Delays continue

Today's news headlines: 

‘UK postpones imposing checks on EU goods until 2022’. Boris Johnson has been forced to delay imposing checks on all European Union imports until mid-2022 as supply chains constraints continue to cause issues. This shift means that British goods bound for the continent are still subject to checks at the border. The scale-back of checks on goods will mostly benefit food and agricultural products as concerns continue to build over supply heading into the Christmas period. Some EU officials have suggested that Britain’s border controls are not yet ready to cope with independent checks, highlighting the UK government’s lack of a workable solution to this issue. (Financial Times)

‘Record freight container production fails to ease supply-chain crisis’. Chinese manufacturers have ramped up the production of freight containers in a bid to smooth out bumps in the global supply chain. Analysts aren’t expecting a huge turnaround from this move as the limited availability of containers persists due to the surge in online shopping. Shenzhen based CIMC, produced treble the number of cargo containers in the half-year to June of 2021 compared with 2020. Despite this, these bottlenecks have persisted. (Financial Times)


Today

US markets ended yesterday softer following the latest inflation report. The S&P 500 was down 0.57%, while the Dow Jones closed 0.84% lower. UK Consumer Price Index y/y data released this morning saw a jump from July's 2.00% to 3.20% in August, the fastest rate of change since 1997. Currencies have shrugged off this release with Cable little changed at $1.3830 and GBP/EUR also failing to force a move higher.

Events

China Retail Sales y/y: 2.5% vs 8.5% last month
China Industrial Production y/y: 5.3% vs 6.4% last month
UK Consumer Price Index y/y: 3.2% vs 2.0% last month
UK House Price Index y/y: 9:30AM
Canada CPI m/m: 1:30PM
US Empire State Manufacturing Index: 1:30PM
US Industrial Production m/m: 2:15PM
New Zealand Gross Domestic Product q/q: 11:45PM


Interbank rates:

GBP/USD – 1.3830
GBP/EUR – 1.1707
EUR/USD – 1.1804
USD/CAD – 1.2694

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