UK: PM May’s speech about Brexit in the limelight - BBH

At the end of the week, UK Prime Minister May is expected to deliver one of her most important speeches about Brexit and will be a key event for this week according to analysts at BBH.  

Key Quotes

“Expectations are so high that the next round of UK-EU negotiations was postponed to give May this opportunity.  She is expected to present a vision of the post-Brexit relationship between the UK and Europe.  It will be grist for op-eds, but will do little to push negotiations forward, which are still stuck on the terms of the separation.  UK officials seem to resist the notion of sequencing on which the EU negotiators insist.”

“Neither sterling nor UK asset markets are being driven by Brexit.  Sterling rallied nearly 3% last week to brings its gains here in September to 5.1%, the best in the world.  The main driver was surprisingly hawkish MPC minutes. There have been several times over Carney's tenure as Governor that the BOE has sent such a signal to the market.  It has not delivered, but of course, this time, like every time could be different.”