Steady as she goes

Today’s news headlines:

‘Trump seeks cut of Microsoft deal to acquire TikTok’. The Chinese-owned social media app, which is due to be banned in America, is being targeted by Microsoft for an acquisition of its American operations. However, without going into the mechanics, President Trump has demanded a large percentage of the deal for the US Treasury for allowing the takeover to happen. News of the acquisition prompted a rally in tech stocks yesterday, but officials still have concerns over China gathering data on US citizens through tech companies. (Financial Times)

‘Spanish and Italian manufacturing activity picks up after virus hit’. Levels of Spanish manufacturing activity in July picked up by more than expected, an early indication that the nation may be starting to rebound. However, tourist visits were down 95% month-on-month in June, placing pressure on the economy, which has already contracted 22% in the first six months of 2020. Italian manufacturing recorded its first rise in almost two years, but foreign demand remained weak. (Financial Times)

Today's events, rates, and data 

• Shares in Asia rose overnight following a rally in US tech stocks yesterday that took the Nasdaq to an all-time high. Data also showed that manufacturing had picked up in the US in July as the world’s biggest economy continues its recovery from the coronavirus pandemic.

Today's events

Australian Cash Rate: 0.25% vs 0.25% previously
Eurozone PPI: 10.00am
Canadian Manufacturing PMI: 2.30pm
US Factory Orders: 3.00pm

Interbank rates:

GBP/USD: 1.3085
GBP/EUR: 1.1110
EUR/USD: 1.1775
USD/CAD: 1.3365