Warning signs 2

Today’s news headlines:

‘Pandemic Tops 10 Million Cases, 500,000 Deaths as Momentum Grows’ – Global cases of coronavirus are multiplying faster than ever, defying hopes of health experts and world leaders that the pandemic would fizzle out with the summer heat. The epicenter of the virus is now shifting to countries with weaker healthcare systems like Brazil and India, whilst the US has curbed plans to reopen states such as Texas, Arizona and Florida. (Bloomberg)

‘Johnson to ‘build’ way out of economic slump’ – Boris Johnson will announce plans for extra spending on schools, hospitals and infrastructure as the government looks to build its way out of the crisis. Johnson’s address will precede next week’s “summer statement” from Chancellor Rishi Sunak in which he will set out further initiatives to restart the economy, including a widespread review of current jobs strategy. Meanwhile, the government admitted that they may have to enforce a localised lockdown of Leicester after a surge in new cases of the pandemic. (Financial Times)

Today's events, rates, and data 

• Stocks are set to begin the week on the back foot as the worldwide death toll from coronavirus broke 500,000. US and European equity futures are in the red, whilst major markets in Asia moved lower overnight. Currencies were relatively static, with the pound rising slightly on Boris Johnson’s spending plans.

Japanese Retail Sales: -12.3% vs -13.9% previously
German Prelim CPI: No fixed time
Spanish Flash CPI: 8.00am
BoE Gov Bailey Speaks: 10.30am
US Pending Home Sales: 3.00pm

Interbank rates:

GBP/USD: 1.2368
GBP/EUR: 1.0991
EUR/USD: 1.1255
USD/CAD: 1.3653