A path to progress
Today's news headlines:
‘EU and US agree to suspend tariffs in Airbus-Boeing dispute’. US trade conditions under President Biden appear to be softening. Both the EU and US have now agreed to suspend punitive tariffs over a longstanding aircraft subsidies disagreement. It looks as though finally the 16-year long battle over state aid to Airbus and Boeing is set to end. Tariffs have been suspended for at least four months as they look to forge a permanent agreement on permissible aircraft subsidies. The news came a day after the US and UK also agreed to suspend punitive tariffs, which might be a signal that Trump-era political tensions are subsiding, allowing for a new era of US trade co-operation. (Financial Times)
‘US hiring roared back in February as Covid cases declined’. Friday’s non-farm employment release, which had the US economy creating 379,000 jobs in February, pointed to a sharp rebound in labour market conditions, stemming from a decline in coronavirus cases nationwide. The report triggered another sell-off in US government debt, as Treasury yields rallied to their highest since February 2020, with investors positioning for a period of higher inflation. However, the US is still 9.5m jobs short of pre-pandemic levels, with unemployment standing at 6.2%, almost double the March 2020 figure. (Financial Times)
Today's events, rates, and data
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The US Dollar strengthened, and US equity futures fell since markets opened last night, caused by the latest sell-off in Treasuries. Equities elsewhere were mixed, with UK and European futures modestly appreciating overnight. Sterling was firm after a report that Japanese investors bought the most UK sovereign bonds in at least the past 15 years in January.
Today's events
German Industrial Production: -2.5% vs 1.9% previously
BoE Gov Bailey Speaks: 10.00am
Interbank rates
GBP/USD: 1.3810
GBP/EUR: 1.1625
EUR/USD: 1.1880
USD/CAD: 1.2670