Good morning.
The pound is recovering as its rally early on Friday saw it briefly erase all the losses it suffered since Kwasi Kwarteng began his speech last Friday.
It comes as the new government yesterday made efforts to calm the markets, after the mini Budget caused turbulence.
Liz Truss and Chancellor Kwasi Kwarteng will meet the chair of the Office for Budget Responsibility (OBR) today to discuss the fallout following last Friday’s part budget.
5 things to start the day
1) The eurozone faces “serious risks” to financial stability, the ECB admits The institution told the region’s banks to prepare for financial turbulence caused by large falls in investments and the possible disaster in the real estate market
2) UK net exporter of electricity to Europe for first time in decade Eight per cent of electricity generated in Britain in the three months to June 2022 was sent to other European countries via undersea power cables
3) HSBC considers leaving iconic Canary Wharf headquarters as more bankers work from home The bank, one of Britain’s biggest employers, is reviewing whether to keep its London skyscraper or move to a new base.
4) 60% of people risk not having enough in their pensions when they retire, MPs warn A report by the Work and Pensions Committee said urgent action was needed to help tackle the savings shortfall .
5) Britain launches urgent safety review of North Sea energy pipelines after Russian ‘sabotage’. The energy industry is discussing with government officials how to protect its oil and gas platforms and pipelines after underwater explosions
What happened during the night
On Friday, Asian stocks headed for their worst month since the start of the COVID-19 pandemic, while jitters in currency and bond markets persisted over dodgy talk from central banks, concerns about the global recession and increased geopolitical risk.
The broadest index of Asia-Pacific shares outside Japan was largely flat on Friday, as a rebound in Hong Kong and among bluechips in mainland China offset declines elsewhere. Japan’s Nikkei fell 1.6%.
The Asian index was set to post a staggering 12.5% drop for the month, the biggest since March 2020, when the COVID-19 pandemic threw financial markets into chaos.
It arrives today
- Economy: Gross Domestic Product (UK), National House Price Index (UK), Mortgage Approvals (UK), Consumer Credit (UK), Unemployment Rate (EU), Personal Spending (USA)
- Corporate: Cineworld, Dignity, Dp Eurasia (interim); Pennon (Commercial Update)