UK: Focus on confidence vote and inflation data today - TDS
In the UK, the House of Commons holds a confidence vote in the Conservative government at 7pm GMT, following Theresa May's historic defeat last night and will be a key event to watch for today’s session.
“The broad consensus is that all Conservative and DUP MPs will support the government, giving it a small--but firm--majority, and allowing it to press on with presenting "Plan B" on Monday 21 Jan.”
“We have a relatively high degree of confidence in this outcome. December's inflation report is released earlier in the day, and we look for core inflation to remain unchanged at 1.8% y/y (mkt: 1.8%), while headline inflation declines to 2.1% (mkt: 2.1%, BoE: 2.4%) on the back of weaker energy prices.”
“BoE Governor Carney appears with FPC colleagues in front of the Treasury Select Committee at 9:15am GMT, where the discussion will almost certainly dwell on financial sector preparations for a no-deal Brexit.”