UK: Services PMI and voting on extension of Article 50 in focus – TD Securities

TD Securities analysts suggest that in the UK, after last night’s success, MPs will vote today on whether to force an Article 50 extension on Boris Johnson.

Key Quotes

“The Bill will go through all three readings in one day, with the final votes expected around dinner-time BST. Boris Johnson has said he will table a motion for an election should the “Rebel Alliance” succeed, but even here, Jeremy Corbyn has said he wants to see the extension legislation pass before agreeing to an election (which requires support of at least 434 MPs out of 650).”

“Turning to the data, while the services PMI managed to gain some ground in July, it’s difficult to see any real upward momentum given the growing uncertainty from Brexit and from global trade tensions. We look for the services PMI to fall back to its June level of 50.2, below market consensus of 51.0. But the data may not be watched all that closely with plenty of other events to keep an eye on today. From the BoE, Carney, Haldane, and Vlieghe will be testifying on the August Inflation Report to the Treasury Select Committee at 2:15pm.”