UK: Services PMI and voting on extension of Article 50 in focus

In terms of data, given the growing uncertainty surrounding Brexit and global trade tensions, it is difficult to see any real upturn, even though the services PMI gained some ground in July. According to TD Securities analysts, the service PMI gained some ground in July, but with the growing uncertainty surrounding Brexit and global trading tensions, there is little real uptrend. The August manufacturing, construction and services purchasing managers’ indices are published on Monday, Tuesday and Wednesday respectively.

With only 64 days to go until Brexit Day, markets are hoping for an extension of Article 50, but next week’s vote in Parliament is likely to be an interesting event that could give Britain a direction as it does next. Current market thinking suggests that the BoJ may take a more cautious stance with the growing expectation that the next political step could be taken towards further easing. In the US, markets are based on today’s indices for Markit Manufacturing, Services and Composite Purchasing Managers. Across the pond, US markets were picking up, led by health stocks. The US labor market is expected to create 159,000 new jobs in August, suggesting that although the pace of job creation has slowed, the economy is still picking up strongly.

The Bank of Canada will announce its decision one day after the RBA. Although it is expected to leave policy unchanged, the language of its explanation will be significant as speculation increases as to whether the bank is about to ease. It would have to weigh the compromise and assess whether it is paramount to bring inflation back to the goal instead of supporting economic activity. In this case, the rates could be increased. The Swedish central bank, which has raised interest rates for the first time since 2011 in December, is expected to maintain policy rates at its meeting on Thursday, but could retreat after the deterioration in global growth prospects and in response to expected easing by the ECB. Cash and bank deposits are likely to bring poor returns as the RBA lowers the official year-end cash rate to 1%. Capital Bank Launches Capital Bank Home Loans On 8 October 2014, the Federal Housing Authority (FHFA) published in the Federal Register a notice on the proposal to incorporate existing sections of the Federal Housing Finance Board’s rules into the FHFA’s rules.

By law, the government can change the election date after it has passed. The Federal Government is driving the mortgage market forward with the new TILA-RESPA Integrated Disclosure Rules introduced by the Consumer Financial Protection Bureau. The government now plans to request an extension of Article 50 at the EU summit next Thursday. However, a third meaningful vote on the readmission agreement can not be ruled out, especially if the Prime Minister can win the support of MEPs who have previously rejected it. The Irish Free State government has rebuilt the city center and housed the new parliament, the Oireachtas, at Leinster House. The Irish Free State Government took over the two wings of the building to temporarily house some ministries, while the main building was converted into the College of Technology until 1989.

The ADP employment report cites the package that includes factory orders and the ISM PMI for non-manufacturing industries. Adding to this data set, a weak employment report could cast doubt on whether the BoC could actually maintain its optimistic view of future rate increases. Other highlights include the US Nonfarm Payrolls Report and the recent Brexit storms in Westminster.

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