Sterling was close to a 10-day low at 7am following approval by the US Senate of the Republican Party budget. Sterling traded at $1.3111, down -0.36%. The pound was already under pressure from worse-than-expected UK retail sales in September as inflation continues to slam British pockets. The euro also came under pressure following the US news, down -0.38% to $1.1806.
However the US vote was close at 51-49. The US Senate move means the Republicans have the ability to pass tax reform – or tax cuts – with their 50-plus votes. The tax code overhaul was a cornerstone of Trump’s election campaign and will help his party put some distance on multiple legislative failures so far, including the promised death of Obamacare.
The move provides “financial relief for families across the country,” said the White House in a statement, “and making American businesses globally competitive”. Things now look better also on midterm elections for Trump.
The dollar climbed more than +0.62% against the yen to 113.24 though the Japanese focus is very much premised on what happens on Sunday – a likely election victory for PM Shinzo Abe. The Trump Senate breakthrough saw gold slip -0.31% to 1,282.70. WTI crude was up +0.39% at 51.71 and Brent crude up +0.37% at 57.44. Asian shares traded sideways today, sticking to narrow trading ranges.
- UK FTSE 100 7,523.04 -0.26%
- Dow 23,163.04 +0.02%
- S&P 500 2,562.10 +0.03%
- Nasdaq 6,605.07 -0.29%
- Nikkei 225 21,432.40 -0.08%
- DAX 12,990.10 -0.41%
- CAC 40 5,368.29 -0.29%
- Gold 1,285.10 -0.39%
- Oil WTI 51.48 +0.37%
InterContinental Hotels revenues up in Q3
We start with a positive third quarter update from InterContinental Hotels: its critical RevPAR – the revenue per available room metric used by much of the hospitality industry – is up +2.3% globally plus +4.1% net room growth.
Digging into the numbers European RevPAR soared +7.1% in Europe with UK growth of +4.1% (helped by lower sterling). In Greater China RevPAR was up +7.8% in the last quarter. “The weakening of the US Dollar against many major currencies globally increased group RevPAR to +2.7% in the quarter, when reported at actual exchange rates,” said InterContinental Hotels.