14/03/2017 - Theresa May Gets Green Light From Parliament 

GBP

U.K. Prime Minister Theresa May is preparing to trigger Brexit in the last week of March after securing the permission of lawmakers to begin two years of talks with the European Union.

Parliament on Monday passed legislation allowing the government to invoke Article 50 of the Lisbon Treaty, with the House of Commons overturning amendments from the unelected House of Lords that sought to restrict May’s room for maneuver. 

The victory for May in Parliament, where she has a slim majority, allows her to negotiate Brexit with a free hand and consolidates her hold on power in the ruling Conservative Party. She now faces the simultaneous challenge of pulling Britain out of the EU on good terms while navigating a second constitutional upheaval; Scotland’s renewed bid for independence.

Forced by a Supreme Court ruling in January to consult lawmakers, May now has the power she once assumed she had to begin with and can negotiate Brexit at a time of her choosing.

EUR

ECB President Mario Draghi has said the Eurozone should make it easier for companies to fail in order to allow faltering productivity in the region to accelerate. He said: “Ensuring that failed firms are able to smoothly exit the market is key to enabling capital and labour to be allocated to where it can be more productively used.” He also stated that “capital misallocation has been rising”, with company insolvencies taking two years in the Eurozone – three times longer than the best performing nations. 

He also pointed out that failing firms  do not take up new technologies and are a key inhibitor of productivity in the bloc. Weak productivity growth since the global financial crisis has held back growth in the Eurozone.

Key Announcements

10:00- EUR: Eurozone Industrial Production (YoY) expected to fall to 1.1% from 2.0%