Today's news headlines:
‘Rush of customers to UK pubs and restaurants points to economic boost’. Consumer spending is on the rise, with initial data suggesting the rebound from the current lockdown is quicker than from the first in March last year. Bookings in pubs and restaurants were 65% higher on Friday and Saturday last week when compared with the same time in 2019. This is encouraging as the government has not provided any incentive for consumers to eat out for a discount, rather this demand appears to be occurring naturally. Elsewhere, footfall in retail venues has hit some of its highest levels since autumn. (Financial Times)
‘Covid response keeps UK government borrowing high in April’. The gradual easing of restrictions has kept public borrowing high as the government tries to wean the economy off large but essential support. Borrowing increased to £31.7bn last month according to the Office for National Statistics, although this is still £15.6bn less than the same month last year. It is expected that UK public finances will recover quicker than after the financial crisis in 2008, however a full return to normal could take some time longer. (Financial Times)
Today's events, rates, and data
Inflation concerns took a back seat yesterday helping the FTSE 100 climb 0.48%. It was a similar story in the US as the S&P 500 finished the day 0.99% higher. In early trading, Cable has hit the $1.42 level while EUR/USD has started to test $1.2250.
German ifo Business Climate: 9:00am
FOMC Member Charles Evans Speaks: 12:40pm
US CB Consumer Confidence: 3:00pm
FOMC Member Randal Quarles Speaks: 3:00pm
MPC Member Silvana Tenreyro Speaks: 5:00pm
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