Good morning
US inflation ticked higher again yesterday but US dollar actually declined through the day as equities firmed. Feds Bowman said he was comfortable with tapering in November while the Fed minutes showed taper plans that concluded in the middle of next year. This must surely be priced in now.
The EU has made proposals as to how the NI protocol can be adapted to make life easier, even with a suggestion the ECJs powers could be reined in. Three weeks of discussions are now planned, whether the changes go far enough for the UK remains to be seen but for the moment we have some hope that a new agreement can be found. GBPUSD currently trading within a whisker of 1.3700, EURUSD at 1.1610 which leaves EURGBP pretty much unchanged at 0.8475 (GBPEUR 1.1800). Watch BoE speakers today as both have tendency to lean on the dovish side.
China CPI came in at 0.7% overnight with PPI pushing higher to 10.7%. Evergrande crisis continues with reports that China firms are now struggling to raise funds on the international bond markets. Some talk that properties in Evergrande developments are being offered for sale at around half the original asking prices. Whether they are selling is another matter.
Aussie employment numbers showed a decline just a bit higher than expected, with part-time employment falling sharply, offset by an unexpected rise in full-time employment. AUDUSD at 0.7400, AUDNZD 1.0580.
In other news I see that William Shatner has made a trip into space, the oldest person to ever do so at 90 years old. He was on board Bezos’s Blue Origin draft and claimed it was the most profound experience of his life. It is obviously something of a romantic dream, Shatner having played Captain Kirk in Star Trek. But does it open up opportunities for other film stars to make real their acting roles. Hugh Grant for PM? Tom Cruise to fly fighter jets? Tom Hanks to run across America? Probably best to leave it there.
I am out and about today for another round of golf. Having thought I’d hung my clubs up for the winter, I have been invited to play with a society who have obviously had a couple of people drop out. I jumped at the chance, only to find the course we are playing is tree-lined, there is heather in the rough, a brook threading its way across several holes, wildly undulating greens and is still quite long. None of these are particularly suited to my game. As always however I go into it full of hope that I’ll not disgrace myself. But I haven’t got a great feeling about this one……
- 11.10 BoEs Tenreyro speaks
- 13.30 US PPI, initial jobless claims
- 13.30 CAD manufacturing sales
- 15.40 BoEs Mann speaks
- 18.00 Feds Williams speaks
- 23.30 NZ business PMI
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