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.

Markets barely reacted.

Broader economic sanctions and tariffs are expected.

Trump expected to block Chinese textiles over Xinjiang forced labour
US apparel groups are expecting a Trump administration decision as early as this week blocking imports of Chinese-made textile and apparel products on the grounds that they are the products of forced labour in the Xinjiang region of China, according to textiles industry sources and a former Trump Wh…

Brexit Pantomime

These two stories are in focus this morning.

Brexit deal never made sense, Boris Johnson to tell EU
Prime Minister will say Withdrawal Agreement is ‘contradictory’ on Northern Ireland
Tories warn Boris Johnson that watering down Brexit deal is dangerous
Senior Conservatives warned Boris Johnson last night that his plans to water down Britain’s obligations under the EU withdrawal agreement were a “dangerous step” that could make a no-deal Brexit more

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.


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;

Haldane warns against furlough extension

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

Pretty shocking,

Not to worry though, Japan's economy minister is a "glass half full" kind of guy.

Japan’s worst postwar economic downturn could force new leader to boost stimulus
Japan’s economy sank deeper into its worst postwar contraction in the second quarter as the coronavirus jolted businesses more than initially thought, underscoring the daunting task the new prime minister faces in averting a steeper recession.

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.