Supply constraints persist

Today's news headlines: 

‘Britons with weak immune systems to be offered third Covid jab’. It’s expected around half a million people in the UK with weakened immune systems will be offered a third dose of the Coronavirus vaccine as we head into winter. The Joint Committee on Vaccination and Immunisation did clarify that this wasn’t the start of the booster campaign, rather a realisation that those with weakened immune systems didn't respond as well to the first two doses, with around 11% of people not getting any antibodies at all. Around 24 countries have committed to the third round of vaccinations. Most notably, the US government are offering a third dose to anyone who’s eight months on from their second. (Financial Times)

‘Supply bottlenecks create record backlogs at eurozone manufacturers’. Despite the strong postings in Purchasing Managers’ Index data throughout the Eurozone yesterday, businesses have emphasised the impact that delivery delays and shortages of materials are having on productivity. Companies such as Volkswagen have suggested supply problems could last into the New Year. The problems are waning on the economic rebound in the bloc, as production levels could be held back longer than expected. This could likely lead to a growth forecast cut in Germany according to President of the Deutsche Bundesbank, Jens Weidmann. (Financial Times)


The S&P 500 started September relatively flat, rising just 0.03% yesterday. Across the pond, the FTSE 100 gained 0.42% on the day. The story is little changed in the currency markets, with most major pairs trading range-bound. The US 10-year bond yield is also flat, sitting at 1.30% this morning.  


Switzerland Consumer Price Index m/m: 0.2% vs -0.1% last month
Switzerland Retail Sales y/y: -2.6% vs 0.1% last month
Spanish Unemployment Change: -82.6K vs -197.8K last month
Eurozone Producer Price Index m/m: 10:00AM
US Unemployment Claims: 1:30PM
FOMC member Raphael Bostic speaks: 6:00PM
FOMC member Mary Daly speaks: 8:00PM

Interbank rates:

GBP/USD – 1.3780
GBP/EUR – 1.1638
EUR/USD – 1.1843
USD/CAD – 1.2607

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