Janet Mui: weekly economic update 25 October
There has been some political progress on a Brexit agreement, increasing the appeal of UK assets. In the eurozone, economic activity remains weak.
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- The UK Parliament has agreed on the broad principles of the EU withdrawal agreement. However, MPs have refused to allow the associated legislation to be fast-tracked.
- As a result, we think a Brexit extension now looks very likely. Betting markets suggest an election is also likely before the implementation of any Brexit deal.
- Eurozone PMI data has stabilized, but remains near six-year lows. Worryingly, there are signs that weakness in manufacturing may be spilling over into the services sector.
- Mario Draghi presided over his last meeting of the European Central Bank, with Christine Lagarde set to take over at the start of November. We do not expect further policy measures this year.
This article is issued by Cazenove Capital which is part of the Schroders Group and a trading name of Schroder & Co. Limited, 1 London Wall Place, London EC2Y 5AU. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested.
This document may include forward-looking statements that are based upon our current opinions, expectations and projections. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements.
All data contained within this document is sourced from Cazenove Capital unless otherwise stated.
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