A perilous position

Today’s news headlines:

‘UK Trade Secretary to criticise "punitive" US tariffs on Washington trip’. The UK’s Trade Secretary, Liz Truss, will question US officials on the need for ‘punitive’ tariffs levied on British exports in the first face-to-face since trade negotiations began. Optimism is waning that officials will reach a trade agreement before the US Presidential election in November, although officials are keen to strike a deal quickly. Ms Truss said that the US talks a good game on favourable trade conditions but unfairly keeps quality UK products out of their domestic market. (Financial Times)

‘US economy in peril as unemployment payments expire’. With the White House struggling to reach a deal on a new fiscal stimulus package, millions of Americans are being left without vital safety net payments, which could risk both the domestic and the global coronavirus recovery. Despite progress over the weekend, the White House Chief of Staff said that the sides were still far apart, and he was not optimistic on a deal being reached in the very near-term. The failure to reach a compromise has meant that 25m people’s benefits worth $600 a week have now expired. (Financial Times)

Today's events, rates, and data 

  • Asian markets were mixed to begin the week as US lawmakers struggled with the latest stimulus package and global cases of Covid-19 continued to rise. Sentiment was helped slightly by a better-than-expected read on Chinese factory data, but it wasn’t enough to put US and European equity futures into positive territory. 

Today's events

China Caixin Manufacturing PMI: 52.8 vs 51.2 previously
Eurozone Final Manufacturing PMI: 9.00am
UK Final Manufacturing PMI: 9.30am
US ISM Manufacturing PMI 3.00pm

Interbank rates:

GBP/USD: 1.3070
GBP/EUR: 1.1123
EUR/USD: 1.1750
USD/CAD: 1.3418