Stick to the plan
Today's news headlines:
‘Boris Johnson insists no new Covid restrictions are needed in England’. Businesses in England have been given a New Year boost, as Boris Johnson expects no new restrictions to be implemented throughout the next phase of the Omicron wave. Around 219,000 people tested positive yesterday, with NHS trusts sounding the alarm on staff shortages and rising hospital admissions. The Prime Minister is expected to receive support from his cabinet on Wednesday for the continuation of Plan B restrictions. (Financial Times)
‘Sunak warns of limit to state help on soaring energy prices’. Surging energy prices have put relentless pressure on the government over the last year, and the price cap increase looms in April. The Treasury is considering multiple options, from cutting VAT on energy bills to providing energy providers with a much-needed liquidity injection that can be passed on to customers. February 7th is the current deadline for a solution to be made, when it’s expected Ofgem will formalise the new price cap. (Financial Times)
Asian markets finished mostly lower overnight after an underwhelming close on Wall Street. US yields are little changed this morning, while EUR/USD has broken back above $1.13. It’s a relatively quiet day for data, the most notable being the US ADP Non-Farm Employment Change print out of the US later today.
Japan Consumer Confidence: 39.1 vs 39.2 last month
Italian preliminary Consumer Price Index m/m: 10:00AM
US ADP Non-Farm Employment Change: 1:15PM
Canada Building Permits m/m: 1:30PM
US Crude Oil Inventories: 3:30PM
US Federal Open Market Committee Meeting Minutes: 7:00PM
GBP/USD – 1.3545
GBP/EUR – 1.1983
EUR/USD – 1.1302
USD/CAD – 1.2717
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