Today's news headlines:
'Kwasi Kwarteng leaves IMF meetings early as UK prepares to rip up tax cut plans'.After spending two days in Washington receiving criticism from the IMF and other Finance Ministers over his unfunded £46 billion tax cut package, UK Chancellor Kwasi Kwarteng has left the capital early to address the UK's economic crisis. Expectations are surfacing that he and Liz Truss will announce a U-turn on the mini-Budget delivered last month in an attempt to rebuild confidence in the UK economy after global markets took a sour view on Sterling following the unveiling of the Budget. (Financial Times)
'Hopes of Fed pivot fade in the face of alarming inflation figures'. After yesterday's hotter-than-expected inflation data, economists are left speculating that the Federal Reserve has no choice but to continue with its fourth consecutive 75 basis point increase at its November policy meeting. Consumer prices in the US are showing little sign of slowing down as the monthly data revealed a 0.4% increase compared with a 0.1% rise seen the month previous, while the annualised pace remained a little over 8%. The latest CPI data has also been a sobering hit to the Biden Administration, which has faced heavy pressure in the approach to the November midterms over spiralling consumer prices. (Financial Times)
In a dramatic rebound from a selloff earlier in the day, US stocks closed more than 2% higher yesterday, with the S&P 500 enjoying its biggest intraday jump since January. Similarly, after dropping sharply following the US inflation reports, Brent oil rallied to find stability just below the $93 mark. Today, the University of Michigan Consumer Sentiment data will provide some much-needed insight into the financial confidence of US consumers.
Chinese CPI y/y: 2.8% vs 2.5% previously
French Final CPI m/m: -0.6% vs -0.5% previously
BoE Quarterly Bulletin: 10:00AM
US Core Retail Sales m/m: 1:30PM
US Prelim UoM Consumer Sentiment: 3:00PM
IMF meetings: All day
FOMC Member Lisa Cook speaks: 3:30PM
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