John Williams, president of the Federal Reserve of San Francisco, said "there is simply not enough room for central banks to cut interest rates in response to an economic downturn when both natural rates and inflation are very low." A higher inflation target "would imply a higher average level of interest rates and thereby give monetary policy more room to manoeuvre". The euro rose to $1.1198 and the dollar slipped versus the yen to ¥101.02. Sterling fell to a three-year low against the dollar to $1.2864, below $1.29 for the first time since early July, and she'd to a three-year low against the euro to €1.1488. The Russian rouble strengthened to the Rbs mark per dollar, it's best level for more than three weeks. The yield on the 10-year US Treasury up 2 basis points at 1.54 per cent, while the two-year yield was up 1bp at 0.72 per cent. The 10-year UK gilt yield edged up 1bp to 0.54 per cent. Brent crude touched a four-week high of $48.19 a barrel - the highest since July 15. US WTI was up at $45.42. Gold rose to $1,342 an ounce.
Empire State survey Aug -4.21
NAHB builders' survey Aug 60
S&P500 2190.15
SSE 3125.2
HSI 22932.51
