Today's news headlines:
‘US damps hopes for diplomatic solution to Ukraine crisis with Russia’. Russia has continued to ramp up its presence on the Ukraine border in the last two days as the threat of invasion grows. Russian Foreign Minister Sergei Lavrov has assured the US that the country is willing to pursue a diplomatic resolution, but current actions are contradictory, according to the US state department. The US has since re-located its embassy in Ukraine to Lviv, further west than Kyiv, to distance itself from any potential conflict. (Financial Times)
‘London Tube and bus fares face biggest hike for a decade’. London transport fares are set to rise from March as inflation takes hold, with tube and bus fares rising 4.8%. This represents the largest increase in travel costs since 2012, at a time when the country is struggling with a cost-of-living crisis with food and energy soaring. The price hikes are expected to facilitate operations when passenger numbers fall, with ministers recently providing £5bn of short-term funding to TfL. (Financial Times)
Asian markets were mixed overnight following another tick lower in US stocks yesterday. UK gilt yields have drifted higher this morning. Natural gas futures have climbed almost 4%, while the US Dollar Index has fallen 10-basis points.
UK Unemployment Rate (Dec): 4.1% (est. 4.1%)
Euro Area ZEW Economic Sentiment: 10:00AM
German ZEW Economic Sentiment: 10:00AM
US Producer Price Index and Core PPI m/m (Jan): 1:30PM
US Empire State Manufacturing Index: 1:30PM
GBP/USD – 1.3550
GBP/EUR – 1.1959
EUR/USD – 1.1330
USD/CAD – 1.2725
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