Rational Thinking – Theresa May Loses Another Key Brexit Vote This week: GBP 14th Feb saw May lose in Parliament again, this time 303 votes to 258 Eurosceptics abstained on government motion as it appeared to rule out a no deal Market investors continue to worry about May’s ability to persuade government lawmakers Weaker than expected GDP as yearly growth slowed to 1.3%, slowest yearly rate since 2012 Brexit uncertainty hitting spending and investment Inflation fell to a two-year low, CPI down to 1.8% from 2.1% USD USD strengthened off increased concerns surrounding the U.S-China trade talks Sustained strength in the core inflation number, up for a 3rd straight month Retail sales fell 1.2%, with all but 2 of the 13 major retail categories showing a decline EUR Industrial production fell among member states at fastest pace since 2008 financial crisis Week ahead: GBP: ILO Unemployment Rate; expected to fall to 3.9% from 4% USD: FOMC Minutes EUR: ZEW Survery for Economic sentiment (down to -18.4 from -15), German Harmonized Index of Consumer Prices (staying at 1.7%), Germany Manufacturing PMI (increase to 49.9 from 49.7) & Markit PMI Composite (increase to 51.1 from 51)