The British monthly GDP is announced on Friday at 09:00 MT time.
Christine Lagarde warns slowing productivity threaten living standards
Living standards around the globe could edge down unless governments invest more in research and education, thus helping to revive poor productivity growth. That’s what International Monetary Fund Managing Director Christine Lagarde stressed on Monday.
Lagarde told in a speech in Washington that the private sector alone won’t be able to generate enough innovation to increase productivity to decent levels without government active assistance.
Her remarks were accompanied by the publication of an IMF research that found that the 2008-2009 financial downtime along with deep recession played a greater role in slowing productivity than previously expected, choking global demand and investment.
Economists have long explored productivity gains as significant for sustaining higher wages as well as living standards, though they have struggled to explain a protracted slowdown in productivity surge since the early 2000s.
The main market tendency today is that the US dollar is rising against its major peers and riskier assets such as stocks and oil are plummeting.
The US unemployment claims are out on Thursday at 15:30 MT time.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.