Whether it be a handshake or an arm wrestle vs the EU, we are certainly not cooperating at present…
You may be asking why the David and Goliath title? Yesterday afternoon Peter Hargreaves gave his thoughts on Brexit via Bloomberg, worth a read.
Whilst we are not expressing an option one way or t’other, Peter Hargreaves is within the top 15 most successful businesspersons in the UK and the article above give us an insight into an influential businessperson and his thoughts surrounding the current saga and our battle with the larger, more prolific EU.
Back to business; the empty calendar is playing havoc with GBP. 9 month lows against the EUR is a move purely based on fear and unsubstantiated speculation. Expect to see a further reduction of 0.3/0.5 percent as the week unfolds. Should we see any form of recovery in GBP, assume it to be short lived and something which you need to act fast if your business sells the pound.
Talks of parity vs GBP now seem realistic with EU leaders eyeing the 18th October European Council Summit for a deal to be struck in time for the March 2019 Brexit deadline. But, with limited time left to negotiate and increasingly entrenched positions from members of the EU markets are inevitably becoming increasingly concerned a no deal will be reached.
Again, nothing in the diary from a macroeconomic standpoint this week so treading water this side of the pond in the short term.
Whilst the trade war saga is continuing to simmer with China, Trump has now to turn his attention to Iran. “Anyone dong business with Iran will NOT be doing business with the United States.” Despite this the USD remains strong against all the major currencies with CPI figures coming as a welcome relief this Friday.
Any questions ask away! Have a good day.