Alleviating the cost of living crisis
Today's news headlines:
‘Putin announces “partial mobilisation”, stepping up Ukraine war’. In a televised address, Russian President Vladimir Putin announced a full mobilisation of Russian armed forces to defend ‘Russian territories in Ukraine’. Putin expressed that the country needs to protect its interests amid the growing threat of NATO, which is, according to the Russian President, attempting to destroy Russia. Referendums in the four occupied regions in the east and south of Ukraine could take place as soon as this weekend, with the annexation of the regions the sole focus. (Bloomberg)
‘UK government borrowing swells ahead of Truss tax cut program’. UK public sector borrowing swelled to £58.2 billion in the first five months of the year. Over £30bn of tax cuts have been promised by Prime Minister Liz Truss as an aid to help alleviate the cost-of-living crisis. In this Friday’s mini-budget, Chancellor Kwasi Kwarteng will lay out the full plan in detail, with energy and tax relief measures at the forefront. Additional support measures have been met with criticism as there is a well-founded fear this could push record inflation even higher. (Bloomberg)
Stocks are lower across the board this morning following the comments of Russian President Vladimir Putin. US Treasury yields have dipped lower while the US Dollar gains ahead of the Federal Reserve meeting later today. The Pound continues to fall, reaching a fresh low against the Dollar of $1.1308 this morning.
UK Public Sector Net Borrowing (Aug): 11.1B (est. 8.1B)
UK CBI Industrial Order Expectations (Sep): 11:00AM
US Existing Home Sales (Aug): 3:00PM
US Federal Funds Rate / FOMC Statement: 7:00PM
GBP/USD – 1.1342
GBP/EUR – 1.1455
EUR/USD – 0.9900
USD/CAD – 1.3381
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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.