President-elect Donald Trump yesterday delivered his first news conference since winning the election in 2016. The main focus from journalists was the America-Russia news leak and relations; which Mr Trump was quick to rubbish as scandal and went on to say he hopes to have a good relationship with President of Russia Vladimir Putin.
Providing insight in to his plans for the US economy, Mr Trump said the US is the largest consumer of pharmaceutical goods, for which the contracts need to be negotiated better in order to make sure the US get a better deal. Likewise he extended this sentiment towards military and defence spending. Furthermore, he stated he is “going to be the biggest creator of jobs that God put on this planet” which he has already started working on in regards to bringing production of the motor industry back to the US.
Mark Carney said that action by the Bank before and after the vote to leave the European Union had reduced the danger to the country's financial stability. He added, however, that the overall level of risk was still "elevated". The Governor went on to say that the reality of a hard Brexit would adversely affect Europe, more so than the UK, and also said that Brexit is not the biggest risk to the UK’s financial stability.
Mr Carney also told members of the Treasury Select Committee that a period of transition was "highly advisable". "If there is not such a transition put in place, in our view it will have consequences. We will work to mitigate those consequences as much as possible and the UK should concentrate on stable access to financial markets after Brexit”. The financial services industry could suffer "outsize" consequences from losing only some of its access.
He also expressed the belief that it would not only be possible, but desirable for the UK to remain part of the EU mechanisms that make financial rules. He said the EU and the UK were starting from the position of having the same rules. The regulators know each other, he added, and it is a "tightly wound ecosystem".
13.30 – USD – Unemployment Claims; Forecast at 266K against a previous of 235K