Change in direction

Today's news headlines: 

‘Wall Street banks redirect China IPOs to Hong Kong after Didi shock’. New cybersecurity rules implemented by Beijing have halted potential New York listings, pushing this flow to Hong Kong. The investigation into ride-hailing app Didi, just a few weeks ago, has thrown the space into disarray after over 20 companies in China announced plans to raise capital on the New York Stock Exchange. Hong Kong Exchanges have benefitted most from this somewhat forced move, with shares of the group shifting 14% higher this month. (Financial Times)

‘UK to overhaul funding of research and development’. The UK government is looking to shake up the bodies that are used to finance research and development. Post-Brexit, the UK has identified the global innovation race as one of its main priorities, contributing an extra £22bn per year towards research and development efforts. The proposed scheme by Secretary of State for Business, Energy and Industrial Strategy, Kwasi Kwarteng, will focus on robotics and artificial intelligence while also placing an emphasis on visas that will enable ‘high potential individuals’ to work in the UK. (Financial Times)

Today's events, rates, and data 

  • UK markets finished higher yesterday as Public Sector Net Borrowing data undershot the Office for Budget Responsibility’s forecast; the June 2021 figure was £5.5bn lower than the June 2020 number. Meanwhile, the FTSE 100 climbed 1.7%. Cable has begun to recover as UK Covid cases seem to be slowing, trading above $1.37 this morning. Sterling has also moved higher against the Euro, to €1.1640.

Today's events

Australia Goods Trade Balance: 13.27B vs 12.50B last month
MPC member Ben Broadbent speaks: 9:30AM
Eurozone Monetary Policy Statement: 12:45PM
ECB Press Conference: 1:30PM
US Unemployment Claims: 1:30PM
Eurozone Consumer Confidence: 3:00PM

Interbank rates:

GBP/USD – 1.3732
GBP/EUR – 1.1646
EUR/USD – 1.1797
USD/CAD – 1.2576

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