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December 2017

UK economy dealt another blow

Published: Thursday 21 December 2017

  • UK economy dealt another blow
  • EU publishes next phase Brexit guidelines
  • More troubles for Theresa May’s Cabinet
By  Mike Mistretta

UK economy dealt another blow

The UK economy received a bit of a blow yesterday as the International Monetary Fund (IMF) downgraded UK growth forecasts again. It expects growth of 1.6% this year, down slightly from its previous forecast of 1.7%. It also expects growth to slow further next year, to 1.5%. IMF chief, Christine Lagaard, said Brexit uncertainty was causing UK firms to delay investment plans. She also said rising inflation, caused by the fall in the Pound, and stagnant wages were squeezing spending power. This morning, we have UK public sector net borrowing results due to be released.

EU publishes next phase Brexit guidelines

The EU published its guidelines for the next phase of Brexit negotiation. In the guidelines, the so called "transitional period" will last until December 31st, 2020. EU chiefs emphasised that during the negotiation for the implementation phase, the parties involved will still have to follow the rules, and the UK cannot adopt an "a la carte" approach.

More troubles for Theresa May’s Cabinet

Overnight it was reported  that Theresa May’s Deputy, Damian Green, has stepped down over allegations of improper behavior. This is more bad news for UK Prime Minister May’s shaky government, as Mr. Green was seen as one of her closest allies in the cabinet. This will weaken her position just as she has got the all clear to move to phase two of the Brexit talks.

US tax plans go ahead

In the US, the House finally passed the tax plan yesterday, after voting for a second time. US President, Donald Trump, is now expected to sign the bill into law, but the exact timing is unclear. This hasn’t

Today’s data could push Canadian Dollar higher

Later today, Canadian inflation and retail sales data will be released. After excellent wholesale sales data from Canada yesterday, any more good numbers could push the Canadian Dollar higher this afternoon.

One World

Our thoughts are with everyone affected by the horrible incident in Melbourne. More information and support is being provided by Victoria Police: https://www.vicpolicenews.com.au/news/flinders-street-incident-update

Today's Major Economic Releases

Market BST Data/Event Previous Expected
GBP 09:30 UK: Public Sector Net Borrowing 7.5b 8.3b
CAD 13:30 Canada: Retail Sales 0.1% 0.3%
CAD 13:30 Canada: Core Retail Sales 0.3% 0.4%
CAD 13:30 Canada: Consumer Price Index 0.1% 0.2%
USD 13:30 US: Final Gross Domestic Product 3.3% 3.3%
USD 13:30 US: Unemployment Claims 225k 232k
EUR 15:00 EU: Consumer Confidence 0 0

For more information, infographics and the latest currency insights, visit www.halofinancial.com/news