SNAPSHOT2 min read

Janet Mui: weekly economic update 18 October

The announcement of a Brexit deal – yet to be passed by the UK Parliament – has removed some near-term uncertainty. But the longer-term picture remains unclear.

18/10/2019
SCH8975_Financial_Chart_945x470px

Authors

Janet Mui
Global Economist, Cazenove Capital
  • The announcement on Thursday of a deal between the UK and EU caused a sharp rally in sterling.
  • This was partly reversed when the DUP declined to support the deal. Getting the deal through Parliament, which meets tomorrow (19 October), looks likely to prove difficult.
  • The short-term economic effect of a deal is likely to be positive, as it will remove some uncertainty.
  • But a deal would still leave much negotiation to take place. We believe that in the longer-term, Brexit is likely to limit freedom of movement and this could prove a potential brake to future growth.
  • In other news this week, China's third quarter growth figures – the lowest since the 1990s – were greeted with disappointment. They are likely to add further pressure to Chinese authorities to increase stimulus measures.

Authors

Janet Mui
Global Economist, Cazenove Capital

Topics

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.