Mark Carney could be put in an embarrassing spot this morning:
"If CPI rises by more than 1% above the banks 2% target Governor Carney will have the unenviable task of having to write to the Chancellor explaining why inflation is above target, and what the Bank intends to do about it.
"He can’t very well say, well Phil it turns out that rate cut last year wasn’t such a good idea, but don’t worry we’ve got it in hand and we’re going to put rates back to where they were beforehand."
It could be a busy day for Mr Carney will all this letter writing and select committees. Although I imagine he's had that inflation letter saved in his drafts for some time now.
Spreadex analyst Connor Campbell provided this preview:
"That’s because investors are eagerly awaiting September’s inflation reading, which is set to see the consumer price index finally hit a 5 year high of 3.0%. Such a reading would put even more pressure on the Bank of England to raise rates, though that hawkish urge may be tempered by the continued fall in real wages (set to be confirmed tomorrow) and a sharp month-on-month drop in retail sales (coming on Thursday).
"For now, however, the pound is focused on inflation. Cable is up 0.1%, though admittedly half a cent away from the $1.33 levels it was tickling on Monday morning, while against the euro sterling has climbed 0.3%."
Inflation expected to rise to a five-and-a-half-year high
2.Sterling's still not done with core prices. Means a higher starting point for any further food/energy price rises to hit overall inflation pic.twitter.com/0meIxSaOXp
— Rupert Seggins (@Rupert_Seggins) October 17, 2017
Some have taken Bank of England policymakers' sudden hawkish turn on interest rates with suspicion but today's inflation figures are expected to bolster the consensus view that the Monetary Policy Committee will pull the trigger on interest rates next month.
The headline CPI figure is expected to rise to its highest level in five-and-a-half years and make an increase in the central bank's base rate almost a done deal.
UK CPI inflation likely to be 3pc or above in today's release for the first time since Spring 2012. Another good reason for Nov rate rise.
— Andrew Sentance (@asentance) October 17, 2017
With no inflation report being released in conjunction with the headline CPI figure, there will be no press conference following the release but Mark Carney will be appearing in front of the Treasury Select Committee later today, who I'm sure won't skirt around the issue.
Today will also be the best opportunity yet to size up the newest members of the MPC, Silvana Tenreyro and Sir David Ramsden, who will be appearing alongside Mr Carney.
Agenda: Inflation figures dominate markets' focus; Merlin plunges 20pc on flat revenue growth
UK inflation figures steal the limelight this morning with the headline CPI reading expected to nudge up to 3pc and confirm that the squeeze on UK households has become a little tighter.
If inflation pushes any higher, Bank of England governor Mark Carney will be put in the embarrassing predicament of having to write a letter to chancellor Philip Hammond explaining why the headline reading has strayed so far from the central bank's 2pc target rate.
Combined with tomorrow's wage growth reading, today's figure is expected to crank up the pressure on the BoE's Monetary Policy Committee to reverse last year's emergency interest rate cut and push up the base rate to 0.5pc in November's meeting.
Ahead of the figures, the pound is having a mixed morning on the currency markets, dipping 0.2pc to $1.3265 against the dollar and nudging up 0.2pc to €1.1271 against the euro.
Asia stock mkt rally paused as bonds hit by Fed chair talk on speculation that next head of Fed Reserve will be more hawkish. Dollar gains. pic.twitter.com/vmvM8iA2zl
— Holger Zschaepitz (@Schuldensuehner) October 17, 2017
On the retreating FTSE 100, theme park operator Merlin Entertainments has nosedived 20pc after enduring a "difficult" summer of trading. The Thorpe Park owner blamed terrorism and bad weather and admitted that revenue growth for 2017 is now expected to be "approximately flat".
At the other end, publisher Pearson, which has suffered from a string of profit warnings of late, has popped 7pc after reporting that full-year operating profit will be in the upper end of estimates.
Interim results: B.P. Marsh & Partners
Full-year results: Utilitywise, Bioventix, Orchard Funding, Bellway, ASOS, DotDigital Group, Genedrive
Trading statement: SEGRO, Moneysupermarket.com, Merlin Entertainments, Pearson, Mediclinic International, Virgin Money, Evraz, BHP Billiton
AGM: Frontier Developments
Economics: PPI m/m (UK), RPI y/y (UK), CPI y/y (UK), HPI y/y (UK), Import Prices m/m (US) Industrial Production m/m (US), NAHB Housing Market Index (US), ZEW Economic Sentiment (EU), Final CPI y/y (EU)
