Theresa May’s efforts to find a compromise on the Irish border that can unblock Brexit talks continued with both sides digging in and the Northern Irish party that props up the Torrie government threatening to withdraw its support. Irish Foreign Minister Simon Coveney has called for Britain to come up with credible language to guarantee that Brexit won’t create a hard boarder in Ireland.
Confidence in business prospects has risen to its highest level since April 2017, while consumer confidence has dipped to the lows recorded in the wake of the Brexit vote. A Banking business barometer for November found that business confidence dipped two points to 24 per cent, and economic optimism had fallen by nine to four per cent. However, the balance of firms reporting they were confident in their prospects rose by five points to 44 per cent, the highest since April. Firms' hiring intentions also remained positive and at close to a five month high.
Meanwhile, a monthly survey conducted by GfK has found that UK consumer confidence is looking less positive , dipping two points in November, taking it to an overall rating of negative 12. Putting it back on par with the level recorded in the wake of the Brexit vote.
Eurozone inflation disappointed yesterday morning, hitting 1.5pc in November, below the 1.6pc expected by economists. This sluggish growth came in despite rising energy bills as oil prices pushed up costs for consumers. The figure is well below the 2pc target set by the European Central Bank. While unemployment was relatively low, at 8.8pc in October, slower than expected rises in inflation suggest that it could go lower still before inflation gains momentum.
The EU has set Theresa May a deadline of Monday to present a proposal on avoiding a hard border in Ireland after Brexit, as well as an improved offer on the divorce bill. On Dec. 4 May has lunch with European Commission President Jean-Claude Juncker in a meeting that’s meant to pave the way for an announcement at the summit that talks can move on to the crucial trade arrangements for after Brexit.
15:00 - USD: ISM manufacturing – Expected to be lower from 58.4 from 58.7