Today's news headlines: 

‘Sunak prioritises NHS, skills and levelling up in Budget windfall’. UK Chancellor Rishi Sunak is expected to push more funding towards the NHS in the next budget as the UK heads into a difficult winter with rising Coronavirus cases. The budget windfall should help see the UK through the current cost of living crunch, but the Treasury has warned that rising interest rates and inflation are a threat to the recovery. This could see overall costs increase by £25bn a year as short term debt stands at 100% of national income. (Financial Times)

‘UK exporters falling foul of post-Brexit trade rules’. UK businesses are coming under increasing pressure from the EU as many have failed to abide by the EU-UK trade deal allowing tariff-free trade if products are ‘made in the UK’. UK companies are currently under a one year grace period—due to end in January 2022—to provide statements of origin which prove at least 50% of the product has been made in the UK, allowing tariff-free access to continue. Many industry leaders believe that by this point, UK suppliers will become less attractive for European companies as paperwork challenges mount. (Financial Times)

Today

Markets closed relatively mixed on Friday, with the Euro Stoxx 600 gaining 0.46% and the S&P 500 closing 0.11% lower. The US 10-Year Treasury yield has ticked higher overnight, reaching 1.66% as the US Dollar shows signs of a rebound.

Events

German ifo Business Climate: 9:00AM
German Bundesbank monthly report: 11:00AM
Belgian NBB Business Climate: 2:00PM
Monetary Policy Committee member Silvana Tenreyro speaks: 2:00PM

Interbank rates:

GBP/USD – 1.3788
GBP/EUR – 1.1823
EUR/USD – 1.1661
USD/CAD – 1.2341

The markets are moving. To speak to our team, please call +44 (0)20 3465 8200.