Today's news headlines:
‘UK races to tackle coronavirus variant through rapid vaccination’. The emergence of the Indian variant has cast doubt on whether the easing of restrictions will be able to go ahead on 21st June. The government have pledged to increase testing and deliver more vaccinations to those hotspots where the virus is cropping up, mainly in the North of England. New data is beginning to suggest that the growth advantage the strain previously had is starting to tail off thanks to the slight bounce in vaccination levels. However, infection rates still remain elevated and there is clearly more work needed to contain the new variant. (Financial Times)
‘UK pay growth picks up sharply in April as lockdown eases’. Median basic pay picked up 1.9% in the three months to April, thanks to the easing of restrictions and a re-opening of hospitality venues. This has led some to believe the pay jump could feed through into inflation. However, some economists consider it unlikely to keep levels elevated above the central banks’ target of 2%. Pay does look to be down on the year, with large portions of the workforce only receiving 80% of their pay and many losing their jobs as a result of coronavirus restrictions. (Financial Times)
Today's events, rates, and data
A rout in cryptocurrency sent US markets lower yesterday, with the S&P 500 down 0.29% on the day. Elevated UK CPI data knocked confidence causing the FTSE 100 to drop 1.19%. Cable has maintained levels around $1.41 despite market uncertainty.
Australia Unemployment Rate: 5.5% vs 5.7% last month
German PPI m/m: 0.8% vs 0.9% last month
MPC Member Jon Cunliffe Speaks: 10:05am
US Unemployment Claims: 1:30pm
Bank of Canada Governor Tiff Macklem Speaks: 4:00pm
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