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Week Ahead

UK
  • The Bank of England MPC decision, the US election and continuing Brexit talks will be the highlights for the gilt market in the week ahead. We will send out our full BOE preview later this week and ahead of the announcement at the weekend that England will be beginning a four week lockdown beginning on Thursday (albeit with education settings, supermarkets and click and collect retail staying open) 21/33 analysts in the Bloomberg survey saw a GBP100bln or more increase in QE to be announced this week. 7/33 analysts expected a GBP50-75bln increase and just 5/33 analysts expected no increase in QE at all at this meeting.
  • Brexit negotiations will continue this week, initially in the UK, with a Bloomberg sources piece saying that a compromise deal on fisheries could be close to being solved. On the data front this week the only highlights are the final readings of the PMIs which will probably see the flash readings revised a bit lower as the narrative on Covid continued to deteriorate after the initial flash survey period was closed.

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