Sorry, come again?
Finally, things become a little clearer on the progress of the European Council Summit in Brussels. Or do they? One of the most popular reports emanating from the seismic event in the Belgian capital purports that German Chancellor, Angela Merkel, found British Prime Minister Theresa May’s speech so unsure and nervous that she was unable to understand the UK’s premier. Speaking after the dinner, the Chancellor is supposed to have requested the assistance of the EU’s chief negotiator Michel Barnier to explain to her exactly what had happened. Speaking to the cameras also, May appeared flustered and confused, rattling off ill-formed sentences as fast as her tongue would carry her. Sterling took a battering during the decision, dropping down from session highs of 1.14 against the Euro. The Euro fared poorly overnight and throughout the morning before finding a footing during the European afternoon session. Despite not taking centre stage at the summit over the past few days, EU Commissioner Gunther Oettinger did address Italy’s budget proposal, noting that it was not in line with EU regulations and guidelines. The fallout from Commissioner for Budget and Human Resources’ words saw a marked spike in Italian yields with spill over headwinds in the European single currency. With Union solidarity during today’s summit press conferences, the Euro was able to gain ground despite being capped below 1.15 against the US Dollar. The Dollar itself caught a bid as tensions soured between Saudi Arabia and the United States, with US Treasury Secretary Steven Mnuchin confirming that he won’t be participating in the forthcoming investment summit in the Middle Eastern state. The Rand had fared well in recent days, catching a bid by consequence of a rapidly appreciating Turkish Lira and concomitant emerging market rally. However, the South African Rand was unable to sustain these gains amidst broad based Dollar strength.
To any and all of you attending this evening’s card launch event, we greatly look forward to welcoming you shortly.
Discussion and Analysis by Charles Porter