It's been quite an incredible week in global markets. The Euro hit parity against the US Dollar for the first time in 20 years, the Italian government is about to implode, the Tory leadership contest rumbles on, and the big US banks kick off the latest earnings season. However, the show stopper was undoubtedly the latest US CPI reading which came in at a red hot 9.1%, the largest gain since the end of 1981.
Piers and I discuss how the market reacted and more importantly how the US central bank may react. On the same day, the Bank of Canada delivered a surprise 100bps rate hike, not only the largest rate hike by them in 24 years but the first G7 country to make such an aggressive hike in this economic cycle. Has Canada now laid the groundwork for a similar-sized move from Jay Powell and the gang later this month?
We then switch attention to the visible feud between Elon Musk and Twitter, the latter who filed a forceful complaint against Tesla boss on Tuesday, alleging he had treated his $44bn offer for the social media company as an “elaborate joke”.