Another lifeline for the UK economy

Today’s news headlines:

‘September is key date for Brexit progress, finance lobby says’. The UK’s finance industry has warned the EU of major disruptions to markets without progress on a Brexit deal by September. Three months before the official Brexit deadline, derivatives clearinghouses will need to start closing European memberships along with positions while making alternative arrangements. A lobbying group for banks and brokers, AFME, added ‘this would involve significant risks to market and financial stability’. (Bloomberg)

‘Sunak gives £1.5bn lifeline to struggling arts sector’. UK Chancellor, Rishi Sunak, is making £1.5bn available to struggling theatres, music venues, and museums in order to avoid an unemployment crisis. The package includes almost £900m of grants by April 2021 as well as £270m of repayable loans. The announcement arrived ahead of Wednesday’s statement where Sunak will focus on jobs and training for young people. (Financial Times)

Today's events, rates, and data 

• Overnight, Asian equities rallied along with US and European futures, while safer assets such as US treasuries and the US Dollar fell. Chinese equities climbed more than 5% while Australian equities closed in the red after efforts were increased to contain outbreaks in Melbourne. WTI Crude opens London’s session higher.

Today's events

German Factory Orders for May climbed 10.4% (estimated 15.4%)
UK Construction PMI for June out at 9:30am
US Manufacturing, Services, and Composite PMIs out between 2:45 –3:00pm

Interbank rates:

GBP/USD: 1.2500
GBP/EUR: 1.1075
EUR/USD: 1.1300
USD/CAD: 1.3525