Down and out in London and London
- Sterling continues to weaken. Running a sizable current account deficit means the UK must attract foreign investors to maintain currency stability. A "wait and see" approach does not finance the deficit. Since the Conservative Party conference, foreign investors have been less interested in investing in the UK.
- US House Speaker Paul Ryan has been less enthusiastic in his endorsement of the Republican nominee for President. There are many possible outcomes to the election. A Clinton White House with a Democrat Congress would support more of her policy agenda that a Clinton White House with a Republican Congress.
- The German ZEW economic confidence data comes out, and is expected to show a small gain. Small business confidence from the US NFIB survey is also due. This sentiment reading has been subject to political influence in the past, and in the current climate needs to be read cautiously.
- The Nobel Prize for economics was announced yesterday. Unaccountably, it was not awarded to a wealth management chief economist. For interviews with past Nobel Laureates, and commentary on what their work means for markets, please visit www.ubs.com/nobel