Today's news headlines:

‘China unleashes wave of military drills around Taiwan after Nancy Pelosi’s trip’. Beijing has today launched both air and naval military exercises in six areas surrounding the coast of Taiwan as an act of punishment for its hosting of US House Speaker Nancy Pelosi. The Taiwanese government has responded by accusing Beijing of disrupting the military state of affairs in the region and has issued flight warnings recommending that pilots avoid areas directly east of Taiwan. Experts have warned that although waiting until after Pelosi’s departure to commence the drills has helped Beijing avoid a clash with the US, the live fire exercises risk damaging the peace that China and Taiwan have enjoyed since the Chinese civil war ended in 1949. (Financial Times)

‘Gerhard Schroder says Russia wants negotiated end to Ukraine war’. After visiting Russian President Vladimir Putin last week, former German Chancellor Gerhard Schroder has hinted that the Russian government is open to a ‘negotiated solution’ to the war in Ukraine. The ex-Chancellor has been criticised in recent months for refusing to condemn Putin’s actions with regard to the atrocities seen across Ukraine during the invasion. Schroder has also said that Germany could drive negotiations with Russia to bring the non-functioning Nord Stream 2 pipeline back into service along with the original Nord Stream pipeline in an attempt to avoid an energy crisis this winter. (Financial Times)

Today

Overnight, US and Asian stocks rose despite tensions around Taiwan, and the US Dollar traded flat against the Pound and Euro. Crude oil dropped slightly while the FTSE opened higher this morning.

Events

French and Spanish 10-year Bond Auction: Tentative
UK Construction Purchasing Managers’ Index: 09:30AM
UK Bank of England Monetary Policy Report: 12:00PM
UK Official Bank Rate: 12:00PM
UK BoE Governor Andrew Bailey speaks: 12:30PM
US Unemployment Claims: 1:30PM (256k previously)

Interbank rates:

GBP/USD: 1.2160
GBP/EUR: 1.1945
EUR/USD: 1.0180
USD/CAD: 1.2845

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