Morning Report

Morning Report – Tuesday 13th October

Main Headlines

Johnson & Johnson paused trials for a potential vaccine to Covid-19 after a participant became suddenly ill. Doubts were also raised about herd immunity after it was confirmed that a man from Nevada, US was reinfected with SARS-Cov-2, the virus responsible for Covid-19.

The first day of Senate hearings for Amy Coney Barrett’s conformation took place yesterday, where the presidential election dominated proceedings. Democrats focused on the Affordable Care Act while Republicans defended the nomination so close to the election.

The Bank of England wrote to banks asking for their readiness to deal with zero or negative rates. This is the first step in the road to negative rates being implemented, but Sam Woods, Deputy Governor said that this is “not indicative that the [MPC] will employ a zero or negative rate”.


The pound is trading relatively flat against the euro and dollar this morning. Brexit talks continue this week ahead of the EU Summit on Thursday and there was still no breakthrough yesterday, as the problem remains Emmanuel Macron’s stubbornness on fishing. UK unemployment rate has risen slightly, but the Claimant Count rate has fallen dramatically.


The euro fell in early morning trading against the dollar. Today is light on economic data for the eurozone, and so investors will be focused on the possible agenda on the EU Summit on Thursday as it is very unlikely, according to a close source, that Brexit talks will be finalised by the start of the summit.


The dollar is flat against most major currencies this morning, but is slightly up against the Japanese Yen. Fiscal stimulus talks continue today but there remains a $400 billion difference between the Republicans and Democrats. Donald Trump restarted his campaign trail last night in Florida, and even offered to kiss members of the audience.

Main Economic Data/Central Banks/Government (BST)
7:00 a.m.: U.K. Aug. Unemployment
8:00 a.m.: Turkey Aug. Industrial Production
10:00 a.m.: Germany, Euro-Area Oct. ZEW Survey
13:30 p.m.: US CPI
3:00 p.m.: BOE’s Bailey at Lords committee
4:00 p.m.: ECB’s de Cos, Riksbank’s Ingves speak

IMF meetings. David Malpass, Kristalina Georgieva and Bank of Indonesia’s Perry Warjiyo speak
Energy Intelligence Forum. Oil ministers of UAE and Nigeria, and CEOs of Aramco and Shell speak
OPEC publishes monthly report