The EU has pushed back the announcement of the date of a further Brexit extension to early this week, as France continues to push for a shorter time period than the rest of the EU27’s favoured three-month deadline, favouring a November extensions. Leaders are meeting today to discuss their options, with the main dates considered to be 30th November, 31st December or 31st January.
German business confidence came in lower than expected and still below the 100 mark, as Brexit and the global slowdown continue to weigh. However, in a more positive sign, IFO expectations did come in better than forecast. This week, in addition to political movements, we will see French GDP figures, German unemployment, and, on Wednesday, Eurozone business, economic, industrial and consumer sentiment. The raft of releases will continue on Thursday eurozone-wide GDP figures, which will provide a snapshot into how the European economy is performing as the Brexit deadline does or doesn’t approach.
Italian GDP growth is expected to hold at zero, which will not please many, who consider the country’s current economic situation to be a weakness for the eurozone.
The European Central Bank and People’s Bank of China have extended their currency swap agreement for another three years, intended, from Europe’s perspective, to be a ‘backstop’ in the case of liquidity shortages due to disruptions in the Chinese yuan market.
