UK: Its all about Hammond today - BBH

The main event today, however, is in the UK as Chancellor of the Exchequer Hammond delivers his Autumn Budget to parliament and there is much pressure on Hammond to deliver.  

Key Quotes

“Former Prime Minister Cameron thought a referendum on the EU would resolve the conflict that was ripping apart the Tory Party.  Rather than resolve it, the referendum nationalized it, and the Tories lost their parliamentary majority.  The markets may be particularly sensitive to the new forecasts by the OBR.  The poor productivity record means weaker growth prospects, which in turn eat away at latitude to provide much fiscal succor.  There continues to be the talk of a cabinet reshuffle.”  

“Brexit remains very much front and center.  The UK appears to be signaling concessions on the European Court of Justice to protect the rights of EU citizens after Brexit and is willing to pay more than Prime Minister May initially proposed.  However, it is balking at addressing the Irish border in any fashion.  Instead, it continues to insist that the border can only be resolved in the talks about the new trade relationship.  Ironically, some officials seemed to have previously thought that a strong Merkel after the election, perhaps tempered by the FDP, would be good for the UK.  Now a weakened Merkel is seen as a boon.”