DAVY VIEW

Speculation has been mounting that the UK could soon have a seventh prime minister within the past decade, and GDP data out this week for Q4 is not expected to provide much by way of a boost to the UK’s embattled government. In the US, softer data for nonfarm payrolls and consumer prices in January could result in a move towards faster rate cuts this year. At home, the main data release of note this week is employee payrolls for December. We think a minor slowdown in Q4 payrolls is likely, in contrast to the pickup we expect from survey-based jobs growth out next week.