As expected, the Bank of England kept its interest rates unchanged on Thursday, with six out of nine members of the Monetary Policy Committee voting to keep rates at 5.25%. However, Governor Andrew Bailey welcomed "good news" on the inflation front. Equities fell on Thursday after the BoE decision.

British shares started the week on a higher note today, lifted by personal goods stocks, and good macroeconomic data. A report from the Office for National Statistics showed Britain's unemployment rate was much lower last year than previously thought, which is good news for the economy, but could work against early rate cuts. The unemployment rate stood at 3.9% in the three months to November, revised from the previous reading of 4.2%.

In corporate news, HSBC is set to appear in the Commercial Court over allegations concerning the Eclipse Partnerships film financing scheme, which involved investments in Disney films. Investors have initiated a £240 million legal action against the British lender, accusing it of deceit, conspiracy, and other violations.

Vodafone Group reported a 3% decrease in total revenue for the third quarter ended December 31, 2023, compared to the same period in 2022. However, on an organic basis, revenue increased by 4.2%. The company reiterated its full-year guidance, expecting adjusted EBITDA of around €13.3 billion and adjusted free cash flow of approximately €3.3 billion.

CMC Markets plans to reduce its global workforce by approximately 200 positions, representing about 17% of its staff, as part of cost reduction efforts. The company expects to incur a one-off cost of £2.5 million in FY24, with estimated annualized savings of £21 million in FY25.

Investors are awaiting the UK and U.S. January services Purchasing Managers Index (PMI) data, due later today, which will give them more clues about the sate of the economy and the timing of rate cuts.

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