04/07/2018 - Theresa May Calls For Unity

GBP

Yesterday Prime Minister Theresa May has called on her Conservative Party to “stand together” over Brexit, days before a crunch meeting she hopes will overcome bitter rifts over how Britain should leave the European Union. Britain’s exit from the bloc will mark its biggest trading and foreign policy shift in almost half a century. But May has struggled to unite her ministers and party — or parliament and the public — around a plan, often reluctant to spell out her approach for fear of angering one faction or another.

It is unclear what May will present to her cabinet, but those wanting a “clean break” with the EU fear she will try to force them into a compromise on customs that will keep Britain firmly in the bloc’s sphere, as desired by some companies and several ministers.

At a cabinet meeting on Tuesday, May said she “looked forward to the full discussion which will take place at Chequers on Friday, when decisions will be taken on the future partnership the UK is seeking with the EU”.

The UK’s construction sector reported its sharpest rise in output since November of last year, according to new figures from a closely followed barometer for the sector.

Data released by IHS Markit in its monthly purchasing managers’ index (PMI) came in at 53.1 in June, up from 52.5 in May and above the 50.0 no-change value for the third month in a row. Readings above 50 indicate growth.

The solid performance, which saw the strongest rise in new orders since May 2017, was fuelled by a rise in commercial building, which has expanded at its fasted pace in four months, as well as the continued success of residential work which remains the best performing area of activity in the sector.

Key Announcements

10:00 - GBP: BoE Governor Mark Carney Speaks 14:45 - GBP: Markit Services PMI (June) expected to be unchanged lower at 55.4 from 56.50 19:00 - USD: FOMC Meeting Minutes