04/07/2017 - BoE Staff to Hold First Strike in 50 Years 


Bank of England staff have voted to hold their first strike in more than 50 years in a push for higher pay, a union said on Monday, adding to pressure for an end to tight controls on public sector wages in Britain. Unite, Britain's biggest union, said maintenance and security staff at the 323-year-old institution would strike for four days from July 31 after they were awarded a 1 percent pay rise. That period coincides with the bank's next monetary policy meeting.

British Prime Minister Theresa May has come under increasing pressure from members of parliament to end a below-inflation 1 percent cap on public sector pay rises that has been in place since 2013 as part of efforts to cut government spending. After May's decision to spend 1 Billion pounds to secure DUP support  in order to maintain her government she is likely to face further pressure  from public sector unions. 

British factories grew more slowly than expected in June as export orders rose at the weakest pace in five months. The pound jumped last week  on the back of  expectations of a BoE shift towards higher borrowing costs, fell after the Markit  UK Manufacturing Purchasing Managers' Index(PMI) slipped to a three month low of 54.3 from a  revised 56.3 figure in May. It also contrasted with a sharp pick-up in growth for factories in the euro zone.


Meanwhile across the English Channel growth accelerated again throughout the euro zone. Austria, Germany and the Netherlands led the currency area’s manufacturers to a 74-month high with a PMI of 57.3, up from 57 in May. Even troubled Greece is back in growth its manufacturing PMI rose to 50.5, the first expansionary reading since August 2016.
Employment across the euro zone is rising at close to the fastest pace in the survey’s 20-year history as a result. Official figures showed unemployment in the euro zone held steady from April to May at 9.3pc, down from 10.2pc a year earlier.

Joblessness stands at just 3pc in the Czech Republic and 3.9pc in Germany. At the other end of the scale Greek unemployment stood at 22.5pc in March, the latest month for which the data are available.

Key Announcements 

09:30- GBP: UK inflation report hearings

All Day: USD Bank Holiday (Independence Day)