14/09 – This Weekend’s Catchup

Is the language English British or American?

• US confidence for the UK falls from 7.8 to 6.2, with many citing higher payroll taxes and loss in competitiveness factors lowering investor’s sentiment.
• How will Reeves use the upcoming budget to boost business confidence is a dilemma which may have no solution.

Inflation sticker than sticky toffee pudding

• US inflation rose by 2.9% in August. With just 22,000 jobs added last month to the economy, what are the next steps for the Federal Reserves?
• An aggressive rate cut may lead to an inflation spiral and a dovish rate cut may risk independence with Trump advocating for lower rates.

Who’s next in the firing line, Reeves?

• CS Venkatakrishnan, Barclays Chief Executive criticises the idea of taxing the banks, urging Reeves to think again.
• With the banking industry enjoying healthy profits following higher interest rates, where will Reeves turn to fill in the black hole.
• Who knows? Your pockets might next in line!

What To Look Out For:

• Tuesday – Canadian Inflation Rate
  • Will Trump’s tariffs shows its fullest effects on his local rival?
• Wednesday – Federal Reserves Rate Setting Meeting
  • Eyes on Powell and Eyes on Trump’s response
• Super Thursday – Bank of England Rate Setting Meeting
  • What will be the comments of Andrew Bailey and will it support Reeves?
• Friday – Bank of Japan Rate Setting

If you were in the Federal Reserve committee, this Wednesday, what would you vote for? A 0.25 basis cut or 0.5 basis cut.  Let me know in the comments.

Thanks for reading this week’s catch-up — join me next week for more curiosity!