Flaring tensions

Today’s news headlines:

‘Hong Kong media tycoon Jimmy Lai arrested under security law’. Lai was arrested for allegedly breaching the region’s new national security law in the most high-profile detention since the legislation came into effect in June. Meanwhile, in another escalation in US-China tensions, President Trump sanctioned 11 officials including Hong Kong Chief Executive Carrie Lam. In addition, Foreign ministers of the ‘five eyes’ intelligence-sharing network: the US, UK, Canada, Australia, and New Zealand issued a joint letter condemning Hong Kong officials for postponing elections and disqualifying pro-democracy candidates. (Financial Times)

‘One in three British employers plan job cuts in third quarter, survey finds’. Large-scale job losses could be in the pipeline in the next couple of months due to the wind-down of the government’s coronavirus furlough scheme. The latest quarterly labour market outlook said that although hiring intentions had risen in the last three months, confidence levels were at the lowest since the survey began in 2013. The net employment balance has fallen to minus eight from minus four, with the sharpest fall found in hospitality, transport, and retail. (Financial Times)

Today's events, rates, and data 

• Shares in big tech stocks in China fell after the latest US sanctions targeting Beijing, while US and European equity futures gained moderately. The US Dollar was mostly static despite House Speaker Nancy Pelosi and Treasury Secretary Steven Mncuhin commenting that they were open to restarting coronavirus aid talks. 

Today's events

Chinese CPI: 2.7% vs 2.5% previously
Swiss Unemployment: Unchanged at 3.3%
Eurozone Sentix Investor Confidence: 9.30am
US JOLTS Job Openings: 3.00pm

Interbank rates:

GBP/USD: 1.3050
GBP/EUR: 1.1089
EUR/USD: 1.1770
USD/CAD: 1.3383