Morning Report – Monday 21st September

Main Headlines

US-China tensions continue to linger as President Trump approved a plan in theory for Oracle Corp to take over US operations of video streaming platform TikTok. The ban of the app which was agreed last Friday has been postponed until a deal has been finalised.

A new investigation claim that some of the world’s leading banks, including HSBC, have been involved in moving trillions of dollars in illegal funds over the past two decades. The investigation was based on over 2,000 “suspicious reports” reported to the US Department of Treasury’s Financial Crimes Enforcement Network.

Supreme Court Justice Ruth Bader Ginsburg who passed away on Friday, has already become a point of contention ahead of the US election. Trump wants to nominate a new Justice before the election in order to secure a Republican majority in the Supreme Court. Democrats have threatened that they will do all they can to block him.

GBP

Boris Johnson said that there will likely be a second wave of the virus in the UK as well as a second lockdown. For now at least, restrictions are focused on reducing social interactions rather than business closures and Matt Hancock is “looking at all the options”.

EUR

Last week, the euro gained marginally on the dollar. This week, the European Central Bank will continue its review into the bond-buying programme implemented during the height of the pandemic. The review will consider how long the programme should last and whether it’s flexibility could be extended to older programmes.

USD

The dollar has started poorly earlier this morning after a week of weakening. Investors were left unsatisfied by Jerome Powell’s decision to extend the easing programme in the US. He will testify in Congress on Tuesday to Thursday to discuss pandemic relief efforts.

Main Economic Data/Central Banks/Government (All Times BST)
9:00 a.m.: Spain July Trade Balance
10:30 a.m.: Germany sells bills
1:50 p.m.: France sells bills