Survey shows UK's gloomy outlook
Today's news headlines:
'UK set for recession and Pound test of historic lows, survey finds'. In a Bloomberg survey, three-quarters of respondents were bearish about the UK's future, as the cost-of-living crisis grips households, economic growth slows, and relations with the EU sour. Four in five expect a recession within a year, and the majority expect the Pound to sink to early pandemic lows, along with UK stocks and bonds struggling this year. A London-based portfolio manager commented, 'The UK looks to be in one of the worst positions… [and is] more stagflationary than other major regions.' (Bloomberg)
'Emmanuel Macron loses majority in French assembly'. French President Emmanuel Macron lost his majority in the French Assembly after Sunday's elections showed strength from a left-green alliance and Marine Le Pen's party. Macron's centrist alliance won 245 out of the 289 seats needed for a majority, meaning for the next five years, Macron will have to strike deals with other parties to pass legislation. (Financial Times)
European equities fluctuated while commodity prices tumbled as demand from China slowed and Macron lost his majority in the French Assembly. The US Dollar ticked lower this morning, with the Pound holding above 1.22 and the Euro above 1.05.
German PPI MoM (May): 1.6 (est. 1.5%)
Bank of England members speak: 9:00AM and 2:00PM
European Central Bank President Christine Lagarde speaks: 2:00PM and 4:00PM
New Zealand Westpac Consumer Survey (Q2): 10:00PM
US bank holiday: All day
GBP/USD – 1.2240
GBP/EUR – 1.1630
EUR/USD – 1.0525
USD/CAD – 1.2990
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