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UK campaigning suspended

| Posted by: Paul Donovan | Tags: Paul Donovan

  • Campaigning in the UK referendum has been suspended following the death of MP Jo Cox. The scheduled release of opinion poll results and of the IMF assessment of the economic consequences of an exit vote have been suspended.
  • The IMF had already released a report expressing concerns about the dangers of political risk in the Euro area, and the economic consequences. They also warned of the need for reform of labour markets and the desirability of fiscal spending.
  • There is a concern that as the world economy changes significantly in the coming decades (the "fourth industrial revolution"), groups in society may be left behind by the adjustments. This may increase political risk, and work against economic adjustment.
  • Draghi of the ECB is scheduled to speak in the wake of this week's vacillation from the US Federal Reserve. We also have housing data from the US today. Italy will be holding local government elections over the weekend.