Same old story

Today's news headlines: 

‘Sunak to arm City for fightback with listings regime shake-up’. Ex-EU Financial Services Commissioner, Jonathan Hill, is expected to publish a report recommending changes to Britain’s financial services regulatory regime in the post-Brexit world. This is yet another chapter in the bust up between the UK and Brussel’s which has resulted in some rather pointed remarks from Bank of England Governor, Andrew Bailey. The two key proposals in the report are expected to relax requirements on dual-class shares, which provide founders more control over their companies, and open the door to SPACs, the last craze in mergers and acquisitions. (Financial Times)

‘Global carbon emissions rebound to pre-lockdown levels’. Covid has been an uncomfortable period for pretty much everyone and thoroughly ruinous for some, but one thing has improved rather dramatically as a result of lockdown, the rate of pollution. Pollution rates dropped during the first half of last year with the first lockdown measures. Unfortunately, the modest recovery in the second half of 2020 resulted in a 2 per cent absolute increase in emission levels in December 2020 compared to a year prior. Most of the decline over the past year has been in the travel sector, which is expected to recover this year and resume its hefty contribution towards global emissions. (Financial Times)

Today's events, rates, and data 

  • The Dollar rally continues unabated as the US Dollar index reached the 100-day moving average.  Resultant losses in both Euro and Sterling are not surprising, although the common currency seems to be the bigger loser heading towards the bottom of the trade-weighted value in 2021. Numerous market commentators are signalling concern about the level of equity prices, which is likely causing a bit of risk-off sentiment, except ironically in the US where the S&P 500 rallied.

Today's events

AU Building Approvals m/m: -19.4% vs 12.0 % last month
AU Current Account: 14.5B vs 10.7B last quarter
AU RBA Rate Statement: 0.10% vs 0.10% last meeting
EU German Retails Sales m/m: -4.5% vs -9.6% last month
UK Nationwide HPI m/m: 0.7% vs -0.2% last month
EU Spanish Unemployment Change: 44.4K vs 76.2k last month
EU German Unemployment Change: 8:55am
EU CPI Flash Estimate y/y: 10:00am
CA GDP m/m: 1:30pm
US FOMC Member Brainard Speaks: 6:00pm
US FOMC Member Daly Speaks: 7:00pm

Interbank rates

GBP/USD: 1.3880
GBP/EUR: 1.1560
EUR/USD: 1.2000
USD/CAD: 1.2680