UK’s strongest growth since WWII
Today's news headlines:
‘UK economy withstands Omicron blow’. The UK recorded its strongest pace of economic growth since the Second World War last year at 7.5%. The economy contracted 0.2% from November to December as the Omicron wave hit retail and hospitality but was partially offset by growth in the health sector. However, the Bank of England warns rising inflation, higher taxes, and higher energy costs will drag economic growth in 2022. (Financial Times)
‘Lagarde warns acting too fast could choke economy’s recovery’. European Central Bank President Christine Lagarde reiterated her softer monetary policy stance last Friday, stating ‘all of our moves will need to be gradual’ while contrasting the Eurozone to an overheating US economy. Lagarde has also warned that inflation may turn out to be higher than the projections released in December, but the central bank would ‘analyse that in March and take it from there.’ (Bloomberg)
European equities followed US stocks lower this morning after yesterday’s high US inflation figure fuelled market expectations of faster interest rate hikes. Overnight, the US Dollar climbed across the board after yesterday’s losses and commodity-linked currencies fell along with oil prices.
UK Gross Domestic Product YoY (4Q21): 6.5%
German Consumer Price Index YoY (Jan): 4.9%
UK Industrial Production (Dec): 0.4%
UK Manufacturing Production (Dec): 1.3%
US University of Michigan Consumer Sentiment (Feb): 3:00PM
GBP/USD – 1.3560
GBP/EUR – 1.1905
EUR/USD – 1.1390
USD/CAD – 1.2727
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