This week investors were looking forward to a number of announcements from important central banks, namely the Federal Reserve of the United States and the Bank of England. Both chose the same route and refused to increase interest rates at this point in time. The Federal Reserve is worried that 2018’s global economic slowdown is finally spreading to the United States, as indicated by the disappointing fundamentals released recently. The Bank of England, on the other hand, is highly critical of the handling of Brexit and with a no-deal hard exit still on the table (according to the Prime Minister, at least), is afraid to mess with the economy at present.
Speaking of Brexit, Theresa May has formally requested an extension until June 30. The President of the European Council, Donald Tusk, said that this date clashes with the European parliamentary elections and advised that it is either changed to an earlier one (May 23) or a later one (December 31). Theresa May has vowed to get the United Kingdom’s parliament in line and get a successful third vote on her deal, but that remains uncertain, as last night the Prime Minister gave a controversial speech which antagonized many MPs, hardly winning any support.
