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Tuesday Open
Risk generally constructive again overnight. ASX rallied early and was up 1.2%, pared gains then pushed back up. Now +0.8% on the day.Nikkei +0.7%KOSPI +0.7%Chinese indices were in the red, but also recovering.
Trump took the headlines last night, once again mentioning a complete decoupling from China.
“We’re going to end our reliance on China because we can’t rely on China and I don’t want them building a military like they’re building right now and they’re using our money to build it.”https://t.co/bNdHjW9ZGY pic.twitter.com/Ofxa9wNECh— Microdesiac (@Microdesiac) September 8, 2020
Markets barely reacted.
Broader economic sanctions and tariffs are expected.
Brexit PantomimeThese two stories are in focus this morning.
The only thing to note is that the UK is seeking to better define some ambiguity in the rules surrounding Northern Ireland. That's it. HE'S BEHIND YOU! This coverage is entirely intended for domestic audiences. "Look how hard this has been, they're so unreasonable" The rhetoric may keep the pound under pressure, but a "no deal" exit is highly improbable.
Sticking with the UK;
He added that “keeping all those jobs on life support is in some ways prolonging the inevitable in a way that probably doesn’t help either the individual or the business.”
Haldane said “the most painless thing that can be done is to recognise that and then put in place a process of adapting…to that new world, re-equipping [employees and businesses] to the new world of business new world of work.
“Our job as policy makers is to make that process of adjustment as seamless and as painless as possible for everyone concerned.”
Some industry bodies have warned that the end of the job retention scheme – which saw the government pay up to 80 per cent of the wages of furloughed staff – next month risks a second wave of job cuts.
Japan's Dire July data
Japan Labour Cash Earnings (Y/Y) Jul: -1.3% (est -1.5%; prevR -2.0%; prev -1.7%)
Japan Real Labour Cash Earnings (Y/Y) Jul: -1.6% (est -1.9%; prevR -2.1%; prev -1.9%)— LiveSquawk (@LiveSquawk) September 7, 2020
Japan Household Spending (Y/Y) Jul: -7.6% (est -3.7%; prev -1.2%)— LiveSquawk (@LiveSquawk) September 7, 2020
Japan July Household Spending Pulled Down By Declines In Cars, Fuel, Domestic And Overseas Travel Tours Spending— LiveSquawk (@LiveSquawk) September 7, 2020
Japanese GDP SA (Q/Q) Q2 F: -7.9% (est -8.0%; prev -7.8%)
Japanese GDP Annualized SA (Q/Q) Q2 F: -28.1% (est -28.5%; prev -27.8%)
Japanese GDP Nominal SA (Q/Q) Q2 F: -7.6% (est -7.6%; prev -7.4%)— LiveSquawk (@LiveSquawk) September 7, 2020
Japanese GDP Private Consumption (Q/Q) Q2 F: -7.9% (est -8.2%; prev -8.2%)
Japanese GDP Business Spending (Q/Q) Q2 F: -4.7% (est -3.0%; prev -1.5%)
Japanese GDP Inventory Contribution (% GDP) Q2 F: 0.3% (est 0.0%; prev 0.0%)— LiveSquawk (@LiveSquawk) September 7, 2020
Pretty shocking,Not to worry though, Japan's economy minister is a "glass half full" kind of guy.
Japan EconMin: Japan Economy Showing Signs Of Pickup— LiveSquawk (@LiveSquawk) September 8, 2020
Suga is the frontrunner, and the official campaign starts today.He has said that he will stick to the Abenomics policy, but sadly didn't add that he would sprinkle a little Suga on top.
Yeah I said it. Stop rolling your eyes.
It does look like further stimulus will be necessary.Not a huge amount on the calendar today. Germany's July trade data in 10 minutes will add further colour to the euro picture.
