Friday 11th December 2020
Even though a hard deadline has been set for Sunday for the UK-EU trade deal, there’s no guarantee it will all end there. NAB’s Gavin Friend says a no-deal could weaken the pound and soften the Aussie dollars chances of maintaining its position over 75 US cents. The ECB has announced more bond buying, whilst the EU has managed to broker a deal to pass its budget, including the Recovery Fund, using the age-old EU technique of kicking the can down the road. The US is also obfuscating on the fiscal stimulus package as virus numbers continue to rise.
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Fed to push higher, Putin pushing for referendums
The Fed will push rates higher tomorrow by 75 basis points at least. Riksbank surprised with a 100bp rise but, as NAB’s Taylor Nugent points out, they are earlier in the tightening path. Meanwhile, is the war in Ukraine about to get worse?
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Government debt, when does it become a problem?
Too much government spending can raise inflation, which reduces the attractiveness of government bonds, making it more difficult to raise money – right or wrong?
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Suddenly, Europe shines brighter
A huge jump in he Aussie dollar. NAB’s Ray Attrill explains that, in part, it’s the indirect result on the rise in the Euro as a recovery package is finally agreed.
