As before, this is a challenge because Johnson does not have a majority in the chambers and the topic deeply divides British politicians. He is now obliged to gather enough votes in the House of Commons prior to the vote. Ten votes from the Northern Ireland Democratic Unionist Party (DUP) may fall away as the party has withdrawn its official support because of the inner-Irish border issue. The inner-Irish border has been one of the biggest problems since the beginning of the Brexit negotiations. The DUP will not support the deal in its present form. It remains to be seen what the deputies will effectively vote for in tomorrow's big vote.
The left-wing Labour Party continues to demand a second referendum and said that Johnson's "sell-out contract" must be rejected. EU Commission President Jean-Claude Juncker announced that the deal was "fair and balanced".
The expected slowdown of the Chinese economy has proved to be true and has been even stronger than economists had predicted. Asia's largest economy grew by +6.0% year-on-year in the third quarter of 2019, 0.1% less than expected and 0.2% less than in the previous quarter. Weak domestic demand and the trade war are taking their toll.
The gloomy economic data of recent months clearly points to weaker domestic and international demand. The Chinese economy does not have an ideal position, as the indebtedness of both private companies and state institutions is very high, which limits the scope for new impulses and investments.
New US tariffs on goods from the European Union are due to come into force today. Duties will be levied on up to USD 7.5 billion of European products, including cheese, wine and Scottish whisky. This happens after the World Trade Organization has rebuked European subsidies from certain states to the aircraft manufacturer Airbus and in return has approved the imposition of these US tariffs as compensation. For its part, the EU has threatened further retaliatory measures.
|04:00||China||Retail sales (y/y)||7.5%|
|04:00||China||Industrial production (y/y)||4.4%|
|16:00||USA||Conference Board US Leading Indicator (m/m)||0.0%|
Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
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Source: LGT Bank (Switzerland) Ltd.
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