All eyes were on political theatre in Westminster last week. No-deal Brexit looks more likely. And with it some economic disruption – how much is unknown. The global economic outlook is not promising: the US and China are still locked in the trade war and the Eurozone is fighting to stave off a recession.
The resignation of UK PM Theresa May has prompted a flurry of contenders for the Tory leadership – the contest officially begins June 10th with the victor likely announced by the end of July. Boris Johnson is the bookies’ early favourite, fanning fears about a possible no-deal Brexit. The strong showing of the Brexit party in EU highlights increased fragmentation in UK politics. Meanwhile, latest UK data shows consumers continue to open their wallets.
This week is likely to see the EU grant a longer, but more conditional, extension to Article 50 than the UK Government has requested. Back in Westminster talks continue to try to find a set of proposals that can be passed by the House of Commons. Away from the politics, most economic data has been disappointing.