Today's news headlines:
‘Surge in hiring as hospitality reopens adds to pressure on labour market’. Since the ‘Stay at home’ order in the UK was dropped at the end of March, job vacancies in the hospitality sector have trebled and are now well above pre-pandemic levels. Companies are much more willing to take on new staff now that there seems to be a way out of restrictions and an opportunity for normal operations to return. Some had warned that there could be a potential labour shortage in this sector with overseas workers returning to their domestic countries at since the start of the pandemic. However, as youth unemployment remains high and with millions on furlough, a labour shortage looks unlikely. (Financial Times)
‘Johnson urges caution as variant detected in India threatens lockdown easing’. The emergence of the Indian variant, which has proved to be more transmissible, is threatening the UK’s progress in regards to easing all coronavirus restrictions. The Prime Minister has emphasised the importance of taking the vaccine and getting tested twice a week, as the rest of the hospitality sector re-opens for business today. The country now has 20 million people fully vaccinated, with over 35’s due to be offered their first dose this week. (Financial Times)
Today's events, rates, and data
Inflation fears subsided at the end of last week which helped the FTSE 100 end the day up 1.15%. The S&P 500 followed suit rising 1.49% on Friday. Positivity surrounding lockdown easing in the UK is helping Sterling’s strength, as Cable continues to hold above $1.40.
Japan PPI y/y: 3.6% vs 1.2% last month
China Retail Sales y/y: 17.7% vs 34.2% last month
FOMC Member Richard Clarida Speaks: 3:05pm
MPC Member Silvana Tenreyro Speaks: 3:15pm
MPC Member Andy Haldane Speaks: 5:30pm
GBP/USD – 1.4109
GBP/EUR – 1.1622
EUR/USD – 1.2140
USD/CAD – 1.2107
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