This will be an abbreviated Week Ahead this week. Markets are moving on from the election and focused on data releases and news on vaccines and treatments for COVID-19. Another issue that looms large, however, is that the negotiation of the trade deal between the U.K. and European Union (EU) was supposed to be decided by now.
With a year-end deadline looming, there is an understanding that a deal would need to be reached by Thursday ahead of an EU leader videoconference in order to get approved by the European Parliament next week. There is another EU meeting on Dec. 10–11, and if there is no deal by that time, then expect preparations to start for a really messy end of the year.
The remaining issues deal with a level playing field, access to British fishing waters and how the deal will be enforced. With the apparent election of Joe Biden to the U.S. presidency, British Prime Minister Boris Johnson is seen as having to get a deal somehow, since conventional market thinking is that a Biden presidency will not produce a trade agreement with the U.S. anytime soon.
In addition, a couple of high-level resignations from Prime Minister Johnson’s inner circle have thrown the British government into a bit of a last-minute panic. We’ll be watching and discussing this all week, as yet another 2020 event injects a little more anxiety into the world economy.
Want to learn more about international finance, economics, and global events? Sign up for our other Foreign Exchange emails and videos!
Follow City National Bank on social media:
Non-deposit investment products:
Are not FDIC insured,
Are not deposits or other obligations of City National Bank and are not guaranteed by City National Bank, and
Are subject to investment risks, including possible loss of the principal invested.
This report is for general information and education only and was compiled from data and sources believed to be reliable. City National Bank does not warrant that it is accurate or complete. Opinions expressed and estimates or projections given are those of the authors as of the date of the report with no obligation to update or notify of inaccuracy or change. This report is not a recommendation or an offer or solicitation to buy or sell any financial instrument discussed. It is not specific investment advice. Financial instruments discussed may not be suitable for the reader. Readers must make independent investment decisions based on their own investment objectives and financial situations. Prices and financial instruments discussed are subject to change without notice. Instruments denominated in a foreign currency are subject to exchange rate and other risks. City National Bank (and its clients or associated persons) may engage in transactions inconsistent with this report and may buy from or sell to clients or others the financial instruments discussed on a principal basis. Past performance is not an indication of future results. This report may not be reproduced, distributed or further published by any person without the written consent of City National Bank. Please cite source when quoting.
Tune in for a guide to ETFs and investing strategies for potential long-term success. View in a browser Fidelity Fidelity Log in Creating a portfolio with ETFs: Why and how Creating a portfolio with ETFs: Why and how