The Senate healthcare bill was unveiled last week in the US. Written behind closed doors, this was the first time the bill, entitled the Better Care Reconciliation Act, was seen by the public and some of the senators. The bill would cut back federal support of Medicaid, repeal Obamacare’s individual mandate, as well as remove Obamacare’s taxes on the wealthy, insurers and others. The Congressional Budget Office are set to examine the bill early this week to understand the costs, with the findings to be reported back. In order for the bill to pass into law, 50 out of the 52 Republican senators will need to vote in favour of it, as no Democrat or independent are expected to. However, five Republican senators have already publicly opposed to it.
Back in the UK, Theresa May addressed EU leaders at the European Union Summit last week to propose her plan as to the treatment of EU citizens after the UK leaves the EU. The proposal sees a softer approach allowing EU citizens who have lived in the UK for five years the right to stay and access UK benefits, such as health and education. Angela Merkel commented that the proposal was a good start, however, continued to say there had been ‘no breakthrough.’ Other leaders claimed it could ‘worsen the situation’ with the European Council President, Donald Tusk, stating the plan was ‘below expectations.’ However, the proposal needs the backing of the UK Government, in which May is still forming by attempting to strike a deal between the Conservatives and the DUP. The two parties are set to continue meeting early this week, in the hope a deal will be made.
The week starts with the release of the German Ifo Business Climate report. ECB President Mario Draghi is due to deliver the opening remarks at the European Central Bank Forum. Across the pond, the US will release the core durable goods order figure.
Tuesday starts with ECB President Mario Draghi speaking at the European Central Bank Forum, followed by the BOE Financial Stability Report being released back in the UK. BOE Governor Mark Carney will then hold a press conference following the release of the report. Across in the US, the CB Consumer Confidence report will be released. The day will end with Fed Chair Janet Yellen speaking about global economic issues at the British Academy ‘President’s Lecture’ 2017.
Both Mario Draghi and Mark Carney will participate in a panel discussion at the European Central Bank Forum on Wednesday. The Crude Oil Inventories will also be released.
The focus will be on the US with the release of the weekly unemployment claims figure and the final GDP, expected at 1.2%, however, this is the third version of this figure.
The week will end with the Current Account figure being released from the UK, expected at -16.5B. Also released is the final reading of Q1’s economic growth reading for 2017, which is due to remain at 0.2%