12/06/2017 - May Appeals To MPs For Support

GBP

Theresa May is appealing to her MPs to throw their weight behind her at today’s crunch meetings, as her future hangs in the balance following her disastrous election campaign. May is expected to signal to her parliamentary colleagues that she will run the government in a less controlling way after sacrificing her two closest advisors, Fiona Hill and Nick Timothy.
 
The pound tumbled on Friday's session after an election that denied any party a majority in parliament and fomented a sense of political chaos just days before Brexit talks begin.
 
British Prime Minister Theresa May said she would form a government backed by the Democratic Unionist Party, which is a small Northern Irish party, after her Conservative Party lost its parliamentary majority in an election days before launching talks on Britain's EU departure.
 
A stony-faced May, speaking on the doorstep of her official Downing Street residence, said on Friday the government would provide certainty and lead Britain in talks with the European Union to secure a successful Brexit deal.
 
But with her authority diminished, May risks facing more opposition to her Brexit plans from both inside and outside her Conservative Party, and some colleagues may be lining up to replace her
 
The surprise result raised questions about how Britain will advance with its plan to leave the EU. It sent the pound to eight-week lows against the dollar and its lowest levels in seven months versus the euro
 
Largely overshadowed by Fridays election result was the British public's expectations for inflation in a year's time. Falling slightly in May compared with three months earlier, but longer-term expectations rose, a Bank of England survey showed on Friday.
 
The BoE said median expectations for inflation in a year's time slipped to 2.8 percent from February's peak of 2.9 percent. But expectations for two years out rose to their highest in more than two years at 2.8 percent versus February's 2.7 percent. Expectations for inflation in five years' time rose to 3.3 percent from 3.2 percent, but remained below a peak of 3.4 percent seen in May 2016.

Key Announcements

10:00 – GBP: UK Inflation report Hearings