The week ahead 03.09.20124
The main focus of this week will be Wednesday’s FOMC meeting and expected attendant interest rate rise, but before that arrives there are quite a lot of minor data releases out of Europe, as well as the minutes from the Bank of Japan monetary policy meeting in July. The only factor that is likely to have a significant impact in the Eurozone is Brexit, and with her beloved Chequers Plan being dismissed by her EU counterparts in a synchronised wave of insults, it’s back to the drawing board for the hapless Prime Minister, who is looking more and more crestfallen as her dreams of keeping everyone happy wither and die, alongside her career. There has been talk of (another) snap election in the UK but we do not see this as a realistic possibility, as distrust of the current Government is running so high that they may well find themselves turfed out of power. Remarkably, the economic lunacy of the (very) Left-wing Labour Party attracts voters who also wish the UK to be ruled by the EU, and why his core supporters would essentially be voting for their own long-term ruin is a mystery which is yet to be unravelled by science.
There is also the market gossip that the Trump administration is considering an unpleasant surprise for China in their ongoing trade spat but while the source may be reliable, without details there is really nothing to see here.