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Week Ahead

UK
  • The focus of markets is likely to be on Brexit negotiations again with the European Council Summit due to kick off on Thursday and Brexit progress due to be discussed. The weekend press has focused on a frosty call between Johnson and Macron as well as a call between Merkel and Johnson with some media starting to report splits in the EU side with France said to be continuing to take a hard line on fisheries.
  • After last week's disappointing economic data with GDP and all of its major components disappointing expectations for growth in August, this week will see labour market data in focus. We will receive updated HMRC data for September but the headline series are still lagging back to August – either way they are both some way off picking up the effects of the end of the furlough later this month before the transition to the much less generous Job Support Scheme.
  • There are a number of BOE appearances this week where negative rates questions and the slowing recovery potentially could come up in the questioning, particularly after the BOE's negative rates questionnaire was released this morning (see 07:11BST bullet). Ramsden, Haskel and Bailey are all due to appear today with Bailey testifying ahead of the Lords Economic Affairs Committee tomorrow, Haldane speaking on Wednesday and Cunliffe speaking on Thursday.

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