July 9, 2019

SULLEN STERLING

SULLEN STERLING
This year’s 1st quarter was good to the Brits – GDP grew by 0.5%, which was better than the previous year’s 0.2%. Year-on-year, 2019 is up 1.8% versus 2018’s 1.4.

And still, Deutsche Bank last week cut Britain’s growth outlook from 1.5% to 1.2. The largest threat to the UK well-being is housing and employment. With both major Prime Minister candidates flouting their eagerness to exit the EU sans agreement, the outlook is not looking less cloudy.

Markit’s Manufacturing PMI came in at a downwardly inclining 48 – the 3rd straight month of contractions ; its construction PMI plummeted to 43 (for its 5th month of contraction); and the Halifax housing prices seems just as far from breaking above the zero mark, as well.

Despite warnings from the Bank of England, business leaders and other sober minds, the UK mood seems to be rushing towards Brexit with lemming-like abandon.

On Wednesday, a torrent of data will indicate if there’s relief or ruin at the edge of the cliff.