Overseas Headlines – October 21, 2020

United States:

Gulf Bond Flurry Sets $102 Billion Record Before U.S. Election

“A burst of debt deals in the Gulf has pushed issuance to a record in the region as borrowers rush to shore up their oil-dependent budgets before the U.S. presidential vote. Gulf Cooperation Council sovereigns and corporates have sold $102 billion in debt so far this year, already exceeding the highest full-year figure. Junk-rated Oman was in the market on Wednesday with a sale of seven and 12-year dollar notes, alongside offerings by Qatar Islamic Bank SAQ and the Investment Corporation of Dubai.”



BOE Case for Stimulus Soon Is Boosted by U.K.’s Feeble Inflation

“For Bank of England policy makers surveying Britain’s crippled economy, the pieces are falling into place for further monetary easing in November. Inflation has now been at less than half the central bank’s 2% target for six months, adding to dire evidence of a dramatic slowing in the economic recovery and surging job cuts. Those shifts all transpired even before new Covid-19 restrictions were imposed on large swathes of the U.K. and the government moved closer to a no-deal Brexit.”



BOJ Considers Changing Inflation Forecasts Over Travel Program

“The Bank of Japan is likely to consider changing its inflation forecasts to reflect the short-term impact on prices of a government travel campaign at its policy meeting next week, according to people familiar with the matter. The central bank will probably discuss cutting its price projection for the year ending in March to account for the downward price pressure of Prime Minister Yoshihide Suga’s Go To Travel campaign, the people said. The campaign offers subsidized domestic travel. A downgrade of the projection wouldn’t trigger any additional BOJ action, the people added.”




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