Policymakers feel the weight of Omicron


Hello and welcome to work week.

Just as the office started to come back to life and found some old rhythms, after the government announced stricter regulations to gain control, most of us in London will now proceed with another paragraph of mandatory work from home regarding the ever-increasing Coronavirus and Omicron changes. Physical case.

The good news is that the strong UK labor market data on Tuesday is not expected to show signs of an increase in the unemployment rate since the end of the September vacation program, and in November data released on Wednesday, the inflation rate will rise again to around 4.5%. However, even with these signs of economic strength, the Bank of England is unlikely to raise interest rates because it weighs the potential impact of Omicron.

Stricter restrictions will inevitably hit certain industries such as retail and transportation, but it may be a boon for some retailers (such as online grocery delivery companies). (UK November retail sales data will be released on Friday.)

At the same time, in the United States, all eyes will be on the Federal Reserve meeting on Wednesday. In view of growing concerns about rising inflation, policymakers are expected to accelerate the pace of quantitative easing and hint that further interest rates may be raised next year.

Please feel free to send feedback about this newsletter-or details of your work Christmas party plan B-to [email protected]

Economic data

Economists expect the Bank of England to keep interest rates unchanged 0.1% When it meets on Thursday, with the increase in the number of coronavirus infections and the emergence of Omicron variants, people tend to adopt a wait-and-see attitude.

US consumer inflation expectations and core producer price index (PPI) data will be released on Monday and Tuesday. Inflation rate fell in November 6.8%, And the view that higher interest rates will be “temporary” is disappearing.

company

Two very different retailers released updates on Tuesday, but Omicron’s coronavirus variant is important to both parties.Sales growth in online grocery stores Okado With some shoppers returning to the store, sales have slowed from last year’s peak. Will the emergence of more communicable variants prompt them to come back online? The stock price has fallen by 7% in the past month, indicating that investors still don’t think so.

Warsaw listed Peco Sells discount clothing and general merchandise from more than 3,000 stores, mainly in Central and Eastern Europe. Investors’ focus may be on the guidance for the year ending September 2022 and whether the new version will lead to a re-blockade — some of Pepco’s major markets have vaccination rates far below the EU average — or new stores Opening speed slows down.

Purple BrickThe largest online real estate agency in the UK will announce its half-year results on Tuesday. Due to the limited supply of homes for sale and low interest rates supporting the market, house prices continued to rise in November, setting the strongest three-month growth in about 15 years.

But the purple brick Share price It has fallen by two-thirds so far this year, affected by the decline in the number of orders and rising employment costs. This led it to warn last month that these interim results will be worse than expected.

Major economic and company reports

Below is a more complete list of company reports and economic data this week.

on Monday

  • The latest financial stability report of the United Kingdom and the Bank of England and the records of the Financial Policy Committee

  • India, inflation data

  • US, consumer inflation expectations

  • OPEC Monthly

Tuesday

  • UK, employment data

  • Peco Transaction update

  • US, core producer price index (PPI) data

  • Okado Transaction update

  • Sodex Annual general meeting

  • Canada, fiscal update

  • Purple Brick Group Interim Results

  • Chemical ring Annual performance

Wednesday

  • U.S., Fed interest rate decision

  • UK, Consumer Price Index (CPI) and PPI data

  • UK House Price Index

  • curry Interim results

  • Russia, GDP data

  • index Third quarter earnings

Thursday

  • European Union, European Central Bank interest rate decision

  • United Kingdom, Bank of England MPC Interest Rate Conference

  • Rapid Purchasing Managers Index (PMI) data-U.S., U.K. and Eurozone

  • Swiss National Bank interest rate decision

  • Rivian Auto, Adobe and Advance group Earnings update

Friday

  • UK, retail sales data

  • Qantas Market update

  • 888 Holdings Extraordinary General Meeting of Shareholders

  • ITM power supply Transaction update

World events

An overview of other events and milestones this week.

on Monday

  • As the Biden administration increased its involvement in Southeast Asia, US Secretary of State Anthony Brinken visited Indonesia and Malaysia

  • The Hong Kong District Court is expected to sentence five pro-democracy activists to jail for participating in an unauthorized gathering at the Tiananmen Square vigil last year

  • As European farmers protest various elements of the EU Green Agreement, thousands of tractors will land in Brussels

Tuesday

Wednesday

  • Australia reopens to foreign visa holders and vaccinates tourists from South Korea and Japan

  • Leaders of Armenia and Azerbaijan meet in Brussels. On November 19, a clash at the border between the two countries killed at least 10 people

Thursday

  • The European Council Summit was held in Brussels, and the new German Chancellor Olaf Schultz attended for the first time

  • UK, North Shropshire by-electionLast month, Owen Patterson, the Conservative Party, resigned after being found to have violated parliamentary lobbying rules.

Friday

  • European Automobile Manufacturers Association announces monthly data on new passenger car registrations in Europe

  • Tunisia commemorates the 11th anniversary of the Arab Spring Uprising-Mohamed Buaziz set himself on fire to protest the confiscation of his vegetable cart by the police

Saturday

  • Taiwan will hold a referendum on the construction of a new natural gas terminal. Environmentalists criticize the terminal for putting coral reefs and ecosystems at risk

  • International Migration Day

Sunday

Long story short — The biggest story and best reading in a smart email.register here

Britain after Brexit — As the UK economy adapts to life outside the EU, keep abreast of the latest developments.register here



Source link