China’s President Xi Jingping began his first full day of his visit to the UK yesterday. Minsters expect more than £30bn of trade and investment deals to be struck during the four day visit, including a meeting with UK PM David Cameron. Xi Jinping has also scheduled trips to Downing Street, Buckingham Palace and Old Trafford. London has been selected to be China’s first Yuan bond sale outside of its domestic market and Hong Kong, extending its lead over Paris and Frankfurt to be the European Hub for the Yuan.
Canada has been dominating market headlines this week as their domestic elections left markets shocked. The center-left Liberal Party swept into power with an overall majority, following nine years of Conservative rule. The Loonie depreciated after the result, as speculation of the Liberal Party’s positions on spending and taxes. The Bank of Canada interest rate decision is also due this week, investors are anxious to see if further policy easing is to come.
As mentioned the Bank of Canada are due to release their latest decision on interest rates today with no change expected. As always, the focus will be on the rhetoric following the decision. Meanwhile, on the docket we have the UK’s public sector borrowing numbers.