After last week, when politics moved the markets dramatically, this week we should see a return of economic and health factors to the fore. The Bank of England Monetary Policy Committee will be pronouncing on interest rates on Thursday, while all eyes will be on UK Covid rates and the potential for a new lockdown.
UK politics continues to be dominated by the passage of the UK’s Internal Market Bill through parliament. Even Brexit-supporting Conservative MPs are opposing it, but the government insists that the Bill, which breaches the Brexit Withdrawal Agreement, is an insurance policy against future EU intransigence and its measures will probably never be used.
New Covid restrictions came in over the weekend, including quarantine restrictions for those arriving from Portugal and the “rule of 6”, which cuts the number of people who can meet in the UK – indoors or outdoors – from 30 to 6. The number of infections continues to rise, reaching around 3,000 per day, but fatal cases are remaining at around 10 per day on average.
US pharmaceuticals company Pfizer says it should have a coronavirus vaccine “by the end of the year”, which has encouraged stock markets this morning.
In world news, Yoshihide Suga is likely to be the new Prime Minister of Japan, succeeding Shinzo Abe and – most analysts believe – continuing Abe’s policies.
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