The gloom of uncertainty in financial markets is getting worse this week. This morning the latest Brexit news caused the pound to slide to a one-month low, with some observers expecting it to touch the $1.11 level.
UK PM Boris Johnson had earlier informed German Chancellor Angela Merkel that a deal is "impossible" under the current terms. Both sides are blaming each other for the current impasse.
Though Britain now appears it will hit the Oct. 31 deadline without a deal, analysts are expecting another round of extension despite the EU appearing to have taken a harder stance on the Irish backstop issue. However, talks remain ongoing in Brussels with the UK being represented by envoy David Frost.
Deutsche Bank, Germany's largest bank announced it would eliminate some 9,000 jobs as part of a cost-cutting strategy in light of the economic slowdown in Europe and heightened risk of a recession. The job cuts will also impact the bank's London operations although figures are not yet known. The bank employed a total of 91,700 employees at the end of last year.
Over in the U.S., talk is increasing that the White House is planning to restrict investments into China and after the Trump administration confirmed it blacklisted eight of Beijing's technology companies due to human rights violations, ahead of bilateral talks scheduled to take place Thursday this week. Additionally, U.S. PPI dropped 0.3% sequentially in September, showing further signs of demand weakening.