GOVERNMENT TO LAUNCH REVIEW OF UK CAPITAL MARKETS

The government is planning to launch a review of the UK's capital markets later this year, including potential changes to market structure, transparency rules and commodities, Economic Secretary to the Treasury John Glen has said (Bloomberg). Mr Glen said that the review would be ?as broad and as inclusive as possible?, adding that 'there's no question of us seeking to derive economic gains from deregulation?.

The Financial Times (p3, £) reports that the review will largely focus on Mifid II, the financial services legislation introduced by the EU in 2018. The paper says that legislation is likely to be ready before the end of this year.

EXPORTS TO THE EU DOWN 40 PER CENT IN JANUARY

Goods exports to the EU from the UK fell by 40.7 per cent in January, according to data from the Office for National Statistics (ONS), a decline of £5.6 billion (The Guardian). Imports from the bloc also fell by 28.8 per cent, or £6.6 billion, during the month. The ONS said that there were signs of growth in exports at the end of the month, with some companies having used up goods stockpiled ahead of the end of the transition period (Yahoo Finance). Total exports of goods fell by 19.3 per cent from December 2020 to January 2021 (City AM).

Meanwhile separate data from the ONS showed that the UK economy shrank by 2.9 per cent in January, when the third coronavirus lockdown began, meaning that the economy is now nine per cent smaller than at the start of the pandemic (BBC News).

NEWS IN BRIEF

The chancellor Rishi Sunak has identified a rise in global interest rates that could destabilise the UK's public finances as one of his primary concerns. Giving evidence to the House of Commons Treasury committee on the Budget he outlined last week, Mr Sunak added that it was too soon to predict how much long-term economic damage the Covid-19 pandemic would cause (Financial Times, £, p3).

More than 6,000 people in the UK have become victims of pet scammers since the first lockdown last year, according to new figures from Action Fraud. Fraudsters have increasingly attempted to exploit the spike in demand for puppies and other pets during the pandemic (BBC News).

UK housing wealth hit a record high of £7.56 trillion in 2020, a 5.3 per cent increase compared to 2019, according to estate agency Savills (The Times, Bricks & Mortar, p4, print only).

The public's expectations for inflation over the next year have held it at 2.7 per cent, the lowest level in more than four years. The results of this research by the Bank of England contrast sharply with a recent rise in market expectations (City AM).