The Week Ahead Will Britain Leave Europe?

There’s quite a bit of stuff going on next week. A couple of those things are set to happen in the UK.

Firstly, the UK Prime Minister, Theresa May, is due to start Brexit negotiations with the European Union (EU) on Monday. The EU is ready. But there are questions as to whether the UK is ready. It is still unclear whether the UK government has the necessary mandate to push for a “hard Brexit”, even though Brexit Minister, David Davis, has stated that nothing has changed.

Staying with the UK, the official opening of Parliament is set to take place on Wednesday. We should be able to gauge just how much horse-trading has taken place between the Conservatives and the Democratic Unionist, after the former lost its majority in the House of Commons.

This time last year the MSCI said China A shares should not be included in its Emerging Market Index, amongst others. The decision as to whether the shares should now be included still hangs in the balance. Questions remain over repatriation limits and concerns over market accessibility. Let’s not forget the sudden suspension of shares in Angbang, too, after its chairman was detained by corruption investigators in Beijing.

On the economic front, there are speeches from some key Fed members that could provide some useful pointers for the next rate hike. These include addresses by William Dudley, who wants to make monetary policy less accommodative; Charles Evans, who believes that two rate hikes in 2017 is about right; Stanley Fischer, who anticipates three rate hikes this year, and Robert Kaplan, who thinks the Fed should be cautious on further rate hikes.

And finally, Singapore will report inflation numbers at the end of the week. In April, the headline rate of inflation was an anaemic 0.4%. It was the lowest since December 2016, driven by the lower cost of housing. But core inflation, which excludes more volatile items such as accommodation and private road transport came in at 1.7%.

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