This week pretty much sums up the year; a lot of noise and drama and we’ve ended up back where we started. The challenge to Theresa May dominated the airwaves for two days, but despite seeing off the challenge, nothing about Brexit has fundamentally changed. While the PM is temporarily safe from her own party; she still has a deal nobody wants and seems unlikely to get any material change from the EU, who are just as fed up with the whole process as we are. We still think that May’s strategy is to run the clock down and try and force something through at the end. Other scenarios involving a referendum or election require too much risk for the Conservative party, so we think they fall in line at the end.
Elsewhere the announcement that the ECB has finally come to the end of its QE program went largely unnoticed, but really deserved a bit more attention. It is incredible that a decade after the financial crisis only now are the extraordinary emergency policies put in place to fend off total collapse being withdrawn. While the crisis itself has faded in memory, the effects are still being felt everywhere, from the riots in France to Brexit.
Read what the team at FE consider to be significant over the current week.