Emergency funding deal would give struggling water company £3bn lifeline

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Thames Water has obtained support from three-quarters of its creditors for an emergency funding deal, which would give it a £3bn lifeline.

US yields pushed higher and the dollar rally gained further momentum yesterday, as investors continued to surf on the idea that Donald Trump’s pro-growth policies and tariffs would boost inflation in the US and limit the Federal Reserve’s capacity to ease the monetary policy as much as previously anticipated. The US 2-year yield, for example, which best captures the rate expectations, is up by 85bp since the September dip, we could see a similar jump in the US 10-year yield.

The CPI [consumer price index] data has regained importance since Donald Trump was re-elected president of the US. Jobs data remains crucial for the Fed’s policy path, as the last thing the Fed wants is to panic and lose control of the situation, but the Fed’s victory over inflation looks more vulnerable today than it did a month ago. And that’s supportive of the US dollar.

Noon GMT: US MBA mortgage applications for last week

1.30pm GMT: US inflation for October (forecast: 2.6%, previous: 2.4%)