020 7898 0500Last Friday, the Chief Executive of the world’s second largest investment bank. Goldman Sachs, warned that London ‘will stall’ because of the risks associated with the Brexit process. Lloyd Blankfein stated that both sides in the negotiations were playing for very high economic stakes. He also revealed that the bank has ‘contingency plans’ to move people, depending on the outcome of the negotiations. His interview highlights the uncertainty that continues to surround Brexit.
In the meantime, sterling remained positive as the Tories gained ground in local elections across Britain at the expense of Labour and UKIP. While this does not necessarily reflect the outcome of the general election, it does not bode well for Labour, especially considering that opposition parties normally do better in local elections than the governing party.
Looking to the week ahead, the key event will be the Bank of England’s Super Thursday, where they will release their interest rate decision, quarterly inflation report, update on growth and inflation forecast, and hold a press conference to answer questions.
