Fire in the hole
Today's news headlines:
‘German election wide open as Merkel successor loses poll lead’. With just a month to go until Germany determines its next Chancellor, Angela Merkel’s party, the Christian Democratic Union (CDU), has lost its lead in the race as the Social Democratic Party (SPD) pulled ahead for the first time in 15 years. The shift in sentiment hasn’t necessarily come from the success of the SPD but rather the weakness of the CDU, which has seen ratings fall 10% since the last election. The narrowing race is setting the scene for a potential three-party coalition for the first time since the second world war. (Financial Times)
‘Companies sound alarm on Christmas supply disruption’. The run-up to Christmas is creating cause for concern for UK supermarkets as worker shortages continue to place strain on supplies. Lorry driver shortages at Iceland have meant around 30 to 40 deliveries a day have been cancelled, leading to a mass shortage on the shelves. Tesco Chairman John Allan has acknowledged the potential for supply shortages this Christmas but is urging shoppers to refrain from panic-buying items. The lack of HGV drivers is also affecting other industries; Carphone Warehouse is reportedly offering a sign-on bonus of £1,500 to new drivers. (Financial Times)
The S&P 500 finished another day in the green yesterday, notching 0.22% higher. Asia markets were mixed overnight as the Nikkei 225 moved 2.07% lower and the Shanghai Composite closed 1.14% higher. The US 10-year bond yield is trading at 1.344% this morning, and Cable is holding around the mid $1.37’s. EUR/USD is in a similar position in the mid $1.17’s as markets await day one of the Jackson Hole Symposium.
Japan SPPI y/y: 1.1% vs 1.3% last month
German Gfk Consumer Climate: -1.2 vs -0.4 last month
ECB Monetary Policy Meeting Accounts: 12:30PM
US Preliminary GDP q/q: 1:30PM
US Unemployment Claims: 1:30PM
Jackson Hole Symposium: All Day
GBP/USD – 1.3742
GBP/EUR – 1.1684
EUR/USD – 1.1761
USD/CAD – 1.2622
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