Refinitiv Newscasts - UK Day Ahead: Latest GDP data to make for sobering reading

American Diversified Holdings

14/01/2021 15:30

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Source: Reuters

Description: UK GDP probably contracted by 5.7 percent in November after the
country was plunged in a second lockdown. 
However grim the data might look -
it will probably be seen as out-of-date as traders look beyond the winter
shutdowns and towards mass inoculations. 

Short Link: https://refini.tv/39AWXs5

Video Transcript:

Good afternoon. I'm Matt Gooderick. Welcome to your wrap up of the day's top
news and an insight into Friday. First up then and the latest on the rollout
of the vaccines via some pharmacies in England. 200 community drugstores will
join a mass vaccination race, as UK Prime Minister Boris Johnson aims to
inoculate 15 million people by the middle of February. Well, Johnson earlier
rejected the idea that all pharmacy should be able to administer the vaccine
as impractical. Meanwhile, the surge in COVID patients has swamped hospitals.
This is having an impact on services for critical care, cancer, and accident
and emergency services. A record 4.5 million people in England are awaiting
non-urgent hospital treatment in November. Now, UK Home Secretary Priti Patel
says the government will not announce new COVID restrictions on Thursday or
Friday but did not rule out further measures being announced next week.
Instead, she told ITV her focus was currently on enforcing lockdown rules. And
the UK government has delayed introduction of COVID test for people entering
the country. Instead of Friday, testing will now only be required for everyone
traveling to England from 4AM GMT on Monday. Either way, this will be a grim
reading for anyone working in the travel sector hard hit by the pandemic.
Heathrow passenger numbers plunged 73% in 2020. To other news then, and
France's Finance Minister Bruno Le Maire says a foreign company purchasing
supermarket retailer Carrefour would be a major difficulty for the government.
In a surprise move, Quebec-based Couche-Tard has submitted a non-biding EUR20
per share offer for the French company, largely in cash, valuing it at almost
$20 billion. 

Having Carrefour being bought by a foreign company would be a major difficulty
for all of us, because once again, we have to ensure food security of the
French people and French people really trust Carrefour. And I think all the
distribution companies in France to ensure this food security. 

Now, European stocks are trading cautiously higher, as investors eyed the
announcement of a big stimulus package to be announced by incoming US
president Joe Biden later today. Also, underpinning sentiment, upbeat Chinese
export data. And coming up on the economic front this Friday, UK GDP probably
contracted by 5.7% in November after the country was plunged into a second
lockdown. However grim the data might look, it will probably be seen as out of
date as traders look beyond the winter shutdowns and towards a mass
inoculations with the UK leading the global vaccination effort. The Pound is
holding firm near its post-Brexit deal highs, while the Bank of England's
hesitance for negative rates is also shoring up the currency. On the other
hand, industrial output, which includes energy production, is likely to have
risen. Most of the sector remained open during the lockdown. However, some
companies chose to limit or even partially close their factories because of
problems with supply chains. And companies likely to make headlines this
Friday include Sberbank, which releases results for December. On the other
side of the pond, it's all systems go on the earnings front from big banks-
Citigroup, JPMorgan Chase, and Wells Fargo. And there you go, you are fully up
to date. That's it for now. I'm Matt Gooderick, and this is Reuters