LAST WEEK – KEY TAKEAWAYS

UK: General election set for 12th December

• Sterling strengthened against the US dollar as MPs overwhelmingly voted to hold a general election on 12th December once they were satisfied that the risk of a ‘no deal’ Brexit had been averted;
• At the start of the week, the government accepted the EU’s offer of an extension to the Article 50 deadline until 31st January.

• Omnis view: The Conservative party has a sizeable lead in the opinion polls ahead of the election which would give the Prime Minister the parliamen...

LAST WEEK – KEY TAKEAWAYS

Brexit: Parliament backs withdrawal deal but rejects Boris’ timetable

• UK shares rallied and sterling strengthened against the US dollar after the House of Commons backed the Prime Minister’s Brexit withdrawal deal;
• However, sterling handed back some of those gains after MPs voted against Boris’ plan to rush the legislation through Parliament so the UK could leave the EU on 31st October;
• Boris then said he would give MPs until 6th November to approve the deal if they agreed to hold a general election on 12th De...

LAST WEEK – KEY TAKEAWAYS

Brexit: UK and EU agree withdrawal deal

• The pound hit its highest point in five months against the US dollar as the UK and EU agreed a Brexit withdrawal deal, although it handed back some of those gains when the Democratic Unionist Party (DUP) said it would oppose the deal;
• The government cancelled a meaningful vote planned for Saturday after MPs backed an amendment designed to avoid an accidental ‘no deal’ Brexit;
• The Prime Minister consequently had to request a delay to the Article 50 deadline, but he did no...

LAST WEEK – KEY TAKEAWAYS

Brexit: Possible breakthrough on Irish border

• UK shares rallied and sterling strengthened against the US dollar as the prospects of a last-minute Brexit deal improved;
• The Prime Minister and his Irish counterpart said they could see ‘a pathway to a deal’ after meeting on Thursday, and the EU agreed to hold intensive talks with the UK over the weekend;
• Meanwhile, the UK economy grew by 0.3% in the three months to August, up from 0.1% in the three months to July1.

• Omnis view: The chances of the two sides agre...

LAST WEEK – KEY TAKEAWAYS

Brexit: Prime Minister proposes alternative Irish border plan

• Sterling held steady against the US dollar as Prime Minister Boris Johnson submitted his plan to replace the Irish backstop in the Brexit withdrawal deal;
• The proposal involved Northern Ireland staying in the single market- which means it would be subject to EU regulations covering goods, agriculture and food- but leaving the customs union so it could benefit from any trade deals signed by the UK.

• Omnis view: The EU rejected the proposal and gave ...

LAST WEEK – KEY TAKEAWAYS

UK: Supreme Court rules against Boris

• Sterling weakened against the US dollar despite the UK Supreme Court ruling that the suspension of Parliament for five weeks- known as proroguing- by the Prime Minister was unlawful.

• Omnis view: Political uncertainty remains elevated. The government is legally bound to request another extension to the Article 50 deadline if the two sides fail to agree a withdrawal deal by the EU summit on 17th October. However, Boris continues to insist the UK will leave the EU on 31st Oc...

LAST WEEK – KEY TAKEAWAYS

US: Federal Reserve cuts interest rates

• US shares rallied as the Federal Reserve- the US central bank- cut interest rates by 0.25% for the second time this year due to subdued domestic inflation (the rate at which prices increase) and concerns about the global economic outlook;
• US President Donald Trump criticised the board for not lowering rates by a wider margin.

• Omnis view: The Federal Reserve signalled that rates would not change again for the foreseeable future, which may lead to further clashes with Pr...

LAST WEEK – KEY TAKEAWAYS

UK: Brexit developments and rebounding economy boost sterling

• Sterling strengthened to its highest level in two months against the US dollar as the prospect of the UK leaving the EU without a deal appeared to fade;
• The Speaker of the House of Commons said he would allow MPs to do whatever is necessary to prevent a ‘no deal’ Brexit, while media reports suggested the Democratic Unionist Party (DUP) may permit regulatory checks on goods crossing the Irish sea to help the Prime Minister reach an agreement with the ...

LAST WEEK – KEY TAKEAWAYS

UK: Boris suspends Parliament

• Sterling fell against the US dollar as the Prime Minister Boris Johnson announced Parliament would be suspended for five weeks from the 10th September until 14th October;
• Known as proroguing, this type of suspension is common after a new government is formed, but the timing and the length is controversial on this occasion;
• Boris claimed he needs the time to set out his domestic agenda, while MPs who oppose a ‘no deal’ Brexit worry he is circumventing Parliament to ensure the UK le...