Backs against the wall

Today's news headlines: 

‘Boris Johnson draws up survival plan as calls to quit grow louder’. Pressure has been piling up on Boris Johnson over the last few weeks as allegations of lockdown parties plague the headlines. According to sources, Tory MPs haven’t yet reached a vote of no confidence in the UK Prime Minister. Around 20-30 MPs are said to be backing the call, but 53 demands are needed. Johnson is drawing up a plan to regain confidence, which is expected to involve all Coronavirus restrictions being lifted on the 26th of January while also making more aggressive inroads in containing energy bills in the hope of holding onto power until local elections in May. (Financial Times)

‘China’s GDP growth slows as Covid restrictions and property woes hit demand’. Gross Domestic Product in China grew 4.00% in the fourth quarter of 2021, the slowest rate for 18 months. China’s recovery from the pandemic has been steady, but it’s failed to replicate those growth rates seen pre-Coronavirus. A zero-Covid policy has dampened consumer demand as strict localised lockdowns continue to weigh on domestic activity. Cash constraints in the property sector have also hit construction in the country, leading to dwindling property investment. (Financial Times)


Today

Asian indices tracked mostly higher overnight with the exception of the Hang Seng. US yields continue to rise, with the 10-year reaching 1.79%. Brent crude reached $86 a barrel this morning, its highest for three years. US markets are closed today in observance of Martin Luther King Jr. day.

Events

China GDP q/y (Q4): 4.0% (est. 3.3%)
China Industrial Production y/y (Dec): 4.3% (est. 3.7%)
Canada Manufacturing Sales m/m: 1:30PM
Bank Of Canada Business Outlook Survey: 3:30PM
Eurogroup meetings: All day
US Bank Holiday: All day


Interbank rates:

GBP/USD – 1.3678
GBP/EUR – 1.1974
EUR/USD – 1.1422
USD/CAD – 1.2529

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