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The Governor of the Bank of England, Mark Carney, speaks at a press conference. Photo: Will Oliver / EPA
Hello and welcome to our slippery coverage of the global economy, financial markets, the eurozone and businesses.
The UK economy is going through a difficult period due to the non-resolution of Brexit, the difficulty of the Eurozone, the slowdown of the global economy and the extreme trade tension.
Thus, the latest report on the financial stability of the Bank of England, released this morning, will show if policy makers are increasingly worried about the onset of the next financial crisis
The report will badess the stability of the UK financial system and outline the measures taken by the bank to eliminate or reduce risks. The BoE will also release the results of its systemic risk survey, showing what is of particular concern to investors.
This is the final risk badessment before October 31, the current Brexit date, so investors will be eager to hear the Bank's point of view.
Mark Carney will be facing a press grill at 11am. British questions will obviously dominate, but the BoE governor could also be questioned about his own prospects – would he replace Christine Lagarde as head of the International Monetary Fund?
Traders, meanwhile, drive up badet prices as they anticipate a decline in US interest rates later this month.
Yesterday, US Federal Reserve Chairman Jerome Powell told Congress that the US economy was suffering from a weakening global economy and rising trade tensions, indicating that policymakers will soon relax conditions.
Ipek Ozkardeskaya, badyst at London Capital Group, Explain:
The US dollar lost gains after a strong rally after Federal Reserve (Fed) Governor Jerome Powell made it clear that the global economic slowdown outweighed the encouraging data in the US at the time. his speech at the congress on Wednesday.
Powell's testimony gave another strong signal that the Fed is preparing to cut interest rates in July. After the first day of Powell's testimony, the market sees a 25 basis point cut as widely granted
That weakened the dollar and led Wall Street to a record high last night.
European stock markets are expected to rise this morning, pushing the UK's FTSE 100 to an 11-month high.
IGSquawk
(@IGSquawk)European calls for opening:#FTSE 7559 + 0.37%#DAX 12432 + 0.47%#CAC 5590 + 0.40%#MIB 22169 + 0.56%#IBEX 9282 + 0.32%
IGSquawk
(@IGSquawk)The weakness of the dollar persists this morning, registering a decrease of 0.22%:#EURUSD 1,12694 + 0,17%#GBPUSD 1.25278 + 0.21%#USDJPY 107.988 -0.44%#USDCAD 1.30589 -0.17%#AUDUSD 0.69725 + 0.19%#USDCHF 0.98683 -0.27% pic.twitter.com/4KFNGic76a
Powell is back in the Capitol later in the day to answer questions from the Senate and could redouble his message. We also get new data on inflation and unemployment in the United States.
L & # 39; s calendar
- 10.30: BST: Bank of England publishes report on financial stability
- 11 am BST: BoE press conference with Mark Carney
- 1:30 pm (Paris time): inflation data for US consumption for June (should go from 1.8% to 1.6% year-on-year)
- 1:30 pm BST: figures of initial UI claims in the United States for last week
- 3:00 pm: Fed President Jerome Powell testifies
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