26/06/2017 - David Davis Stands By Mays Leadership

GBP

Theresa May was again in the headlines after Brexit negotiator David Davis said a Tory leadership election to oust her would have a catastrophic effect, adding that any colleagues stirring up trouble for the leader were being “self-indulgent”. The secretary of state for our departure from the EU did not deny reports that colleagues had urged him to stand for the leadership in a private meeting. Davis insisted that his response was to urge them to get behind May. Other sources indicate that Philip Hammond is reportedly being lined up to replace Theresa May and become caretaker leader amid growing concerns at her 'inadequate' premiership.

USD

Over the weekend news emerged that Italian government has decided to cut its losses and wind down two failed regional banks, at a massive price of up to €17bn (£14.94bn). The Italian government’s cabinet convened an emergency meeting to start liquidation proceedings for Banca Popolare di Vicenza and Veneto Banca. Intesa Sanpaolo, the country's biggest retail bank, will take on the lenders' good assets. Italy's government will pay it €5.2bn initially, and give guarantees of up to €12bn.

Key Announcements 

13:30 - USD: Core Durable Goods Orders (May) is expected to increase to -0.6% from -0.8%

18:30 - EUR: ECB President Mario Draghi Speaks