Today's news headlines:
'Sterling falls to record low against the Dollar'. During the Asian trading session on Monday, the Pound slumped to a record low of 1.0350 after UK Chancellor Kwasi Kwarteng doubled down on tax cuts over the weekend, while also stating that there were further cuts to come. On Friday, Kwarteng announced a fresh £45bn debt-financed package consisting of the biggest set of tax cuts for 50 years. This is in addition to the newly unveiled £150bn package to subsidise energy prices for households and businesses. Following the Chancellor's announcement at the end of last week, UK government bonds sold off sharply, with the 10-year gilt yield rising to 3.77%. (Financial Times).
'Kyiv's Western allies boost nuclear deterrence after Putin's threats'. After Russian setbacks on the Ukraine battlefields, Putin's threats of nuclear attacks have sparked contingency plans from western capitals as officials begin to assess the credibility of his claims. Western officials have sent private messages to the Kremlin outlining possible consequences should Putin act on his threats. These warnings come as Moscow plans its annexation of occupied territories in eastern and southern Ukraine following the referendums held by Kremlin proxies. White House national security advisor Jake Sullivan said on Sunday that the Russian President's nuclear warnings are 'a matter we have to take deadly seriously'. (Financial Times).
A comparatively data-light day to start the week sees talks from Federal Open Market Committee members as well as the President of the European Central Bank and a Monetary Policy Committee member. Asian stocks continue to slide lower while the Dollar strength continues to push Sterling closer to parity. Brent oil prices have fallen further and currently, sit at around $84.50 a barrel.
German ifo Business Climate: 9:00AM
ECB President Christine Lagarde speaks: 2:00PM
FOMC Member Susan Collins speaks: 3:00PM
MPC Member Silvana Tenreyro speaks: 5:00PM
FOMC Member Loretta Mester speaks: 9:00PM
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*Indicative interbank rates taken on the day of writing. Please speak to your Dealer to find out the current rates available for you.