Today the UK Parliament will be voting on Boris Johnson’s withdrawal agreement. The bill is what he negotiated with the European Union back in October. However, a change has been made to the text, which would cut down the transition period for the UK from 3 years down to 11 months, forcing the government to secure a free trade agreement with the EU by the end of next year. The clause is adding a new dimension to the Brexit uncertainty and has weakened the pound.
Meanwhile, in the United States everyone is talking about President Trump’s impeachment. Donald Trump continues to claim that he did nothing wrong and that the impeachment is misplaced. He is also hoping for a swift and dramatic trial in the Senate where he can appeal to his voters and regain control over the narrative. Nevertheless, the Democrats have not forwarded the two articles of impeachment to the Senate yet, as the trial process is still being worked out.
There was good news in the United States as well. Unemployment dropped, indicating that the US economy is in a healthy condition, which confirms investors’ expectation that the Federal Reserve won’t be taking action anytime soon.
Most importantly, Treasury Secretary Steve Mnuchin confirmed that the phase-one agreement with China is ready and will be signed early in January. While the document is not at all exhaustive, it is supposed to mark the beginning of an improvement in the trade relationship between the US and China and pave the way for ending the trade war.
