Today's news headlines: 

‘Food price inflation heaps pressure on poorer countries’. Food prices have continued their climb over the last year, with some sources suggesting around a 40% increase in the last 15 months. In those poorer countries, people tend to spend a larger portion of their income on the essentials, and with prices rising so sharply, that pressure is starting to show. According to analysts at JP Morgan, these price increases are a signal to markets that headwinds to growth could persist, with consumer confidence already dented across the regions.
(Financial Times)

‘Plans for Covid vaccine passports in England dropped’. The UK has dropped its plans to introduce Coronavirus vaccine passports for use in venues such as nightclubs and large-scale events following backlash. Backbench Tory MPs have labelled the proposals as ‘discriminatory,’ emphasising that the vaccine is optional. Sajid Javid has also clarified that the potential for another nationwide lockdown is unlikely as the government look for other alternatives to suppress case numbers heading into the winter months. (Financial Times)

Today

The S&P 500 continued to drift lower on Friday, marking a 1.60% decline over the week. The US 10-year bond yield has remained relatively flat, holding around 1.35%. Major pairs are little changed, with Cable falling to the $1.38 level in early trading.

Events

Japan Business Sentiment Index Manufacturing Conditions: 7.0 vs -1.4 previously
Japan Producer Price Index y/y: 5.5% vs 5.6% last month
German Wholesale Price Index m/m: 0.5% vs 1.1% last month
US Federal Budget Balance: 7:00PM

Interbank rates:

GBP/USD – 1.3820
GBP/EUR – 1.1726
EUR/USD – 1.1786
USD/CAD – 1.2667

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