{"id":4967,"date":"2024-01-02T09:13:00","date_gmt":"2024-01-02T09:13:00","guid":{"rendered":"https:\/\/hcfx.sofyma.com\/?p=4967"},"modified":"2024-01-09T10:44:14","modified_gmt":"2024-01-09T10:44:14","slug":"morning-update-27","status":"publish","type":"post","link":"https:\/\/hamiltoncourtfx.com\/es\/morning-update-27\/","title":{"rendered":"Morning Update"},"content":{"rendered":"
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As the arrival of the new year ushers in a sense of looking forward, the Times have published an article which shows that 45% of respondents seeing the Bank of England cutting rates 3 times or more this year. With the BoE\u2019s current benchmark rate being maintained at 5.25% (following three consecutive holds), the majority of respondents however projected that two rate cuts over the course of 2024 would be the most likely outcome.<\/p>\n

On the 20\u00a0December, the latest set of CPI data indicated that headline inflation had slowed to 3.9% marking its lowest level since September 2021, as core inflation eased to 5.1%, its lowest since January 2022. The UK is not out the woods yet, with for example Moody\u2019s forecasting that the economy will have the greatest rate of inflation in the G7 group next year.<\/p>\n

With markets continuing to keep a close eye on inflation, as they attempt to chart the course of the Bank of England\u2019s tightening cycle, this morning has seen the British Retail Consortium\u2019s<\/p>\n <\/div>\n

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shop price index came in unchanged at 4.3%. Some relief however come from food price inflation which eased to 6.7% over December, a fall of 1.1 percentage points from November. This also represented the lowest level in a year and half.<\/p>\n

Here, the BRC cited the impact of seasonal offers which helped ease inflationary pressures at the checkout for many shoppers. Commenting on the latest figures, the BRC\u2019s CEO Helen Dickinson said that \u201cRetailers will continue to do all they can to keep prices down in 2024, but there are obstacles on the road ahead. New border checks for EU imports, hundreds of millions more on business rates bills from April. Government should think twice before imposing new costs on retail businesses that would not only hold back vital investment in local communities, but also push up prices for struggling households.\u201d<\/p>\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n\n

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Geopolitical Tensions Continue to Rise in the Red Sea<\/h2>\n <\/div>\n
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Geopolitical tensions in the Red Sea have continued to escalate over the weekend, with Iran sending a warship to the area following the US destroying three boats operated by Houthi rebels. The area of the Red Sea which has dominated headlines in recent days is of global importance given that it is the narrowest point between the Red Sea and the Gulf of Aden. As such, it is estimated some 12% of global shipping passes through this narrow stretch of sea, with pretty well all the traffic heading from or through the Suez Canal.<\/p>\n

Over the weekend, the UK\u2019s defence secretary Grant Shapps told The Telegraph that the UK was considering the possibility of conducting \u201cdirect action\u201d against Houthi rebels. Here, Shapps indicated that the government \u201cwon\u2019t hesitate to take further action to deter threats to freedom of navigation in the Red Sea\u201d. This came after a government spokesperson said that \u201cWe call for the Iranian-backed Houthi to cease these illegal attacks and we are working with allies and partners to protect freedom of navigation\u201d.<\/p>\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n\n

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Death Toll in Japan Rises Following Earthquake<\/h2>\n <\/div>\n
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The death toll in Japan has continued to grow following a devastating 7.6 magnitude earthquake off the West Coast of the country on New Year\u2019s Day. The earthquake \u2013 which also triggered a series of Tsunami warnings \u2013 has destroyed numerous homes in the Ishikawa prefecture with many more buildings being left without power. Japan\u2019s chief cabinet secretary, Yoshimasa Hayashi has also released a statement this morning which said \u201cto the people of Japan, please be on alert that there may be earthquakes for about a week of an intensity scale of up to seven\u201d.<\/p>\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n\n

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Today\u2019s Data<\/h2>\n <\/div>\n
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Following this morning\u2019s release of the BRI\u2019s UK inflation index, markets will be keeping a close eye on the release of Manufacturing PMI data. Here, 0900 will see the release of Eurozone manufacturing PMI data followed by UK and US data at 0930 and 1445, respectively.<\/p>\n <\/div>\n <\/div>\n <\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"

Expectations on this years rates, tensions rise in the Red Sea, growing death toll following the earthquake in Japan, and what’s happening today.<\/p>","protected":false},"author":15,"featured_media":1012,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"rp-language":[16],"class_list":["post-4967","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-morning-updates","rp-language-en_gb"],"_links":{"self":[{"href":"https:\/\/hamiltoncourtfx.com\/es\/wp-json\/wp\/v2\/posts\/4967","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hamiltoncourtfx.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hamiltoncourtfx.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hamiltoncourtfx.com\/es\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/hamiltoncourtfx.com\/es\/wp-json\/wp\/v2\/comments?post=4967"}],"version-history":[{"count":5,"href":"https:\/\/hamiltoncourtfx.com\/es\/wp-json\/wp\/v2\/posts\/4967\/revisions"}],"predecessor-version":[{"id":4972,"href":"https:\/\/hamiltoncourtfx.com\/es\/wp-json\/wp\/v2\/posts\/4967\/revisions\/4972"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/hamiltoncourtfx.com\/es\/wp-json\/wp\/v2\/media\/1012"}],"wp:attachment":[{"href":"https:\/\/hamiltoncourtfx.com\/es\/wp-json\/wp\/v2\/media?parent=4967"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hamiltoncourtfx.com\/es\/wp-json\/wp\/v2\/categories?post=4967"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hamiltoncourtfx.com\/es\/wp-json\/wp\/v2\/tags?post=4967"},{"taxonomy":"rp-language","embeddable":true,"href":"https:\/\/hamiltoncourtfx.com\/es\/wp-json\/wp\/v2\/rp-language?post=4967"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}