Global Reach is becoming Corpay Cross Border, part of FLEETCOR, to broaden our client offering. Please contact our team or visit to find out more.

Tax hike and taper talk

Today's news headlines: 

‘Johnson plan to fund health and care lifts UK tax burden to 70-year high’. Boris Johnson will announce today his plans for a new tax plan that will help raise £12bn to fund health and social care. This is a deviation from the traditional Tory party stance of being a low-tax party, much to the surprise of Labour members of parliament. There’s only expected to be minor resistance in the Tory party with the tax plan all but secured. The proposed moves will push the national tax burden up to 35.5% of GDP, the highest rate since 1950, fuelled by national insurance increases. (Financial Times)

‘Top Fed official pushes for quick “taper” despite weak US jobs growth’. James Bullard, President of the Federal Reserve Bank of St Louis, has urged for faster tapering despite weaker-than-expected jobs data in August as the US economy added the lowest number of jobs for seven months. Bullard highlighted the expiration of unemployment benefits this week, which could act as a catalyst for people returning to work. Pair this shift with the increase in average hourly wages, and these factors could motivate some to pursue new roles. (Financial Times)


The FTSE 100 finished yesterday 0.53% softer as investors digested Boris Johnsons new tax plans. US markets were weaker after the long Labour Day weekend, with the S&P 500 closing 0.34% lower. The US 10-year bond yield has continued to creep higher to 1.36% overnight, while major currency pairs trade little changed this morning.


Japan final Gross Domestic Product q/q: 0.5% vs 0.3% previously
Italian Retail Sales m/m: 9:00AM
Reserve Bank of Australia Deputy Governor Guy Debelle speaks: 9:10AM
Bank of Canada interest rate statement: 3:00PM
UK monetary policy report hearings: 4:00PM
Federal Open Market Committee member John Williams speaks: 6:10PM

Interbank rates:

GBP/USD – 1.3761
GBP/EUR – 1.1629
EUR/USD – 1.1833
USD/CAD – 1.2666

The markets are moving. To speak to our team, please call +44 (0)20 3465 8200.