Remember, Remember the 4th of November.

In an embarrassing sequence of events for President Biden, as he jetted off to the G20 meeting in Rome, the Democrats abandoned their planned vote on his Build Back Better bill. Biden had hoped to boast of a bumper environmental package at COP 26 in Glasgow next week.

The President’s approval ratings have been sliding and with the US mid term elections scheduled for next year, his ability to get anything through congress could be hindered if the republicans retake control of the house.

US GDP yesterday missed their forecasted 2.6%, the Commerce Department sited that disappointing jobs growth in September was a contributing factor, as well as Delta infections and a poor vaccine uptake.

The Commerce Department have also cited that supply chain struggles and consumer demand have driven inflation to 5.4%, this could force the Federal Reserve’s hand regarding interest rates.

Focus next week will be firmly on the Bank of England’s rate announcement on Thursday 4^th. The Governor, Andrew Bailey, has recently made comments that the Central Bank needs to act to curb inflation.  It is widely expected they will hike rates by 0.25% next week or in December. If there is no hike on Thursday, the attention will switch to the preceding press conference for forward guidance as well as the weighting of the MPC’s votes. We can expect volatility leading up to the announcement that will present opportunity.

Economic Calendar