One last hurrah

Today’s news headlines:

‘Trump pardons divisive ex-campaign strategist Steve Bannon’. In his last days as President, Donald Trump has pardoned a host of people with personal ties to him and some—if viewed from a critical point of view—which remove opponents or create adherents in his ongoing ‘movement’. Those included are former strategist Steven Bannon, Rapper Lil Wayne, disbarred former attorney Charles Kushner, convicted bank and tax fraudster Paul Manafort, and political consultant and lobbyist Roger Stone. While the previous Presidents have pardoned controversial figures, this sets the bar much lower. (Financial Times)

‘Small UK businesses are "running out of cash", Chancellor warned'. As we near one year since the Covid lockdown measures were first introduced, small businesses starved of revenue but have received limited government support, are running out of cash fast. According to Kate Nicholls, head of UKHospitality, only one in five businesses in the hospitality and events sector can survive beyond February. Just as support measures expire around March, companies will face paying a year’s worth of rent, full business rates and VAT, while no end to lockdown is in sight. (Financial Times)
 

Today's events, rates, and data 

  • Overnight Trump described the Chinese repression of the Uighurs genocide as crimes against humanity. Germany will probably tighten border restrictions, while Beijing locked down its 1.7m capital city residence. As we arrive at the Presidential Inauguration Day, markets are relatively stable; USD resumes its slow and steady depreciation, providing uplift to GBP, EUR, and JPY.

Today's events

UK CPI y/y: 0.6% vs 0.3% last month
UK Core CPI y/y: 1.4% vs 1.1% last month
UK RPI y/y: 1.2% vs 0.9% last month
UK HPI y/y: 09:30 AM
EU  Final CPI y/y: 10:00 AM
CA  CPI m/m: 1:30 PM
CA  Bank of Canada Policy Report: 3:00 PM
CA  Bank of Canada Rate Statement: 3:00 PM
CA  BoC Press Conference: 4:00 PM
UK  BoE Gov Bailey Speaking: 5:00 PM

Interbank rates

GBP/USD – 1.3650
GBP/EUR – 1.1245
EUR/USD – 1.2140
USD/CAD – 1.2700