Morning Bid: Memo for Britain’s next PM – There’s no stopping bad news

A lady does groceries as restrictions within the metropolis have began to ease, amid the outbreak of the coronavirus illness (COVID-19), at a market in Leicester, Britain, August 19, 2020. REUTERS/Paul Childs

A take a look at the day forward in European and international markets from Anshuman Daga

One other day, one other depressing set of British information.

“A way of exasperation” and “disaster of confidence”. That was the sombre message from Britain’s longest-running survey of family funds launched on Friday. learn extra

The document low of -44 within the Gfk client sentiment index in August, worse than what economists anticipated, underscores a summer time of discontent that reveals no indicators of receding.

No marvel, the frontrunner to be Britain’s subsequent prime minister Liz Truss says her authorities’s defining mission can be to revive the financial system. learn extra

However with Britain scoring the doubtful distinction of turning into the primary main wealthy financial system to see worth development hit double digits, the Financial institution of England is ready to boost rates of interest by an extra half level to 2.25%.

Retail gross sales information due on Friday will set the temper for markets. Rising worries a few weaker British financial system stored sterling on the again foot, because it fell to a one-month low.

Euro zone inflation reached a brand new document excessive of 8.9% year-on-year in July and a nasty suggestions loop is opening up as the present account deficit weighs on the euro and import payments swell for uncooked supplies from fuel to metals.

Asian shares have been left in limbo on Friday whereas the U.S. greenback rose to a contemporary one-month excessive towards a basket of main friends as Federal Reserve policymakers continued to speak up the necessity for additional rate of interest hikes.

Turkey’s central financial institution, against this, shocked markets with a 100 foundation level fee minimize regardless of hovering inflation. learn extra

On the soccer pitch, in the meantime, it appears like deep pockets are wanted to steer the Glazer household to half with Manchester United, although followers hope a profitable sale might pave the best way for a return to profitable methods for the membership. learn extra

Key developments that might affect markets on Friday:

Financial information: UK July ONS retail gross sales information, euro zone present account steadiness

U.S. labor market resilient regardless of fee hikes; housing market wilting: learn extra

German financial outlook gloomy, finance ministry says: learn extra

Japan’s inflation holds above BOJ goal, worth pressures broaden: learn extra

Reporting by Anshuman Daga; Modifying by Jacqueline Wong

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