Today's news headlines:

'Succession battle begins after Liz Truss quits as UK Prime Minister'. After terminating the shortest stint as Prime Minister the UK has ever seen, Liz Truss yesterday afternoon followed in the footsteps of former colleagues Kwasi Kwarteng and Suella Braverman by handing in her resignation. Former Chancellor and Tory Party leadership rival Rishi Sunak is the current favourite replacement after he correctly foreshadowed Truss panicking markets if she were to go ahead with her plethora of unfunded tax cuts. To enter the new Conservative leadership contest, a candidate needs a minimum of 100 out of a possible 357 MP votes by Monday, meaning a maximum of three can make it onto the ballot. If one candidate wins enough support, however, the new PM could be announced as early as Monday; if not, the Tory leader will be announced next Friday. The opposition Labour Party are still unsurprisingly shouting for a general election. (Financial Times)

'US Navy Chief warns China could invade Taiwan before 2024'. Senior US officials have refreshed and intensified their predictions on the timeline of when Beijing may decide to pursue reunification and invade the island of Taiwan. Last year Admiral Philip Davidson, then-head of Indo-Pacific Command, informed Congress that the Chinese military could take action against Taiwan before 2027. However, in renewed forecasts, the head of the US Navy has warned that the US must be prepared for the possibility of a Chinese invasion before 2024. Joe Biden has, on four occasions as President, stated that the United States would intervene to defend Taiwan from a Beijing attack. (Financial Times)

Today

UK stocks opened in the red this morning as rising bond yields provide increasing evidence for an economic slump while political turmoil at No.10 continues. UK Retail Sales figures released this morning showed a 1.4% MoM drop in September as consumers tighten their belts in the wake of double-digit inflation and cost of living struggles. 

Events

UK GfK Consumer confidence: -47 vs -49 previously
UK Retail Sales m/m (September): -1.4% vs -1.7% previously
Canadian Retail Sales m/m: 1:30PM 

Interbank rates*:

GBP/USD: 1.1185         
GBP/EUR: 1.1455
EUR/USD: 0.9765
USD/CAD: 1.3790

 

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.