Boris Johnson will use his first full day back at Westminster welcoming the newly elected Members of Parliament (MPs) and thanking many of them for breaking the “red wall” in the north of England. He will also announce spending plans for vast infrastructure projects in the north.
The Queen’s speech on Thursday, 19 December will include a pledge to enshrine NHS funding increases into law and changes to policies to keep dangerous criminals in prison for longer, in an effort to thank the voters who have changed the electoral map across the country.
The Brexit withdrawal agreement will also be brought back to Parliament for a second reading and vote on Friday, 20 December if MPs agree to sit so close to Christmas.
Across the pond, markets took a sigh of relief as Donald Trump struck a tentative deal with Beijing and fresh tariffs threatened by the US president had been scrapped.
Trump tweeted, “We have agreed to a very large phase one deal with China.” He added that negotiations on phase two would begin immediately, rather than after the 2020 election.
In terms of data, the respective Purchasing Manager’s Indices data for December will reveal where the EU and the UK are at when it comes to confidence levels.
08:30 (GMT) – German manufacturing PMI – Previous: 44.1; Forecast: 44.5
09:00 – EU composite PMI – Previous: 50.6; Forecast: 50.9
09:30 – UK services PMI – Previous: 49.3; Forecast: 49.6
Forecast to show a small rise, yet remain firmly in contraction territory, the German manufacturing sector could set the direction for the Euro this morning. A weaker-than-forecast number will weaken the Euro as it could signpost that Europe’s largest economy may indeed fall into recession in the final quarter of 2019.
The UK release is unlikely to have any major impact on the Pound as investors are still digesting Johnson’s election win last week.
Sterling has sharpest rise for decade as Boris wins election