Market themes of the Day: Central bankers speak with BoE’s Carney and Fed’s Powell headlining

What you need to know before markets open
Main themes: 

• The UK fourth-quarter GDP slowed down to 0.2% Q/Q with the growth rate of 1.3% y/y missing the market estimate.
• The UK manufacturing output fell -0.7% m/m in December falling -2.1% over the year. 
• The UK business investment fell -1.4% over the quarter and fell -3.7% over the year in the final quarter last year.
• The UK Prime Minister’s spokesman said there will be no meaningful vote on Brexit deal this week.
• The Federal Reserve Governor Michelle Bowman said the US economy and Fed’s policy are both “in a good place.”
• The Bank of Japan reduced the purchase of Japanese government bonds with 10-25 years to maturity to 180 billion Yen from the previous 200 billion Yen.
• The RBNZ is expected to keep the monetary policy unchanged expressing concerns of a global economic slowdown and deceleration in China’s economy that fuels the growth in New Zealand. Dovish RBNZ is expected to weigh on NZD. For more details read Yohay’s Preview here.

Europe

• ECB Vice President Luis de Guidos expects Eurozone inflation to continue to slow in the next few months with the underlying inflation expected to rise over the medium term.
• The German Bundesbank President Jens Weidmann is expected to speak in Pretoria at 8:00 GMT.

UK 

• The UK fourth-quarter GDP slowed down to 0.2% Q/Q with the growth rate of 1.3% y/y missing the market estimate.
• The UK manufacturing output fell -0.7% m/m in December falling -2.1% over the year. 
• The UK business investment fell -1.4% over the quarter and fell -3.7% over the year in the final quarter last year.
• The Bank of England Governor Mark Carney is due to speak in about the economic outlook and global trade tensions, in London at 13:00 GMT.

US

• The Federal Reserve Chairman Jerome Powell is expected to deliver a speech titled "Economic Development in High Poverty Rural Communities" at the Hope Enterprise Corporation Rural Policy Forum, in Mississippi at 17:45 GMT.
• The Federal Reserve Bank of Kansas City President and the FOMC voting member Esther George is expected to speak about the economic outlook at the Kansas City Public Library at 0:30 GMT early morning on Wednesday.

New Zealand

• The RBNZ is expected to keep the monetary policy unchanged expressing concerns of a global economic slowdown and deceleration in China’s economy that fuels the growth in New Zealand. Dovish RBNZ is expected to weigh on NZD. For more details read Yohay’s Preview here.