The outlook dims

Today’s news headlines:

‘Sunak faces worst hit to UK finances since second world war’. The UK’s Chancellor will publish his outlook for the UK economy in next week’s spending review, which will include the largest downgrade to economic performance since the Second World War. The forecasts, produced by the Office for Budget Responsibility, are expected to mirror the Bank of England in predicting that the UK economy will contract 11% in 2020, the worst annual performance in 300 years. The official forecasts also indicate that the economy would only recover to peak 2019 levels in late 2022. (Financial Times)

‘Jamie Dimon blames "childish" Congress for stimulus deadlock’. The Chief Executive of JPMorgan Chase has taken aim at ‘childish’ politicians in the US Congress for failing to pass a much-needed fiscal stimulus deal. Dimon intimated that both sides should meet in the middle to avoid further failing the American people. Mr Dimon’s comments have echoed similar calls from other business leaders and groups for more support as the pandemic’s effects worsen in the US. (Financial Times)

Today's events, rates, and data 

  • Overnight, restrictions to curb the pandemic overshadowed progress made towards a vaccine and meant that Asian stocks were set to end their longest winning run since 1988. European and US equity futures are lower this morning, while the Dollar has firmed up as markets shift to a more risk-off tone.

Today's events

Australia Unemployment Rate: 7.0%
Australia Employment Change: 178.8k
Canada ADP Non-Farm Employment Change: 1.30pm
US Philly Fed Manufacturing Index: 1.30pm
US Weekly Jobless Claims: 1.30pm
ECB President Lagarde Speaks: 3.00pm
US CB Leading Index: 3.00pm

Interbank rates:

GBP/USD: 1.3230
GBP/EUR: 1.1175
EUR/USD: 1.1845
USD/CAD: 1.3090

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