Today's news headlines:
‘Hunt given warning of £70bn increase in UK government borrowing’. The Office for Budget Responsibility has updated its public borrowing forecasts and estimates that by 2026-27, government borrowing will raise close to £100bn. This represents almost a £70bn increase from the £32bn forecast given in March this year. Rishi Sunak and Jeremy Hunt have responded ahead of Thursday’s delayed Autumn Statement by reiterating that financial markets would punish the UK if it did not go ahead with the planned austerity measures and that everybody in the UK would be paying more tax. (Financial Times)
‘Democrats retain control of US Senate after win in Nevada’. In what has undoubtedly been one of the tightest midterm elections for some time, the Democrats have managed to win their 50th seat out of 100, and hence the majority, in the US Senate after Catherine Cortez Masto was re-elected as Senator for the state of Nevada. This result means that even if the Republicans manage to gain control of the House of Representatives, Joe Biden’s party will still be able to push its legislative agenda as well as approve judicial nominations and executive branch appointments. As well as being a massive blow to the GOP, the victory is a huge boost to the President, who entered the midterms surrounded by a cloud of speculation that his low popularity ratings and an inflation-battered electorate would cause the US voters to go to the red side. (Financial Times)
The most impactful data of the day is likely to show Eurozone industrial production rising just 0.3% for the month of September, a much slower rate of growth than the 1.5% seen in the previous month. Crude prices rallied on Friday after China reduced the mandatory quarantine period for incoming travellers, raising hopes of a more relaxed zero-Covid policy.
Eurozone Industrial Production m/m: 10:00AM
FOMC Member Lael Brainard speaks: 4:30PM
Japanese Prelim GDP q/q: 11:50PM
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