Analysts at ANZ Bank New Zealand Limited explained the latest from overnight political headlines in the European realm.
Key Quotes:
“Brexit headlines weighed on GBP overnight, with UK Prime Minister May’s Brexit plans coming under attack from both sides. European Union Chief Negotiator Barnier said he “strictly” opposed key parts of the proposals. At home, Boris Johnson said the plan would mean “disaster” for Britain, adding to existing speculation that May could face a leadership challenge from pro-Brexit conservatives.”
“Markets await discussions amongst Italy’s political leaders tonight regarding the budget situation. Senior leaders from League (the country’s junior coalition partner) will meet to discuss the policies they plan to include in the 2019 budget and their impact on the fiscal position. League leader and Deputy Prime Minister Salvini has signalled that Italy’s budget deficit could touch the European Union’s 3% limit on the back of promised tax cuts and new spending. Of interest to markets will be the degree to which Italy’s leaders plan to push the European Union’s budget rules, given Italy’s already huge levels of government debt.”
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