UK week ahead: Third round of Brexit negotiations - Danske Bank
|Analysts from Danske Bank, point out that next week the third round of Brexit negotiations between the UK and the EU will kick-off.
Key Quotes:
“In the UK, the first event of interest is the kick-off of the third round of Brexit negotiations between the UK and the EU. The parties are set to continue negotiations in phase 1 (divorce bill, citizen’s rights and Irish border). The negotiations are set to face difficulties following the poor election result for PM Theresa May, as the cabinet is divided and does not have unanimous goals for the negotiations.”
“On Thursday, consumer confidence is due for release. In July, consumer confidence declined to -12, which is the lowest level since 2013 and the same level as observed immediately following Brexit. We expect the declining trend to continue in August.”
“Friday brings us the Markit manufacturing PMI. This Wednesday, we saw the euro area manufacturing PMI increase contrary to the consensus expectation and increases were observed in both Germany and France. Particularly surprising was the increase in new orders driven by higher new export orders despite the headwind from EUR appreciation. Given the positive surprise in euro area manufacturing PMIs, we also expect UK manufacturing PMIs to report an increase in August.”
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