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ECB to end QE in December as planned

While Draghi confirms the ECB is on track to halt QE, Donald Trump says the Brexit deal could jeopardise UK trade relations with the US.

ECB to end QE in December as planned

The European Central Bank (ECB) is on track to end its quantitative easing programme by the end of the year. Despite the “somewhat weaker-than-expected” recent data, ECB President Mario Draghi said the central bank would stop expanding its €2.6 trillion bond-buying scheme in December.

Meanwhile, Italian assets rallied yesterday, 26 November after Italy’s governing coalition suggested it was willing to meet Brussels’ target for its budget deficit. Yields on two-year sovereign bonds fell by 31 basis points.

Now that the EU accepted the UK’s Brexit agreement, UK Prime Minister Theresa May warned no Brexit deal is possible without the Irish “backstop”, which is meant to help avoid a hard border between Northern Ireland and the Republic of Ireland.

May’s Brexit deal has attracted a lot of criticism from across the globe.

In addition, the National Institute of Economic and Social Research has said that the Brexit deal will leave the UK £100 billion worse off each year than if it had remained in the EU. The study, which was commissioned by People’s Vote – a British campaign group calling for a public vote on the final Brexit deal – suggested growth would drop by 3.9 per cent by 2030.

Donald Trump was also unhappy about the Brexit deal, saying in its current guise it would benefit the EU and hamper the UK’s ability to trade with the US. He also said, “As the deal stands, they may not be able to trade with the US, and I don’t think they want that at all.”

Lord Peter Lilley said the draft deal would rule out any prospect of UK trade deals with the US, let alone accepting the invitation to join the Trans-Pacific Partnership.

Finally, ahead of the G20 meeting this weekend in Argentina’s capital Buenos Aires, tensions between the US and China remain elevated. In an interview with The Wall Street Journal Trump threatened to introduce an additional $267 billion’s worth of tariffs on Chinese imports.

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