Geo-political news
UK Economy – The Bank of England Deputy Governor, Ramsden, spoke about the potential for further stimulus through quantitative easing, to support the economy through its recovery. This positive stance pushed risk assets higher. There was encouraging news for the leisure industry, after the government announced that £522m has been claimed from the “Eat Out to Help Out” scheme after a significant increase in restaurant reservations in August. Brexit made the headlines once again this week, with EU chief negotiator, Michel Barnier, criticising the UK’s position. Barnier has said that the UK is refusing to discuss credible guarantees around fair
competition, claiming an unwillingness to compromise on fisheries. This subject is expected to make headlines again next week, as the UK moves into the next stage of negotiations.
US Federal Reserve – Following on from last week’s changes to the policy framework laid out by Fed Chair Jerome Powell, Vice Chair Clarida spoke of not ruling out yield caps to control the yield curve, while also stating that the quantitative easing programme at current interest rates of zero, was the most appropriate tool, ultimately quashing any question for the potential of negative interest rates.
COVID 19 – Many countries globally appear to have the virus under control with elements global economy beginning to return to some sort of normality. However, Russia has become the 4th country to report over 1
million cases, joining US, India and Brazil.
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