Daily Market Report - 09/03/2016
Bank of England Governor Mark Carney addressed a cross-party Treasury Committee regarding Britain’s membership of the EU. Mark Carney issued a warning of Brexit risks, highlighting a short-term hit to growth and downturn foreign investment. Mr Carney said: "There could be lower levels of activity because of the degree of uncertainty that could affect investment and household spending.”
Certain members of the Treasury Committee accused him of making ‘pro-EU’ comments however Mr. Carney emphasised that the BoE was not taking sides in the EU referendum. "We will not be making, and nothing we say should be interpreted as making, any recommendation with respect to that decision," he said.
Governor Carney said a vote by Britain to leave the European Union could hit the country's economy and prompt some banks to move away from London's global financial powerhouse. "It's reasonable to expect certain firms would take a view in terms of relocation, and I’d say a number of institutions are contingency planning for that possibility," he said.
In the Eurozone, GDP remained flat at 0.3% in line with previous release and meeting expectation. Figures released by Eurostat for seasonally adjusted GDP remained constant at 0.3% during Q4 2015 with the 28 country Euro Area figure coming out at 0.4%, higher than the 0.3% increase in earlier estimates.
In a separate report, German industrial production jumped more than forecast in January as strong domestic demand overpowered the drop in export orders. The output rose 3.3% m/m in January after an upwardly revised 0.3% decline in December. The annualized figure rose 2.2%.
09:30 – GBP: Manufacturing Production (m/m) – expected to rise from -0.2% to 0.2%