Yesterday, Donald Trump announced he is looking at breaking up Wall Street banks, by splitting their consumer business from their investment businesses. Before 1999, the 1933 Glass-Steagall Act stopped US banks owning both a consumer bank and investment operations. However, the Act was withdrawn allowing the US banks to operate both. The withdrawal of this Act has been blamed as one of the reasons behind the financial crisis, however Wall Street have rejected this. For Trump to restore the Act, a new version will need to be passed through Congress.
In the UK and Eurozone, rumours spread over the weekend, about last weeks’ dinner with the EU Commission President, Jean-Claude Juncker, and the British Prime Minister, Theresa May. Juncker was said to have left the talks ‘ten times more sceptical’ of reaching a mutual deal on Brexit and concerned of May’s unwillingness to compromise. However, May commented the meeting was ‘constructive”, although Juncker addressed these comments as being “deluded”. Discussions at the dinner turned to the money owed by the UK to the EU on leaving, with May expressing that the UK did not owe any money to the EU.
A relatively quiet start to the week, with only one piece of high tier data released; UK Manufacturing PMI, expected at 54.0. As an indicator of industry expansion, this release will be closely watched to see if the secondary sector can bounce back from the poor past two months. The Eurozone will also be releasing Manufacturing PMI data from Spain, Italy, France and Germany, as well as the unemployment rate from the Eurozone as a whole.