GB POUND
The pound came under pressure straight away on Monday off the back of comments from European Union policy makers, who suggest that Britain will be denied access to the single market unless it agrees to the freedom of movement and labour. Such a move could see other EU markets taking away talent and investment from the UK financial sector.
This is worrying for the UK as financial services account for a large portion of GDP.
British building supplies firm Wolseley announced today that it is planning to close 80 stores which would mean 800 people would lose their jobs.
Mortgage approvals fell to their lowest levels since November 2014.
GDP increase Q/Q from 0.6% to 0.7%.
EURO
More bad news for Deutsche Bank as its shares crashed to a 30-year low on Tuesday amid fears the German government is preparing a rescue package in case the bank cannot raise the capital to pay the $14bn fine to the US Justice Department. The worst case scenario could see the German government take a direct stake of 25% in the bank.
Deutsche Bank also confirmed on Wednesday morning that they have agreed to sell their UK life assurance group Abbey Life for £935m, the business is expected to be sold to the Phoenix Group, Britain’s largest owner of life assurance funds.
Commerzbank, Germany’s second largest bank announced on Thursday that it plans to cut 9,600 jobs in a restructuring plan
US DOLLARS
Mixed news for the US housing sector as sales of new family homes fell 7.6% M/M. New home sales were up 20.6% compared with the same time last year, and the average price for a new home increased from $352,000 to $353,600.
Monday night we saw the first live televised debate between presidential candidates Donald Trump and Hillary Clinton. The debate turned personal as Trump accused Clinton of not having the right temperament to be president. Mrs Clinton came back at Trump by pointing out that he refuses to release his tax returns.
The showdown in New York might be the most watched debate in history, with up to 100 million people tuning in to watch.
Consumer confidence in the US increased in September, forecast at 99 it came in at 104.1. This is the highest level since August 2007
Elsewhere
On Tuesday the world trade organisation (WTO) cut its forecast for global trade growth this year. The revised figure is now 1.7%, a significant decrease from 2.8%.
The New Zealand economy is currently growing at its fastest rate in nearly two years, the NZ dollar has been gaining in strength off the back of this strong economic growth and economists are urging the central bank to act now, as a strong currency can have a negative effect on manufactures and exporters.
The Pound & UK Financial Services Under Pressure
