Brazil goes left

Today's news headlines:

'Lula wins Brazil Presidential election in historic comeback'. Latin America's largest nation will have a new President take office on January 1st next year after rightwing leader Jair Bolsonaro was beaten by less than 2% of votes following a cliffhanger three-hour count. Luiz Inácio Lula da Silva will return to office at the start of the new year, marking the return of leftwing governance in Brazil after four years of conservative populism under Bolsonaro. The 77-year-old opposition leader has already previously served two terms as President between 2003 and 2010 but faced accusations of corruption and consequently served time in prison before being exonerated. (Financial Times)

'Russian exit from Ukraine grain deal "catastrophic" for poor nations'. After an attack on ships over the weekend in the port of Sevastopol, part of Russian territory annexed from Ukraine in 2014, President Vladimir Putin has decided to bring an early end to the UN-backed grain deal with Kyiv. Analysts have warned that pulling the plug on the wartime deal that allowed the safe passage of millions of tonnes of grain via Southern Ukraine will cause a fresh spike in prices, particularly affecting East African countries that rely on Russia and Ukraine for much of their wheat imports. The US has labelled Moscow's suspension on Saturday of the grain deal an 'outrageous' action that risks fueling starvation of poor nations that are already facing acute food shortages. (Financial Times)


After unexpectedly rising in September, China's manufacturing sector went against the grain yet again and shrank in October, with the official PMI data falling to 49.2, from September's reading of 50.1. European stocks are expected to start the new week in the red following the weak Chinese factory activity figures ahead of the key Eurozone CPI data later this morning. 


Chinese Manufacturing PMI: 49.2 vs 50.1 previously
Chinese Non-Manufacturing PMI: 48.7 vs 50.6 previously
German Retail Sales: 0.9% vs -1.4% previously
Italian Preliminary GDP q/q: 9:00AM
UK Mortgage Approvals: 9:30AM
Eurozone Flash CPI Estimate y/y: 10:00AM
Eurozone Preliminary Flash GDP q/q: 10:00AM
Interbank rates*:

GBP/USD: 1.1585
GBP/EUR: 1.1655
EUR/USD: 0.9940
USD/CAD: 1.3625


Please contact your Dealer about any upcoming FX requirements you may have, or call +44 (0)20 3465 8200. 

*Indicative interbank rates taken on the day of writing. Please speak to your Dealer to find out the current rates available for you.