The race begins
Today's news headlines:
‘Sunak to stand firm on taxes until he has ‘gripped inflation’’. It’s a topic where many of his rivals have promised massive cuts, but Rishi Sunak has promised to tackle inflation before reducing taxes. The former Chancellor has committed to fiscal discipline before Wednesday’s first ballot to replace Boris Johnson as leader of the Conservative Party. Many Tories are convinced that Sunak will make the final shortlist of two names and has emerged as a favourite with bookmakers despite fierce criticism from rivals Javid and Zahawi on his record for raising taxes. (Financial Times)
‘UK Consumer Spending Sputters With Shops Reporting Drop in Sales’. UK households are reining in spending due to rapidly increasing prices, with many switching to cheaper products or slashing items from grocery lists. The Chief Executive Officer of the British Retail Consortium commented that sales volumes are falling to a rate not seen since the depths of the pandemic. The industry group’s measure of retail sales declined by 1.3% from a year ago after a 1.5% drop the month before. (Bloomberg)
European and US equity futures fell overnight along with most Asian stocks amid the energy crisis and fears of a recession in major economies. The US Dollar strengthened along with a rise in US Treasuries. The Euro continued its slide towards parity with the Greenback, a level not seen since December 2002.
British Retail Consortium Retail Sales Monitor: -1.3% vs -1.5% previously
Eurozone ZEW Economic Sentiment: 10:00AM
German ZEW Economic Sentiment: 10:00AM
German Buba President Nagel Speaks: 10:30AM
Bank of England Governor Andrew Bailey speaks: 6:00PM
GBP/USD – 1.1840
GBP/EUR – 1.1830
EUR/USD – 1.0005
USD/CAD – 1.3040
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