03/12/2018 - Gove Warns Of 2nd Referendum

GBP

If MPs don't back Theresa May's Brexit deal there could be another EU referendum, Michael Gove said on a TV show. The cabinet Brexiteer said Mrs May's deal was not perfect - but if MPs did not vote it through on 11 December there was a risk of "no Brexit at all". Gove’s comments follow Labours plans to topple Mrs May and force a general election if MPs reject her deal. If that fails, they will then seek support in the Commons for another referendum.

Opposition parties are threatening to launch contempt of parliament proceedings against Downing Street after Theresa May was warned she risks creating a "constitutional crisis" if the government fails to release the full legal advice it has received on the Brexit agreement.

USD

Over the weekend US President Donald said Beijing will "reduce and remove" the 40% tariffs it places on US cars imported into China. The move, which Trump made on Twitter, would be welcomed by a car industry unsettled by the escalating US-China trade war.

Over dinner at the G20 summit President Trump and Xi Jinping agreed to a temporary truce in the bitter dispute as they agreed to not increase tariffs for 90 days to allow for talks. Failure to strike a deal would have seen tariffs on $200bn worth of Chinese goods rise from 10% to 25% at the start of next year, and would have opened the way for tariffs on additional goods.

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15:00 – USD: ISM Manufacturing PMI forecast to decrease to 57.7