Speaking to European Parliament lawmakers on Monday, ECB President Mario Draghi said that the U.K. should not be granted any special favours with regard to single-market access during negotiations over its exit from the European Union. He said that the Eurozone’s economy had so far proven resilient to Britain’s vote to leave the European Union, but he warned that economic risks remained and that the ECB stood ready to boost its stimulus again to support growth.
“The extent to which the economic outlook will be affected [by the Brexit vote] depends on the timing, development and final outcome of the upcoming negotiations,” Mr. Draghi said. He warned that, despite the Eurozone’s resilience, there has been a “substantial weakening” in the prospects for overseas demand since June, which he said would likely dampen export growth.
On Monday, investors anxiously awaited the first U.S. Presidential debate between Donald Trump and Hillary Clinton, to get an indication of how the candidates plan to shape the economy and policy. Although the US election race has so far had little effect on the market, that may soon change as polls show a close race ahead of this first debate. Just over six weeks are left until Election Day.
A recent survey of CEOs of companies with revenue between £ 100 million and £ 1 billion found that the majority are positive about the future growth of the UK, the global economy and their own businesses. However, over half of those surveyed believe the UK’s ability to do effective business will be disrupted after leaving the EU, and many have had to plan different scenarios such as relocation. When the CEOs were asked what would encourage them to continue investing in the UK after leaving the European Union, a majority of said that certainty over trade terms was the most important factor.
15:00 - USD - CB Conusmer confidence is forecast to fall to 98.6