It was the combination of faltering Brexit talks and a more hawkish ECB that sent the Pound to six month lows…
Boris looked progressively more hot and bothered as the day wore on…
The FT story about Boris changing the terms of the withdrawal agreement caused some unwanted tensions…
France is the latest country to be added to the quarantine list, with some holidaymakers furious at the government…
We’ll start across the Pond this morning, specifically with a New York Times article…
Though a European trade deal alludes us for the time being, we might get to sign on the dotted line today with Japan…
With November 3rd now less than four months away, market participants are beginning to determine what the ramifications will be.
A story in the Telegraph overnight should have had the market moving
An interesting shift in investor sentiment yesterday…
Vaccine hopes pushed US stock futures higher overnight,
To see a V shaped recovery, we might have to look at a slightly longer…
Quite a bit from the UK over the weekend, starting with Boris
The problem with high expectations, is that you’re easily disappointed.
Peter Navarro is a name we’re hearing more of lately. The President’s
It’s been a fairly quiet start to the trading week, which is a bit of a
The Bank of England’s monetary policy announcement was the big event
There’s nothing like a central banker giving out a dose of reality to put markets back in check
The market could barely contain the feel-good factor as results of a vaccine trial has shown positive results.
Friday afternoon’s trading session saw Sterling sold-off over fears that the Brexit talks weren’t going as planned
The Times is reporting reaction from the Telegraphs’ article yesterday on the Treasury’s blueprint to repay the money they’re borrowing now.
Gilead’s remdesivir drug failed at the first clinical hurdle yesterday
There’s some good news to start the day: The curve is flattening and active cases have fallen globally for the first time
In lieu of anything from the countries themselves, at least the European Central bank are preparing to be as supportive as they can be:
We’ll start again with oil, where if you held that May delivery contract, you couldn’t even pay to give it away!
Oil’s the main story this morning, with a collapse in the price because investors fear that storage is at capacity with nowhere else for it to go
Futures markets are off to a flying start as Trump revealed his three step plan to getting back to work last night
Not sure I’ve ever linked to an article in the Sun before, but we do live in strange times…
You’d be forgiven for thinking that Trump was trying to win re-election in a few months, as he takes a couple of steps to try and ingratiate himself with voters.
The news cycle has moved on over the weekend, with the headlines now concentrating on plans to get people back out of confinement and try and get the system working again.
Boris heading to hospital has seen some risk aversion towards the Pound as we get into the week and there have been a few other moves of note too.
Rishi Sunak could be in for an expensive surprise, as it appears he’s vastly underestimated what the take up of the furlough scheme would be
The FTSE slightly outperformed its European counterparts, as it came out of the EU leaders meeting that there isn’t yet going to be a coordinated bailout between the countries.
Markets are still yo-yoing all over the place – particularly the FX market which looks to be suffering from a severe lack of people at their desks!
The market was waiting for US politicians to agree to a fiscal tidal wave yesterday and all the while that didn‘t materialise, they were happy to keep selling.
The hope that stability was starting to form as we headed toward Friday’s close was dashed, with a late sell-off in US markets setting the tone for the weekend – glad that it had arrived, but knowing that Monday was another round.
‘Orderly’ is a relative concept in these markets, but after the ‘incredibly wild’ swings of Wednesday, Thursday only brought ‘wild’ swings and therefore it felt like there was some order restored.
The pound was duly thrown off a cliff yesterday, posting its worst day in as long as anyone can remember and being the standout failure amongst all of the major currencies.
Expectation was the order of the day yesterday, with markets buying back a fraction of their losses on the hope that governments will come to the rescue…
The country is on lockdown, nothing is being made in factories, the problem is still ongoing and yet the stock market is down only 3% since the start of the year! This is the situation China finds itself in and it really is logic defying.
Risk sentiment is pointing downwards this morning, as European futures markets take stock of Italy’s coronavirus issues.
The majority of the financial news over the weekend was, unsurprisingly, around the coronavirus
Well, that was eventful… The market took Sajid Javid‘s ‘resignation’ as a good thing for the UK economy and bought heavily into Sterling, pushing us back towards levels that were only briefly seen following Boris’ election victory.
You can tell you’re clutching at straws when you’re opening with Germany’s new ECB representative defending easy monetary policy!…
There are now more than 28,000 confirmed cases of the coronavirus, but the key number to look for is 52,000.
Markets took a day away from depression yesterday and actually moved higher, using the dip we saw earlier in the week as a bit of a buying opportunity
Boris got his first taste of defeat as leader yesterday when the House of Lords voted in favour of a Lib Deb proposal to give eligible EU citizens the automatic right to remain in the UK post Brexit – rather than having to apply to do so.
Pretty busy couple of days since we last wrote, so here’s a quick summary, with a few supporting links for the details…
After Boris’ own goal earlier in the week, it will be interesting to see if the Bank of England can also have a go at bringing the Pound lower than it probably deserves to be.
In just about every poll going, Boris has either maintained or extended his lead over Jeremy Corbyn. This has led to another push up in the value of the Pound as the market comes close to fully pricing in a Tory majority
There’s not much on the election front to report, other than that we’ve seen the first speech by Boris in the week since parliament was dissolved and campaigning began.
I think this is the first time we’ve ever said ‘Nigel Farage did Sterling a favour’, but his move yesterday to only contest Labour held seats at the election, had the market buying into the Pound with the underlying logic that this reduces Corbyn’s prospects of moving into Number 10 and as they’d rather take
“Fast and loose” would be the terms to best describe what both main political parties are planning when it comes to fiscal policy, should they get into power.
Not quite the “I have a dream” speech moment for Christine Lagarde, but yesterday the new head of the ECB took the banks’ staunchest critics by surprise and lavished praise on them.
On the back of those recycled headlines that a deal between the US and China could be on the cards, the S&P ground higher into fresh all-time highs.
It took Boris Johnson’s time-line being voted down in the Commons last night for markets to realise that an orderly exit from the EU isn’t a foregone conclusion.
So it looks like a little more progress has been made in Brexit talks and both sides are talking more optimistically by the day about being able to get an agreement. The sticking points are whether they can get a deal done in time and whether the DUP can be paid off to get it through…
Markets had high hopes for progress last week, for both Brexit talks and China-US trade negotiations… Those expecting solutions to either were setting their expectations far too high, but if you’re a glass half full sort of person you can take some positives.
Just when you thought Boris would struggle to get a deal, just about everyone that matters on the other side of the table has said the same!
So today’s the day that we find out when MP’s will be returning to parliament. Will it be Mid-October, in which case the government has won the high court battle, or will judges give instruction for MP’s to be back in the chamber as early as this week – if that’s the case Boris’ prorogation will have
It’s still quiet out there and the news flow is still pretty limited.
Well the bad news is that summer is nearly over. the good news is that summer is nearly over.
It looks like the move lower in the Pound is done for now, as for the last few days the bickering over what can and can’t be done to stop a no-deal Brexit has made little further impact on Sterling. That said, we ‘re sitting at an uncomfortably low level and there is the odd
It’s taken a while, but markets looked to have stabilized a little yesterday and Asia has been on the buyback overnight, with markets clawing back between half and one percent. The ‘good’ news that lifted China is that they’re looking at policies and measures to offset the trade war and stabilize foreign trade – Much
The rhetoric turned strongly towards a no-deal over the weekend, with Michael Gove saying that this is the outcome now being assumed by the government (you know what they say about assume, Michael?) The market has taken his words to heart and Sterling is firmly back on the ropes and the Boris boost that it did
Boris’ honeymoon period has lasted 48 hours and now it’s back to people asking the serious question ‘how are you going to get a deal across the line?’ and expecting more of a serious answer than ‘by ripping up the backstop’
Both Boris and Jeremy might be making a rod for their own back (or ours) as they’ve said they’re not going to accept a Northern Irish backstop as part of their negotiations. This was the biggest sticking point of the last deal for both sides, so whereas getting a deal across the line in the UK without a
The nomination of Christine Lagarde for head of the ECB got the market in a stir yesterday, with investors getting their bets in early that she’ll open the easy-money taps again.
The deadline for entries into the Tory leadership race is this evening, though we don’t think we’re getting any last minute contenders. The favourites have started setting out their stalls, with Boris promising tax cuts for a few million people by raising the 40% threshold from £50k to £80k call us cynical, but we’d imagine
Well, it seems to be just a matter of time – but hours and minutes, not days and weeks. The pressure exerted upon the PM is unrelenting and seemingly from all sides, as her deal was trashed by Labour in PMQ’s yesterday, Andrea Leadsom quit as leader of the Commons and sir Graham Brady is