Mid-week report Report 22nd - 24th August
Late yesterday, the EU’s chief negotiator Barnier and UK Brexit secretary Raab pledged to intensify negotiations to reach a deal in October, or shortly after. Barnier talked about aiming for a new partnership that respects the EU single market, but which also "has no precedent", indicating a bespoke deal.
Trade negotiations between the US and China are due to restart today for the first time in more than two months. The negotiations are reportedly between low-level officials, although one media outlet reported that it will prepare the stage for a meeting between Presidents Trump and Xi in November. Nevertheless, Trump has already played down talks, saying that he has "no time frame" for ending the trade dispute with China. The US is due to levy 25% tariffs on an additional $16bn of Chinese imports on Thursday (which will be reciprocated), while proposals to impose tariffs on a further $200bn of Chinese imports are currently set to take effect in early September.
No UK or European data due today. US existing home sales and the release of the minutes of the 1 August US Fed policy meeting (when interest rates were left unchanged) are likely to attract attention instead. However, the significance of the minutes is reduced by the fact that the last Fed meeting preceded the recent turmoil in Turkey and in some other emerging market economies.