Morning Report – Wednesday 30th September

Main Headlines

President Trump took on Democratic candidate Joe Biden in a fierce televised debate on Tuesday night. The two locked horns over issues including the Coronavirus response, the Supreme Court and race relations. Leading commentators agreed there was no clear winner, but there was a clear loser: America’s political discourse.

Boris Johnson apologised via Twitter yesterday after getting his own COVID rules wrong. The Prime Minister originally said that people from North East could socialise with other households, but later tweeted that he “misspoke” and that they cannot meet people from different households.

Oil and Equity prices fell yesterday as a month of tumultuous trading neared its end. US stocks were weighed down by the energy sector and Brent Crude dropped 3.3% to $41.03. Leading analysts say it is “very hard to be bullish on oil” as supply continues to significantly outstrip demand.

GBP

The pound traded relatively flat against the dollar, while falling against the euro. Optimism of a successful Brexit deal which spurred Sterling yesterday was replaced by uncertainty caused by Bank of England Governor Andrew Bailey who said the central bank had not yet reached a decision on whether to implement negative interest rates.

EUR

The euro enjoyed large gains against the pound and dollar yesterday. The currency corrected from its fall on Monday as there was no major news out of the bloc yesterday. EU capitals are still at loggerheads over budget conditions linked to the €750 billion recovery fund.

USD

The dollar traded relatively flat against most major currencies yesterday but is expected to rise this morning as investors react to the acrimonious presidential debate. Both candidates traded ugly blows which highlighted that this election is likely to be hotly contested, and if Biden wins, the transfer of power is unlikely to be smooth.

Main Economic Data/Central Banks/Government (All Times BST)
7:00 a.m.: Germany Aug. Retail Sales, Import Price Index
7:00 a.m.: U.K. Sept. Nationwide House Prices
7:45 a.m.: France Sept. Inflation, Aug. Consumer Spending
7:50 a.m.: ECB’s Muller speaks
8:00 a.m.: Turkey Aug. Trade Balance
8:20 a.m.: ECB’s Lagarde speaks
8:55 a.m.: Germany Sept. Unemployment
9:00 a.m.: South Africa Aug. Inflation
9:00 a.m.: ECB’s Kazimir speaks
9:00 a.m.: Poland Sept. Inflation
9:30 a.m.: BOE’s Haldane speaks
10:00 a.m.: Italy Sept. Inflation
3:00 p.m.: ECB’s Lane speaks
3:30 p.m.: EIA U.S. Crude Oil Inventories

EIA Monthly Crude and Natural Gas Production and Petroleum Supply Monthly reports