As risk appetites move ever lower and the US dollar soars, sovereign currencies are seeing the effects of global economic uncertainty. The pound has hit a record low against the greenback after the UK government introduced a new stimulus package just after the appointment of conservative party candidate Liz Truss as Prime Minister. The pound is currently at 1.06 vs the dollar. The euro, too, has continued on its downward movement past dollar parity, hitting 0.96 with expectations for a further slide. In light of growing concerns about China’s downbeat economic situation, the Chinese yuan has dipped, with USDRMB going well past 7, and is currently at 7.16, a level last seen in early 2020 at the height of the pandemic.
Putin Escalates with 300,000 Troops
Russian President Vladimir Putin has ordered the mobilisation of 300,000 troops, many of them military reservists, in an escalatory move that includes an increase in weapons production. Putin has also accused the West of nuclear blackmail, warning and reiterating Russia’s own ability to retaliate. In a televised address, Putin threatened that the Kremlin would use “all the means” at their disposal “to protect Russia and its people”. Leaders in the Russia-controlled regions of Luhansk, Donetsk, Kherson and Zaporizhzhia – likely installed by Moscow – will be holding referendums on joining Russia, an outcome that Moscow is likely to use as a reason to increase war efforts to “protect its territories”.
Global Travel Recovery
Trip.com has said that domestic hotel reservations in China have overtaken pre-pandemic since Jun, coming in about 20% higher than the 2019 level in July. Global travel is also resurging, with Q3 numbers nearly 90% of 2019’s. Business travel recovery has also accelerated faster than expected, with a survey of North American and European travel agents published by corporate travel technology firms HRS and GBTA found that a majority of respondents has seen travel accelerate “more quickly” and “much more quickly” than expected early this year.