A storm in a British teacup
- The interminably tedious process of the UK exiting the EU became marginally less tedious over the weekend. The cabinet gathered in a remote country location and agreed to a soft exit (the EU has not given its opinion). However, the cabinet secretary responsible for exiting the EU, Davis, then resigned.
- If a cabinet secretary resigns and no one cares, does it matter? Sterling traded above Friday's close in Asian time. It is almost as if investors do not know who Davis is. (The EU's chief negotiator may also not know who Davis is. They have barely met this year). Broadbent of the Bank of England speaks today, which may offer more interest to markets.
- Trade data is the main feature of the global calendar. Trade tensions have risen with the US taxing its consumers more aggressively on Friday and the Chinese responding. However, less than 0.4% of global GDP has been subjected to new trade taxes. There is no need to sensationalize this.
- Draghi of the ECB will be speaking before the European parliament. If central bankers want us to be excited about their speeches, however, they should stop telling us what they will do in advance.