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In UK, politics remained in the spotlight as the government narrowly survived the crucial customs union vote largely thanks to five Labour rebels, notes the research team at Nomura.

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“Theresa May’s favourability ratings continue to plummet and there is still the chance of a leadership challenge over summer, even though Summer Recess for Parliament is due to start next week.”

“UK data this week -CPI and Retail Sales- came in softer than expected, but we still expect that the BOE is on track to hike at August’s meeting.”