Bonfire of regulations
Today's news headlines:
‘Jacob Rees-Mogg told to prove benefits of Brexit’. Yesterday’s mini-cabinet reshuffle saw Jacob Rees-Mogg appointed as the new ‘Brexit Opportunities Minister’—tasked with finding 1,000 regulations that can be scrapped to improve daily life and help business. However, leaders are apprehensive that EU markets may close to them if Britain lowers standards too far from existing rules. The UK’s Head of the International Chamber of Commerce, Chris Southworth, warned against a ‘bonfire of regulations’ and noted that ‘consumers, businesses and civil society all want high standards and that means smart regulation’. (Financial Times)
‘Australia Consumer Sentiment Drops on Mounting Rate-Rise Fears’. Australian consumers became the most pessimistic on the interest-rate outlook for 11 years in February, with most worried about the strain on personal finances while remaining optimistic on the economy. Often noted as a lonely ‘Dove’ in a world of ‘Hawks’, the Reserve Bank of Australia’s Philip Lowe opened the door to a 2022 rate hike at February’s RBA meeting, with economists now expecting the first hike in June. (Bloomberg)
A pause in the global bond sell-off helped stocks and equity futures to rebound overnight. However, markets are likely to remain muted before tomorrow’s US Consumer Price Index print. The data point is expected to show US inflation continuing to overheat, which would likely cause more aggressive pricing of US rate hikes.
Italian Industrial Production: 9:00AM
Monetary Policy Committee member Huw Pill speaks: 1:10PM
US Crude Oil Inventories: 3:30PM
Bank of Canada Governor Tiff Macklem speaks: 5:00PM
Federal Open Market Committee member Loretta Mester speaks: 5:00PM
GBP/USD – 1.3552
GBP/EUR – 1.1874
EUR/USD – 1.1412
USD/CAD – 1.2710
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