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Introduction: Central banks and Brexit stand out
Hello and welcome to our slippery coverage of the global economy, financial markets, the eurozone and businesses.
Investors in global stock markets seem to have taken a big week for central banks to heart. The Bank of England's monetary policy committee on Thursday announced its latest interest rate decision, but it is the US Federal Reserve that is leading the debate on the markets.
After a series of rate hikes in 2018, Fed Chairman Jerome Powell seems to have put the brakes on. Markets now predict a 99% probability that interest rates will not fluctuate in Wednesday's announcement, but the revised economic outlook and the potential to change the central bank's huge balance sheet will be critical for investors.
Powell should in particular specify whether it is appropriate to continue to liquidate the bonds at the same rate as before. A moderation in the pace of sales could be welcomed by worried markets that fear the US economy has peaked.
In the UK, there are 11 days left before Brexit. This will undoubtedly be the driving force for British companies that still have no idea of the rules that will govern trade with the EU after 29 March.
Prime Minister Theresa May is wooing the Democratic Unionist party to try to win support for the withdrawal agreement it has reached with the EU. This agreement has already been defeated twice categorically, but we could see a third or even a fourth attempt to have it pbaded by Parliament this week as time pbades.
The range of possibilities available to us in a week is striking, while doubts remain as to the possibility of supporting a second referendum.
Holger Zschaepitz
(@Schuldensuehner)The moment of the third significant vote (MV3) remains uncertain. The UK government will hold MV3 on the Prime Minister's Brexit deal this week only if he believes he can win. Corbyn appeared to signal that his party would support an amendment to secure the 2nd Brexit reference, which is expected to be tabled this week. (via Citi) pic.twitter.com/1LTHU14nPK
L & # 39; s calendar
- 10 am GMT: trade balance of the euro zone (January)
- 15:10 GMT: speech by the chief economist of the European Central Bank, Peter Praet
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