020 7898 0500On a day where we learned JLR will rethink £80 billion UK investment if the UK goes ahead with a hard Brexit, we also saw new car sales decline by a whopping 3.5%. The fall can be mainly attributed to a sharp decline in sales of diesel-powered cars, as customers remain uncertain over the future policy towards this technology. In contrast, demand for hybrid cars and battery vehicles increased by 45%.
Meanwhile, Bank of England Governor, Mark Carney, delivered a speech in Newcastle. He said that he was confident that the economic slowdown the UK experienced in the first quarter of 2018 was only temporary and in large part because of the inclement weather. Investors immediately took the statement as evidence that there will be a rate hike in August, but sterling strengthening was short-lived and it quickly fell back.
Carney also said that Trump’s tariffs were already beginning to have an effect on the global economy by causing a slowdown in exports and manufacturing. He warned that the situation could get a whole lot worse and we’re surely not alone in hoping that the situation is resolved as soon as possible. Nobody stands to benefit from a trade war, despite what the president might claim.
Today we have the Halifax house price index for June and labour productivity for the first quarter of 2018. All eyes will be on May as she seeks to thrash out a Brexit deal with ministers.
