French PMI beats estimates highlighting solid increase in activity at the start of Q4
German PMI disappoints. Employment falls for the first time in 6 years
UK PM pull out of appearing in Parliament for Queen's speech debate
US VP Pence set to address the public on "Chinese situation"
Mario Draghi becomes first President to leave ECB without ever having raised rates.
Farewell to Mario Draghi who delivered today his last monetary policy meeting as President of the ECB after 8 years at the helm of the Bank. His departure sings the end of an era passing on to Miss Lagarde the task of fighting stagnant inflation in Europe and repair the rift between hawks and doves in the Governing Council after criticism over the latest ECB decision of restarting an open-ended QE. Big applause to Mario, forever king of doves and master of rhetoric.
Today European PMI changed very little of what we already know. German manufacturing activity is stagnant and this is showing also signs of deterioration in the labour market with the first fall in employment in 6 years. The following ECB release was not a big surprise as Mario Draghi reiterated similar remarks of the September meeting. As largely anticipated, there were no changes to the monetary policy stance and no changes to the macroeconomic assessment. If anything, it seemed as if the hawks (or dissenters) today did not want to spoil Draghi last meeting and present it as a unanimous decision.
Looking over to Brexit, today the Commons has continued the debate on Queen's speech. However the session was not attended by the PM who pulled out of appearing in Parliament. rising criticism from MPs. Recent headlines suggest ongoing talks between Tories and Labour have point out to a potential agreement upon tabling a general election motion on Monday. In the context Labour MP Mac Donnell commented: " We are seeking compromise with Government on the timetable for Brexit legislation. Later in the afternoon Sky News confirmed that the Government will table the General election motion on Monday. Meanwhile the Government awaits details on Brexit extension from the EU.
On the US-China front, US Vice President Mike Pence addressed the Nation saying that "the US does not seek confrontation with China, seeks level playing field, open markets, fair trade and a respect of our values". The comment comes after rumours ahead of the speech speculating a more hawkish rhetoric from the VP, causing an immediate flight into safe heaven at the US open. _______________ EU Close
If you missed the morning briefing from the desk click HERE