1. Boris Johnson will present the new Brexit plan within 24 hours
2. RBA cuts interest rates from 1.00% to 0.75%
3. The sentiment index of large manufacturing companies in Japan dropped to a 6-year low
4. The Turkish government expects a sharp economic recovery in 2020
According to The Telegraph, Boris Johnson will present the new detailed Brexit plan to EU leaders in the next 24 hours. It is expected that the plan will be based on the idea of creating an “economic zone” throughout Ireland. This decision will avoid the introduction of any customs restrictions after the official exit of the UK from the EU.
The Reserve Bank of Australia today decided to lower the interest rate from 1.00% to 0.75% to maintain inflationary pressures. The final statement said that, if necessary, the regulator can continue to soften the monetary policy and the low level of rates will remain for a sufficiently long period of time.
Against the backdrop of growing tensions in international trade and a slowdown in the economies of China and other countries of the Asia-Pacific region, the sentiment indicator of large manufacturing companies in Japan fell to the lowest level since the 2nd quarter of 2013. A decrease in this indicator may increase pressure on the Bank of Japan towards further easing of monetary policy.
The Turkish Ministry of Finance expects a sharp recovery in the country's economy in 2020. Expects GDP growth at 5% and a decrease in inflation from 15% to 8.5%. Last year, Turkey's GDP growth was 2.6%, and this year the IMF predicts a decrease of 0.25%. Experts believe that the plans voiced by the government are practically not feasible, because at the moment the country does not have enough of its own resources to ensure such a quick economic recovery. Turkey remains very dependent on external sources of funding, which will be reduced.
News worth paying attention to today:
7:55 GMT. Germany: Manufacturing PMI for September
8:30 GMT. UK: Manufacturing PMI for September
9:00 GMT. EU: preliminary consumer price index data for September
12:30 GMT. Canada: July GDP data
14:30 GMT. US: Manufacturing PMI from ISM for September
16:45 GMT. EU: statement by ECB President Mario Draghi