The UK was given the green light on Friday to progress Brexit talks to the next stage to discuss trade and security agreements. However, it is not all positive for the UK. The EU’s Chief Brexit Negotiator, Michel Barnier, has warned that the UK will not be able to secure a bespoke deal with the bloc which would encompass the best parts of the existing agreements.
Both Barnier and German Chancellor, Angela Merkel, have warned that the toughest parts of the negotiations are yet to come. UK Prime Minister, Theresa May, is due to discuss with her Brexit Cabinet today, what the future relationship should look like.
There is a quiet start to the week today, with no high tier data on the economic docket. The Eurozone will be releasing their final CPI figure, expected to post 1.5%.
Tuesday will start with the release of the Ifo Business Climate from the Eurozone’s largest economy, Germany. The figure is expected to remain stable at 117.6. Across the pond, the US will be releasing their Building Permits figure, forecasted to post 1.28m. FOMC member, Neel Kashkari, will be speaking about the Federal Reserve policies and trends at an event hosted by the Minnesota chapter of Lambda Alpha International. Audience questions are expected at the event.
On Wednesday, the economic docket is quiet with no high tier data on the schedule. Deutsche Bundesbank President, Jens Weidmann, will be speaking at the Analysis Forum in Milan, on the ‘the euro area between short-term momentum and long-term challenges.’ Bank of England Governor, Mark Carney, will be speaking at the Treasury Select Committee Hearing on the November Financial Stability.
Thursday will start with the release of the UK Public Sector Net Borrowing figure, expected to post 8.6b. Canada will be releasing their CPI and Core Retail Sales figures, whilst the US will be releasing their final GDP figure, expected at 3.3%. The US will also release their Philly Fed Manufacturing Index, forecasted at 20.6, as well as the Weekly Unemployment Claims figure, expected at 234k.
There is a quiet end to the week as the markets wind down for the Christmas break. The UK will be releasing their Current Account figure, expected to post -21.3 billion. Across the pond, the US Core Durable Goods Order figure will be released, forecasted to post 0.5%.