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More Brexit, more votes, less decision

| Posted by: Paul Donovan | Tags: Paul Donovan

  • There are a series of votes in the UK parliament on the interminably tedious process of getting out of the EU. The UK prime minister has indicated a willingness to back an amendment to the government's own legislation. There is also an expectation of yet more votes in February – which may be interpreted as lowering the risk of a no-deal exit.
  • Preliminary trade talks continue between China and the US, ahead of the formal start of discussions tomorrow. For all the worthy statements being issued, this ultimately comes down to a question of whether US President Trump is willing to continue taxing equities (which is what a tariff amounts to).
  • Italy has some inflation figures, which are not likely to excite too much attention. ECB President Draghi was dovish in assessing risks yesterday, but without committing to easing policy (balancing personal belief against the ECB consensus perhaps).
  • US consumer confidence is due. Some other confidence data has shown confidence amongst Republicans coming off its highs. This suggests politics rather than economics may influence changes in the data.